As 2025 comes to a close, we are taking a peek at California’s new 2026 Regulations. In this blog post we will be discussing Minimum Wage, SB 642 Job Posting Requirements & Equal Pay Act, Education & Training Retention, and SB 261 DLSE Orders, Decision & Awards, Enforcement and Penalties.
Minimum Wage
The state’s minimum wage is set to $16.90 per hour for non-exempt employees effective January 1, 2026. This also means the new minimum salary for exempt positions will increase to $70,304 per year ($5,858.67 per month).
Employers must continue to comply with any applicable local ordinance or industry requirements that exceed the state’s minimum wage.
[SB 642] Job Posting Requirements & Equal Pay Act
This Act provides an update to California’s existing requirement of employers with 15 or more employees to include pay scales on all job postings. This act redefines “pay scale” to mean “a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire”, opposed to the full pay scale for the position staffed.
The law also makes significant changes to California’s Equal Pay Act. Including extending the statute of limitations for pay discrimination claims to three years and allowing potential recovery of lost wages up to six years.
Education & Training Retention
Among your personnel records, employers must add retention of education and training records, which should include:
- Employee’s name
- Trainer’s name
- Date and duration
- Core skills or competencies
- Any resulting certification or qualification
[SB 261] DLSE Orders, Decision & Awards, Enforcement and Penalties
This bill requires employers who appeal a DLSE Order, Decision, or Award (ODA) to post a bond or cash deposit as security. If an employer fails to pay a final ODA within 180 days after all appeals are complete, they may face civil penalties of up to three times the unpaid amount plus interest.
The bill also requires courts to award attorney’s fees and costs to the prevailing party in actions to enforce a judgment or other lawful compliance measures.
Stay tuned for Part 2 where we will be discussing 4 more new 2026 regulations. If you have an HR question in the meantime, give us a call!
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