Ready for 2026: Your Workforce Compliance Checklist
- YSEDC
- 4 days ago
- 3 min read
At YSEDC, our core mission is building a stronger local economy. As we look ahead to 2026, a key part of that mission is helping our local businesses remain stable, competitive, and fully compliant.
Navigating the constant changes in California's regulations is not just a chore; it’s an Economic Stability Strategy. Getting these changes right ensures you can focus your time and capital on growth and innovation right here in the Yuba-Sutter area.
Here is a checklist for key updates heading into the new year.
Part 1: Mandatory 2026 Labor and Wage Updates
California's unique labor laws require proactive planning. These critical changes are effective January 1, 2026.
State Minimum Wage Increase: The statewide rate rises to $16.90 per hour.
Action: Ensure all payroll systems reflect the new rate before January 1st.
Exempt Employee Salary Threshold: The minimum required annual salary for most exempt employees is now $70,304/year.
Action: Audit all salaried roles to ensure they meet the new minimum and the job duties test.
Ban on Training Repayment Clauses (AB 692): Employers can no longer require workers to repay training, relocation, or bonuses if they leave before an agreed-upon date.
Action: Review and remove any such "stay-or-pay" terms from employment contracts.
Tipped Wages: Credit card tips must be distributed to employees by the next regular payday (SB 648).
Action: Adjust payment procedures for the quick transfer of credit card tips to employees.
Part 2: New Recordkeeping and Communication Rules
These changes affect how you hire, how you file, and how you communicate with your team.
Pay Scale Transparency Refined (SB 642)
New Requirement: The required pay scale in job postings (for employers with 15+ employees) must now be a "good faith estimate" of the range you reasonably expect to pay upon hire. Vague or overly broad ranges are now non-compliant.
Action: For all job postings, define a realistic, narrow pay range specific to the starting wage.
Personnel Records Expanded (SB 513)
New Requirement: The definition of "personnel records" employees have a right to inspect now explicitly includes all education and training records you maintain.
Action: Audit your filing system. Ensure training documents are accessible and contain the employee's name, trainer, date, duration, and resulting certification.
February 1, 2026: New Poster/Notice Required (SB 294)
The state will issue a "Workplace Know Your Rights" notice detailing key worker protections.
Action: Distribute the official state template to all current employees by the deadline.
March 30, 2026: Emergency Contact Designation
You must provide a simple way for all employees to designate an emergency contact in case of an incident at work.
Action: Create a simple form and securely collect updated contact information.
Part 3: Using Tech & AI for Operational Stability
Your SOPs are critical for consistent quality and business continuity. Use modern tools to keep them effective.
Digital SOPs: Centralize all procedures in a single, accessible cloud folder (e.g., Google Drive) where employees can find the latest version.
Visual Documentation: Use a smartphone to film 60-second video guides for critical procedures, saving hours of in-person training.
AI Integration: If using AI for hiring or reviews, prepare to provide employees with the legally required notice about how these automated systems make decisions.
Get the Details Firsthand
Hear directly from an expert on the requirements, updates, and compliance steps employers need to prepare for.
What Employers Need to Know in 2026: Employment Law Update
Presented by Aaron B. Silva for Yuba Sutter Chamber of Commerce
January 21, 2026, at Hillcrest Plaza, 210 Julie Drive, Yuba City, CA 95591.
Sign up today! Link
The Bottom Line
Taking the time now to finalize your compliance checklist is a crucial investment in the resilience of your company and the health of the entire Yuba-Sutter economy. A stable, well-organized business environment attracts new capital and talent to our region.
Connect with our team at YSEDC today to link up with partners who can help you make 2026 your most stable year yet.
