As California employers enter 2026, employment law compliance is no longer just about having policies in place—it is about being able to prove that the company took documented, reasonable steps to comply with the Labor Code before problems arose. Despite the 2024 PAGA reforms, PAGA filings continued to rise through 2025, and courts are now
As we approach 2026, California employers face a new round of legal and financial adjustments that will directly impact payroll budgeting, exempt classifications, and compliance risk. From statewide wage increases to industry-specific salary thresholds, these updates require careful planning to avoid misclassification claims, PAGA exposure, and penalties.
Here are the top five increases California employers