2026 Minimum Compensation for Exempt Licensed Physicians/Surgeons and Computer Software Engineers
In addition to minimum wage increases, with the new year employers must increase minimum compensation for licensed physicians/surgeons and computer software professionals who are exempt from overtime.
California Labor Commissioner Publishes Template Workplace Know Your Rights Act Notice to be Provided to Employees by February 1, 2026
Consistent with legislation enacted in 2025, employers must provide employees with a Workplace Know Your Rights Act Notice on or before February 1, 2026. The Labor Commissioner has now published the template notice, which is available in both English and Spanish for employers to distribute. Additional languages will be added in the future. Employers must also provide employees with an opportunity, on or before March 30, 2026, to designate an emergency contact and to indicate whether that contact should be notified in the case of an arrest or detention while working and/or at the worksite.
Employee with Mistaken Legal Theory May Pursue Labor Code Section 1102.5 Whistleblower Retaliation Claim if the Employee Reasonably Believes the Employer’s Conduct was Unlawful
In a case that went from a jury verdict in favor of the employee to a judgment notwithstanding the verdict in favor of the employer, a California appellate court held this month that an employee could prevail on a whistleblower claim pursuant to Labor Code section 1102.5(b), notwithstanding the fact that the underlying conduct about which the employee claimed was not unlawful, because the employee had reasonable cause to believe the employer’s conduct violated the law, shared his concerns about the perceived violation with his employer, and was terminated for doing so.
“Stay or Pay” Employment Agreement Provisions Prohibited in the New Year
Effective January 1, 2026, subject to limited exceptions, California will prohibit contractual terms that require employees to repay an employer for a debt if their employment ends. Failure to abide by these prohibitions for contracts entered into in the new year may subject employers to civil liability.
Updated Guidance for Employers Regarding 2025 Reporting Obligations for Qualified Tips and Qualified Overtime Compensation Under the One Big Beautiful Bill Act
As summarized in a prior legal update, the federal One Big Beautiful Bill Act impacts employers in a variety of ways. On November 5, 2025, the Internal Revenue Service and US Treasury Department provided updated guidance regarding employer reporting obligations for the 2025 tax year.
California Employers Should Begin Preparing for Wage Increases in the New Year
California’s minimum wage will increase on January 1, 2026, which will impact the minimum salary required for certain white collar exemptions and the minimum pay rate required for certain collective bargaining agreement exemptions.
Employers Have New Obligations Regarding Employee Personnel Files in the New Year
Effective January 1, 2026, Senate Bill 513 adds “education or training records” to the category of personnel records that employers must make available to employees or their representatives and specifies the information that must be included as part of those education or training records.
Appellate Court Clarifies Correct California Sick Pay Calculation for Exempt Employees, Including Outside Sales Employees
Reaching a different conclusion than the California Division of Labor Standards Enforcement had reached in an October 2016 opinion letter, a California appellate court concluded this summer that employees who qualify under the outside sales exemption should be paid sick leave pursuant to the Healthy Workplaces Healthy Families Act of 2014 in the same manner used to calculate sick pay for other exempt employees, including those classified pursuant to the administrative, executive, and professional exemptions. In doing so, the court explained that the statutory language of California’s paid sick leave law is unambiguous and “‘exempt employees’ includes [employees] . . . who are exempt from overtime wages,” including those classified under the outside sales exemption.
California Appellate Court Rules That, Although Coworker’s Off-Duty Conduct Was Not Imputable to Employer, Employer’s Response to Complaint May Establish a Cognizable Claim for Harassment
Last month, the California Court of Appeal for the Fifth Appellate District held that, although the employer was not liable for harassment based on a coworker’s off-duty conduct unrelated to work, the employee nevertheless stated a cognizable claim against the employer—and could proceed with litigation on both the harassment and failure to prevent harassment claims—based on its response to the employee’s harassment complaint.
Governor Newsom Signs New Bills Into Law Impacting California Employers
Earlier this week and, in some instances, earlier this past summer, California Governor Newsom signed into law several bills that will take effect on January 1, 2026. This legal update provides a summary of some of the laws that will impact California employers.
