What's New In Employment Law?

As we move into 2026, California employers face a series of important compliance deadlines. One that deserves timely attention is the new notice requirement imposed by Senate Bill 294 (“SB 294”), which mandates that employers distribute a new standalone “Know Your Rights” notice to all employees.

What Does the New Law Require?

Effective February 1, 2026, SB 294 requires employers to provide every employee with a separate written notice (distinct from the Labor Code section 2610.5 notice or handbook) explaining certain employee rights:

• At the time of hiring new employees, and for existing employees by March 30, 2026, the employer must offer the opportunity to name an emergency contact. The employee must also be allowed to update this information during employment.
• The notice must allow the employee to indicate whether the emergency contact should be notified if the employee is arrested or detained on the worksite, during work hours, or while performing job duties (if the employer becomes aware of that arrest/detention).
• Non‐compliance may trigger penalties (employers should review final regulatory guidance).

So What?

On its face, the new requirement seems merely to add to your administrative burden. However, it deserves your attention for several reasons:

• Compliance risk: The February 1 deadline for providing the notice means employers should begin drafting or updating their notice now rather than waiting until year-end.
• Integration with existing processes: Because the law ties to both new hires and existing employees (via March 30, 2026, for the emergency contact update), your onboarding and annual review processes will need adjustment.
• Policy alignment: The notice includes an option for the employee to authorize employer notification of their emergency contact if arrested/detained. This option raises questions about how the employer will handle and process such events, data-privacy implications, and how the policy will be communicated internally.
• Audit readiness: Given the broader legislative wave in California for 2026, including several other changes (e.g., pay transparency, wage-theft enforcement, exempt salary thresholds) this notice requirement is part of a larger compliance ecosystem. It’s an opportunity to review your entire employee-notice portfolio.
• Employee experience and employer branding: For many employers, this isn’t just a legal tick-box. It can be an opportunity to demonstrate care for employee well-being (emergency contact, clarity of rights, etc.).

Your “To Do” List

Here’s a checklist to integrate this requirement into your compliance roadmap:

1. Prepare the notice: SB 294 also added to the Labor Code section 1554, whose subdivision (a) provides:

   The Labor Commissioner shall develop a template notice that an employer may use to comply with the requirements of Section 1553. On or before January 1, 2026, the Labor Commissioner shall post the template notice on its internet website so that it is accessible to an employer. The Labor Commissioner shall post an updated template notice annually thereafter. The template notice shall be written in plain terminology that is easily understood by a worker. The Labor Commissioner shall make the template notice available in different languages, including English, Spanish, Chinese, Tagalog, Vietnamese, Korean, Hindi, Urdu, and Punjabi. The Labor Commissioner may also provide the template notice in additional languages.

   Keep your eyes out for the template notice.  We will post about it here, too!

2. Update onboarding materials: Insert the notice into your new-hire packet, and ensure HR and onboarding workflows distribute, explain, and capture acknowledgment.
3. Existing employee communication: Plan for distribution to current employees — including a mechanism for them to indicate/update emergency contact information and to check the box for “notify emergency contact if arrested/detained” (if they choose). Target completion by March 30, 2026.
4. Systems and data management: Ensure your HRIS or employee file system has a field for emergency contact, capture of the employee’s choice about notification, and ability to update during employment. Check data storage, access control, and privacy safeguards.
5. Policy documentation: Update your employee handbook and supplemental policies to reference the notice and related processes.
6. Training and communication: Consider training HR staff about how to handle this data, including how to respond if the employer becomes aware of an employee’s arrest/detention at work. Ensure consistency and sensitivity.
7. Monitor regulatory updates: Because SB 294 is part of a broader employment law update in California for 2026, stay alert to regulations or FAQs issued by the California Civil Rights Department or other agencies. For example, other laws (like expanded pay data reporting) also come into effect January 1, 2026.

Lots to do… Sigh.

