California is a progressive leader in protecting workers’ rights. 2026 will be no exception as they expand existing laws to strengthen existing protections.
There will also be increased enforcement and penalties. Therefore, employers must understand these updates and comply with them.
1. Minimum wage
The minimum wage in the city of Los Angeles ($19.92/hour) and Los Angeles County ($17.81/hour) will remain the same since they went into effect on July 1, 2025. However, California’s statewide minimum wage will increase to $16.90 per hour, effective January 1, 2026. This applies to all employers, regardless of company size.
Some salaried workers may also see an increase, as this adjustment affects them as well. Companies must pay exempt employees at least $70,304 annually.
2. Unpaid wage judgments
Effective January 1, 2026, there will be expanded enforcement and penalties for employers who fail to satisfy wage judgments within 180 days after the appeal time expires. Employers with unresolved wage claims should prioritize settlement, or they will face civil penalties up to three times the amount of the outstanding wage judgment.
3. Workers’ rights
Every year, employers must provide each employee, including new hires, with a standalone written notice of workers’ rights. This notice outlines protections against unfair immigration-related practices and a worker’s constitutional rights when interacting with law enforcement while on the job. Employers have until February 1, 2026, to comply.
4. Pay transparency and equal pay
The Equal Pay Act now has updated definitions of “pay scale,” “sex,” “wages” and “wage rates.” A company’s pay scale must also be included in job postings, along with records that prove compliance. For reference, “pay scale” is defined as a good-faith estimate of what a new employee will receive upon hire.
Employers should take a proactive approach to ensure compliance with the 2026 wage and hour law updates. Working with a legal representative and staying ahead of these requirements reduces exposure and promotes a fair and transparent workplace.