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What's New in 2026

No Escaping Notice

DLSE Updates Mandatory Paid Sick Leave Posting

The California Division of Labor Standards Enforcement has updated the mandatory Paid Sick Leave poster . California employers must download and display it in a conspicuous workplace location.

January 29, 2026

The California Division of Labor Standards Enforcement has updated the mandatory Paid Sick Leave poster. California employers must download and display it in a conspicuous workplace location.

The updated poster reflects statutory changes to California’s paid sick leave law, including amendments enacted through SB 616 and AB 406, and summarizes current employee rights under the Healthy Workplaces/Healthy Families Act:

  • Who is covered: Employees who work in California for 30 or more days within a year from the beginning of employment.
  • Accrual: Employees accrue paid sick leave at one hour for every 30 hours worked. The leave generally carries over year to year, subject to a cap of 80 hours or 10 days. Employers may alternatively frontload at least five days or 40 hours at the beginning of a 12-month period, eliminating accrual or carryover requirements.
  • Use of leave: Employees may use paid sick leave beginning on the 90th day of employment. Employers may limit use to 40 hours or five days (whichever is greater) per year. Employers must provide paid sick leave upon an employee’s oral or written request for reasons listed in the poster, including jury service, appearing in court as a witness pursuant to a subpoena or court order, diagnosis, care, treatment, or preventive care for the employee or a family member, and specified judicial proceedings, relief, or services related to qualifying acts of violence (with certain provisions applying to employers with 25 or more employees).
  • Anti-retaliation protections: The law prohibits retaliation or discrimination against an employee for requesting or using paid sick leave. Employees may file complaints with the Labor Commissioner for violations.

Take-Aways:

Employers should download and display the current DLSE Paid Sick Leave poster in an accessible location, replace any outdated versions, use the appropriate translated poster for non-English-speaking employees, and review paid sick leave policies and handbooks to ensure consistency with the poster’s requirements. Employers must also continue to comply with applicable local paid sick leave ordinances, which may impose additional or more generous requirements.

For further assistance, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin

See also:

Cindy Bamforth
January 29, 2026

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Cautionary Tale Episode 108

Employees, Not on the Menu

Kentucky Fried Chicken Settles Sexual Harassment Claims

The Equal Employment Opportunity Commission has found reasonable cause to believe KFC violated federal law by subjecting an Orlando location employee to a sexually hostile work environment and then firing her in January 2022 in retaliation...

January 23, 2026

The Equal Employment Opportunity Commission has found reasonable cause to believe KFC violated federal law by subjecting an Orlando location employee to a sexually hostile work environment and then firing her in January 2022 in retaliation for objecting. The agency found a second employee also affected.

KFC settled the charges in a pre-litigation conciliation, paying $100,000 to each employee.  It must also revise employment policies to specifically prohibit sex discrimination, have annual training on sex discrimination for its staff, and for three years must report any other such complaints.

The EEOC Miami District’s regional attorney stated: “Every employee deserves a workplace free from harassment, discrimination and retaliation.  By resolving this matter, the EEOC is ensuring that these workers receive justice, and that KFC implements measures to prevent future misconduct.”

Take-Aways:

Employers must establish zero tolerance for sexual harassment and retaliation by policy and by training their staff. They must investigate and take appropriate action when it is reported.  This firm offers sexual harassment training.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

Helena Kobrin
January 23, 2026

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Claim Control

Understanding California’s “Claim and Conference” Process

California employers may receive a “claim and conference” notice of a current or former worker’s wage claim with the Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner.

January 15, 2026

California employers may receive a “claim and conference” notice of a current or former worker’s wage claim with the Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner.

How a DLSE Claim Begins:

A DLSE claim starts when a current or former worker files a wage complaint. Common claims include unpaid overtime, missed meal or rest breaks, final pay issues, or vacation wages. The DLSE then notifies the employer.

The Settlement Conference:

The DLSE usually schedules a telephonic settlement conference with a deputy labor commissioner to clarify issues and explore early resolution. Although the conference is not a trial, employers should treat it as an official process, not a casual conversation. If the parties reach an agreement, the DLSE documents the settlement and closes the case.