About Shaw Law Group 

At Shaw Law Group, we do more than practice employment law—we partner with employers to build compliant, respectful, and productive workplaces. From day-to-day advice and counsel to impartial workplace investigations, proactive HR audits, dynamic training programs, and sensitive pre-litigation matters, our experienced team helps clients stay ahead of the curve—and out of court.

The post California’s New “Know-Your-Rights” Notice Requirement first appeared on Shaw Law Group.

      

California’s leave and accommodation landscape is expanding again in 2026 — and employers should start preparing now. With new legislation broadening when employees can take time off and heightened enforcement priorities under the Fair Employment and Housing Act (FEHA), compliance will require more than a simple policy update.

The centerpiece of these changes is Assembly Bill 406, which significantly expands California’s paid sick time law, the Healthy Workplaces, Healthy Families Act (HWHFA). Together with new Civil Rights Department (CRD) guidance, expanded “safe time” protections, and continuing developments under the California Family Rights Act (CFRA), the 2026 changes will impact policies, procedures, and day-to-day HR decision-making.

Expanded Paid Sick and Safe Time Under AB 406

Effective January 1, 2026, AB 406 broadens the list of permissible reasons employees can use paid sick and safe time under the HWHFA. Most notably, the law now incorporates expanded “safe time” protections from Government Code section 12945.8, extending leave rights to victims of certain crimes — and their family members — for a range of legal and administrative proceedings.

For example, covered employees may now use paid sick or safe time to:

• Attend judicial proceedings connected to a qualifying crime (including post-arrest release decisions, pleas, sentencing, or post-conviction hearings)
• Participate in meetings with prosecutors or law enforcement related to the incident
• Seek or renew restraining orders or protective orders
• Obtain services from a domestic violence shelter, sexual assault program, or victim services organization

Employers must allow employees to use their accrued HWHFA leave for these new purposes, in addition to existing sick and safe time reasons.

New CRD Notice and Survivor Protections

To support these expanded rights, the CRD issued a new mandatory notice, Survivors of Violence and Family Members of Victims – Right to Leave and Accommodations, in July 2025. Employers must post and distribute this notice and ensure that managers and HR staff understand its requirements.

The CRD’s accompanying FAQs clarify several critical points:

• Employees can use any accrued leave (PTO, vacation, sick leave) for protected purposes.
• Confidentiality is mandatory: employers cannot disclose the reason for the leave except as required by law.
• Anti-retaliation protections apply broadly, including against subtle forms of retaliation like schedule changes or exclusion from meetings.

CFRA Coordination: Overlapping Rights Create Complexity

The California Family Rights Act (CFRA) itself — Gov. Code section 12945.2 — is not substantively changing in 2026. It still provides up to 12 weeks of unpaid, job-protected leave for an employee’s own serious health condition, to care for certain family members (including a “designated person”), for baby bonding, and for certain military exigencies.

However, the expanded HWHFA rights and CRD protections significantly increase the number of scenarios in which multiple leave laws overlap. For example:

• An employee attending a criminal sentencing on behalf of a family member may also qualify for CFRA leave if that family member has a serious health condition.
• Paid sick time under HWHFA may run concurrently with FEHA accommodations if the absence is related to a disability or safety planning.

Employers must carefully analyze each situation at intake to determine whether it qualifies under the HWHFA, Government Code section 12945.8, the CFRA, pregnancy disability leave (PDL), and/or FEHA — and provide the proper designation notices and protections.

Designated Person and Future Changes

The “designated person” concept — allowing employees to take CFRA leave to care for someone with whom they have a family-like relationship — remains unchanged in 2026. Employers may continue to limit employees to one designated person per 12-month period.

Looking ahead, however, California’s Paid Family Leave (PFL) program will adopt a similar “designated person” category starting on July 1, 2028. This change will not affect current CFRA or HWHFA rights, but it is worth planning for because it likely will lead to more complex coordination of benefits and leave entitlements in the future.