Important Considerations for Employers Regarding the One Big Beautiful Bill Act and Its Provisions Addressing Deductions for Qualified Tips and Qualified Overtime
The federal One Big Beautiful Bill Act impacts employers in a variety of ways. This legal update discusses some of those impacts with regard to tip and overtime compensation.
California Civil Rights Department Publishes Model Form Notice Regarding Rights of Employees Who Are, or Whose Family Members Are, Victims and/or Survivors of Violence Along with Additional Resources
Consistent with the changes that went into effect on January 1, 2025, pursuant to California Assembly Bill 2499, the California Civil Rights Department has published its model form notice related to victims and survivors of qualifying acts of violence. California employers’ obligation to post and distribute this notice became effective with the state’s July 1, 2025 publication. This week’s legal update provides information about how to access that model form notice, employer obligations to post and distribute it to employees, and additional resources provided to employers and employees.
Mid-Year Industry and Locality Minimum Wage Increases for Nonexempt Employees Effective July 1, 2025
Although state-wide minimum wage increases typically occur at the beginning of each calendar year, employers in some industries and localities are subject to mid-year minimum wage increases effective July 1, 2025. This week’s legal update provides information regarding those changes..
2025 Workplace Violence Prevention Plan Review, Revision, and Retraining Obligations
As California approaches the one-year anniversary of the implementation of legislative measures intended to prevent and respond to workplace violence, and the California Division of Occupational Safety and Health continues to work on revisions to its draft workplace violence prevention standard, employers must review and potentially revise their workplace violence prevention plans and provide annual training to employees.
California Appellate Court Rules on Issue of First Impression: Who Bears the Risk of Loss When a Scammer Misdirects Settlement Funds to the Wrong Recipient?
A settlement is reached. As in most settlements, the parties are uncomfortably comfortable with the resolution. The day comes to pay. Payment is made but goes to the wrong account. The money is gone and the settlement agreement remains. Which party bears the risk of loss when the settlement funds are wired to and received by the wrong recipient, potentially a scammer, instead of the settling party? This is the question a California appellate court addressed this week.
Reductions in Force: California Worker Adjustment and Retraining Notification Act (Cal-WARN Act)
Last week’s legal update provided an overview of Worker Adjustment and Retraining Notification (WARN) Act obligations under federal law. As is often the case in California, in addition to complying with federal laws, California employers must also comply with additional obligations under state laws when implementing reductions in force. This week’s legal update provides an overview regarding California’s “mini” WARN Act.
Reductions in Force: Federal Worker Adjustment and Retraining Notification Act (Federal WARN Act)
Reductions in force occur for a variety of reasons, sometimes due to internal factors and other times resulting from external influences. No matter the cause, layoffs and closures are difficult for any business. Among other factors to consider, employers must review their Worker Adjustment and Retraining Notification (WARN) Act obligations under both federal and state laws and ensure any reductions comply with these obligations, if triggered. This week’s legal update provides a general overview regarding the federal WARN Act. A future update will summarize California’s “mini” WARN Act. Employers with California operations must understand their obligations under both laws.
Employment Law Refresher: Federal Agency Resources Available to Employers
A prior legal update provided information regarding California employment law resources available from state agencies. This week’s legal update provides similar information about federal agencies. Employers should consult legal counsel to ensure compliance with applicable laws.
California Appellate Court Upholds Prospective Meal Period Waiver for Work Periods of Five to Six Hours: Bradsbery v. Vicar Operating, Inc.
As covered in a recent series of Friday legal updates, California law requires employers to provide nonexempt employees with statutory meal periods and further permits employees to waive those meal periods in specific circumstances. This week, a California appellate court confirmed as lawful a longstanding practice whereby employers and employees prospectively waive meal periods before the right to take them accrues. This week’s legal update summarizes the case and the circumstances supporting the court’s ruling.
California Employment Law Refresher: State Agency Resources Available to Employers
Seeking guidance from legal counsel is the best way to ensure an employer’s practices comply with federal, state, and local laws. In addition to that guidance, however, there are various additional resources prepared by federal, state, and local public entities that may be of assistance to employers in mitigating legal risk. This week’s Friday Legal Update outlines, and provides links to, several resources available from California state agencies.