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California employment law is changing again in 2026—and employers need to prepare now. In this episode of The Employee Handbook, attorneys Arta Wildeboer and Ryan Ellis break down the most significant new California labor laws taking effect January 1, 2026.

Topics covered in this episode:

Wage & Hour Updates

• California minimum wage increasing to $16.90/hour (with higher rates in San Francisco and San Jose)
• New minimum exempt salary threshold: $70,304 annually
• Computer professional exemption: $122,573.13/year
• Licensed physician minimum: $107.17/hour
• SB 261 penalties for unpaid wage judgments—up to 3x the judgment amount

Remote Work Expense Reimbursement

• Labor Code 2802 updates requiring employers to reimburse remote employees for internet, phone, and electricity costs
• What counts as "reasonable" reimbursement and class action risks

Stay-or-Pay Provisions Banned

• California's new prohibition on training repayment agreements and stay-or-pay contract clauses

Workplace Violence Prevention Program (SB 553)

• Required incident logging and documentation
• Penalties up to $25,000 per violation ($158,000 for willful violations)
• PAGA exposure and how violations multiply
• Real examples: Slack threats, customer confrontations, domestic disputes at work
• Annual audit and training requirements
• Espinoza v. Target case discussion

Whether you're a California employer, HR professional, or business owner, this episode provides practical guidance on compliance with California's evolving employment regulations.