Labor & Employment

Grants the Teachers' Retirement Board final authority to determine employer status and system membership. Establishes new penalties of $200 per month for employers who fail to report retired employee information. Revises how retirement benefits are calculated when employees work in multiple public retirement systems. Requires employers to notify employees within 10 days of reaching post-retirement work limits.

Extends insurance premium reimbursement for state employees on military duty from 365 to 730 calendar days. Authorizes the Governor to extend military duty benefits for state employees by up to 1,460 additional days. Establishes new court procedures for appealing Public Employment Relations Board decisions for transit workers. Repeals outdated benefits related to the 1995 Bosnia crisis for state employees.

Establishes an amnesty program for construction contractors who misclassified truck drivers as independent contractors. Requires contractors to properly classify and reimburse truck drivers who own their vehicles for work-related expenses. Provides immunity from penalties if contractors enter settlement agreements and reclassify drivers as employees by 2029. Mandates that vehicle ownership alone does not make a worker an independent contractor.

Increases minimum civil penalties for unlicensed contractor violations from $200 to $1,500 starting July 2026. Authorizes the Contractors State License Board to adjust penalty amounts for inflation every five years. Requires public entities to receive notice within 72 hours if they plan to hire unlicensed contractors.

Expands meal period exceptions to include water corporation employees covered by collective bargaining agreements. Requires 30-minute meal breaks after 5 hours of work unless covered by specific industry exemptions. Allows meal breaks to be waived if total work period is 6 hours or less with mutual consent.

Makes technical changes to the naming provision of the Teachers' Retirement Law.

Establishes a new Essential Worker Commission to address workplace safety and legal status for undocumented workers. Requires creation of a legal work program for essential workers in California by January 2028. Creates a 16-member commission representing labor, health, business, and worker advocacy groups. Mandates review of workplace safety, wages, and labor rights for essential workers by July 2027.

Authorizes employers to distribute required workplace information by mail in addition to email and physical postings. Maintains the requirement for employers to physically display all mandatory workplace notices. Provides additional flexibility for communicating with employees who prefer or need physical documents.

Enhances retirement benefits for public safety employees by lowering retirement age from 57 to 55 starting January 2026. Allows employers and unions to negotiate employer contributions toward employee retirement costs after January 2026. Adjusts pension formulas to provide higher benefits at earlier retirement ages for safety personnel. Aligns pension compensation limits with federal standards while protecting existing retirement benefits.

Restricts employers from using surveillance tools in off-duty areas like break rooms and bathrooms. Grants workers the right to disable monitoring devices during off-duty hours and meal periods. Prohibits employers from requiring workers to implant data-collecting devices in their bodies. Imposes a $500 civil penalty per employee for each violation of workplace surveillance rules.

Revises workers' compensation rules for employees who suffer multiple work injuries after January 1, 2026. Requires medical evidence to prove prior disabilities impacted work ability before awarding additional benefits. Creates a new database of qualified medical evaluators to assess subsequent injury claims. Transfers payment authority from State Insurance Fund to Director of Industrial Relations.

Undeveloped 'intent bill' that establishes an individual's right to wear masks in public places for health protection. Allows mask requirements to be modified for security, driving safety, work qualifications, and emergency healthcare.

Authorizes Orange County to increase retirement board member compensation from $100 to $320 per meeting. Limits compensation increases to a maximum of five meetings per month for eligible board members. Requires the Board of Retirement to approve any compensation rate increases.

Requires employers to disclose in job postings whether advertised positions are actual vacancies. Authorizes the Labor Commissioner to investigate violations and impose penalties up to $10,000 per violation. Grants first-time violators penalty exemption if they promptly update all job postings to include vacancy status.

Requires contractors on CSU construction projects to use skilled and trained workers for all building trades work. Mandates contractors to provide enforceable commitments for using qualified workers at all subcontractor levels. Exempts contractors who participate in project labor agreements that ensure skilled workforce requirements. Takes effect for new project labor agreements starting January 1, 2026.

Establishes new timelines and procedures for the Labor Commissioner to investigate wage theft complaints. Creates a Wage Recovery Fund funded by a 30% fee on wage theft judgments to compensate unpaid workers. Requires employers appealing wage theft decisions to post a bond equal to the amount owed. Grants the Labor Commissioner authority to place liens on employer property to secure unpaid wages.

Requires employers to provide 30-day notice before implementing workplace surveillance tools. Prohibits surveillance tools that use facial recognition or monitor workers' personal characteristics. Mandates employers to allow workers to access and correct their surveillance data within five business days. Establishes a $500 civil penalty per violation and allows workers to sue for damages.

Changes prevailing wage rate updates for public works from quarterly to semiannual reviews starting July 2026. Establishes a 20-day window for contractors to challenge new wage rate determinations. Requires the labor director to issue final decisions on wage rate challenges within 20 days. Makes new wage rates effective 10 days after issuance until modified or rescinded.

Authorizes the Labor Commissioner to investigate and penalize employers who illegally withhold employee tips. Requires employers to pay credit card tips in full without deducting processing fees. Mandates payment of credit card tips by the next regular payday after customer authorization.

Requires employers to include pay scales in job postings and maintain detailed wage records for all employees. Prohibits employers from using salary history to determine wages or job offers for applicants. Extends the deadline to file wage discrimination lawsuits from 2 to 3 years, or 4 years for willful violations. Establishes penalties up to $10,000 per violation for employers who fail to comply with pay transparency rules.

Requires utilities to pay customers $30 for each 24-hour power shutoff during wildfire threats. Mandates automatic credit payment within one billing cycle after a power shutoff event. Prohibits utilities from using customer rate money to fund the power shutoff compensation. Requires local utilities to include customer compensation plans in annual wildfire safety reports.

Requires employers to specify in mass layoff notices whether they will coordinate with local workforce boards. Mandates employers who choose workforce board coordination to begin within 30 days of the layoff notice. Requires employers to provide contact information and available services in layoff notifications. Exempts employers from notice requirements when layoffs result from physical calamities or war.

Establishes minimum salaries for state attorneys and judges to match average public sector attorney pay. Requires annual salary surveys by March 1 to determine competitive pay rates across public agencies. Implements salary increases in three phases from 2026 to 2028, subject to budget approval. Prohibits any reduction in current salaries for state attorneys and administrative law judges.

Authorizes the Public Employment Relations Board to study how net-zero carbon initiatives impact public employees. Requires annual reports to the Legislature by October 15 on study findings and recommendations. Expands the Board's data collection authority to include environmental policy impacts on employment.

Expands contractor liability for unpaid wages and benefits on private construction projects through 2026. Requires contractors to monitor subcontractor payroll records and take corrective action for unpaid wages. Allows contractors to limit liability by issuing joint checks to subcontractors and benefit funds. Empowers Labor Commissioner and labor committees to enforce wage payment violations through civil actions.