Quick Answer: California’s 2026 employment law updates bring meaningful changes for employees, including a minimum wage increase to $16.90 per hour, a higher exempt salary threshold of $70,304, stronger wage enforcement with public posting of unpaid judgments, expanded access to personnel records, and new procedural rules for discrimination and harassment claims. If you’re an hourly worker, an employee questioning your classification, or someone facing workplace discrimination, these changes may directly affect your rights.
What Changed in 2026 and Why It Matters
Every January, California updates its employment laws, and 2026 brought a wave of changes that shift more power toward employees. From minimum wage increases to sharper enforcement against employers who don’t pay what they owe, these updates signal that the state is taking wage theft and workplace violations more seriously.
If you’re an hourly worker wondering whether your paycheck reflects the new minimum wage, a salaried employee questioning whether your “exempt” classification is legitimate, or someone who has experienced discrimination or retaliation at work, now is the time to understand what protections are available to you.
How Did Pay and Classification Rules Change?
Minimum Wage Increase
Effective January 1, 2026, all California employers must pay at least $16.90 per hour. This is an increase from the $16.50 rate in 2025. If you’re an hourly worker, your paycheck should reflect this change. If it doesn’t, that’s a red flag worth investigating.
Keep in mind that several California cities and counties have local minimum wage ordinances that exceed the state rate. If you work in a jurisdiction with a higher local minimum wage, your employer must pay the higher amount.
Exempt Salary Threshold Increase
If your employer classifies you as “exempt” from overtime, they must now pay you at least $70,304 annually (roughly $1,352 per week). But here’s what many employees don’t realize: salary alone doesn’t make you exempt. You must also meet the “duties test,” meaning you must actually perform exempt-level work (executive, administrative, or professional duties) more than 50% of the time.
We see this issue frequently. An employer labels someone a “manager” or “supervisor,” pays them a salary, and expects them to work 50 or 60 hours a week without overtime. But if that employee spends most of their time doing the same work as hourly staff, they may be misclassified and owed significant back pay.
When Should You Talk to a Lawyer?
Consider reaching out if you notice any of these patterns:
- Your employer recently converted you from hourly to salary with no real change in your duties
- You’re classified as exempt but spend most of your day performing non-managerial tasks
- You’re consistently working more than 8 hours a day or 40 hours a week without overtime pay
- Your pay rate hasn’t increased to reflect the new minimum wage
Wage and hour violations and misclassification are among the most common employment law issues in California. The earlier you address them, the more options you have.
How Did Wage Enforcement Get Stronger?
California’s Division of Labor Standards Enforcement (DLSE) now has sharper tools to hold employers accountable. Under SB 261, the state will publicly post final Orders, Decisions, and Awards (ODAs) against employers who owe employees money. They’ll also maintain a list of employers with unsatisfied wage judgments.
For employees, this means more transparency. You can see whether an employer has a history of not paying their employees.
The law also imposes real consequences for employers who ignore these judgments. If an employer wants to appeal an ODA, they must now post a bond or cash deposit as security. If they still haven’t paid 180 days after all appeals are exhausted, they face civil penalties of up to triple the unpaid amount plus interest.
What Should You Do?
Document everything. Keep copies of your pay stubs, time records, and any written communications about your pay. If you suspect you’re owed wages, don’t wait for the problem to compound. The stronger enforcement rules only help if employees come forward.
What Are Your Expanded Rights to Personnel Records?
Under SB 513, California expanded the definition of “personnel records” to include education and training records maintained by your employer. This means you can now request copies of records showing what training you’ve received, how long it lasted, when it occurred, and what certifications or qualifications resulted from it.
Why does this matter? These records can help you clarify your job responsibilities, verify your qualifications for a role, and identify whether your employer has properly documented the duties they expect of you. If there’s ever a dispute about your classification, pay, or performance, having access to these records puts you in a stronger position.
To request your personnel records, submit a written request to your employer. They must make the records available within 30 days (or 35 days if you’re a former employee).
What Changed with Discrimination, Harassment, and Retaliation Claims?
If you’re considering filing a complaint with the California Civil Rights Department (CRD) for discrimination, harassment, or retaliation, SB 477 introduced procedural changes you should know about.
Group and Class Complaints
The law clarifies that “group or class complaints” include any complaint alleging a pattern or practice of discrimination. This gives the CRD broader authority to investigate systemic issues affecting multiple employees, not just individual cases.
