As there have been several noteworthy updates to legislation this year, we are back with another heads-up for your business. Employers should look out for these recent changes to regulations that took effect January 1, 2026. Any employers desiring advice regarding these or any employment issues should contact the experienced counsel at MNK Law, APC, by telephone at 562.362.6437, or e-mail at info@mnklawyers.com.
Amendment to the Equal Pay Act:
SB 642 makes several substantive updates to the Equal Pay Act. Most notably, it revises the definition of “pay scale” to require that job postings disclose “a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire” (emphasis added). The bill also introduces new definitions for “sex,” “wages,” and “wage rate” within Labor Code section 1197.5, which prohibits pay disparities for employees performing substantially similar work based on sex. These definitions create new responsibilities for employers in compliance, particularly for their HR departments.
Finally, SB 642 implements several changes affecting civil actions brought for violations of the Equal Pay Act. Most significantly, the statute of limitations has been extended from two years to three years, and employees may recover relief for the entire duration of the violation, up to a maximum of six years. The bill also expressly clarifies when a cause of action accrues, providing that a violation occurs when: (1) an allegedly unlawful compensation decision or practice is adopted; (2) an individual becomes subject to such a decision or practice; or (3) an individual is affected by the application of the allegedly unlawful compensation decision or practice.
Expanded Eligibility for Paid Family Leave (SB 590):
Senate Bill 590 broadens the scope of covered family members by adding a new category: “designated person.” Effective July 1, 2028, California’s Paid Family Leave program will permit employees to take paid leave to provide care for a designated person. A “designated person” is defined as an individual who is related by blood or whose relationship with the employee is comparable to that of a family member.
To request leave for a designated person, an employee must (1) identify the designated person and (2) submit an attestation, under penalty of perjury, explaining how the care recipient satisfies the definition of a designated person. Employers may restrict employees to naming one designated person within any 12-month period.
SB 648 – Enforcement of Tip Theft Laws:
Section 351 of the California Labor Code prohibits employers from retaining, collecting, or receiving any portion of a gratuity that a customer pays, gives, or leaves for an employee. The statute also forbids employers from deducting gratuities from an employee’s wages or requiring employees to apply any part of a gratuity toward wages owed by the employer. An employer is subject to a civil penalty of one hundred dollars ($100) for an initial violation and a penalty of two hundred fifty dollars ($250) for subsequent violations for each employee whose tips were taken in addition to restitution of the gratuity.
SB 648 amends Labor Code section 351 by expanding the enforcement authority of the Labor Commissioner with respect to gratuity violations. By strengthening the Labor Commissioner’s ability to pursue and enforce these violations, the law increases accountability for employers and enhances employees’ ability to protect and enforce their rights to receive earned tips
For help with these or any employment law issues, employers should contact MNK Law, APC, via e-mail at info@mnklawyers.com, or telephone at 562.362.6437.
