900+ New California Laws Just Hit, Plastic Bags Banned, Insulin Capped at $35, Wages Triple-Penalized

Nearly 800 new California laws took effect January 1, 2026, impacting minimum wage ($16.90/hour), insulin costs ($35 copay cap), plastic bag bans, workplace protections, housing requirements, consumer rights, and criminal justice. Employers face triple penalties for unpaid wages after 180 days, landlords must provide working appliances, and food delivery apps must issue full refunds for wrong orders. These changes affect every California resident and business.

California Minimum Wage Increases to $16.90 in 2026

California’s minimum wage jumped from $16.50 to $16.90 per hour on January 1, 2026. This increase affects both hourly workers and salaried exempt employees.

If you’re an exempt employee who doesn’t receive overtime pay, your minimum annual salary must now be at least $70,304 ($1,352 weekly).

Several Bay Area cities set even higher rates:

• Santa Clara: $18.70 per hour
• Redwood City: $18.65 per hour
• San Mateo County: $17.95 per hour
• Los Angeles: $17.87 per hour (increased July 2025)

Check your local city minimum wage to ensure you’re being paid correctly. If your employer isn’t paying the proper wage, file a complaint with the Labor Commissioner’s Office at 833-526-4636.

Unpaid Wage Judgments Now Face Triple Penalties

SB 261 creates massive penalties for employers who don’t pay court-ordered wages. If a wage judgment remains unpaid 180 days after the appeal deadline, employers face civil penalties up to three times the judgment amount.

A $10,000 unpaid wage judgment could result in $30,000 in additional penalties. A 500-employee company that failed to pay judgments could face $50,000 to $100,000 in fines.

The law also establishes “successor liability”—if a business is sold or transferred, the new owner becomes jointly liable for unpaid wage penalties.

Employers must resolve wage claims promptly or set up payment plans to avoid these severe penalties.

Insulin Copay Capped at $35 Starting January 2026

SB 40 caps insulin copays at $35 for a 30-day supply for large state-regulated health insurers starting January 1, 2026. Individual and small group plans must comply by January 1, 2027.

The law also prohibits “step therapy” requirements, meaning health plans can’t force you to try different insulin types before approving what your doctor prescribed.

California now sells its own branded insulin called CalRx. A pack of five insulin pens costs about $55 ($11 per pen), significantly less than the $89 to $300 range for similar products currently on the market.

An estimated 3.5 million adults in California have diabetes and rely on insulin to live.

California Plastic Bag Ban Closes All Loopholes

SB 1053 completely eliminates plastic shopping bags starting January 1, 2026—including the thicker “reusable” plastic bags that grocery stores have been providing since the 2014 ban.

Stores can only provide recycled paper bags for a minimum of 10 cents each. By January 1, 2028, paper bags must contain at least 50% post-consumer recycled materials.

The ban doesn’t apply to plastic produce bags or other plastic bags used to prevent contamination.

Bring your own reusable bags to avoid paying for paper bags at checkout.

Landlords Must Provide Working Stoves and Refrigerators

AB 628 requires landlords to provide working refrigerators and stoves in all rental units starting January 1, 2026. This has major impact in Los Angeles, where landlords commonly required tenants to bring their own refrigerators.

If an appliance is recalled, landlords have 30 days to repair or replace it.

The law applies to new leases, amended leases, or lease extensions signed on or after January 1, 2026. If you agree to bring your own appliances, that agreement must be written in your lease.

Food Delivery Apps Must Issue Full Refunds

AB 578 requires food delivery platforms like DoorDash, Uber Eats, and Grubhub to give full refunds to your original payment method when orders are:

• Not delivered
• Delivered late
• Wrong or incorrect
• Only partially fulfilled

No more app credit—you get your money back.

The law also requires these platforms to provide access to a real human customer service representative when automated systems can’t resolve your issue.

Additionally, delivery companies can’t use tips to offset driver base pay. They must show itemized pay breakdowns for delivery workers.

Pay Transparency Requirements Get Stricter

SB 642 redefines “pay scale” to mean “a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire.”

If a job lists $60,000 to $90,000, employers must now post the realistic expected pay within that range, not just broad salary ranges.

The law also extends the time to file equal pay lawsuits from two years to three years, with recovery available for up to six years of violations.