Compliance Challenges on the Horizon

The expanded laws create several new operational challenges for employers:

• Intermittent leave stacking. Employees may take separate leave under the HWHFA, CFRA, and FEHA, leading to overlapping absences.
• Local ordinance conflicts. Employers operating in jurisdictions with local sick leave ordinances must harmonize those rules with the new AB 406 uses.
• Confidentiality and safety. Victim-related leave requests often involve sensitive information, requiring specialized handling and documentation protocols.
• Recordkeeping. HRIS systems should be updated to reflect the new categories of leave and ensure accurate reporting.

The Next Steps

With the above changes taking effect on January 1, 2026, HR teams should act now to stay ahead of the compliance curve:

1. Update leave policies and handbooks to incorporate AB 406’s expanded HWHFA uses and reference Government Code section 12945.8.
2. Post and distribute the new CRD notice and train managers on confidentiality, retaliation, and safety-related leave issues.
3. Refresh intake procedures so HR can quickly identify which leave laws apply, issue proper designation notices, and track concurrent leave accurately.
4. Train managers and supervisors to recognize when requests may implicate victim/survivor rights and how to escalate them properly.
5. Audit HRIS and payroll codes to ensure the new leave categories are captured for reporting and compliance purposes.
6. Plan ahead for 2028 by reviewing policies and workflows that will intersect with PFL’s forthcoming “designated person” expansion.

Bottom Line

California’s 2026 leave changes reflect the state’s continued focus on expanding employee protections — particularly for victims and survivors of violence. The result is a more complex web of overlapping rights under CFRA, HWHFA, FEHA, and other statutes. Employers that invest in proactive policy updates, manager training, and process improvements now will be far better positioned to manage risk — and to support their workforce with empathy and compliance — when the new rules take effect.

About Shaw Law Group 

At Shaw Law Group, we do more than practice employment law—we partner with employers to build compliant, respectful, and productive workplaces. From day-to-day advice and counsel to impartial workplace investigations, proactive HR audits, dynamic training programs, and sensitive pre-litigation matters, our experienced team helps clients stay ahead of the curve—and out of court.

The post Leave Just Got More Complex: What California Employers Must Do in 2026 first appeared on Shaw Law Group.

      

California is doubling down on pay equity and transparency in 2026. Building on Senate Bill 1162—which created California’s modern pay data reporting program and job‑posting pay scale rules—the Civil Rights Department (CRD) will continue to require detailed annual pay data submissions, and new legislation sharpens enforcement and refines transparency standards. For HR professionals and in‑house counsel, that means earlier coordination with payroll and talent acquisition, tighter vendor management, and stronger documentation.

The Core Requirements Are Not Changing

California law requires private sector employers with 100 or more employees to submit an annual “Payroll Employee Report” to the CRD. Employers with 100 or more workers hired through labor contractors must also submit a separate “Labor Contractor Employee Report.” The reports are filed through the CRD’s online portal. The deadline is the second Wednesday in May each year; for Reporting Year 2025, that date is May 13, 2026. The CRD’s “Pay Data Reporting” website page and FAQs confirm the cadence, templates, and mechanics, and emphasize that filings must be made through the portal. Failure to file can trigger enforcement action.

What Information is Included in Report?

Employers report workforce counts by establishment, job category, pay band, race/ethnicity, and sex, and must include the median and mean hourly rate for each grouping. The “snapshot period” is a single pay period between October 1 and December 31 of the reporting year.

What’s New for 2026?

For 2026, there are a few new requirements:

• Senate Bill 464, which Governor Newsom signed October 2025, toughens California’s pay data reporting regime by making penalties effectively mandatory when the CRD seeks them and requiring employers to store demographic data separately from personnel records. We also expect adjustments to job categories in 2027. HR should plan now for stricter enforcement and cleaner data governance.

• The California Legislature also enacted SB 642, which is effective on January 1, 2026 and refines the definition of “pay scale” in job postings. The new law also extends the statute of limitations for certain pay transparency and equal pay claims to three years, with a six‑year look‑ Employers should expect greater scrutiny of posted ranges, the documentation supporting those ranges, and retention practices.

