Ep. 552 California Employment Law Updates for 2026

California Governor Gavin Newsom has signed into law several new bills impacting both workers and employers, covering everything from paid leave to wage transparency. This episode, Rancho Mesa’s Alyssa Burley and Client Technology Specialist, Brenda Colby sit down to discuss changes to California employment laws in 2026.

Show Notes: ⁠⁠⁠⁠Subscribe to Rancho Mesa's Newsletter⁠⁠⁠⁠

Host: ⁠⁠⁠⁠Alyssa Burley

Guest: ⁠⁠⁠⁠Brenda Colby

Editor: Jadyn Brandt

Music: "Home" by JHS Pedals, “Breaking News Intro” by nem0production

© Copyright 2025. Rancho Mesa Insurance Services, Inc. All rights reserved.

Transcript

Alyssa Burley: You’re listening to Rancho Mesa’s StudioOne™ podcast, where each week we break down complex insurance and safety topics to help your business thrive. 

I’m your host, Alyssa Burley, and today I’m joined by Brenda Colby, Client Technology Specialist with Rancho Mesa, and we’re going to discuss changes to California employment laws in 2026.

Brenda, welcome to the show.

Brenda Colby: Hi Alyssa, happy to be here.

AB: Now, California Governor Gavin Newsom has signed into law several new bills that are going to impact both workers and employers, covering everything from paid leave to wage transparency. So, let’s talk through a few of these changes, starting with Senate Bill 294 which deals with workplace rights. Brenda, will you give us a brief summary of SB 294?

BC: Absolutely. So, Senate Bill 294 introduces new requirements for employers, starting February 1st of 2026. Under this law, employers must provide an annual written notice to employees outlining their workplace rights. But what really stands out is that if an employee is arrested or detained while at work, the employer will be required to notify that employee’s emergency contact.

AB: So, that sounds like a significant shift in employer responsibilities, especially around emergency protocols.

Now, let’s move on to something that affects many families, Paid Family Leave. So what’s happening with Senate Bill 590?

BC: So, Senate Bill 590 expands the scope of who is considered “family” when employees take Paid Family Leave. And starting July 1st of 2028, workers in California will be eligible to receive paid family leave benefits to care for a “designated person.” And this can be a blood relative, but it also includes someone who’s not related by blood but is considered the equivalent of family.

AB: So, it's a revised definition of who is considered a family member.

BC: Yes, exactly.

AB: Next up is a bill I know will affect job postings across the board, Senate Bill 642, which updates the Wages and Equal Pay Act. What should employers know about this one?

BC: Well, SB 642 makes several key updates. First, it redefines “pay scale” in job postings to mean “a good faith estimate of the wage or salary range the employer reasonably expects to pay for a position at the time of hire.”

It also extends the statute of limitations for pay discrimination claims to three years, and employees can now seek recovery of lost wages going back six years. That’s a big change for both recordkeeping and potential liability.

AB: Yeah and I think we’ll see more employers tighten their pay ranges in job posting as a result of this. When the wage range is really wide, it’s hard for job seekers to really know where they would fall on the spectrum.

Now, what’s new with employee personnel records?

BC: So, Senate Bill 513 expands what’s considered part of an employee’s personnel record. It now includes training records -- so things like certificates received, the name of the training provider, and the specific skills covered in that training.

AB: So, employers will have to keep more than just performance reviews or disciplinary records, they’ll also need to keep documentation of employees’ professional development as well. And, here’s a plug for our SafetyOne™ platform; it’s a great place to store those employee training records.

BC: Exactly. This can help create a fuller picture of an employee’s qualifications and growth within the organization.

AB: Great. And for our listeners, these laws are only some of the changes employers will need to be aware of in 2026. For a comprehensive discussion of the most important changes to California’s employment laws, be sure to register for Rancho Mesa’s 2026 Employment Law Update workshop, happening on Friday, November 21st, 2025 from 10:30 A.M. to noon at the Mission Valley Library.

So before we wrap up, Brenda, what advice do you have for employers who are working to keep compliant with the new law updates?

BC: Well I say, definitely get started early. Don’t wait until the effective dates to take action. Review your policies and documentation now. Make sure your HR team is trained on these updates, especially regarding wage transparency and recordkeeping. It’s also a good time to audit your current personnel files and job postings to ensure compliance with the new definitions.

To simplify the process, employers can use Rancho Mesa’s RM365 HRAdvantage™ portal to build and update a compliant employee handbook, create policies using sample documents, and receive alerts as laws change.

AB: Absolutely. So Brenda, if listeners have questions about accessing or using the RM365 HRAdvantage portal or our SafetyOne Platform for documentation, what’s the best way to get in contact with you?

BC: As always, clients can contact me at bcolby@ranchomesa.com or call me directly at (619) 486-6562. 

AB: Alright, well Brenda, thank you for joining me in StudioOne™. 

BC: Thanks for having me!

AB: Thanks for tuning in to our latest episode produced by StudioOne™. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at RanchoMesa.com and subscribe to our weekly newsletter.