The definition of “wages” now includes all forms of compensation: salary, overtime, bonuses, stock options, profit sharing, life insurance, vacation pay, holiday pay, and benefits.

Mass Layoff Advance Notice Required

SB 617 requires employers to provide advance written notice before mass layoffs.

Employers must also give laid-off workers information about CalFresh (California’s food assistance program).

This law provides more protection during a time when unemployment hit 4.6% in November 2025—a four-year high—with thousands laid off from major companies including Amazon, UPS, and Microsoft.

Stay or Pay Contracts Now Restricted

AB 692 makes it unlawful for employment contracts to require workers to pay employers penalties, fees, or repay costs if the employment relationship ends.

With very limited exceptions, employers can’t recoup money advanced to employees for:

• Training costs
• Retention bonuses
• Other employment-related expenses

The law applies to employment contracts entered into on or after January 1, 2026.

Work with legal counsel to ensure new contracts meet the statutory exceptions for tuition reimbursement and retention bonuses.

Law Enforcement Officers Must Display Identification

SB 805 requires law enforcement officers in California to visibly display their agency and either a name or badge number when performing duties.

This applies to both local police and federal officers operating in California.

Violations are a misdemeanor offense.

Law Enforcement Mask Ban Takes Effect

SB 627 marks the nation’s first statewide ban on law enforcement officers wearing masks to conceal their identities.

The law targets federal immigration officers including Customs and Border Protection and Immigration and Customs Enforcement agents.

The Trump administration is currently challenging this law in federal court, arguing federal officials don’t have to follow state law.

Used Car Return Rights Begin October 2026

Starting October 1, 2026, SB 766 gives buyers a 3-day window to return a used vehicle for a full refund.

Dealers must disclose all costs upfront and can’t charge for add-ons that don’t benefit you.

Data Breach Notification Deadline Shortened

SB 446 requires businesses to notify you within 30 days after discovering a data breach.

If a breach affects more than 500 California residents, companies must also notify the state Justice Department within 15 days.

California Privacy Protection Agency Creates DELETE Platform

The California Privacy Protection Agency must create a simple opt-out platform called the Delete Request and Opt-Out Platform (DROP).

The DROP website will be operational in January 2026. Data brokers have until August 1, 2026 to begin complying.

Consumers can use DROP to request that data brokers delete their personal information in one centralized location instead of contacting each broker individually.

Automatic CSU Admission for Qualified Seniors

SB 640 provides automatic admission to a CSU campus for qualified high school graduates for the 2026-2027 school year.

Seniors with a minimum 2.5 GPA will receive direct admission letters based on coursework and grades.

Students must still submit an application after receiving the official offer of acceptance.

School Cell Phone Policies Required by July 2026

All California K-12 public schools must implement policies limiting or prohibiting student phone use by July 1, 2026.

Each school will create its own specific policy for phone use on campus or under school supervision.

All-Gender Restrooms Required in Schools

SB 760 requires all K-12 public schools and charters to have at least one all-gender restroom at each school site by July 1, 2026.

The law includes specific signage requirements and designated staff contact points.

Students cannot be forced to use the all-gender bathrooms.

Student ID Cards Must Include Suicide Prevention Hotline

Beginning July 2026, California’s public middle schools, high schools, and colleges must include the telephone number and text line of the Trevor Project on student ID cards.

The Trevor Project is a suicide prevention hotline for LGBTQ+ youth.

Cat Declawing Banned Statewide

AB 867 makes it illegal to declaw cats starting January 1, 2026.

Removing a cat’s toe bone is only allowed for medical reasons like infection, disease, or injury.

Veterinary groups and animal advocates pushed for this law, saying declawing is inhumane as it amputates bones, causes pain, and reduces quality of life.

Tortillas Must Contain Folic Acid

All corn tortillas and corn masa products sold in California must contain folic acid starting January 1, 2026.

Folic acid prevents neural tube defects like spina bifida by 70%. This particularly benefits Latino communities that rely heavily on corn-based foods.

Small businesses making corn masa products are exempt.

Streaming Service Volume Regulation Starts July 2026

SB 576 bans streaming companies from playing commercials louder than shows and movies starting July 1, 2026.

