California’s 2025 legislative session has officially wrapped, and Governor Gavin Newsom has made his final decisions on hundreds of bills sent to his desk before the October 13 deadline. For California employers, this year’s legislative package delivers another wave of significant workplace changes—spanning wage equity, paid family leave, worker classification, and expanded employee rights across multiple industries.
Below, we’ve summarized the final outcomes of the major employment law bills Governor Newsom acted on this session, along with brief descriptions of what each bill does.
My firm will be hosting a California employment law Masterclass on October 30, 2025 at 10:00 a.m., where we’ll break down what these new laws mean for employers in 2026—and highlight other key compliance updates to prepare for the year ahead.
Register here: Zaller Law Group Masterclass – California Employer Legislative Update: What’s at Stake in 2026
| Bill | Summary | Sign or Veto? |
| SB 642 | Wage Equity: Would clarify the term “pay scale” to mean “the salary or hourly wage range that the employer reasonably expects to pay for the position up to hire.” It would also set the statute of limitations for Labor Code 1197.5 claims to three years and allow workers to recover wages for up to six years in pay equity claims, while extending the statute of limitations. | Signed |
| SB 261 | Labor Commissioner Penalties and Collections: Would require that the Labor Commissioner post on its website any unsatisfied awards against employers and would establish a civil penalty for employers that fail to pay a court judgment awarded for nonpayment of work performed. | Signed |
| SB 7 | No Robo Bosses Act: Would require employers using an “automated decision system” (ADS) in employment decisions to notify workers before and after use, would ban sole reliance on ADS for adverse actions, and would mandate human review in such cases. Would apply broadly and become enforceable in 2026, with civil penalties for violations. | Vetoed |
| SB 590 | Paid Family Leave – Designated Person: Would allow that, starting July 1, 2028, employees to take Paid Family Leave to care for a “designated person,” defined as someone related by blood or with a family-like relationship. | Signed |
| AB 692 | Employment Restraint of Trade Contracts: Would ban many “stay-or-pay” contracts with workers, including training repayment agreements. | Signed |
| AB 250 | Extended Statute of Limitations for Sexual Assault / Harassment Claims: Would allow certain sexual assault claims previously time-barred to be filed from Jan 1, 2026 to Dec 31, 2027 if a “cover-up” by an employer is alleged. | Signed |
| SB 809 | Independent Contractors and Employee Vehicle Business Expense: Would clarify that owning a vehicle does not make a worker an independent contractor and would reiterate that employers must reimburse employees for using personal vehicles for work, and create a limited amnesty program for misclassified construction trucking employers. | Signed |
| AB 858 | Rehiring and Retention of Displaced Workers: Would extend COVID-era right-to-rehire protections for hospitality workers to Jan 1, 2027, with DLSE enforcement extended beyond 2026 for prior violations. | Signed |
| SB 703 | Ports: Truck Driver Independent Contractors: Would require trucking companies at the Ports of LA and Long Beach to certify compliance with tax and classification laws for employees and would mandate a reporting when 50% or more employees are replaced by independent contractors, with steep penalties for noncompliance or misrepresentation. | Vetoed |
| SB 464 | Employer Pay Data Reporting: Would increase the number of job categories (from 10 to 23) required in employer pay data reports starting in 2027, would mandate separate storage of demographic data with penalties for non-filing, and would create a civil penalty for employers who fail to submit reports to the California Civil Rights Department. | Signed |
| AB 1136 | Immigration and Work Authorization: Would require 5 days unpaid leave and reinstatement rights for employees involved in immigration proceedings or detention and would ban adverse actions based solely on immigration status or having been subject to immigration proceedings. | Vetoed |
| SB 294 | The Workplace Know Your Rights Act: Would require a new annual written notice (starting February 1, 2026) informing workers of their rights, including around immigration and law enforcement, and would require that an employer notify an employee’s emergency contact if arrested or detained while at work. | Signed |
| AB 1326 | Right to Wear A Mask: Would grant individuals the right to wear a medical-grade mask in public or at work for health-related reasons, with exceptions for safety, security, or emergency protocols. | Vetoed |
| SB 513 | Personnel Records: Would expand the definition of personnel records to include training details (e.g. certifications, skills, provider, and duration) and would require employers to track and retain them. | Signed |
| SB 355 | Judgment Debtor Employers: Would require, within 60 days of a final judgment being entered against an employer requiring payment to an employee or to the state, the judgment debtor employer to provide documentation to the Labor Commissioner that the judgment is fully satisfied, a certain bond has been posted, or the judgment debtor entered into an agreement for the judgment to be paid in installments and is in compliance with that agreement, with civil penalties for non-compliance. | Vetoed |
| SB 764 | Chain Restaurants: Children’s Meals: Would require that chain restaurants (20+ locations under the same name) meet certain nutritional standards (calories, sodium, fruit/veg portions, etc.), and mark healthier options plainly. | Vetoed |
| SB 68 | Food Allergens Disclosures: Would require restaurants to have written labeling under or next to each item on the menu that contains any of the top 9 allergens. | Signed |
| SB 648 | Tip Theft: Would authorize the Labor Commissioner to investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of the Labor Code. | Signed on July 30, 2025. |
With these new laws taking effect over the coming months, California employers should begin reviewing their policies, training programs, and compliance systems now to stay ahead of the curve. Many of the changes—particularly those involving pay transparency, leave rights, and pay data reporting obligations—will require proactive planning and documentation. Our team at Zaller Law Group is here to help employers understand how these developments impact the workplace and to guide businesses through the steps needed to ensure compliance in 2026 and beyond.