Each year, California’s minimum wage rises, but along with hourly workers’ wages increasing, so too does the salary threshold for employees to be exempt from overtime. For an employee to be exempt from overtime under California law, their job must fall into a specific exempt category and meet a designated wage rate.

The most common exemptions are for executive, administrative, and professional roles. Employees in these capacities generally qualify if their work meets detailed requirements and they earn at least twice the state minimum wage for full-time employment. In 2026, exempt employees will increase from $68,640 to $70,304 per year on January 1, 2026, in accordance with California’s requirement that exempt employees must earn at least twice the state minimum wage for full-time work (40 hours per week, 52 weeks per year).

For certain exempt categories, however, the Department of Industrial Relations sets increases based on changes to the California Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI). For example, under the Labor Code, certain computer software employees and licensed physicians and surgeons must be paid a statutorily specified rate based on the CPI to be deemed exempt from overtime regulations.

According to Labor Code section 515.5, employees working in the computer software field who satisfy specific conditions will be exempt from overtime regulations. This exemption covers individuals whose primary duties involve intellectually or creatively focused work that necessitates discretion and independent judgment. These employees must also possess a high level of skill and engage in tasks such as programming, systems analysis, and software design.

Effective January 1, 2026, the minimum hourly rate for computer software employees to meet this exemption will be $58.85, with a minimum monthly salary of $10,214.44 (annually $122,573.13).

Similarly, under Labor Code section 515.6, certain licensed physicians and surgeons must be paid a minimum hourly rate. Effective January 1, 2026, that hourly rate is $107.17 to meet the exemption.

If you have questions about overtime exemption requirements or related issues, contact a Jackson Lewis attorney to discuss.

Senate Bill (SB) 596 represents asignificant development for California general acute care hospitals, acute psychiatric hospitals, and special hospitals. Governor Newsom signed SB 596 into law on October 13, 2025, amending California’s Health and Safety Code § 1280.3 to expand civil penalties for certain licensed health facilities that fail to maintain mandated staffing ratios.

While the nurse-to-patient ratio framework in California is not new, SB 596 reshapes the enforcement landscape. It raises maximum penalties and clarifies that each day a facility is out of compliance constitutes a separate and distinct violation.

For hospitals and acute-care employers, this change transforms what might once have been treated as a single regulatory citation into a potentially costly, multi-day series of penalties. It also underscores the California Department of Public Health’s renewed emphasis on staffing compliance and patient-safety documentation.

What SB 596 Does?

Daily Counting of Violations

Each day a staffing-ratio violation occurs, or continues, counts as a separate offense. A week of non-compliance could therefore trigger seven individual penalties rather than one.  This change is found in 1280.3 (f)(1).

Clarification of “On-Call Lists”

The bill also defines what constitutes an “on-call list” for purposes of determining whether a facility attempted to meet staffing ratios. Facilities relying on ad-hoc or outdated lists of nurses may no longer be considered compliant if those lists are not current, verifiable, and reasonably accessible.  This new law also clarified that a hospital contacting, or attempting to contact, licensed nurses who are not scheduled to be on call and who are not assigned to a float pool for the unit and shift where an alleged violation occurred shall not be considered as exhausting an on-call list for purposes of compliance. This change is found in 1280.3 (f)(4)(A)(iii).

Strategic Implications for Healthcare Employers

State regulators have long emphasized patient safety, but SB 596 signals a clear shift from education to enforcement through monetary deterrence. Hospitals should anticipate closer scrutiny of staffing documentation, including shift schedules, nurse assignment sheets, and float-pool utilization.

By converting ongoing violations into multiple daily offenses, the law amplifies financial exposure and could draw attention from plaintiffs’ attorneys and unions seeking to leverage citations in related disputes. Even though SB 596 is an administrative measure, repeated findings of non-compliance can bolster arguments about systemic understaffing or unsafe conditions.

Persistent staffing shortages, burnout, and competition for nursing talent have already strained hospitals. The new penalty structure may intensify these challenges by requiring more robust contingency planning, better overtime management, and stronger documentation to defend staffing decisions.

SB 596 takes effect January 1, 2026, but preparation should begin now. Enforcement agencies are expected to issue interpretive guidance before implementation, and hospitals that can demonstrate proactive compliance efforts will be better positioned during inspections and potential audits.

