Adam Bouka

By Adam Bouka

As we move into 2026, California continues its trend of enacting expansive and complex new employment laws. The legislative updates for 2026 span a wide range of critical workplace issues, including pay transparency, layoffs, training repayment requirements, workplace rights notices, protected leave, minimum wage, and the increasingly regulated use of artificial intelligence in employment decisions. Employers should promptly update policies, agreements, and HR practices to align with these significant changes. Below is a summary of the most impactful new laws and what employers need to know.

Training Repayment and “Stay-or-Pay” Restrictions

AB 692 establishes one of the most consequential changes for 2026 by banning most hiring-related “stay-or-pay” repayment provisions. Employers may no longer require workers to reimburse training costs, repay signing bonuses based on early resignation, or pay “quit fees,” unless the repayment fits within narrow statutory exceptions such as certain legally required training, government-backed educational programs, or approved apprenticeships. Agreements imposing prohibited repayment obligations are void, and employees may seek statutory damages and attorneys’ fees. Read more >>