Deadlines and Penalties

Under Government Code section 12999(f), the CRD may seek civil penalties of $100 per employee for a first failure to file and $200 per employee for subsequent failures, and recover its enforcement costs.

Practical Trouble Spots

There are a few areas of complication:

• Multi‑entity organizations may need to determine whether related entities comprise an “integrated enterprise,” which affects whether a combined report is permissible.

• Vendor and labor‑contractor arrangements can create timing problems if the contractor’s data are late or incomplete; the statute allows a court to apportion penalties to a labor contractor that failed to provide data, but the client employer is still responsible for filing on time.

• Mergers, acquisitions, and spin‑offs complicate year‑over‑year comparability and snapshot decisions; The CRD’s FAQs address several scenarios and encourage clear remarks when data are missing or changed by corporate events.

The Next Steps

California employers covered by the reporting requirements have a few tasks:

• Build a 2026 reporting calendar. Work backward from May 13, 2026. Set internal cut‑offs for payroll validation, demographic QA, job category mapping, and executive sign‑

• Lock your snapshot period. Choose—and document—a late‑year pay period that produces stable data.

• Coordinate early with labor contractors. Contractually require required data on a firm timeline; specify fields and who will certify the accuracy.

• Tighten data governance. Store demographic data separately from personnel records and review access controls to align with SB 464 commentary.

• Tune job postings. Update the definition and documentation of “pay scale,” expand retention practices, and train recruiters on SB 642 refinements.

• Validate analytics. Recheck pay band mapping, mean/median calculations, and any custom groupings; keep an audit trail of changes.

• Prepare for questions. Brief leaders on how to discuss pay ranges and pay equity initiatives without over‑

Bottom Line

California’s 2026 cycle will not be business as usual. Expect heightened scrutiny of the accuracy and governance of your pay data reporting and sharper expectations around what you publish in job postings. Treat the May deadline as the end of a year‑round process—not a one‑time upload.

Shaw Law Group is tracking the CRD guidance and the rollout of SB 642 and SB 464; if you need a readiness review or updates to job posting and reporting workflows, we can help.

About Shaw Law Group 

At Shaw Law Group, we do more than practice employment law—we partner with employers to build compliant, respectful, and productive workplaces. From day-to-day advice and counsel to impartial workplace investigations, proactive HR audits, dynamic training programs, and sensitive pre-litigation matters, our experienced team helps clients stay ahead of the curve—and out of court.

The post Pay Data Reporting Just Got Tougher for 2026 first appeared on Shaw Law Group.

      

As we approach 2026, California continues to push forward in labor and employment law. Some changes take effect immediately, others phase in, and some are still being finalized. Below is a summary of the most important developments that employers, HR teams, and employees should monitor (or act on) for 2026

Minimum Wage & Exempt Salary Thresholds Increases

One of the most consequential changes on the horizon is the increase in California’s statewide minimum wage, and the corresponding impact on salary thresholds for exempt employees.

Beginning on January 1, 2026, the state minimum wage for all employers will increase to $16.90 per hour (up from $16.50 in 2025). This increase is driven by the state’s inflation adjustment formula.

Because California links the minimum salary for many exempt classifications to the state’s minimum wage, beginning on January 1, 2026, the annual salary threshold for exempt executive, administrative, and professional employees must be at least $70,304 (or $5,858.67/month).

Employers will need to review pay structures for exempt employees to ensure compliance under the higher threshold.

Your action items in this category: 

• Identify workers currently treated as exempt and confirm whether their salaries will meet the new threshold in 2026. Some roles may need reclassification to non-exempt, or salary increases to maintain exemption status.
• Adjust payroll systems and budget for increased wage costs.
• Watch for local minimum wage ordinances (cities and counties may have higher rates) that may further impact wage obligations.

Ban on “Stay-or-Pay” Provisions/Training Repayment Agreements

A key development from the California Legislature in 2025 (with effective timing to watch) is a law targeting “stay-or-pay” agreements, which commonly appear in training repayment or employee mobility clauses.

