This report, distributed by Leichter Law Firm, examines several California employment law changes effective January 1, 2026, affecting claims tied to wrongful termination and mass layoffs.
Assembly Bill 250 opened a new filing window, running from January 1, 2026 through December 31, 2027, for certain previously time-barred civil claims arising from sexual assault that occurred after the plaintiff turned 18. For revived claims against a non-public entity, plaintiffs generally must allege that a responsible entity or its representatives engaged in a cover-up or attempted cover-up of a prior sexual assault allegation against the perpetrator. The law also revives related wrongful termination and sexual harassment claims arising from the same underlying assault.
Separately, Senate Bill 617 amended California's Worker Adjustment and Retraining Notification Act, known as Cal-WARN, to require additional information in the 60-day notices employers must provide before a covered mass layoff, relocation, or termination, including whether the employer plans to coordinate services through a local workforce development board and specified CalFresh food assistance information, effective January 1, 2026. Employers that fail to provide required Cal-WARN notice may be liable for back pay and the value of certain benefits for the period of the violation, subject to statutory limits under California law.
A separate law, Assembly Bill 692, generally prohibits employment contract terms requiring workers to repay debts, trigger debt collection, or pay specified penalties or fees because their employment ends. It applies to contracts entered on or after January 1, 2026, with several statutory exceptions.
Senate Bill 513 also took effect January 1, 2026, expanding the definition of personnel records employers must produce within 30 days of a written request from a current or former employee to include education and training records the employer maintains.
Senate Bill 294, known as the Workplace Know Your Rights Act, also took effect January 1, 2026. The law requires employers to provide a stand-alone written notice to current employees and new hires describing certain workplace rights, including constitutional protections when interacting with law enforcement at work, with an initial compliance deadline of February 1, 2026. By March 30, 2026, it separately requires employers to let existing employees designate an emergency contact to be notified under specified arrest or detention circumstances.
Senate Bill 642, known as the Pay Equity Enforcement Act, amended California's Equal Pay Act under Labor Code Section 1197.5, effective January 1, 2026, extending the statute of limitations for equal pay claims to three years, permitting relief for violations going back as far as six years, and expressly defining wages to encompass salary, bonuses, stock, and other forms of compensation.
California remains an at-will employment state under Labor Code Section 2922, meaning employers can generally terminate a worker without cause absent a specified employment term. Termination is unlawful if based on a protected characteristic such as race, sex, age, disability, or religion, or carried out in retaliation for reporting discrimination or harassment, or for other legally protected activity.
The legislative information referenced in this release reflects California employment law changes effective in 2026, based on enacted California statutes and official state legislative materials, and is presented for general public awareness rather than as a substitute for individualized legal advice.
Leichter Law Firm, APC is a Los Angeles-based employment law firm that represents employees in wrongful termination cases in Los Angeles and other employment law matters throughout the region.
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Leichter Law Firm, APC
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