Here is Part 2 of our 2026 Regulation Review for California’s new regulations. In this post we will be discussing 4 important new regulations. These regulations include: SB 648 Labor Commissioner Jurisdiction Over Payment of Gratuities, Paid Family Leave, SB 477 Fair Employment & Housing Act Enforcement and Procedural Reforms, and SB 294 Workplace Know Your Rights.
[SB 648] Labor Commissioner Jurisdiction Over Payment of Gratuities (Tips)
This bill authorizes the Labor Commissioner to investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of the law.
Employers should verify their Tip policy, ensure it has had legal review, and that it is properly followed by all staff.
Update to Paid Family Leave
Expected to begin July 1, 2028, the EDD will expand the eligibility for individuals to receive Paid Family Leave benefits. This will more closely align with last years CRFRA leave laws addition. This addition allows employees to take time off to care for a designated person whom may not be a blood relative. The EDD has now similarly expanded their definition of family member for Paid Family Leave. This includes: “any care recipient related by blood or whose association with the employee is the equivalent of a family relationship.”
[SB 477] Fair Employment & Housing Act Enforcement and Procedural Reforms
This bill clarifies the term “group or class complaints” to include any complaint alleging a pattern or practice. It further expands upon tolling (or pause the clock) rules for individual right-to-sue deadlines and extends tolling for the department’s deadlines, potentially subjecting an employer to significantly longer administrative investigations and uncertainty regarding closure of potential claims.
[SB 294] Workplace Know Your Rights
This bill establishes the Workplace Know Your Rights Act, which introduces the following requirements:
(1) It requires a new stand-alone notice which must be provided to employees upon hire, and annually thereafter to current employees. This notice must include notification of workers’ rights, including:
- rights to protection against unfair immigration-related practices;
- the right to a notice of inspection by immigration agencies;
- constitutional rights when interacting with law enforcement in the workplace;
- the right to workers’ compensation benefits;
- the right to unionize or engage in concerted action in the workplace;
- Wage and Hour, Health and Safety protections, and more
Labor Commissioner is developing a notice for use, which at the time of publishing this post is not available.
On or before February 1, 2026, this notice must be provided using a method that can reasonably be anticipated to be received by the employee within one business day.
(2) This bill allows for an employee to designate an emergency contact for notification if the employee is arrested or detained at their worksite, during work hours, or while performing their duties (if the employer has actual knowledge of such an event). This prompts an update to existing emergency contact forms.
An existing employee shall be given the opportunity to appoint an emergency contact on or before March 30, 2026. An employee hired after March 30, 2026, shall be given the opportunity at the time of hire.
Stay tuned for our 3rd and final Part in our 2026 Regulation Review series! If you have an HR question in the meantime, give us a call!
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📧 hrninja@peoplerockhr.com
