2026 Legislative Update (Part Three): Employment Rights

March 23, 2026 by Beeson Tayer & Bodine

 

Paid Family Leave to Care for Any Designated Person Starting in 2028 (SB 592)

By: Grant Reed-Hoos

SB 590, effective January 1, 2028, adds a new protected use of California’s Paid Family Leave (PFL) program. Currently employees can take up to eight weeks off to care for a family member as defined by statute. SB 590 expands PFL to cover care for a designated care recipient whose association with the employee is the equivalent of a family relationship. Employees must sign a sworn declaration under penalty of perjury attesting that the relationship with the designated care recipient is either blood-related or equivalent to a family relationship.

 

Class Complaints Before the California Civil Rights Division (SB 477)

By: Magali Kincaid

This bill clarifies language in the Fair Employment and Housing Act to allow the California Civil Rights Division (CRD) to more easily investigate civil rights complaints, such as for workplace harassment and discrimination. This bill would allow CRD to pause investigations when parties agree, update definitions of group or class complaints, and clarify the deadline for a complainant to file a case in court.

 

Training Records Included in Personnel Records (SB 513)

By: Magali Kincaid

Under California law, employees have a right to inspect and receive a copy of their personnel records. This bill requires employers to include an employee’s education and training records as part of the employee’s personnel records, including information about the training provider’s name, duration and date of training, core competencies of the training, and the resulting certification.

 

Processing Complaints by Agricultural Employees (AB 845)

By: Laura Christensen Garcia

This bill, effective January 1, 2026, makes it easier for agricultural workers to report unsafe work conditions and labor violations to a state agency. Upon appropriation from the Legislature, the Agricultural Labor Relations Board, Department of Industrial Relations, Division of Labor Standards Enforcement, and Division of Occupational Safety and Health must coordinate their efforts to ensure that complaints filed by agricultural workers are routed to the appropriate department for processing and investigation. The law further guarantees the complainant confidentiality unless they explicitly consent to the disclosure of their personal information.

 

Restrictions on “Stay-or-Pay” Agreements (AB 692)

By: Clarissa M. Romero

This bill, effective January 1, 2026, makes it unlawful to include or contract for terms that impose penalties or fees, require employees to pay debts, or authorize debt collection, if the employment relationship ends, often referred to as “stay-or-pay” agreements. Previously, these contract terms required workers to reimburse employers for incentives, work-related training, education, relocation, or other retention bonuses if they leave employment before a specified date.

As always, there are some very specific exceptions to this bill. These include payback agreements for:

• A loan repayment assistance program or forgiveness program
• Enrollment in an apprenticeship program approved by the Division of Apprenticeship Standards
• The lease, financing, or purchase of residence
• Repayment of the cost of tuition for a transferable credential if the credential is separate from the employment contract, is not a condition of employment, does not exceed cost of credential, is provided on a prorated repayment, and repayment is only required if terminated for misconduct
• Repayment of discretionary or unearned monetary payment if it is separate from the employment contract, the employee is notified of their right to consult an attorney, the repayment is prorated, deferring payment is allowed, and the separation is at the employee’s discretion or due to misconduct

This bill does not specifically address employees covered by a collective bargaining agreement.

 

The Workplace Know Your Rights Act (SB 294)

By: Clarissa M. Romero

Starting January 1, 2026, employers will be required to provide a standalone, written notice to each employee informing them of their rights. The initial notice must be provided by February 2026 and then provided annually thereafter. The notice will include workers’ compensation benefits, the right to notice of inspection by immigration agencies, protection against unfair immigration related-practices, the right to unionize, and Constitutional rights.

Employers are also required to contact an employee’s designated emergency contact if the employee is arrested or detained. Failure to meet the requirements of this bill could result in an employer being liable for penalties of $500 per employee per violation and up to $10,000 per employee for certain serious violations, such as the failure to notify emergency contacts. Note that the written notice requirement may be waived by a collective bargaining agreement if the waiver is stated in clear and unambiguous terms.

 

Construction Trucking and Independent Contractors (SB 809)

By: Clarissa M. Romero

SB 809 clarifies that under existing law, ownership of a vehicle used to perform an employee’s duties is not determinative of that worker’s status as an employee or independent contractor. It further clarifies that an employer is required to reimburse an employee for the use of a vehicle that is “owned and used by the employee in the discharge of their duties.” This includes reimbursement for use, maintenance, and depreciation.

 

The material on this website is provided by Beeson, Tayer & Bodine for informational purposes only and does not constitute legal advice. Readers should consult with their own legal counsel before acting on any of the information presented. Some of the articles are updated periodically, and are marked with the date of the last update. Again, readers should consult with their own legal counsel for the most current information and to obtain professional advice before acting on any of the information presented.