California ushered in 2026 with a wave of new laws affecting businesses – from wage increases and job posting requirements to regulations on AI in employment decisions. For employers, staying compliant is critical to avoiding costly litigation.
Michael Manoukian, a Lathrop GPM Partner who defends businesses in employment disputes, spoke with the San Francisco Business Times about the challenges these changes present:
“Regarding the cost of doing business in California, one of the largest challenges for employers is to stay compliant and to stave off lawsuits.” Manoukian said. “There’s great opportunities to do business out here, but businesses have to stay on top of all these new laws and regulations that are coming out, and work with outside counsel or their HR teams to see what the impact is.”
Among the most notable changes:
- Minimum wage increase to $16.90 statewide, raising exempt salary thresholds.
- Expanded pay transparency requirements under SB 642.
- AI hiring and firing regulations, requiring bias audits and human review alternatives.
- New protections for tipped employees, crime victims and personnel record access.
Employers should review policies, update handbooks, and audit compliance processes early in the year to mitigate risk.
Read the full article here [SUBSCRIPTION REQUIRED]: New California Laws Will Affect Business Owners in 2026 – Here’s What You Need to Know