This applies to services like Peacock, YouTube, and Netflix.

The law is a digital version of the federal CALM Act signed in 2010 for traditional TV.

Restaurant Menu Allergen Disclosure Required July 2026

SB 68 requires restaurants to list major food allergens on menus starting July 2026, making California the first state with this requirement.

Major allergens include: milk, eggs, fish, shellfish, tree nuts, peanuts, wheat, and soybeans.

CARE Act Expands to Include Bipolar Disorder

Beginning January 1, 2026, eligibility for the Community Assistance, Recovery and Empowerment (CARE) Act includes individuals with bipolar I disorder with psychotic features.

CARE plans provide adults with severe mental illness access to behavioral health care and housing.

Workplace Sexual Assault Statute of Limitations Lifted

AB 250 temporarily lifts the statute of limitations for workplace sexual assault cover-ups from January 1, 2026 through December 21, 2027.

Adult survivors can file civil claims regardless of when the assault occurred, as long as they allege a cover-up.

Expanded Leave Rights for Crime Victims

AB 406 expands leave rights for victims of violent crimes, giving more workers time off without fear of losing their jobs when dealing with the aftermath of violence.

Paid Family Leave Expands to Designated Persons

SB 590 allows employees to receive benefits under the state paid family leave program when taking time off to care for a seriously ill designated person.

The designated person doesn’t have to be a blood relative but must meet the “equivalent of family” standard.

California’s paid family leave program provides up to eight weeks of partial wage replacement.

Infertility Treatment Coverage Mandated

Large employer health plans must cover infertility diagnosis and treatment, including IVF, for all individuals regardless of:

• Marital status
• Sexual orientation
• Gender identity

Single parents by choice are also covered.

Immigration Protections in Schools Enhanced

AB 49 bars school officials from allowing immigration agents into nonpublic school areas unless they present a judicial warrant or court order.

Schools can’t share student or family records with immigration authorities without proper legal authorization.

AB 419 requires schools to post information about students’ immigration rights in administrative offices and on school websites.

All children have the right to free public education regardless of immigration status.

AI Chatbot Safety Requirements

SB 243 requires AI chatbot companies to report safety concerns, including when users express self-harm thoughts.

Companies must clearly tell users they’re talking to a computer, not a person.

AB 489 prohibits AI chatbots from presenting themselves as doctors, nurses, or other licensed professionals.

Gender-Affirming Care Privacy Protections

AB 82 expands privacy protections related to gender-affirming care, limiting disclosure of data connected to these services.

This protects patients and providers from harassment and discrimination.

Diwali Now Official State Holiday

AB 268 recognizes Diwali as an official California state holiday.

In 2026, Diwali falls on November 8 and will be observed Monday, November 9.

The Bay Area hosts the largest Diwali celebration in North America.

Employer Tip Protections Strengthened

SB 648 prohibits employers from deducting credit card fees from employee tips.

Employees must receive tips left by credit card no later than the next regular payday following the date the patron authorized the payment.

Employers who violate these rules face investigation by the Labor Commissioner’s Office and potential civil lawsuits.

Rental Vehicle Cost Transparency

AB 1374 requires vehicle rental companies to provide a total charges estimate including all taxes and fees.

Companies must also disclose whether the vehicle is gas-powered or electric.

Parking Fine Relief for Financial Hardship

Vehicle owners can request reduced or waived parking fines if they provide evidence of homelessness or financial hardship.

Vehicle owners can request payment plans.

Self-Storage Rental Disclosure Requirements

Rental agreements for self-storage facilities must disclose:

• Whether the rental fee is discounted or promotional
• Whether the fee is likely to change
• What the maximum rental fee could be during the first 12 months

The law applies to agreements signed on or after January 1, 2026.

Right to Rehire Extended for COVID-19 Layoffs

AB 858 extends the sunset date of recall and reinstatement rights for employees laid off due to COVID-19 from December 31, 2025 to January 1, 2027.

This applies to airport, hospitality, event center, and building services employees.

Pay Data Report Penalties Become Mandatory

Private employers with 100 or more employees must submit annual pay data reports to the California Civil Rights Department.

Starting in 2026, penalties of $100 per employee ($200 for repeat offenders) become mandatory upon request from the Civil Rights Department.