If the Claim Does Not Settle:

If the claim does not settle, the DLSE may set a formal hearing. Both sides present evidence under oath, and the hearing officer issues a written decision.
Missing a scheduled conference or hearing can put an employer at a serious disadvantage.

Statute of Limitations: DLSE vs. Court:

In DLSE proceedings, wage recovery is generally limited to a three-year lookback period, even if the worker points to a written agreement.

Civil lawsuits allow workers to pursue older claims using court-only legal theories. Those claims can extend the lookback to four years.

Because those court-only claims are not available at the DLSE, the process often stays narrower than a lawsuit.

Do Employers Need a Lawyer?:

DLSE proceedings do not require legal representation. Many employers appear on their own, especially in lower-dollar cases.

Legal representation depends on:

  • The allegations;
  • The amount at stake;
  • The strength of the records; and
  • The risk the dispute moves to court.

Early guidance helps employers present a clear position, avoid unnecessary admissions, and evaluate settlement options.

Take-Aways:

The DLSE claim and conference process allows employers to address wage disputes early and outside of court. Employers who respond promptly, stay organized, and act strategically can better control risk and cost.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

Cindy Bamforth
January 15, 2026

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What's New in 2026

Sign of the Times (Update)

“Workplace Know Your Rights Act” DIR Template Notice Now Available

Effective February 1, 2026, all California employers must provide each worker with an annual, stand-alone notice summarizing key labor protections and constitutional rights. See Sign of the Times (October 24, 2025).

January 9, 2026

Effective February 1, 2026, all California employers must provide each worker with an annual, stand-alone notice summarizing key labor protections and constitutional rights. See Sign of the Times (October 24, 2025).

The Labor Commissioner posted a template notice available here. Employers must download, distribute annually, and retain related records for three years.

The DIR template notice summarizes key worker protections:

  • Protection from retaliation for exercising workplace rights (including filing complaints or asking about legal compliance);
  • Immigration-related protections, including notice requirements for I-9 inspections and limits on immigration-related threats or practices;
  • The right to designate an emergency contact and request notification if arrested or detained at work;
  • The right to organize or engage in protected concerted activity without interference or retaliation;
  • Constitutional protections when interacting with law enforcement or immigration agents, including rights related to searches, detention, silence, and recording in public spaces; and
  • Contact information for government agencies if rights are violated.

Take-Aways:

This is an annual distribution notice, not a posting. Be sure to download and distribute the template by February 1, 2026 to all current employees and new hires. Use the appropriate translated DIR version for non-English speaking employees.

For further assistance, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin

See also:

Cindy Bamforth
January 9, 2026

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Devils or Detail

Precision Timekeeping

Best Protection Against Business Damnation

Our new year’s message to management: please focus on the fine details of workforce time and pay documentation.

January 2, 2026

Our new year’s message to management: please focus on the fine details of workforce time and pay documentation. Like a speeding ticket to the lifetime freeway driver, it is only a matter of time before an unmindful employer gets flagged with a mass litigation suit, possibly placing millions at stake for technical Labor Code violations. Workplace Roulette – Reducing the Odds of PAGA Purgatory (December 13, 2024)

Precise timekeeping is the foundation for limiting the chances of such disasters. California requires every employer:

  • to keep payroll records showing hours worked daily and wages paid for each employee, including time out and in for meal breaks (e.g., Wage Order 4, section 7), and to preserve those records for at least three years (Labor Code section 1174(d)); and
  • to issue itemized wage statements, for hourly workers to contain, among other things, the exact total hours worked and all applicable hourly rates and exact corresponding hours (Labor Code 226).

Where an employer fails to keep required records, an employee’s testimony regarding hours worked is presumed accurate, shifting the burden to the employer to disprove it. Hernandez v. Mendoza 199 Cal.App.3d 721 (1988).

For decades, a company using old school manual cards could reply with its fair and neutral “rounding” practices, setting the work start or end forward or back to the nearest tenth or even quarter hour. The days of that defense may be numbered. In 2021, the California Supreme Court called such practices into question “given that advances in technology have enabled employers to more easily and more precisely capture time worked by employees.” Donohue v. AMN Services, LLC 11 Cal.5th 58 (2021).

