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

For most California employers, employee time and pay data has historically been treated as a legal obligation—something you keep because the law requires it, not because it creates value.

That mindset needs to change in 2026.

After years of defending employers in wage-and-hour class actions and PAGA cases, I have seen firsthand how employee data

As we move toward 2026, California employers—especially in hospitality—are navigating one of the most complex wage-and-hour landscapes in the country. The 2024 PAGA reform brought meaningful relief, but only for employers who take their compliance obligations seriously and can prove it.

At the same time, technology and AI are beginning to transform what compliance