A 500-employee company that fails to submit a report faces $50,000 to $100,000 in fines.

Employers must also store demographic data separately from personnel records starting in 2026.

What Employers Must Do Right Now

Post new notices:

• New California Minimum Wage notice (MW-2026)

Update payroll:

• Increase minimum wage to $16.90 or higher local rate
• Ensure exempt employees earn at least $70,304 annually

Review contracts:

• Remove “stay or pay” provisions from new employment contracts
• Update pay scale language to reflect realistic expected pay
• Audit wage and hour practices

Implement new policies:

• Establish procedures for advance layoff notice
• Update tip handling procedures
• Create immigration enforcement protocols if applicable

Ensure compliance:

• Pay all outstanding wage judgments within 180 days
• Submit pay data reports to avoid mandatory penalties
• Store demographic data separately from personnel files

What Employees Should Know

You have new rights:

• Higher minimum wage ($16.90 or local rate)
• Realistic pay ranges in job postings
• Extended time to file equal pay lawsuits (3 years)
• Protection from “stay or pay” contract provisions
• Credit card tips without deducted fees
• Expanded paid family leave to care for designated persons
• Leave rights if you’re a victim of violence
• Advance notice before mass layoffs

If your employer violates these laws:

• File wage claims with Labor Commissioner’s Office: 833-526-4636
• Contact California Civil Rights Department for discrimination issues
• Document all violations with dates, times, and details
• Consult with an employment attorney

What Consumers Can Expect

You have stronger protections:

• Full refunds for wrong food delivery orders
• Human customer service representatives when needed
• Transparent rental vehicle costs
• Allergen information on restaurant menus (starting July)
• Affordable California-branded insulin ($11 per pen)
• Data deletion through DROP platform (August)
• 3-day return window for used cars (October)
• No more plastic bags at stores

You must adapt:

• Bring reusable bags to grocery stores
• Expect paper bag fees (minimum 10 cents)
• Check insulin copay with your health plan
• Use DROP to delete personal data from brokers

What Landlords Must Comply With

Starting January 1, 2026:

• Provide working refrigerators in rental units
• Provide working stoves in rental units
• Repair or replace recalled appliances within 30 days
• Put agreements for tenant-provided appliances in writing

Applies to new leases, amended leases, or lease extensions signed on or after January 1, 2026.

Total Cost Impact for California Businesses

These new laws create significant compliance costs for California employers:

Direct costs:

• Higher wages and salaries
• Potential triple penalties for unpaid judgments
• Pay data report penalties ($100-$200 per employee)
• New notice and posting requirements
• Legal counsel for contract updates

Indirect costs:

• HR system updates
• Training for managers and supervisors
• Potential litigation from violations
• Increased insurance premiums

Small businesses face particular challenges adjusting to minimum wage increases while major corporations face substantial penalties for pay data reporting violations.

How These Laws Compare to Other States

California continues to lead the nation in worker protections and consumer rights.

Employment laws:

• California’s $16.90 minimum wage exceeds federal $7.25
• No other state has triple wage judgment penalties
• Few states restrict “stay or pay” contracts
• California has strongest pay transparency requirements

Consumer protections:

• First state to require restaurant allergen disclosure
• Strongest plastic bag ban in nation
• Most comprehensive food delivery platform regulation
• Leading data privacy protections

Criminal justice:

• Only state with statewide law enforcement mask ban
• Unique immigration enforcement school protections

Resources for California Law Compliance

California Department of Industrial Relations Phone: 833-526-4636 Website: dir.ca.gov Minimum wage information: dir.ca.gov/dlse/minimum_wage.htm

California Labor Commissioner’s Office File wage claims: dir.ca.gov/dlse/howtofilewageclaim.htm

California Civil Rights Department Phone: 800-884-1684 Website: calcivilrights.ca.gov

California Privacy Protection Agency Website: cppa.ca.gov DROP platform: [Available January 2026]

California Legislative Information Website: leginfo.legislature.ca.gov View bill texts and statutes

Employment Development Department Paid family leave: edd.ca.gov/Disability/Paid_Family_Leave.htm

This article provides general information about California laws effective January 2026. It is not legal advice. Consult with a qualified California attorney about your specific situation.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah