Labor & Employment

Grants the Teachers' Retirement Board final authority to determine employer status and system membership. Establishes new penalties of $200 per month for employers who fail to report retired employee information. Revises how retirement benefits are calculated when employees work in multiple public retirement systems. Requires employers to notify employees within 10 days of reaching post-retirement work limits.

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 for construction contractors who misclassified truck drivers as independent contractors. Requires contractors to reclassify drivers as employees and pay back wages by January 1, 2029 to avoid penalties. Mandates reimbursement for drivers who use their own vehicles for work-related duties. Clarifies that vehicle ownership alone does not make a driver 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.

Expands meal period exceptions to include water corporation employees covered by collective bargaining agreements. Requires 30-minute meal breaks after 5 hours of work unless covered by specific industry exemptions. Allows meal breaks to be waived if total work period is 6 hours or less with mutual consent.

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 in employee-only areas like breakrooms and bathrooms. Allows workers to leave surveillance devices behind during off-duty hours and meal breaks. Imposes a $500 civil penalty per employee for each violation of workplace surveillance rules. Exempts employers developing national security, military, space, or defense products from these requirements.

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 the right to wear masks in public places for health protection purposes. Applies to all types of face masks including N95 respirators, surgical masks, and cloth masks. Requires temporary mask removal for identification, security protocols, and emergency medical care. Covers all public spaces including businesses, transportation, schools, and healthcare facilities.

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.

Establishes new timelines and procedures for investigating employee wage complaints through the Labor Commissioner. Creates a Wage Recovery Fund funded by a 30% administrative fee on wage violation judgments. Requires employers to post bond equal to disputed amount when appealing wage violation decisions. Grants courts broader jurisdiction over wage disputes and related claims not initially presented.

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.

Requires employers to provide expanded layoff notices with information about food assistance and job retraining services. Mandates employers to include their contact information and workforce development board details in layoff notices. Employers choosing workforce development services must coordinate within 30 days of the layoff notice. Maintains the requirement for 60-day advance notice of mass layoffs except during calamities or war.

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 subcontractor wage debts on private construction projects through 2026. Requires contractors on large housing projects to provide healthcare benefits equivalent to Platinum-level plans. Mandates monthly compliance reports and payroll documentation to ensure proper wage and benefit payments. Establishes penalties up to $10,000 for contractors who fail to submit required reports or violate labor standards.