On September 1, 2026, California concluded its 2026 legislative session, sending several employment-related bills to Governor Gavin Newsom for consideration, some of which have already been signed. Governor Newsom has until September 30 to sign or veto the remaining measures.

Several enacted and pending bills will affect California employers in 2027. Key legislative topics to keep an eye on include AI, workplace surveillance, stay or pay agreements, leave rights, and expanded employee protections.

Recent Bills Signed Into Law

SB 1316 – Labor Commissioner Liens and Evidence. On August 27, 2026, Governor Newsom signed SB 1316, which expands the Labor Commissioner’s enforcement authority in wage proceedings. Among other changes, the law permits a lien created on an employer’s real property to satisfy a wage order under Labor Code section 98.2 for an additional 10 years. This bill also prohibits employers from using records in certain Labor Commissioner proceedings such as payroll, time and employment records if they were not provided timely to the labor commissioner pursuant to a written request, unless the employer obtained a court order excusing production.

For employers, Labor Commissioner requests should be identified, preserved, and addressed promptly. A failure to timely produce requested records may now affect not only an investigation, but also the evidence available to the employer in subsequent administrative proceedings.

AB 1950 – Mandatory Mediation in Los Angeles Superior Court. Beginning January 1, 2027, through January 1, 2032, AB 1950 expands the Los Angeles County Superior Court’s authority to order civil cases into mediation regardless of whether the amount in controversy exceeds $75,000. Cases ordered to mediation will be eligible for up to three hours of no-cost mediation through the Court’s program. For employers litigating in LA County, the law may result in earlier requirements to participate in mediation.

As employers enter Q4 of 2026 and prepare for 2027, they should continue monitoring these legislative developments and evaluate any resulting compliance obligations.

Stokes Wagner will continue to monitor these developments and provide further updates after the September 30 deadline. If you have questions, do not hesitate to contact a Stokes Wagner attorney.

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THIS DOCUMENT PROVIDES A GENERAL SUMMARY AND IS FOR INFORMATIONAL/EDUCATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO BE COMPREHENSIVE, NOR DOES IT CONSTITUTE LEGAL ADVICE. PLEASE CONSULT WITH COUNSEL BEFORE TAKING OR REFRAINING FROM TAKING ANY ACTION.