California Employment Law Changes 2026: What Senior Level Professionals and Executives Need to Know

California updated several workplace laws at the start of 2026, and for senior professionals in tech, healthcare, and finance, the changes are directly relevant. They affect what you are owed, what your employer can and cannot require of you, and how strong your position is if a dispute arises. Here is what changed and why it matters.

1. Equal Pay Protections Got Stronger

California’s Equal Pay Act has long been one of the strongest in the country. In 2026, it got stronger.

SB 642 expanded the statute of limitations for Equal Pay Act claims. Employees can now bring a claim up to three years after an unlawful compensation decision and can recover damages for violations stretching back up to six years.

Who this affects most:

• Employees who suspect they are being paid less than peers in similar roles
• Workers who were passed over for raises or promotions based on gender or other protected characteristics
• Anyone who only recently learned they were underpaid compared to colleagues

If you are a high earner who was paid unfairly, this extended window gives you more time to take legal action and pursue the compensation you are owed.

2. “Stay-or-Pay” Contracts Are Now Largely Banned

Many employers, especially in tech and healthcare, have long used contracts requiring workers to repay sign-on bonuses, relocation costs, or training expenses if they leave before a certain date. That practice is now significantly restricted in California.

What AB 692 prohibits:

AB 692 bars common arrangements that require an employee to reimburse employers for costs like relocation expenses and work-related training programs if the employment ends before an agreed upon time, with exceptions for certain tuition and upfront discretionary bonus repayments.

What this means for you:

Contracts with repayment requirements that do not meet the statutory requirements or that are prohibited by the new law will be considered void and against public policy. According to Labor Code Section 926 and Business & Professions Code Section 16608, workers may sue for either actual damages or $5,000 per worker, whichever is greater, plus injunctive relief and attorney’s fees.

This is particularly relevant for senior employees who received sign-on packages, accepted relocation assistance, or participated in employer-sponsored training programs. If you have a repayment clause in your contract, it may be worth having it reviewed.

3. Expanded Sick Leave for Crime Victims and Court Proceedings

Recent legislation under AB 406 and AB 2499 clarifies that employees can use their accrued paid sick leave for jury duty, to comply with a subpoena, or when dealing with the aftermath of being a crime victim.

This change matters because many employees did not realize they had the right to use paid sick leave in these situations. If your employer has denied this leave or retaliated against you for taking it, that may be a violation of California law.

How These Changes Could Affect You

Some of the key updates include the Workplace Know Your Rights Act (SB 294), the ban on most stay-or-pay contracts (AB 692), expanded Equal Pay Act protections (SB 642), and broader sick leave rights for crime victims and court proceedings (AB 406, AB 2499). 

If you work in the San Francisco Bay Area or Sacramento, you are covered by these new California employee protections. However, knowing the law exists and knowing whether your rights were violated are two different things. 

TONG LAW works with employees across Northern California who are navigating workplace disputes, contract concerns, and employer violations. Attorney Vincent Tong has spent more than 15 years practicing employment law, and brings a perspective that few attorneys can offer: he understands how employers think because he advises them too. That insight can make a real difference when evaluating your situation.

If any of the laws above sound relevant to your workplace, it may be worth scheduling a consultation to talk through your options. 

4. Your Employer Must Now Give You a Written Notice of Your Rights

Under the Workplace Know Your Rights Act (SB 294), employers are now required to provide each employee with a stand-alone written notice of their workplace rights, both when hired and annually going forward. 

What that notice must include:

• Workers’ compensation benefits, including disability pay and medical care for work-related injuries
• The right to receive notice of inspection by immigration agencies, protection against unfair immigration-related practices, and the right to organize a union
• Constitutional rights when interacting with law enforcement at the workplace

What happens if your employer does not comply?

Employers who fail to comply may face civil penalties of up to $500 per employee for each violation, and up to $10,000 per employee for certain violations such as failure to notify emergency contacts.

This law also includes a newer protection: if you designate an emergency contact and you are arrested or detained at your worksite, your employer is required to notify that contact.

If your employer has not provided this notice, that could be worth a conversation with an employment attorney.

Frequently Asked Questions About 2026 Employment Laws

Does the new workplace rights notice requirement apply to my employer?

Yes,  the requirement applies to all California employers regardless of size. If you joined a new company after January 1, 2026 and didn’t receive this notice, that’s a compliance gap worth noting. It’s rarely the centerpiece of a dispute at the senior level, but non-compliance with notice requirements has come up as a supporting factor in broader wrongful termination and retaliation claims, particularly when an employer’s pattern of cutting corners becomes relevant to the case.

Can my employer still require me to repay a sign-on bonus if I leave? 

It depends on when your contract was signed and how it is written. AB 692’s change is not retroactive and will only apply to contracts executed after January 1, 2026. If your contract predates that, the old rules may still apply. An employment attorney can help you review the specific language.

What should I do if I think my employer is not following California’s 2026 employment laws?

Document what happened, keep copies of any relevant communications or contracts, and consult with an employment attorney. Many violations have strict deadlines for filing claims, so acting sooner rather than later could make a difference.

Ready to Talk Through Your Situation?

California’s employment laws change regularly, and the 2026 updates are significant. 

Contact TONG LAW for a case review. Vincent Tong serves employees across Oakland, Sacramento, and the San Francisco Bay Area and can help you understand whether your rights may have been affected.

Call us at (855) TONG-LAW or reach out through our contact form to schedule a consultation.

This post is for informational purposes only and does not constitute legal advice.