While we cannot endorse any particular digital system, there is a wealth of resources for management’s move to join this trend. See, e.g., The 9 Best Payroll and Timekeeping Software in 2026 (December 31, 2025).

Take-Aways:

A best practice to build protections against crippling mass wage-and-hour litigation is to move as quickly as possible from a traditional manual method to workable digital timekeeping software and protocols to ensure all hourly employees are on board with the change.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin

See also:

Tim Bowles
January 2, 2026

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Cautionary Tale Episode 106

Paybacks Butt Kicked

$586,000 Citation for Prevailing Wage Shenanigans

The federal Wage and Hour Division has cited Maryland construction company J. Solano HVAC LLC $586,000 for a payback scheme by which it paid pipefitter mechanics and sheet metal workers prevailing wage, but had them return everything over...

December 23, 2025

The federal Wage and Hour Division has cited Maryland construction company J. Solano HVAC LLC $586,000 for a payback scheme by which it paid pipefitter mechanics and sheet metal workers prevailing wage, but had them return everything over $30/hour. The company also misclassified some workers as less skilled to pay them lower prevailing wage rates.

Under federal law, “A prevailing wage is the combination of the basic hourly wage rate and any fringe benefits rate, paid to workers in a specific classification of laborer or mechanic in the area where construction, alteration, or repair is performed, as determined by the Secretary of Labor. “ Workers on federal construction projects are entitled to receive prevailing wage rates.

Baltimore Wage and Hour Division District Director Nicholas Fiorello said:

“By uncovering this scheme, the department ensured that workers were paid fairly, received their full fringe benefits, and that competing contractors were not disadvantaged for appropriately bidding for work based on the required prevailing wage rates. Employers that don’t abide by federal contract requirements may end up being debarred from future government contract work.”

The citation bars Solano from bidding on any federal projects for three years.

California Labor Code 221 also bars paybacks: “It shall be unlawful for any employer to collect or receive from an employee any part of wages theretofore paid by said employer to said employee.”

TAKE-AWAYS:

Employers must follow all laws requiring that certain wages be paid to their employees, whether minimum wage, overtime, prevailing wage, or laws prohibiting paybacks.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

Helena Kobrin
December 23, 2025

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What's New in 2026

California Minimum Wage Rates as of January, 2026

California’s minimum wage landscape continues to evolve two times each year. The statewide rate will rise to $16.90 per hour for all employers on January 1, 2026.

December 19, 2025

California’s minimum wage landscape continues to evolve two times each year. The statewide rate will rise to $16.90 per hour for all employers on January 1, 2026.  Many cities and counties enforce local minimum wage ordinances that exceed that rate.

To keep track of interim updates, see the UC Berkeley Center for Labor Research and Education.

City or CountyMinimum Wage Rate
Alameda (effective July 1, 2025)$17.46
Belmont$18.95
Berkeley (effective July 1, 2025)$19.18
Burlingame $17.86
Cupertino$18.70
Daly City $17.50
East Palo Alto$17.90
El Cerrito $18.82
Emeryville (effective July 1, 2025)$19.90
Foster City$17.85
Fremont (effective July 1, 2025)$17.75
Half Moon Bay$17.91
Hayward$16.90 (25 or fewer employees) and
$17.79 (26 or more employees)
Los Altos $18.70
Los Angeles City (effective July 1, 2025)$17.87
Los Angeles County (Unincorporated Areas) ( effective July 1, 2025)$17.81
Malibu (effective July 1, 2025) $17.27
Menlo Park$17.55
Milpitas (effective July 1, 2025)$18.20
Mountain View $19.70
Novato$16.90 (25 or fewer employees)
$17.46 (26-99 employees)
$17.73 (100+ employees)
Oakland$17.34
Palo Alto$18.70
Pasadena(effective July 1, 2025)$18.04
Petaluma$18.31
Redwood City$18.65
Richmond$19.18
San Carlos$17.75
San Diego$17.75
San Francisco City and County (effective July 1, 2025)$19.18
San Jose $18.45
San Mateo$18.60
San Mateo County (Unincorporated areas)$17.95
Santa Clara$18.70
Santa Monica (effective July 1, 2025)$17.81
Santa Rosa$18.21
Sonoma$17.38 (25 or fewer employees)
$18.47 (26+ employees)
South San Francisco$18.15
Sunnyvale$19.50
West Hollywood$20.25

For employers with remote employees in multiple jurisdictions, different minimum wage rates may apply based on each worker’s location. To streamline compliance, some employers choose to pay the highest applicable minimum wage across all locations.