Here are some ways for healthcare employers to prepare:

1. Audit Current Staffing Policies

Review existing nurse-to-patient ratio policies and ensure they reflect the current regulatory standards. Pay close attention to high-acuity units and emergency departments where ratios are most frequently questioned.

2. Strengthen Documentation

Maintain contemporaneous, accurate records of daily staffing levels, reassignments, and justifications for deviations. Electronic systems that capture staffing data in real time can provide critical evidence of compliance.

3. Validate “On-Call Lists”

Ensure on-call lists are current and verifiable for meeting staffing obligations. Outdated or informal rosters may no longer be sufficient to demonstrate a good-faith compliance effort.

4. Train Supervisory Staff

Charge nurses and shift supervisors should understand both the ratio requirements and the expanded penalty framework. Training should emphasize how to escalate shortages promptly and document mitigation steps.

5. Evaluate Contingency and Float-Pool Plans

Facilities should review how float-pool nurses, agency staff, and cross-trained employees are deployed. Review regularly scheduled float pool shifts to better strengthen compliance.  Written plans showing how coverage is maintained can help defend against “pattern-of-non-compliance” allegations.

6. Engage Legal and Compliance Teams Early

Hospitals should work with counsel to:

  • Assess exposure from prior citations or corrective-action plans.
  • Develop internal reporting processes for potential violations.
  • Coordinate communications with the Department of Public Health.

It is anticipated that there will be legal action taken to enjoin this law. We will continue to track developments as they occur.  For guidance on preparing for SB 596, please contact a Jackson Lewis Attorney to discuss.

The National Labor Relations Board (NLRB) has filed a lawsuit against the state of California seeking to block a new law that would allow the California Public Employment Relations Board (PERB) to take on responsibilities traditionally handled by the NLRB.

Previously, Governor Newsom signed Assembly Bill (AB) 288, which expands both worker rights and the authority of the state’s Public Employment Relations Board (PERB). 

The NLRB responded by filing a complaint in federal court, arguing that California’s new law violates the National Labor Relations Act, which grants the federal agency exclusive jurisdiction over private-sector labor relations. The Board contends that allowing PERB to oversee these matters would create a parallel enforcement system that conflicts with federal authority and disrupts the uniformity of national labor policy. According to the NLRB, this overlap could lead to inconsistent rulings, duplicative proceedings, and a confusing patchwork of standards for employers operating in multiple states.

For now, the lawsuit places AB 288’s implementation in question. The NLRB is seeking an injunction to prevent California from enforcing the law, and the outcome will determine whether PERB can proceed with its planned expansion into private-sector labor matters. While the court process unfolds, employers should remain alert. New York has already taken a similar approach, and other states may follow.

Jackson Lewis will continue to track developments related to AB 288. If you have questions about AB 288 or related issues, contact a Jackson Lewis attorney to discuss.

The City of San Diego’s hospitality industry is ushering in substantial changes in wage requirements. The City Council has passed an ordinance establishing a new minimum wage schedule for employees at hotels, amusement parks, and event centers. If you are an employer in these sectors, it’s crucial to understand the timeline and requirements to ensure compliance and avoid penalties.

Who Is Covered?

The ordinance applies to:

  • Hotels with at least 150 guest rooms or suites.
  • Amusement parks with at least 75 contiguous acres, operated for profit and under contract with the City.
  • Event centers, specifically including Petco Park, Pechanga Arena San Diego, San Diego Convention Center, and Civic Theatre, including their associated facilities.

Minimum Wage Schedule

Here’s a breakdown of the scheduled minimum wage increases for covered hospitality employers:

YearHotels & Amusement ParksEvent Centers
July 1, 2026$19.00/hr$21.06/hr
July 1, 2027$20.50/hr$22.00/hr
July 1, 2028$22.00/hr$23.00/hr
July 1, 2029$23.50/hr$24.00/hr
July 1, 2030  $25.00/hr$25.00/hr


Starting July 1, 2031, the minimum wage will increase annually based on the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, U.S. City Average for All Items. The City will announce the new rate by April 1 each year, effective July 1.

