HR News You Can Use: 2026 California Labor Laws on Payroll, Wage and Hour

Описание: Download your free 2026 California Employment Law Guide: https://employers.org/2026-employment...

2026 brings some significant updates to employment and labor laws in California! Let’s review 3 new changes that will impact your payroll and wage & hour practices in the New Year.

1. Under Senate Bill 3, California’s minimum wage is adjusted due to inflation. Minimum wage increases from $16.50 per hour to $16.90 per hour on January 1, 2026. This change has a domino effect on salaried employees who will need to earn at least $70,304 per year to continue to qualify for an exempt status.

2. Senate Bill 642 makes some amendments to California’s Equal Pay Act to bring the statute of limitations for claims to three years in all cases. SB642 also amends the definition of pay scale, which will now mean an estimate of the expected wage range that an employer reasonably and in good faith expects to pay for a position upon hire.

3. The federal OBBB Act established tax-related changes for tax years 2025 through 2028, such as deductions for qualified overtime pay and tips. Employees will be able to take the deduction for tips and certain overtime pay on their 2025 federal income tax return.

Stay tuned for the next HR News You Can Use episode, where we break down 2026 labor law updates regarding employee protections.

Need additional support? Download your free 2026 California Employment Law Guide: https://employers.org/2026-employment...

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