Labor & Employment

Grants the Teachers' Retirement Board final authority to determine employers and membership eligibility. Establishes new financial metrics for terminating reduced workload agreements based on annualized pay rates. Modifies fund transfer dates to ensure payments occur on the next business day if deadlines fall on weekends. Strengthens enforcement by imposing $200 monthly fees on employers who fail to report retired member employment.

Establishes new legal procedures for appealing Santa Clara Valley Transportation Authority labor dispute decisions. Requires appeals of labor board decisions to be filed within 30 days in district courts of appeal. Authorizes courts to enforce labor board decisions through writs of mandamus when parties fail to comply. Mandates the labor board to respond within 10 days to inquiries about unenforced decisions.

Establishes an amnesty program allowing construction contractors to reclassify truck drivers as employees by 2029. Requires contractors to pay all back wages, benefits, and taxes owed to misclassified drivers. Mandates fair reimbursement for drivers who use their own vehicles for construction work. Clarifies that vehicle ownership alone does not make a worker an independent contractor.

Increases minimum penalties for unlicensed contractor violations from $200 to $1,500 starting July 2026. Authorizes the Contractors State License Board to adjust penalty amounts for inflation every five years. Doubles the Board's maximum reserve fund from 6 to 12 months of annual expenditures. Establishes new minimum penalties of $500 for general contractor violations and $1,500 for serious infractions.

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.

Makes technical changes to the naming provision of the Teachers' Retirement Law.

Establishes a new Essential Worker Commission to address workplace safety and legal status for undocumented workers. Requires creation of a legal work program for essential workers in California by January 2028. Creates a 16-member commission representing labor, health, business, and worker advocacy groups. Mandates review of workplace safety, wages, and labor rights for essential workers by July 2027.

Protects voter registration information of elected officials and candidates from public disclosure. Requires county officials to make candidate information confidential within 5 business days. Allows candidates to withhold their residence address on declaration of candidacy forms. Shields government officials from liability unless gross negligence is proven.

Enhances retirement benefits for public safety employees by lowering retirement age from 57 to 55 starting January 2026. Allows employers and unions to negotiate employer contributions toward employee retirement costs after January 2026. Adjusts pension formulas to provide higher benefits at earlier retirement ages for safety personnel. Aligns pension compensation limits with federal standards while protecting existing retirement benefits.

Prohibits employers from using surveillance tools to monitor workers in private spaces like bathrooms and breakrooms. Allows workers to leave surveillance devices behind during off-duty hours and meal periods. Permits limited video surveillance of break areas for safety only, with strict rules on camera usage and access. Imposes $500 civil penalties per employee for each violation of workplace surveillance restrictions.

Revises workers' compensation rules for employees who suffer multiple work injuries after January 1, 2026. Requires medical evidence to prove prior disabilities impacted work ability before awarding additional benefits. Creates a new database of qualified medical evaluators to assess subsequent injury claims. Transfers payment authority from State Insurance Fund to Director of Industrial Relations.

Establishes a legal right to wear medical-grade masks in all public places for health protection. Requires temporary mask removal for security identification at places like airports and nightclubs. Preserves employers' ability to require mask removal for legitimate job-related safety needs. Protects existing disability rights and medical accommodations related to mask wearing.

Authorizes Orange County to increase retirement board member compensation from $100 to $320 per meeting. Limits compensation increases to a maximum of five meetings per month for eligible board members. Requires the Board of Retirement to approve any compensation rate increases.

Requires private employers to disclose in job postings whether an advertised position is actually vacant. Mandates that vacancy disclosure statements must be clear, conspicuous, and written in legible font. Expands existing job posting transparency requirements enforced by the Labor Commissioner.

Requires contractors on CSU construction projects to use skilled and trained workers for all building trades work. Mandates contractors to provide enforceable commitments for using qualified workers at all subcontractor levels. Exempts contractors who participate in project labor agreements that ensure skilled workforce requirements. Takes effect for new project labor agreements starting January 1, 2026.

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.

Requires employers to provide 30-day notice before implementing workplace surveillance tools. Prohibits employers from using facial recognition or emotion-tracking technology in worker surveillance. Mandates employers to allow workers to access and correct their surveillance data within five business days. Imposes $500 civil penalties per violation and enables workers to pursue legal action for damages.

Changes prevailing wage rate updates for public works from quarterly to semiannual reviews starting July 2026. Establishes a 20-day window for contractors to challenge new wage rate determinations. Requires the labor director to issue final decisions on wage rate challenges within 20 days. Makes new wage rates effective 10 days after issuance until modified or rescinded.

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.

Expands wage discrimination protections by prohibiting pay disparities based on any sex, not just opposite sex. Requires employers to include pay scales in job postings and maintain wage records for employment plus three years. Extends the deadline for wage discrimination lawsuits to three years with a 10-year lookback period. Imposes penalties up to $10,000 per violation for employers who fail to comply with pay transparency rules.

Requires utilities to compensate customers affected by planned power shutoffs during wildfire threats. Mandates detailed reporting to state regulators after each power shutoff event. Establishes fines for utilities that violate power shutoff protocols with penalties paid to affected customers. Ensures all penalty costs are paid by utility shareholders rather than passed to ratepayers.

Expands layoff notice requirements to include information about workforce services and food assistance programs. Requires employers to arrange transition services within 30 days if they choose to coordinate with workforce boards. Mandates inclusion of employer contact information and CalFresh program details in layoff notices. Maintains the existing 60-day advance notice requirement for mass layoffs and relocations.

Establishes minimum salaries for state attorneys and judges to match average public sector attorney pay. Requires annual salary surveys by March 1 to determine competitive pay rates across public agencies. Implements salary increases in three phases from 2026 to 2028, subject to budget approval. Prohibits any reduction in current salaries for state attorneys and administrative law judges.

Authorizes the Public Employment Relations Board to study how net-zero carbon initiatives impact public employees. Requires annual reports to the Legislature by October 15 on study findings and recommendations. Expands the Board's data collection authority to include environmental policy impacts on employment.

Expands direct contractor liability for unpaid wages and benefits on private construction projects starting January 2026. Requires contractors to monitor subcontractor payments and obtain signed affidavits verifying all wages and benefits are paid. Allows joint labor committees to sue contractors for unpaid healthcare benefits and wage violations. Exempts contractors from benefit liability if they make payments via joint checks to subcontractors and benefit funds.