Covered employers are required to conspicuously post the applicable wage notice(s), available by the links above.

See also:

Helena Kobrin
Daniska Coronado
December 19, 2025

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Ho-Ho-Hold the Line

Holiday Cheer Without HR Fear

A company year-end holiday party celebrates wins and brings people together. It can also spark complaints or liability if treated like “anything goes.” Host it with warmth, clear expectations, and smart planning. DO: Keep it inclusive.

December 12, 2025

A company year-end holiday party celebrates wins and brings people together. It can also spark complaints or liability if treated like “anything goes.” Host it with warmth, clear expectations, and smart planning.

DO:

  • Keep it inclusive. Use “year-end celebration” language. Choose a setting and activities that welcome different cultures, faiths, and comfort levels.
  • Make it truly optional. Skip manager pressure, attendance tracking, or anything that links the party to advancement.
  • Set expectations in advance. Send a short note: policies apply, respectful conduct matters, and reporting channels remain open.
  • For non-exempt employees, if attendance is required (or effectively required), treat time as compensable, including overtime when applicable.
  • Prohibit alcohol consumption. The employer can face exposure when alcohol fuels injuries or misconduct at a company event. If you offer alcohol, use a professional bartender, limit service, avoid shots or hard-liquor “rounds,” provide food and non-alcoholic options, and offer safe rides home.
  • Keep leadership “on.” Management and executives set the tone. Tell them to model boundaries and step in early when behavior starts drifting.

DON’T:

  • Let the party drift into after-hours chaos. “Unofficial” after-parties create the biggest problems, especially when leaders join in.
  • Excuse inappropriate behavior as “holiday spirit.” Jokes, flirting and unwanted contact are never acceptable.
  • Allow gift exchanges to get personal. Avoid romantic, sexual, or edgy gifts, or anything else that invites embarrassment or uneven treatment.
  • Give star performers a pass. Consistent enforcement protects the company and the culture.

Take-Aways:

Keep the fun. Keep the guardrails. Plan with intention, lead with boundaries, and avoid January headaches.

For further information this holiday season, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

Cindy Bamforth
December 12, 2025

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Cautionary Tale Episode 105

Nice Try, No Cigar

$800k-Plus Citation for Misclassifying Truckers as Independent Contractors

On Board of Field Enforcement investigation, California’s Labor Commissioner has cited Costco, Ryder Last Mile, and Mega Nice Trucking $868,128 for misclassifying truck drivers as independent contractors.

December 5, 2025

On Board of Field Enforcement investigation, California’s Labor Commissioner has cited Costco, Ryder Last Mile, and Mega Nice Trucking $868,128 for misclassifying truck drivers as independent contractors. Ryder subcontracts big box store deliveries, and subcontracts in turn to Mega.

The BOFE found that Mega wrongly classified the drivers as independent, and Mega’s attempt to relabel them from independent to employee was a distinction without difference. Mega continued to pay them a daily rate with no overtime and no meal premiums for missed meal breaks. Investigators also found falsified records.

The Labor Commissioner’s Office rolled the findings up to Costco and Ryder as joint employers for their scheduling deliveries, monitoring driver performance, requiring uniforms and designated protocols.

Labor Commissioner Lilia García-Brower noted: “Companies that exert control over workers cannot evade responsibility by hiding behind layers of subcontracting. Misclassification strips workers of their rights and protections, and employers who direct and control their workforce are responsible for paying all wages owed.”

The companies are appealing the citation, but if they lose, 58 delivery drivers will share $662,978 of the total amount.

Take-Aways:

Independent contractor status is not a matter of employer or employee choice. Management should consult employment counsel to confirm that classifying workers as contractors meets California’s strict criteria.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

Helena Kobrin
December 5, 2025

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