Publications

On October 8, 2025, California Governor Gavin Newsom signed into law Senate Bill 642 (SB 642) further strengthening California’s wage transparency and pay equity laws. SB 642 amends Labor Code Sections 432.3 and 1197.5, introducing several key changes that took effect on January 1, 2026. While pay scale and pay equity requirements already exist in California, SB 642 clarifies and expands its requirements, which may impact long-term exposure.

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Effective July 17, 2026, more New Jersey employers will be required to provide extensive family leave to eligible employees, and those employees will enjoy job protection. Starting in July 2026, employers with 15 or more employees who worked at least 20 calendar weeks that year or in the previous year will be required to provide New Jersey Family Leave, i.e., to allow employees to take up to 12 weeks of unpaid leave in a two-year period to care for a seriously ill family member or bond with a new child. As of July 2027, the law will apply to employers with only 10 or more employees and as of July 2028, employers with only 5 or more employees will be required to provide leave.

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Governor Gavin Newsom signed Senate Bill 648 (SB 648) into law on July 30, 2025, marking a significant step in California’s ongoing efforts to protect service industry workers from wage and tip theft. Effective January 1, 2026, SB 648 amends the Labor Code by strengthening enforcement mechanisms related to gratuities and equipping state officials with enhanced tools to ensure workers receive the wages and tips they earn. While existing law already prohibits employers from withholding employee tips, SB 648 expands and clarifies the state’s ability to enforce these protections. The legislation is particularly impactful for employers in the hospitality, restaurant, and tourism sectors.

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California has enacted a new law that bans “stay-or-pay” agreements — arrangements that require employees to pay money back if they leave their job before a certain time. These agreements are frequently used in relation to paid-for training and hiring bonuses.

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Effective January 1, 2026, California added new requirements related to annual pay data reporting for large employers. Senate Bill 464 amends Labor Code section 12999, which requires that employers with 100 or more employees submit annual pay data reports. The amendment requires that employers store demographic data separately from employee personnel files, expands pay data reporting requirements, and provides for civil penalties for violations of Labor Code Section 12999.

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California lawmakers have enacted a significant change to civil sexual assault litigation that took effect on January 1, 2026. Governor Gavin Newsom signed into law, Assembly Bill 250 (“AB 250”), in which adult survivors of sexual assault may again be able to pursue civil lawsuits that would otherwise be barred by the statute of limitations. The legislation creates a limited two-year “revival” or “look-back” period, allowing certain previously expired claims to be filed between January 1, 2026, and December 31, 2027.

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Effective September 8, 2025, the new minimum wage rate for hotels with sixty or more rooms has been raised to $22.50 after a temporary stay of the increase was lifted.

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In 2014 The Los Angeles City Council passed the Citywide Hotel Worker Minimum Wage Ordinance. At the end of May 2025, amendments were passed including a significant minimum wage increase in July 2025 to $22.50 and an hourly health benefit payment starting in July 2026. Soon after the amendments were passed and set to take effect the Los Angeles Alliance for Tourism, Jobs, and Progress—a coalition representing major hospitality interests—launched a referendum aimed at suspending and ultimately repealing the ordinance prior to its implementation.

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On May 20, 2025, the U.S. Senate passed the “No Tax on Tips Act” with unanimous consent. The bill now heads to the U.S. House of Representatives.

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Last week, the Federal Trade Commission announced its final “Junk Fees Rule” (the “Rule”) that bans “mystery” or “junk fees” for live event tickets, hotels, and short-term rentals. The Rule requires businesses that offer live-event ticketing (e.g., comedy venues) or short-term lodging (e.g., hotels, motels, or vacation rentals) to clearly and conspicuously disclose the true “Total Price”, including all mandatory fees; and disclose any other additional fees and charges before payment.

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