Employment and Compliance Law Highlights from the Law Offices of Paul P. Cheng
– FEDERAL –
EEOC Announces Increased Penalties for Failure to Comply With Posting Requirements
The Equal Employment Opportunity Commission (EEOC) has issued its latest inflation-based adjustment to civil monetary penalties for failure to comply with mandatory workplace-posting requirements. Under the Federal Civil Penalties Inflation Adjustment Improvements Act of 2015, the EEOC is required to annually update penalties tied to several federal employment statutes.
Effective September 30, 2025, the maximum penalty for each violation of the notice-posting requirements under:
- Title VII of the Civil Rights Act of 1964,
- The Americans with Disabilities Act (ADA),
- The Genetic Information Nondiscrimination Act (GINA), and
- The Pregnant Workers Fairness Act (PWFA)
has increased from $680 to $698 per violation.
Employers should ensure all required federal notices are properly posted and accessible to employees, both physically at the workplace and electronically, where applicable, to avoid potential fines.
– CALIFORNIA –
Amendments to FEHA Enforcement Procedures (SB 477)
Effective January 1, 2026
SB 477 revises California’s FEHA enforcement framework by:
- Defining a “group or class complaint” to include any complaint alleging a pattern or practice.
- Tolling the time to file a civil action when a complainant appeals a case closure to the Civil Rights Department, until a specified period after written notice confirming the case remains closed.
- Allowing certain deadlines to be tolled by written agreement between the complainant and the Department.
Expanded WARN Notice Requirements (SB 617)
Effective January 1, 2026
California’s WARN Act now requires employers to include additional information in mass layoff notices, including:
- Whether the employer will coordinate services with the local workforce development board or another entity
- Information regarding CalFresh food assistance
Extended Rehire Rights for Displaced Workers (AB 858)
Effective through January 1, 2027
Rehire obligations for certain laid-off workers, originally set to expire December 31, 2025, are extended through 2026. Covered employers must:
- Notify qualified laid-off employees of available positions
- Offer roles based on a preference system, consistent with statutory timelines and procedures
Job-Protected Leave Expanded for Crime Victims (AB 406)
Effective October 1, 2025 & January 1, 2026
AB 406 expands both the state’s paid sick/safe time law and Government Code §12945.8. Key updates include:
- Beginning Jan. 1, 2026, employees must be allowed unpaid, job-protected leave to attend judicial proceedings related to certain crimes involving themselves or a qualifying family member.
- Beginning Oct. 1, 2025, the Healthy Workplace Healthy Family Act (HWHFA) allows use of paid sick/safe time for:
- Appearing in court as a witness under court order
- Jury service or inquest participation
Organizing Rights Expanded for TNC Drivers (AB 1340)
Effective January 1, 2026
Transportation network company (TNC) drivers are granted rights similar to collective bargaining, including the right to:
- Form or join driver organizations
- Bargain through chosen representatives
- Engage in concerted activity
The bill also creates unfair practice procedures enforceable by the Public Employment Relations Board.
Annual Pay Data Reporting Amendments (SB 464)
Effective January 1, 2027
SB 464 requires employers to:
- Store pay-data demographic information separately from personnel files
- Report data for 13 new job categories beginning in 2027
Bias Mitigation Training Clarification (SB 303)
Effective January 1, 2026
SB 303 clarifies that:
- Participating in or acknowledging personal bias during employer-provided bias-mitigation training does not constitute unlawful discrimination.
- Conducting bias-mitigation training itself is not discriminatory.
- “Bias mitigation training” includes activities aimed at recognizing and reducing conscious and unconscious bias.
Expanded Access to Personnel Records (SB 513)
Effective January 1, 2026
Employers must now provide employees access to education and training records, which must include:
- Employee name
- Training provider
- Training duration & date
- Core competencies or skills (including equipment/software)
- Resulting certifications or qualifications
Construction Trucking Employer Amnesty Program (SB 809)
Effective January 1, 2026
SB 809 creates a misclassification defense for eligible construction contractors who:
- Enter a settlement with the Labor Commissioner (before Jan. 1, 2029)
- Agree to classify all construction drivers as employees and pay all wages, benefits, and taxes owed
Drivers who reject the agreement must still be reclassified but cannot pursue misclassification penalties for the covered period.
Paid Family Leave Expanded to Designated Persons (SB 590)
Effective July 1, 2028
Paid Family Leave benefits now extend to caregiving for a “designated person,” defined as:
- Any individual related by blood or who has the equivalent of a family relationship
Pay-or-Stay Provisions Prohibited (AB 692)
Effective January 1, 2026
Employment contracts may not require employees to:
- Repay training costs or debts
- Pay fees or penalties upon termination
This applies to contracts entered into on or after January 1, 2026.
Amendments to Wage Payment Laws (SB 642)
Effective January 1, 2026
Notable revisions include:
- “Pay scale” now means a good-faith estimate of the wage range reasonably expected at time of hire
- Employers may not pay employees less than employees of “another sex” (updating the prior “opposite sex” language)
- Civil actions for wage recovery must begin within:
- 3 years for standard violations
- 4 years for willful violations
Workplace Know Your Rights Act (SB 294)
Effective January 1, 2026
Employers must:
- Provide a stand-alone Workers Rights notice to each employee by Feb. 1, 2026 and annually thereafter
- Provide the notice upon hire and to any authorized representative
- Provide the notice in the primary language used for employment communications
- Maintain compliance records for three years
Additional requirements:
- Employees must be given the opportunity to name an emergency contact by March 30, 2026
- Employers must notify the emergency contact if the employee is arrested or detained at work, or off-site if the employer has actual knowledge
- Retaliation for exercising rights under this law is prohibited
The Labor Commissioner will publish a compliant notice template by January 1, 2026.
At the Law Offices of Paul P. Cheng & Associates, we counsel businesses on California labor compliance and defense. If you have questions about how these changes affect your operations, contact our office to ensure your policies are updated before January 2026.
These developments highlight the evolving landscape of employment regulations on both federal and state levels. Employers should stay updated and ensure compliance to avoid legal pitfalls and potential penalties. Legal counsel is recommended to navigate any complex changes effectively.
