What’s Next for HR in California? 10 Employment Law Topics to Watch for 2026

Brought to you by PIHRA’s California Employment Law Update (CELU)

California HR professionals face some of the most complex and rapidly evolving legal landscapes in the country. While PIHRA’s California Employment Law Update (CELU) delivers what’s finalized for 2025, smart HR leaders are already scanning the horizon for what’s ahead. 

Here are 10 critical employment law topics that are expected to shape workplace compliance in 2026 and beyond. 

1. 🤖 Artificial Intelligence

With AI becoming more common in hiring, performance reviews, and scheduling, California is eyeing how employers use automation to make decisions. Expect a focus on fairness, transparency, and accountability when using these tools in HR processes. 

2. 💸 Wage & Hour Compliance

California’s wage and hour laws continue to evolve—especially around meal and rest breaks, rounding policies, and remote work. Staying compliant will require regular audits, training, and updates to timekeeping policies. 

3. 🔻 Preparing for a Workforce Reduction

Whether due to economic shifts or restructuring, layoffs carry high legal risk. Employers should review documentation practices, separation agreements, and communication strategies now to reduce exposure later. 

4. 🕵️ Workplace Investigations

Properly conducting internal investigations remains a legal necessity. As new protections for employees emerge, HR teams must be equipped to investigate complaints promptly, neutrally, and thoroughly. 

5. 🍼 Leave Laws: PFL & CFRA

Leave laws in California are expanding and becoming more nuanced. Updates to the Paid Family Leave (PFL) and California Family Rights Act (CFRA) can impact small and large employers alike. Staying informed is key to balancing compliance and employee support. 

6. 📘 Employee Handbook Updates

An outdated handbook is a liability. New case law and policy changes often require handbook revisions. Having a trusted handbook builder and a regular review schedule helps ensure policies stay clear, current, and compliant. 

7. 🌐 Immigration Update

As immigration policy continues to evolve, California employers must stay on top of federal and state-level changes that affect I-9 compliance, hiring practices, and worker protections. 

8. 🦺 Cal/OSHA Compliance

Workplace safety requirements are expanding beyond physical hazards to include psychological safety and infectious disease protocols. HR leaders should anticipate changes and coordinate closely with facilities and operations teams. 

9. ⚖️ Class Actions, PAGA & Arbitration Trends

California continues to see activity around class action lawsuits, PAGA claims, and the use of arbitration agreements. Employers should monitor evolving court decisions and adjust policies to minimize risk. 

10. 📅 Stay Ahead with CELU

While these topics will continue developing into 2026, PIHRA’s California Employment Law Update (CELU) is your best resource for knowing what’s final—and how to prepare. 

With events timed after the Governor’s October 12 deadline, CELU ensures you learn the confirmed employment laws affecting California in 2025—and sets the stage for proactive planning into 2026. 

📍 Attend a CELU Near You: