As California employers prepare for 2026, staying current with employment law developments remains an important part of running a compliant and well-managed workplace. While many legal obligations are familiar, ongoing legislative updates and enforcement trends can create new areas of risk if policies and practices are not reviewed regularly. Understanding where issues are most likely to arise can help employers plan ahead and avoid costly disputes.
Wage and Hour Compliance
Wage and hour compliance continues to be a primary concern for California employers. Scheduled increases to the state minimum wage, along with higher local wage ordinances in many cities and counties, affect both hourly and salaried employees. These changes also impact exempt classifications, which are tied to minimum salary thresholds under state law. Employers that do not revisit compensation structures, job classifications, or local wage requirements may face claims involving unpaid wages, overtime, or misclassification.
Pay Transparency and Equal Pay
Pay transparency and equal pay obligations also require close attention. California law mandates pay scale disclosures and recordkeeping requirements that affect job postings and internal compensation practices. Employers should ensure that pay ranges are stated in good faith and that compensation decisions are consistent and well-documented. Inconsistencies or unexplained pay differences can increase the risk of agency inquiries or employee claims, particularly as enforcement in this area continues to expand.
Notice, Posting, and Recordkeeping
Notice, posting, and recordkeeping requirements remain another area of potential exposure. California regularly updates the information employers must provide to employees regarding workplace rights and benefits. Missing or incomplete notices, or inadequate documentation showing that required notices were provided, can lead to penalties and complicate an employer’s position in the event of a dispute. Employers benefit from having clear internal procedures to ensure notices are distributed and retained appropriately.
Employment Agreements and Workplace Policies
Employment agreements and workplace policies should also be reviewed periodically. California places strict limits on certain contractual provisions, including post-employment restrictions and repayment obligations. Agreements that were once common may no longer be enforceable or may require modification to comply with current law. Reviewing offer letters, handbooks, arbitration provisions, and incentive or training agreements can help reduce unnecessary risk.
Enforcement and Litigation Exposure
Enforcement and litigation exposure remains a reality for California employers. Wage and hour claims, retaliation allegations, and compliance-based disputes continue to be common, even when violations are unintentional. Proactive compliance efforts, including regular audits and management training, can help identify issues early and reduce exposure.
If your organization would like guidance on employment law compliance, policy updates, or risk management strategies for 2026, EmployLaw Group is available to help. Call (805) 586-1381 or submit an inquiry through their contact form at https://employlawgroup.com/about-elg/.