2026 brings new laws affecting California workers
January 25, 2026
As we ring in the new year, new laws in California take effect, including some that may be relevant to you. Know your rights!
Minimum Wage Increases
January 1, 2026, brought the general minimum wage in California to $16.90 per hour. For health care workers in hospitals and clinics the minimum wage increases to $25 in July 2026.
ABC test applies to Drivers as Independent Contractors
SB 809 confirms that ownership of a vehicle (e.g. an owner-operator) does not make a driver an independent contractor. The ABC test applies. A worker is presumed to be an employee unless all parts of the ABC test are satisfied:
(A) The worker is free from the control and direction of the hiring entity in the performance of the work;
(B) The worker performs work that is outside the usual course of the hiring entity’s business; and
(C) The worker is customarily engaged in an independently established trade, occupation or business
Owner Operator Employees Must Be Reimbursed for Truck Expenses
SB 809 further confirms that an employee that owns the truck used for work (whether as an individual or a corporate entity) is entitled to reimbursement for the use, upkeep and depreciation of the truck, tractor, trailer or other commercial vehicle. The amount of reimbursement is subject to negotiation and may be structured as a flat rate (which can be no less than the actual amount expended) or per mile (which can be no less than the IRS mileage reimbursement rate).
Notice Prior to Public Sector Contracting Out
AB 339 requires public agencies (such as cities, counties, special districts) that are sending out any requests for proposals/bids for services or renewing contracts for services, to provide 45 days’ advance notice to any union whose members would otherwise perform the work. The notice must include the scope of the work, duration, cost, draft solicitation and reason the agency believes the contract is necessary. The purpose is to help effectuate the duty to bargain and make it more effective to keep union work union.
Miscellaneous
SB 513 now requires employers include an employee’s education and training records as part of their personnel records. SB 294 requires an annual individual notice (beginning February 2026) to employees about their rights, including their right to unionize, right to workers’ compensation benefits and protection against unfair immigration-related practices.
