As California’s 2025 legislative session comes to a close, employers are watching Sacramento with anticipation. Governor Gavin Newsom faces an October 13, 2025 deadline to either sign into law or veto dozens of bills passed by the Legislature. Many of these bills would impose new compliance obligations on California employers, expand employee rights, and create fresh enforcement tools for state regulators.
The measures touch nearly every corner of the workplace—from wage equity and paid family leave, to AI in hiring, to industry-specific protections for hospitality, trucking, and chain restaurants. In short, the Governor’s decisions will shape how employers operate in 2026 and beyond.
The Top Five Bills We Are Watching Most Closely
1. 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.
2. 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.
3. 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.
4. 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.
5. AB 692 – Employment Restraint of Trade Contracts: Would ban many “stay-or-pay” contracts with workers, including training repayment agreements.
Full Watch List: Other Employment (and some food-industry related) Bills Awaiting Governor Newsom’s Decision:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Already signed by the Governor: SB 648 – Tip Theft: Authorizes 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. This bill was signed by the Governor on July 30, 2025.
Our 4th Annual “Sign or Veto” Contest
To make this season of legislative suspense a little more fun, we invite you to participate in the 4th Annual Zaller Law Group “Sign or Veto” Contest. Here’s your chance to test your knowledge of California politics and workplace trends:
- Review the list of key employment bills we’ve picked (with a few non-employment curveballs included).
- Make your picks: Will Governor Newsom sign the bill into law, or exercise his veto power?
- Submit your entry before Friday, October 10 at midnight.
Prizes:
- Champion: Zaller Law Group Yeti cooler backpack
- 2nd & 3rd place: Exclusive Zaller Law swag
- All participants: Bragging rights for your California political and employment law expertise
How to Play:
- Register your predictions here.
- Submit your entry by October 10, 2025.
- If there are any ties, the order will be determined by time of entry with the earliest entry wining.
Winners will be announced after the Governor’s October 13 deadline!
Save the Date: Webinar on the New Laws – October 30, 2025
When: Thursday, October 30, 2025, at 10:00 a.m. PT
What: Zaller Law Group attorneys will review which new Governor Newsom signed into law, and other key employment law updates for California employers in 2026.
Register here: Click to Register for the Webinar