The Legislature passed a new law, AB 692, that seeks to ban many “stay-or-pay” contracts (i.e., agreements that require an employee to remain employed for a certain period or repay training costs). The law carves out some exceptions, including tuition reimbursement agreements and retention bonus repayment clauses.

Employers must review their existing agreements to determine whether they fall within the ban, and if not, whether they comply with the permitted frameworks. Some older or overbroad repayment or claw back provisions may become unenforceable or need redesign.

Your action items in this category: 

• Inventory all training repayment, educational assistance, and retention bonus repayment agreements.
• Revise or eliminate prohibited stay-or-pay terms, or rework them into permissible forms (e.g., conditional repayment schedules, pro rata repayment, caps, and safe harbor language as may be prescribed).
• Ensure future agreements are compliant under the new law.

Changes to PAGA/“Private Attorney General” Enforcement

Although not exclusively slated for 2026, recent amendments to the Private Attorney General Act (PAGA) in California are affecting how labor law violations are litigated.

California lawmakers cleared significant amendments to PAGA in 2024 aimed at reducing frivolous claims and giving employers more opportunities to cure violations before facing lawsuits. Key changes include increasing the share of civil penalties employees can retain (from 25% to 35%), requiring plaintiffs to show actual violations they personally experienced, and providing greater room for employers to remedy issues before a claim proceeds.

The reforms apply to cases filed on or after the effective date (i.e., after the law is signed) — so, in effect, for many PAGA claims in 2026, the new framework will govern.

Your action items in this category: 

• Reassess your potential exposure under PAGA. With a more constrained regime, some claims may become less viable, but diligence is still critical.
• Ensure compliance programs are in place (e.g., audits, correction protocols, documentation) to reduce the risk of violation in the first place.
• Monitor case law and regulatory guidance on how aggressively courts interpret the new PAGA rules.

Implementation Tips and Risk Mitigation

To stay ahead of compliance challenges in 2026, here are some recommended steps:

• Update your employee handbooks, training programs, and written policies (e.g., repayment agreements, wage practices) now to reflect upcoming changes.
• Bring together HR, legal, finance/payroll, and operations teams to assess the impact of wage increases and classify adjustments.
• Anticipate increased labor costs (especially wages) and build them into your 2026 budgets. In some sectors (healthcare, fast food, covered facilities) escalations may be steeper.
• Strengthen internal audits (wage-hour, exempt/nonexempt, overtime compliance) and ensure prompt remediation practices to reduce exposure, especially in light of the reformed PAGA rules.
• Many California cities/counties have minimum wage or labor ordinance floors above the state rate. Employers must comply with whichever is higher.
• As courts and agencies interpret new laws (especially PAGA changes, stay-or-pay limits, automated decision systems), their rulings will inform best practices.

As always, Shaw Law Group is here to help. Be sure and register for our upcoming webinars, California Employee Handbook Update (2026) and Annual Employment Law Update (2026) to ensure you are on top of these developments.

About Shaw Law Group 

At Shaw Law Group, we do more than practice employment law—we partner with employers to build compliant, respectful, and productive workplaces. From day-to-day advice and counsel to impartial workplace investigations, proactive HR audits, dynamic training programs, and sensitive pre-litigation matters, our experienced team helps clients stay ahead of the curve—and out of court.

The post Key Employment Law Changes for 2026 first appeared on Shaw Law Group.

      

Since the COVID-19 pandemic began in March 2020, telework has become a normal part of many workplaces. For HR professionals, though, remote work raises new compliance questions—especially when employees request telework as an accommodation. The Equal Employment Opportunity Commission (EEOC) has made it clear: telework may be a reasonable accommodation under both the Americans with Disabilities Act (ADA) and Title VII of the Civil Rights Act.

Here’s what you need to know to keep your organization compliant and prepared.

Telework and Disability Accommodation

Under the ADA and California’s Fair Employment and Housing Act (FEHA), employers must provide reasonable accommodations to qualified individuals with disabilities, unless doing so creates an undue hardship. Telework is one of the accommodations the EEOC specifically highlights.

