Legal Developments

Legislation

Recent California employment-law developments in Legislation.

Labor Relations

California Reworks Prevailing-Wage Annualization for Benefit Credits

Assembly Bill 889 amends the Labor Code’s prevailing-wage rules, removing a director-issued annualization exception, revoking prior exemptions, and shifting the burden to employers to prove their benefit credits were calculated correctly.

Wage & Hour

New Penalties for Unpaid Wage Judgments Under SB 261

Senate Bill 261 lets courts impose a civil penalty of up to three times an unpaid wage judgment that stays unsatisfied for 180 days, and requires fee and cost awards to prevailing plaintiffs enforcing such judgments.

Discrimination

California Expands Employer Pay Data Reporting Under SB 464

Senate Bill 464 requires employers to store pay-data demographic information apart from personnel records and, beginning in 2027, expands the pay data report to 23 job categories. It also makes civil penalties mandatory when the Civil Rights Department requests them.

Benefits

Paid Family Leave Expands to Cover a Designated Person

Senate Bill 590 expands California’s paid family leave program to cover time off to care for a seriously ill “designated person,” effective January 1, 2026, with the new eligibility rules operative July 1, 2028.

Labor Relations

New Direct-Contractor Wage Liability Rules for Construction Contracts

Senate Bill 597 replaces the direct-contractor liability rule for private construction contracts entered on or after January 1, 2026, adding Labor Code section 218.9 and creating a joint-check option for benefit contributions.

Labor Relations

California Enacts the Workplace Know Your Rights Act

Senate Bill 294 requires California employers to give employees an annual written notice of workplace and constitutional rights, offer an emergency-contact option, and notify that contact if an employee is arrested or detained at work.