Employer Obligations

The City will provide official notices and templates. Employers are required to post these in conspicuous locations and provide written notice to employees in their primary language.

Next Steps

Employers in San Diego’s hospitality sector should review their current wage practices and prepare for the upcoming changes.  For further guidance on the San Diego Hospitality Minimum Wage Ordinance or related compliance matters, contact a Jackson Lewis attorney to discuss.

On October 13, 2025, California’s Governor signed Senate Bill (SB) 20, which amends the Labor Code to target occupational exposure to crystalline silica in the artificial stone fabrication industry, introducing new definitions, exposure controls, training, reporting, and enforcement mechanisms.  Occupational silicosis is a lung disease caused by respirable dust containing crystalline silica, a mineral commonly found in engineered and natural stone materials used in products such as countertops.  Workers risk inhaling hazardous levels of silica dust when performing high-exposure trigger tasks, including cutting, grinding, polishing, or cleaning up certain silica-containing materials. 

In response to the increase in silicosis among artificial stone workers, the new law expands the definition of “serious injury or illness” to include silicosis and silica-related lung cancer.   The new law bans the use of dry methods when engaged in high-exposure trigger tasks and requires employers to use wet methods to effectively suppress respirable crystalline silica dust when employees engage in such tasks.  Beginning July 1, 2026, owners and operators of fabrication shops must ensure that employees engaged in these tasks receive appropriate training.  Employers must also submit written annual attestations to the Division to confirm that the required training has been provided.

The State Department of Public Health (CDPH) must consider silicosis a serious illness and is required to report cases within three days to the Division of Occupational Safety and Health (DOSH), which will then initiate investigations as specified in the legislation.  DOSH must also notify CDPH of artificial stone-related silicosis cases identified through its enforcement activities within five days and share exposure assessment results within 30 days of receipt. 

CDPH is tasked with addressing silicosis risk exposure in fabrication shops by identifying businesses that conduct these high-exposure trigger activities, providing outreach and education about silicosis prevention and diagnosis, and offering technical assistance to local health jurisdictions involved in silicosis surveillance and prevention. 

Employers who violate these requirements may face citations, orders prohibiting continued work, and civil penalties.

California’s pay data reporting rules are now more burdensome.

Senate Bill 464, signed into law on October 13, 2025, enhances existing pay reporting requirements to address wage disparities. It introduces strict changes for private employers, effective in 2026 and 2027, including stricter penalties and reporting on new job categories.

Current Reporting Rules

Private employers with 100 or more employees, including many workers employed through labor contractors, must submit annual pay data reports to the California Civil Rights Department (CRD) for a “snapshot” period. These reports cover:

  • Employee counts by race, ethnicity, and sex across 10 job categories (aligned with EEO-1 reporting);
  • Employee earnings within the U.S. Bureau of Labor Statistics pay bands, including hours worked;
  • Mean and median hourly pay rates by race, ethnicity, and sex.

Non-compliance risks penalties of $100 per employee ($200 for repeats), at the court’s discretion.

2026: Mandatory Penalties & Data Storage Requirements

Starting in 2026, penalties will become mandatory upon CRD request. For example, a 500-employee firm that failed to submit a report would face $50,000 to $100,000 in fines. However, if the violation is due to a labor contractor failing to provide the required data, courts may shift part of the penalty to them.  For 2026, reports are due by May 12 (the second Wednesday in May).

In addition, SB 464 requires that employers store demographic data separately from personnel records.

2027: New Job Categories

In 2027, the 10 job categories expand to 23, based on the Standard Occupational Classification System, like “Chief executives,” “Computer and mathematical occupations,” and “Life, physical, and social science occupations” (the full list is available here).

For example, janitors fall under “Building and grounds cleaning and maintenance occupations,” administrative assistants under “Office and administrative support occupations,” and nurses under “Health care practitioners and technical occupations.” Employers must reassign roles to these categories.

Act Now

Employers should start planning now:

  • Coordinate with vendors to ensure complete data for the May 12, 2026, deadline; 
  • Begin evaluating roles for reassignment into the 23 categories for the 2027 reporting cycle, and;
  • Align reassignments with any other reporting that may be impacted (EEO-1s).

If you have questions about California’s amended pay data reporting requirements and how these changes may apply to your organization, contact a Jackson Lewis attorney for guidance.

