Publications

California employers implementing mass layoffs, relocations, or business closures in 2026 should be aware of updated notice requirements under Senate Bill 617 (SB 617). The law took effect January 1, 2026, and expands the information employers must include in notices issued under the California Worker Adjustment and Retraining Notification Act (Cal-WARN). The Cal-WARN Act generally requires employers with 75 or more employees to provide at least 60 days’ advance written notice before implementing a qualifying mass layoff, relocation of operations (100 miles or more), or termination of a covered establishment affecting 50 or more employees. While SB 617 does not change the 60-day notice requirement or when the law applies, it adds several disclosure requirements intended to help impacted employees more easily access workforce support services and public assistance programs.

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March 18, 2026 — The National Labor Relations Board (NLRB) has issued a final rule that withdraws the never-implemented 2023 joint employer rule and formally reinstates the narrower 2020 standard, restoring a more predictable framework for determining when two entities may be considered joint employers under the National Labor Relations Act (NLRA). The rule became effective upon publication in the Federal Register on February 27, 2026.

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On October 13, 2025, California Governor Gavin Newsom signed Senate Bill 261 (SB 261) into law, strengthening enforcement of unpaid wage judgments obtained through the Division of Labor Standards Enforcement (DLSE). The DLSE, under direction of the Labor Commissioner, enforces California’s labor laws by investigating employee complaints and, where appropriate, conducting hearings through which an employee may recover wages, penalties and other demands for compensation. The bill went into effect on January 1, 2026.

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On October 11, 2025, California Governor Gavin Newsom signed into law Senate Bill (SB 513) expanding the definition of “personnel records” under Labor Code section 1198.5 to include detailed training and education records beginning January 1, 2026.

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Michael joins us after more than two decades immersed in labor and employment law — including nearly fifteen years with Hyatt Hotels Corporation, most recently serving as Head of Labor Relations – Americas.

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In February 2026, the U.S. Equal Employment Opportunity Commission (“EEOC”), together with the Office of Personnel Management, issued updated guidance addressing when telework may qualify as a reasonable accommodation. The guidance is directed to federal agencies under the Rehabilitation Act, but reflects the same standards that apply to private employers under the Americans with Disabilities Act (“ADA”). This guidance comes at a time when many employers are reinforcing return-to-office expectations and seeking clarity on how telework requests must be handled.

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The One Big Beautiful Bill Act (“OBBBA”), enacted in July 2025, temporarily eliminates taxes on qualified overtime and qualified tips through 2028. This new law is intended to reduce taxable income for hourly and tipped employees by allowing up to a $12,500 (single) or $25,000 (married filing jointly) deduction for qualified overtime compensation and up to a $25,000 deduction for qualified tip income. This is particularly relevant to employers whose workforces rely heavily on gratuities and overtime.

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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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