Publications

Senate Bill 642, known as the Pay Equity Enforcement Act, amends the Equal Pay and Pay Transparency laws in California. One of the most significant changes under SB 642 is the extension of the statute of limitations for Equal Pay Act claims. Previously, employees generally had two years to file a claim, or three years in cases involving willful violations. SB 642 extends the filing period to three years and broadens employees’ ability to recover compensation for ongoing pay inequities. Further, employees can now seek recovery of lost pay for a period of up to six years for ongoing violations when a claim is filed within the three-year period.

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California employers should prepare for several local minimum wage increases taking effect on July 1, 2026. Although California’s statewide minimum wage increased to $16.90 per hour on January 1, 2026, many cities have adopted higher local wage ordinances that employers must follow when they exceed the state minimum wage. Employers with multi-location operations, remote employees, or workers performing services across jurisdictional boundaries should carefully review their pay practices to ensure compliance with the new updates.

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On May 21, 2026, Governor Newsom issued Executive Order N-6-26 in preparation for the impacts of artificial intelligence on the workforce. The order requires state agencies, labor experts, economists, universities, and industry leaders to develop policies, gather data, and identify early warning signs of AI workforce disruptions.

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On May 28, 2026, the U.S. Department of Labor’s (“DOL”) Wage and Hour Division issued Opinion Letter FLSA2026-7, providing federal guidance on whether the time that employees spend voluntarily leaving an employer’s premises during an unpaid meal period constitutes compensable work time under the Fair Labor Standards Act (“FLSA”). The DOL concluded that such time is generally not compensable work time under the FLSA.

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In the recent case of Paknad v. Superior Court, the California Supreme Court affirmed and expanded on previous rulings that attorney-client communications and the attorney work product privileges may be waived where the employer places the adequacy of an attorney-conducted investigation at issue.

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OVERVIEW

The Los Angeles City Council has taken initial steps to delay implementation of the City’s planned $30/hour minimum wage for hotel and airport workers, originally slated to take effect by 2028 (link).
In a closely divided vote, the Council advanced a proposal to push the timeline to 2030, although additional action is required before any delay becomes final.

The move comes amid significant political and economic pressure tied to a business-backed ballot initiative that could have broader fiscal consequences for the city. A referendum process can pause or force voter approval of wage ordinances, potentially pushing the issue to a citywide vote.

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Employers report a sharp increase in employees requesting mental health leave and accommodations in recent years. This may be in part attributable to a welcome de-stigmatization of mental illness, but has the unfortunate side effect of increasing the burden on employers to accommodate these requests.

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California’s Assembly Bill 692 (AB 692), effective January 1, 2026, prohibits most “stay-or-pay” provisions in employment contracts. AB 692 renders void any clauses requiring employees to repay training, education, or relocation costs upon separation, and limits efforts to penalize workers for leaving. The bill enhances employee mobility and creates private rights of action for violations.

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Labor relations in the United States has entered a fundamentally different era—one defined by heightened employee expectations, aggressive regulatory shifts, and a renewed sense of momentum within organized labor. For employers, this moment is not simply a cyclical uptick in activity. It is a structural change in how workforces think, communicate, and mobilize. And the organizations that recognize this shift early will be the ones best positioned to navigate it.

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On March 24, 2026, Washington Governor signed House Bill 1155 amending various provisions related to non-competition and non-solicitation agreements, amendments which take effect on June 30, 2027.

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