Labor & Employment

Establishes a new payment claim resolution process for private construction projects starting January 2026. Requires owners to respond to contractor payment claims within 30 days and pay undisputed amounts within 60 days. Mandates mediation for unresolved disputes with costs shared equally between owners and contractors. Allows contractors to suspend work without penalty if payments are delayed after proper notification.

Expands the definition of mail in unemployment insurance to include electronic transmissions. Defines electronic postmark date as the date when a document is sent. Allows unemployment agencies to accept documents through email and digital platforms.

Expands paid disability leave benefits to peace officers employed by eighth-class counties in California. Provides up to one year of full salary during duty-related disability leave instead of disability payments. Excludes administrative staff like clerks and operators from receiving these disability leave benefits.

Authorizes state officials to place liens on properties transferred by uninsured employers to avoid paying workers' compensation. Establishes criteria to determine if property transfers were made to evade worker injury payments. Creates a 20-day appeal process for property owners to challenge the state's lien determinations. Protects the rights of legitimate purchasers who buy property without knowledge of workers' compensation claims.

Authorizes the Labor Commissioner to investigate and penalize employers who illegally withhold employee tips. Requires employers to pay credit card tips in full without deducting processing fees. Mandates payment of credit card tips by the next regular payday after customer authorization.

Exempts water corporation employees from standard meal break rules when covered by qualifying union agreements. Requires union contracts to include meal period rules, binding arbitration, and premium overtime rates. Mandates water utility workers earn at least 30% above minimum wage to qualify for the meal break exemption.

Requires security guard training to be completed within 6 months before submitting a registration application. Mandates 32 hours of security officer skills training within 6 months of initial registration. Restricts security companies to training only their own employees and job applicants. Requires annual completion of 8 hours of security officer skills review.

Permanently exempts safety-sensitive petroleum facility workers from mandatory rest period requirements. Expands the exemption to include workers at refineries that process alternative fuel feedstock. Requires employers to provide compensatory rest periods or pay when emergencies interrupt breaks. Applies only to union workers covered by collective bargaining agreements with specific wage protections.

Limits retention payments on private construction projects to 5% of contract value starting January 1, 2026. Exempts residential projects under four stories and cases where contractors fail to provide required performance bonds. Requires courts to award attorney fees to prevailing parties in retention payment disputes. Applies retention payment limits equally to contractors and all levels of subcontractors.

Appropriates $584 million from the General Fund to address unfunded state employee pension liabilities. Expands disability benefits to include state officers in career executive assignments starting October 2025. Strengthens workers' compensation fraud prevention through enhanced investigation and prosecution funding. Requires Golden Gate Bridge seismic retrofit work to follow existing lead safety standards through 2025.

Restricts employers from using surveillance tools in employee-only areas like bathrooms and break rooms. Allows workers to leave surveillance devices behind when entering private areas or during off-duty hours. Prohibits employers from requiring workers to implant data-collecting devices in their bodies. Imposes a $500 civil penalty per violation and protects workers from retaliation.

Establishes a $7.25 hourly wage for incarcerated firefighters during active fire incidents. Requires annual updates to the firefighter wage rate to account for inflation. Doubles the sentence reduction credits for inmates serving as firefighters or in conservation camps. Extends wage requirements to youth placed at Pine Grove Youth Conservation Camp during fire incidents.

Prohibits employment contracts from requiring workers to pay debts or fees if they leave their job after January 2026. Allows workers to sue employers who violate these rules for at least $5,000 plus attorney fees. Exempts certain tuition repayment agreements and government loan forgiveness programs from these restrictions. Voids any contract terms that violate these new worker protection rules as restraints on trade.

Expands workers' compensation fraud detection by requiring insurers to notify state agencies of suspected premium fraud. Grants insurers access to detailed payroll records from the Employment Development Department for fraud investigations. Requires insurers to reimburse the state quarterly for the costs of accessing payroll information. Mandates that all shared payroll information remain confidential and be used only for fraud investigations.

Expands workers' compensation coverage for hospital employees to include infectious diseases and cancer. Creates automatic eligibility for healthcare workers who develop PTSD, respiratory, or musculoskeletal injuries. Extends benefits coverage for up to 10 years after employment ends for certain conditions. Establishes that injuries are presumed work-related unless employers prove otherwise.

Requires public posting of employers who fail to pay wage-related judgments on the state labor agency website. Imposes penalties up to triple the judgment amount if employers fail to pay wages within 180 days. Mandates employers post a bond equal to the disputed amount when appealing wage violation decisions. Awards attorney fees to workers who prevail in wage collection cases against employers.

Revises the Labor Commissioner's process for investigating and resolving wage theft complaints with strict timelines. Creates a new Wage Recovery Fund funded by administrative fees of up to 30% on wage violation awards. Requires employers appealing decisions to post a bond equal to the full amount of wages and penalties owed. Strengthens enforcement by allowing property liens and mandating employer responses within 30 days.

Establishes collective bargaining rights for rideshare drivers to negotiate wages and working conditions with companies. Requires rideshare companies to share driver data quarterly with state labor board starting January 2026. Creates a process for driver organizations to become certified bargaining representatives through elections. Prohibits companies from interfering with driver organizing and mandates good-faith negotiations with certified groups.

Expands workers' compensation payment disputes to include contract disputes over medical fee discounts. Requires independent reviewers to provide written explanations when upholding payment reductions. Mandates employers reimburse providers for review fees if additional payments are found owing. Sets strict 30-day deadlines for requesting independent bill reviews of payment disputes.

Extends COVID-19 pandemic rehiring protections for laid-off workers in certain industries until January 2027. Requires employers to offer new positions to qualified laid-off workers within five business days of creating the position. Mandates employers to maintain detailed employee records for three years after layoff notifications. Imposes penalties of $100 per violation plus $500 per day for employers who fail to comply with rehiring requirements.

Requires state contractors to certify compliance with expanded human trafficking prevention measures by 2026. Mandates contractors to implement detailed compliance plans to prevent forced labor and trafficking violations. Establishes new penalties including contract termination and payment suspension for labor violations. Requires contractors to protect workers from retaliation and provide clear documentation of employment terms.

Requires CAL FIRE to convert temporary Firefighter I positions into permanent employment classifications. Mandates good faith negotiations between the state and union representatives on wages and employment terms. Directs multiple state agencies to coordinate the transition to permanent firefighter positions.

Expands wage theft enforcement by denying business licenses to employers who fail to pay court-ordered wages. Requires the Labor Commissioner to notify licensing agencies when employers violate wage payment laws. Allows exemptions for hospitals if license denial would threaten public health and safety. Broadens enforcement from long-term care facilities to all state-licensed businesses.

Requires public employers to continue misconduct investigations even after an employee retires. Mandates referral to law enforcement if investigations suggest criminal activity. Requires forfeiture of retirement benefits if the employee is convicted of a work-related felony. Establishes state reimbursement for local agencies implementing these new investigation requirements.

Establishes a pilot apprenticeship program for people with disabilities to work as environmental technicians in state prisons. Requires six state agencies to jointly develop and launch the program by July 1, 2026. Addresses workforce barriers faced by Californians with disabilities who face 7.2% unemployment.