New California employment laws 2026 brought changes to wages, required notices, job postings, employment contracts and personnel records. Many took effect on January 1, and a few have deadlines later in the year or in 2027. If you run a business in Orange County, this simple checklist walks through the changes most employers need to know, what to do about each one, and how to keep your temporary and staffing workforce compliant too.
This article is general information, not legal advice. Laws can change and every business is different, so talk with an employment attorney about your specific situation.
Table of Contents
California Employment Laws 2026: Quick Checklist
- Pay at least $16.90 per hour, and plan for $17.40 on January 1, 2027.
- Check exempt salaries against $70,304 (2026) and $72,384 (2027).
- Give every employee the Workplace Know Your Rights notice (SB 294).
- Offer employees the option to name an emergency contact (SB 294).
- Post good-faith pay ranges in job postings (SB 642).
- Remove “stay-or-pay” repayment terms from agreements (AB 692).
- Add training and education records to personnel files (SB 513).
- Update layoff notice templates (SB 617) and pay data storage (SB 464).
- Review how you use AI and automated tools in hiring.
1. Minimum Wage and Exempt Salary Increases
The statewide minimum wage rose to $16.90 per hour on January 1, 2026, and the Department of Industrial Relations has announced it will rise to $17.40 on January 1, 2027. The minimum salary for most exempt employees is twice the minimum wage for full-time work: $70,304 in 2026 and $72,384 in 2027. Local and industry minimum wages may be higher. Our California minimum wage 2026 guide has examples and overtime rules.
2. Workplace Know Your Rights Notice (SB 294)
Starting February 1, 2026, California employers must give employees a stand-alone written notice about their workplace rights. It covers topics such as workers’ compensation, protections related to immigration inspections, the right to organize, and rights when dealing with law enforcement at work.
- When: to current employees by February 1, 2026, then every year on February 1, and to new hires on their first day.
- How: the way you normally communicate about work, such as in person, by email or by text, in the language you normally use with the employee.
- Template: the Labor Commissioner publishes a model notice, which you can use to meet the requirement.
- Records: keep proof of when each notice was provided for three years.
SB 294 also requires employers to let employees name an emergency contact to be notified if the employee is arrested or detained at the worksite or while working. This option had to be offered by March 30, 2026. Penalties can reach $500 per employee for notice violations, so make sure new hires are covered as part of onboarding. The Labor Commissioner’s 2026 letter to employers summarizes these requirements.
3. Pay Scales in Job Postings (SB 642)
California already requires employers with 15 or more employees to include a pay scale in job postings. Starting January 1, 2026, SB 642 clarifies that the pay scale must be a good-faith estimate of the salary or hourly range the employer reasonably expects to pay when it hires for the role. The law also strengthens equal pay rules and gives employees more time to bring pay claims.
What to do: review your open job postings and recruiting templates. Avoid ranges that are so wide they are not meaningful, and keep notes on how you set each range.
4. Limits on “Stay-or-Pay” Agreements (AB 692)
For agreements entered into on or after January 1, 2026, AB 692 generally bans contract terms that make a worker repay money, such as training costs, fees or penalties, if their employment ends. There are narrow exceptions, including some tuition repayment for transferable credentials and certain discretionary signing or retention bonuses that meet strict conditions, such as a separate agreement, a retention period of two years or less, prorated repayment with no interest and notice of the right to consult an attorney.
What to do: review offer letters, training agreements and bonus agreements with counsel before using them for new hires.
5. Training Records in Personnel Files (SB 513)
If you keep education or training records, they now count as part of the employee’s personnel file. Records should include the employee’s name, the training provider, the date and length of the training, the skills or competencies covered and any certification earned. Employees can request to inspect their personnel file, and employers generally have 30 days to make it available.
This is especially important for warehouse and manufacturing employers that train forklift operators and other equipment users. Keep training sign-in sheets and certificates organized by employee.
6. Layoff Notices and Pay Data Reporting (SB 617 and SB 464)
Under SB 617, California WARN Act notices for mass layoffs, relocations or closures must include more information, such as details about the local workforce development board, reemployment services and CalFresh food assistance. Under SB 464, employers that file pay data reports must store demographic information separately from personnel records starting in 2026, and they will report using 23 job categories for the report due in 2027.
If your business has 100 or more employees hired through labor contractors such as staffing agencies, remember that California’s pay data reporting rules can also cover those workers.
7. AI and Automated Tools in Hiring
California’s Civil Rights Council rules on automated decision systems took effect on October 1, 2025. They make clear that anti-discrimination laws apply when employers use software, AI tools or vendors to screen resumes, rank candidates or make other employment decisions. If you use these tools, ask your vendors how they are tested for bias and keep records of how the tools are used.
What These Laws Mean If You Use Temporary Staff
Many Orange County businesses rely on temporary and seasonal workers, especially in warehousing, distribution and light industrial work. Under California Labor Code section 2810.3, a business that uses workers supplied by a staffing agency can share legal responsibility with the agency for paying those workers’ wages and for workers’ compensation coverage. That makes your choice of staffing partner a compliance decision, not just a hiring decision.
A reliable staffing partner should handle payroll, wage rates, required notices, paid sick leave and workers’ compensation for the associates it places with you. At Swift Outsourcing Solutions, we provide staffing services in Orange County for temporary, temp-to-hire and direct placement roles, and we can dispatch associates within 24 hours of a signed contract. If you are deciding how to staff a role, our guide on temp-to-hire vs direct hire can help.
Frequently Asked Questions
What new California employment laws took effect in 2026?
Key changes include the $16.90 minimum wage, the Workplace Know Your Rights notice (SB 294), clearer pay scale rules for job postings (SB 642), limits on stay-or-pay agreements (AB 692), training records in personnel files (SB 513), and updates to layoff notices (SB 617) and pay data reporting (SB 464).
When is the Know Your Rights notice due?
Employers had to give the notice to current employees by February 1, 2026. After that, it must be given every year by February 1 and to new hires on their first day.
Do these laws apply to temporary workers?
Yes. Temporary workers have the same wage and notice protections, and in California a business that uses staffing agency workers can share responsibility for their wages and workers’ compensation.
What should Orange County employers do first?
Start with payroll and onboarding: confirm everyone earns at least the current minimum wage, check exempt salaries, add the Know Your Rights notice to new-hire paperwork and review job posting pay ranges. Then review agreements and AI hiring tools with an employment attorney.
Next Steps for Orange County Employers
- Assign one person to own HR compliance updates each year.
- Work through the checklist above and note any gaps.
- Update onboarding packets, job posting templates and payroll before January 1, 2027.
- Review agreements and AI hiring tools with an employment attorney.
- Ask your staffing partner how they handle each of these requirements.
Keeping up with California employment laws 2026 and beyond is easier with the right partner. Need dependable workers who are hired and paid the right way? Call (855) 4SOS-JOBS or contact our Garden Grove team to talk about your staffing needs.
