California employers may soon face significantly increased liability for certain immigration-related conduct in the workplace. Assembly Bill 2495 (AB 2495) was passed by the California Legislature during the 2026 legislative session and is currently awaiting action by Governor Gavin Newsom. The Legislature adjourned on August 31, and the Governor has until September 30, 2026, to sign or veto bills passed during the session. If enacted, AB 2495 would expand California’s existing restrictions on immigration-related retaliation and coercion by covering conduct related to a person’s perceived immigration status that would reasonably tend to discourage an employee from exercising rights under state, local, or federal law.
One of the most significant provisions for business owners is the proposed financial penalty. AB 2495 would create a civil penalty of up to $10,000 per employee per violation, payable to the affected worker, in addition to other remedies that may already be available under California law. The bill also provides that an employee’s actual immigration status would not determine whether the prohibition applies. In practical terms, employers and managers should be cautious about comments, threats, requests for immigration documents beyond what is legally required, or other conduct involving perceived immigration status—particularly when those actions occur during workplace disputes, disciplinary decisions, scheduling disagreements, wage complaints, or other employee-rights matters.
What California Business Owners Should Do
Employers should review their anti-retaliation, workplace conduct, and immigration-compliance policies and make sure managers understand the limits on discussing or using immigration status in employment decisions. Management training should emphasize that workplace disputes should be handled through established disciplinary and HR procedures rather than through comments or threats concerning immigration status. Employers should also ensure that personnel responsible for completing Form I-9 understand the difference between lawful employment-verification procedures and requests for additional documentation that may create legal exposure. Because AB 2495 has not yet been signed into law, employers should monitor its final status before making changes specifically required by the bill. However, reviewing existing practices now can help businesses identify potential risks before they develop into employee complaints or litigation.
For California employers, immigration compliance is no longer limited to completing employment-verification paperwork. Manager conduct, workplace communications, and retaliation concerns can also create significant employment-law exposure. Businesses should regularly review their HR policies and train supervisors on how to handle employee complaints and workplace disputes appropriately.
This article is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. If you need legal guidance, please contact us at info@mnklawyers.com.