Tolling Rules
The law expanded tolling rules, which can pause the clock on your deadline to file a lawsuit while administrative proceedings are pending. This gives employees more flexibility, but it also means timelines can get complicated. If you’re navigating a CRD complaint, tracking your deadlines carefully is essential.
What Should You Do Now?
If you’re experiencing discrimination, harassment, or retaliation:
- Write down specific dates, times, and what happened
- Save text messages, emails, and any written communications
- Keep a timeline of events, including when you reported issues and how your employer responded
- Don’t assume the problem will resolve itself
The sooner you document what’s happening, the stronger your position will be if you decide to file a complaint or lawsuit.
Did You Receive Required Workplace Notices?
Under the new Workplace Know Your Rights Act (SB 294), employers must provide a stand-alone notice to all employees, both at hire and annually, outlining several key rights. These include protection against unfair immigration-related practices, the right to notice of immigration agency inspections, constitutional rights when interacting with law enforcement at work, employees’ compensation rights, and the right to unionize.
Employers must provide this notice by February 1, 2026, using a method reasonably anticipated to reach you within one business day.
Additionally, you now have the right to designate an emergency contact to be notified if you’re arrested or detained at your worksite. Existing employees should have been given this opportunity by March 30, 2026. If you haven’t received these notices, ask your HR department. Employers who fail to comply face penalties of up to $500 per employee for each violation.
What If You Work at a Larger Employer?
If you work for a company with 100 or more employees, SB 464 expanded pay data reporting requirements. Employers must now report demographic information, including sexual orientation if voluntarily disclosed, and face mandatory civil penalties if they fail to file required reports.
While this requirement applies to employers, it signals that the state is increasing scrutiny on pay equity. If you suspect you’re being paid less than colleagues doing similar work, this increased enforcement environment may make it easier to pursue a claim.
Can Your Employer Charge You When You Leave?
AB 692 cracks down on contract provisions that require employees to repay employers, training programs, or debt collectors when employment ends. Many of these “training repayment” or “bonus clawback” clauses are now void under California law.
We see this come up with employees who were promised training or signing bonuses, only to face demands for repayment when they leave or are let go. The new law includes limited exceptions for genuinely transferable credentials and certain discretionary payments, but the overall intent is clear: employers can’t trap you in a job by threatening financial penalties for leaving.
If you signed a contract with repayment provisions, it’s worth having an attorney review whether those terms are enforceable under the new rules.
A Quick Check-In for California employees
Ask yourself these five questions:
- Does my pay rate reflect the new $16.90 minimum wage (or my local rate, if higher)?
- If I’m classified as exempt, do I actually perform exempt duties more than half my time?
- Am I getting all the breaks and overtime pay I’m entitled to?
- Have I received the required workplace rights notices from my employer?
- Am I experiencing discrimination, harassment, or retaliation that I haven’t reported?
If you answered “no” or “I’m not sure” to any of these questions, it may be time to take a closer look at your situation.
FAQs
What is the California minimum wage in 2026?
The California minimum wage is $16.90 per hour as of January 1, 2026. Some cities and counties have higher local minimum wages, and employers must pay whichever rate is higher.
What is the minimum salary for exempt employees in California in 2026?
Exempt employees must earn at least $70,304 annually ($1,352 per week) in 2026. However, meeting the salary threshold alone isn’t enough. Employees must also perform exempt-level duties more than 50% of their working time.
What personnel records can I request from my employer in California?
You can request records relating to your performance, grievances, and now education and training records. Employers must provide copies within 30 days of a written request (35 days for former employees).
How long do I have to file a discrimination complaint in California?
You generally have three years from the date of the discriminatory act to file a complaint with the Civil Rights Department. However, tolling rules can affect this timeline, so consulting with an attorney is advisable if you’re approaching any deadline.
Can my employer make me repay training costs if I quit?
In most cases, no. AB 692 voids contract provisions requiring repayment upon termination unless specific exceptions apply, such as genuinely transferable credentials with proper disclosure requirements.
Protect Your Rights in 2026
California’s employment laws are designed to protect employees, but those protections only matter if you know about them and take action when something isn’t right. If you have questions about your pay, classification, workplace conditions, or treatment by your employer, the employment attorneys at MSD Lawyers are here to help.