For HR, this means:

• Look at essential functions: Start by identifying what’s essential and what’s not. If the key duties of a role can be performed remotely, you should give telework serious consideration.
• Interactive process matters: Sit down with the employee, ask about their limitations, and discuss options. Sometimes hybrid arrangements (two or three days a week from home) strike the right balance.
• Policy exceptions may be required: For example, if you have a rule requiring six months’ tenure before employees can telework, you may need to waive that rule for someone with a disability.
• Limits still apply: Employers don’t have to eliminate essential duties, create entirely new jobs, or allow telework that disrupts operations in a significant way.
  The EEOC has long said that employers cannot simply point to a “return-to-office” policy as a reason to deny telework if it would otherwise enable the employee to perform their job.

Telework and Religious Accommodation

Title VII and the FEHA require employers to accommodate sincerely held religious beliefs and practices unless doing so causes undue hardship.

The landscape changed in 2023, when the Supreme Court decided Groff v. DeJoy. Before Groff, employers could deny religious accommodations for almost any burden, even minimal. Now, they must show a “substantial increased cost” or similar hardship to justify a denial.

That’s a big shift for HR. It means you’ll likely see more requests for telework based on religion—for example:

• Allowing an employee to telework on their Sabbath.
• Granting remote work on certain holidays or fasting days.
• Providing flexibility for prayer schedules.

The EEOC recently reinforced that telework may be an appropriate religious accommodation in these situations. For HR, the message is clear: treat religious telework requests as seriously as disability requests.

What Counts as “Undue Hardship”?

This is where HR must be thorough. Post-Groff, you’ll need more than “this is inconvenient” or “we prefer everyone in the office.” You’ll need to document why telework would be disruptive in a meaningful way—for example:

• Costs associated with supervision, technology, or coordination.
• Impacts on client service or collaboration that can’t be solved remotely.
• Security, safety, or confidentiality concerns that can’t be addressed with remote tools.

If you can’t point to a substantial hardship, denying the request could expose the organization to liability.

Practical Steps for HR

So, what’s an HR professional to do? Here are some key things to consider:

• Train managers to spot accommodation requests. Many employees don’t use the word “accommodation.” A statement like “my health condition makes commuting difficult” or “my religious practice requires me to be home Fridays” should trigger HR involvement.
• Run the interactive process every time. Document conversations, explore alternatives, and show you considered the request seriously.
• Get granular about job duties. Break down which tasks require physical presence and which can be done remotely. Don’t overstate the need for in-office work if remote tools suffice.
• Consider hybrid solutions. A mix of in-office and telework may address both the employee needs and operational concerns.
• Keep your documentation tight. If you deny a request, HR must be able to show a concrete, substantial hardship—not just a preference.
• Revisit decisions periodically. Telework capabilities and job duties evolve. What wasn’t feasible two years ago might be possible now.

The Bottom Line for HR

Telework is no longer just a perk—it’s a compliance issue. The EEOC expects employers to evaluate telework requests for both disability and religious accommodation, and courts are holding employers to a higher standard when denying them.

For HR professionals, the safest approach is to:

• Take every request seriously.
• Engage in the interactive process.
• Document, document, document.

Handled correctly, telework accommodations can help employees thrive while keeping your organization legally compliant and operationally strong.

Need help evaluating telework accommodation requests in your workplace? Shaw Law Group can guide you through the process and help ensure compliance.

—

Shaw Law Group, PC

Trusted Employment Law Advisors

Phone: (916) 640-2240 | www.shawlawgroup.com

Follow us on LinkedIn for the latest workplace law updates.

About Shaw Law Group 

At Shaw Law Group, we do more than practice employment law—we partner with employers to build compliant, respectful, and productive workplaces. From day-to-day advice and counsel to impartial workplace investigations, proactive HR audits, dynamic training programs, and sensitive pre-litigation matters, our experienced team helps clients stay ahead of the curve—and out of court.

The post Telework as an Accommodation: Guidance for HR on Disability and Religious Requests first appeared on Shaw Law Group.