Recently, California’s Governor signed Senate Bill (SB) 590, which expands eligibility for benefits under the state paid family leave program to include individuals who take time off to care for a seriously ill designated person.

In 2022, the state passed Assembly Bill (AB) 1041, which allowed employees to take leave to care for a “designated person,” defined as any individual related by blood or whose association with the employee is equivalent to a family relationship. However, the state benefits did not change to cover these types of leaves.  SB 590 specifically codifies and defines a “designated person” under Section 3302 of the Unemployment Insurance Code.

Commencing July 1, 2028, benefits under the state-paid family leave program will be available to employees caring for a designated person. When requesting family temporary disability insurance benefits to care for a designated person, the worker must both identify the individual and attest under penalty of perjury to the nature of the relationship, including either how the designated person is related by blood or how the worker’s association with the designated person is the equivalent of a family relationship.

If you have questions about SB 590 or related issues, contact a Jackson Lewis attorney to discuss.

Governor Newsom has signed Assembly Bill (AB) 692, which adds Section 16608 to the Business and Professions Code and Section 926 to the Labor Code, making it unlawful to include in any employment contract or require a worker to execute, as a condition of employment, a contract that includes terms that require a worker to  “pay an employer, training provider, or debt collector for a debt if the worker’s employment or work relationship with a specific employer terminates,” with limited exceptions.

The bill will apply to contracts entered into on or after January 1, 2026.

The law applies to all employers in California.

Under the law, it will be unlawful to include terms that impose penalties or fees, or require employees to pay debts, authorize debt collection, if the employment relationship ends.

There are some allowances for contracts for repayment under the law:

  • A contract entered under a loan repayment assistance program or loan forgiveness program provided by a federal, state, or local government agency.
  • A contract related to the repayment of the cost of tuition for a transferable credential, provided that the contract (a) is separate from the employment contract, (b) does not make obtaining the transferrable credential a condition of employment, (c) specifies a repayment amount not exceeding the cost of the credential to the employer, (d) provides for prorated repayment without acceleration; and (e) does not require repayment unless the worker is terminated for misconduct.
  • A contract related to enrollment in an apprenticeship program approved by the Division of Apprenticeship Standards.
  • A contract for the receipt of a discretionary or unearned monetary payment at the outset of employment, including a financial bonus, not tied to specific job performance, provided that (a) the terms of repayment are separate from the employment contract; (b) the employee is notified of their right to consult an attorney about the agreement and provided not less than five business days to do so; (c) repayment is prorated based on the remaining term of any retention period which must not be more than two years, without interest accrual; (d) the worker may defer receipt of the payment to the end of the retention period without repayment obligations; and (e) separation is either at the employee’s sole discretion or due to employee misconduct.
  • A contract related to the lease, financing, or purchase of residential property.

The law allows for private rights of action, including minimum damages of $5,000 per worker, injunctive relief, and attorneys’ fees and costs.

If you have questions about compliance with AB 692 or related issues, contact a Jackson Lewis attorney.

On October 12, 2025, Governor Newsom signed Senate Bill (SB) 294, which requires employers in California to provide a stand-alone written notice of worker rights to each new employee when hired, and annually to all current employees. It also tasks the Labor Commissioner with developing and annually updating a template notice and related educational materials for California employees and employers.

This bill takes effect on January 1, 2026, and requires a template notice to be available on or before that date, which includes information on many areas of workers’ rights under state and federal law. Employers have until February 1, 2026, to provide the notice to employees and thereafter provide it annually.  

Under the law, employers must also allow employees to designate an emergency contact to be notified if the employee is arrested or detained at work or during work hours, and the employer has actual knowledge of the event. This part of the law must be implemented with all current employees by March 30, 2026.

The Labor Commissioner and public prosecutors are authorized to enforce the law. Employers who fail to comply may face civil penalties of up to $500 per employee for each violation, and up to $10,000 per employee for certain violations (e.g., failure to notify emergency contacts). Employees, the Labor Commissioner, or public prosecutors may recover penalties, but employers are not subject to duplicative penalties.

If you have questions about compliance with SB 294 or related issues, please contact a Jackson Lewis attorney to discuss.