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New California employment laws you need to know in 2026

December 4, 2025

By KAREN VELIE

Laws impacting tips, paid family leave and non-binary genders are some of the more than one dozen laws set to impact Californians employers and employees in 2026. These are also laws to increase employer reporting requirements and exemptions for contractors to operate independently, instead of as employees.

Improved protections for employees receiving tips

Employees can now ask the California Labor Commissioner to investigate complaints about tips. Employers need to abide by rules, such as laws against taking employee tips, or running unfair tip pools or face possible investigations.

California equal pay laws to include non-binary genders

While California’s Equal Pay Law prohibits employers from paying employees lower wages based on their sex, the new law changes the wording to another sex to include non-binary genders.

Expanded relationships that qualify for paid family leave

Current paid family leave laws provide up to eight weeks of partial wage replacement to eligible workers for reasons such as bonding with a new child or caring for a seriously ill family member.

Under the new 2026 law, which begins on July 1, 2028, a “designated person” will be defined as “anyone related by blood or whose association with the individual is the equivalent of a family relationship.”

More exemptions regarding California’s independent contractor law 

California controversial labor laws prohibit many contractors from operating independently, instead classifying them as employees.

AB 1514 extends the exemptions for manicurists and commercial fisherman from the employee versus independent contractor worker rules until Jan. 1, 2029 and Jan. 1, 2031, respectively.

Employers need to expand their reports on pay data

Employers with 100 or more employees are currently required to submit payroll data reports to the Civil Rights Department on an yearly basis.

In 2026, the state will require employers to store their demographic pay data separately from employee personnel records. In addition, employers need to provide reports on employee demographics, such as race, ethnicity, and sex.

 


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Any laws restricting government? Didn’t think so.


7

It’s already a federal law to pay both sexes equally, for same level employment. This just wastes more California taxes Sacramento apparently doesn’t have any more of.


As for tips, there wouldn’t be any controversy or rules, if the state didn’t set up the onerous “tip tax and share” bullshit. Your wait staff does a good job? Leave a few bucks on the table. They do a poor job, don’t tip. If the busboy/dishwasher wants tips, they should apply for a wait staff position. Tipping is for appreciation of good service, and should not be a mandatory part of your bill.


The new gig job law will simply make Uber, Lyft, and other ride share entrepreneurs quit the program. Seriously. Not everyone needs a union. Not every job requires nit picking tax loving mongrels in the state Capital to make it impossible to do business. What’s next, requiring a business license for a corner lemonade stand? Ohhhh. That’s right. Little boys and girls already need a permit for that.


Is it any wonder California is losing more people than it’s gaining?


9

For each and every new law added to the books and old needs to be removed. Are we supposed to believe that there are not enough laws already on the books to which we need even more?


52

We should remove laws that restrict the construction of more housing first.


-6

San Luis Ranch (Lot 1-7 currently), Avila Ranch (Lot 1-4 currently), Augusta St. Apartments, Pismo St Apartments, Crandall St Apartments, Monterey St Apartments, The Gas Works Apartments, Pacific St Apartments, Broadstone Village, and the ever expanding neighborhood at the end of Prado. Not to mention Avila Valley, the Dana Preserve (along with how many “villages” in Nipomo?), the entire town of Avila Beach, the massive Sherwood tract going in off Linne Rd in Paso, among the dozen or more other tracts around the county.


The rest of us, do not see any construction restriction happening. We do, however, see an incredible influx of unsustainable housing that will heavily overburden existing roadway infrastructure and water/power resources.


5

Good, more or less anti corporation laws. Anyone opposing these just wants to cheat, steal from, and lie to their employees and the government. Literally no other reason not want these laws in place.


-15

I agree! The state wants no competition in lying and stealing…


6