1. Minimum Wage and Salary Updates

Beginning January 1, 2026:

• Statewide minimum wage increases to $16.90 per hour.
  
  
• Exempt employee minimum salary increases to $70,304 annually.
  
  

Checklist:

✔ Review all employee wages and adjust any rates below $16.90.
✔ Reevaluate exempt versus nonexempt classifications.
✔ Update offer letters and compensation notices.
✔ Confirm payroll systems reflect updated wage and salary thresholds.

2. Required Notices Under the Workplace Know Your Rights Act (SB 294)

Starting February 1, 2026, employers must provide an annual written notice detailing employee rights related to:

• Law enforcement interactions at work
  
• Workers’ compensation
  
• Immigration-related protections
  
• Concerted activity rights
  
  

Checklist:

✔ Draft and distribute the required 2026 Know Your Rights notice.
✔ Update onboarding materials to include the annual notice requirement.
✔ Provide employees with the option to designate an emergency contact for law enforcement-related notifications.
✔ Train managers on procedures for when law enforcement enters the workplace.

3. Pay Transparency and Pay Data Responsibilities

California continues to expand pay transparency standards, with increased enforcement for 2026 and additional pay data reporting changes scheduled for 2027.

Checklist:

✔ Ensure all job postings include a good-faith pay scale.
✔ Align pay ranges across internal and external postings.
✔ Conduct a pay equity audit to identify disparities.
✔ Update documentation supporting compensation decisions.
✔ Prepare for expanded pay data job categories beginning in 2027.

4. Victims’ Leave, Repayment Agreements, and Policy Updates

Recent changes affect leave rights, repayment agreements, and workplace notices.

Checklist:

✔ Update your victims’ leave policy per AB 406.
✔ Review any benefit repayment, bonus repayment, or training cost agreements to comply with AB 692.
✔ Confirm your employee handbook reflects all 2026 legal changes.
✔ Update required postings and distribute revised notices to employees.

5. Retirement Plan Compliance by December 31, 2025

California now requires every employer with at least one employee to offer a qualified retirement plan.

Checklist:

✔ Confirm your business has an approved retirement savings plan in place.
✔ If not, enroll in CalSavers or implement a compliant plan such as Guideline’s Starter(k).
✔ Communicate enrollment or plan changes to employees.
✔ Ensure ongoing payroll deductions and remittances are set up correctly.

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6. Communicate and Train Before Year-End

Training is critical for implementing new 2026 laws correctly and consistently.

Checklist:

✔ Host a compliance briefing with HR and management teams.
✔ Train supervisors on wage changes, transparency requirements, and law enforcement protocols.
✔ Provide employees with clear communication about policy changes taking effect in 2026.
✔ Review documentation and recordkeeping procedures.

Why This Checklist Matters

Being proactive protects your business from penalties, strengthens employee trust, and ensures a smoother transition into the new year. Early planning helps stabilize operations and reduces risk as new state requirements take effect.

Need Support Preparing for 2026?

LFV HR Consulting provides hands-on assistance with:

• Handbook and policy updates
  
• Compliance audits
  
• Employee notices and postings
  
• Pay equity reviews
  
• Manager training
  
• Year-end HR planning
  
  

Contact LFV HR Consulting today to schedule your 2026 compliance consultation.