New California Employment Laws for 2027: What Workers Need to Know

The biggest new California employment laws for 2027 raise the minimum wage to $17.40 an hour, require a human to review AI-driven firing and discipline decisions, limit workplace surveillance, expand protection against immigration-related threats, and extend bereavement leave to a “designated person.” Most of the bills Governor Newsom signed in the 2026 legislative session take effect January 1, 2027, with a few later dates noted below.

These changes affect real money and real jobs. The minimum wage increase alone gives a full-time worker at the state minimum about $1,040 more per year, and the exempt salary threshold rises to $72,384, which means some salaried workers who earn less must be reclassified and paid overtime.

This first look covers the laws we have confirmed were signed, what each one does for workers, and when it takes effect. We will update this guide as the effective dates arrive and agencies issue guidance.

New California employment laws for 2027 at a glance

Law	What it does for workers	Effective
Minimum wage adjustment	State minimum wage rises to $17.40/hour; exempt salary floor to $72,384	Jan. 1, 2027
AB 2646	$19.75/hour minimum for H-2A farmworkers and corresponding employees	Jan. 1, 2027
SB 947	Human review required for AI-driven discipline and firing; notice to workers	July 1, 2027
SB 951	Layoff notices must disclose job losses caused by AI or automation	Jan. 1, 2027
AB 1331 and AB 1883	Ban bathroom surveillance and AI tools that read emotions or collect neural data	By Jan. 1, 2027
AB 2563	Clarifies the broad meaning of “sex” under FEHA	Jan. 1, 2027
AB 2495	Expands protection against threats based on perceived immigration status	Jan. 1, 2027
SB 1149	Bereavement leave for the death of a “designated person”	Jan. 1, 2027
AB 2155	Brings federal arbitration exemptions into California law	Jan. 1, 2027
AB 692 / AB 1697	Limits “stay-or-pay” repayment contracts	Jan. 1, 2027
SB 464 and SB 1237	Expanded pay data reporting and higher penalties	Jan. 1, 2027
AB 1803	Adds anti-hate speech content to harassment training	Jan. 1, 2028

Unless a bill includes an urgency clause or a specific date, California laws signed in 2026 take effect on January 1, 2027.

By the numbers$17.40

Minimum wage, exempt salary and farmworker pay

On January 1, 2027, California’s statewide minimum wage increases from $16.90 to $17.40 per hour for all employers, regardless of size. The Department of Finance certified the increase in July 2026 under Labor Code section 1182.12, which adjusts the rate each year for inflation. Many cities and counties have higher local minimums, so check your city’s rate; you are entitled to whichever is highest.

💡 Example: Luis works 40 hours a week, 52 weeks a year, at the state minimum. The $0.50 raise is worth $0.50 × 2,080 hours = $1,040 more per year, before any overtime.

The minimum salary for most exempt executive, administrative and professional employees is set at twice the state minimum wage for full-time work. For 2027, that is $72,384 per year ($6,032 per month). If you are classified as exempt and earn less, you are generally entitled to overtime. Our guide to misclassified exempt employees explains the salary and duties tests.

Industry-specific minimums continue on their own schedules, including the fast food and health care minimum wage under SB 525. New for 2027, AB 2646 sets a $19.75 per hour minimum for H-2A agricultural workers and “corresponding employees” who do the same work, adjusted each January for the Social Security cost-of-living increase. Our guide to farmworker rights in Kern and Fresno counties covers overtime and heat safety for agricultural workers.

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AI, automated decisions and workplace surveillance

California passed some of the first state laws on artificial intelligence in the workplace.

SB 947, the “No Robo Bosses Act” (effective July 1, 2027), bars employers from relying solely on an automated decision system to discipline or fire a worker. If an employer primarily relies on such a system’s output, a human must independently review and corroborate the decision using relevant information, such as records, work product or witness interviews. The employer must give the worker a separate written notice explaining that an automated system was used, confirming human review, describing the right to request a description of the data the system used, and stating that retaliation is prohibited. The law also bars using these systems to infer protected characteristics or to target workers for exercising their rights. The Labor Commissioner and public prosecutors can enforce it.

SB 951 (effective January 1, 2027) adds to California’s WARN Act. When a mass layoff, relocation or termination is caused in whole or substantial part by AI or other automated technology, the notice must disclose how many layoffs are attributable to automation, which job functions are being automated and what type of technology is involved. The existing 60-day notice rule for covered establishments still applies.

AB 1331 prohibits using workplace surveillance tools in bathrooms and similar private areas and lets workers leave employer-issued monitoring devices behind when they use them. AB 1883 prohibits workplace surveillance tools that recognize or make predictions about a worker’s emotional state or collect neural data. Reports indicate penalties of up to $500 per violation. Both were signed September 30, 2026.

Discrimination and retaliation protections

AB 2563 revises the definition of “sex” in the Fair Employment and Housing Act (Government Code 12926). Building on existing law, it makes explicit that sex discrimination includes discrimination based on actual or perceived sex-related characteristics, including the degree to which a person conforms to sex or gender stereotypes. For workers, that means clearer protection when an employer penalizes someone for not fitting expectations about how a man or a woman should look or act.

AB 2495 strengthens Labor Code section 1019, which prohibits unfair immigration-related practices. Starting January 1, 2027, it covers conduct based on a person’s perceived immigration status that would reasonably tend to discourage someone from exercising a legal right, and it applies to applicants, current employees and former employees. A worker’s actual immigration status is irrelevant to liability. For the full picture of immigration-related workplace protections, see our guide to workplace immigration rights and SB 294.

Looking further ahead, AB 1803 requires employers’ harassment prevention training to include practical guidance on recognizing, reporting and responding to hate speech based on FEHA-protected characteristics, starting January 1, 2028. A separate bill to add menopause-related conditions to FEHA’s protections (AB 1940) was vetoed.

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Bereavement leave for a “designated person”

Since 2023, Government Code section 12945.7 has given employees of employers with five or more employees up to five days of bereavement leave after the death of a family member, such as a spouse, child, parent, sibling, grandparent, grandchild, domestic partner or parent-in-law. Employees generally must have worked for the employer for at least 30 days, and the leave must be completed within three months of the death.

SB 1149 extends that leave to the death of a “designated person,” meaning someone related by blood or whose association with the employee is the equivalent of a family relationship. You can identify the designated person when you request leave. Employers may limit employees to one designated person per 12-month period. This matters for workers who lose a close friend, partner or relative who doesn’t fit the traditional family list. As with existing bereavement leave, employers may not retaliate against you for taking it.

By the numbers$72,384

Arbitration and “stay-or-pay” contracts

AB 2155 amends the California Arbitration Act so that arbitration agreements are unenforceable under state law when they would be unenforceable under the Federal Arbitration Act. Two federal exemptions matter most. Transportation workers engaged in interstate commerce are exempt from the FAA, and the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act lets workers bring those claims in court despite an arbitration agreement. Employers had sometimes tried to enforce those agreements under state law instead; starting January 1, 2027, that route is closed.

AB 692, passed in 2025, generally prohibits contracts that require workers to repay an employer or training provider if they leave the job, often called “stay-or-pay” or training repayment agreements, with limited exceptions. AB 1697, signed September 30, 2026 as an urgency measure, delays AB 692’s start date to January 1, 2027 and adds new exceptions for certain retention bonuses, advanced paid time off and sign-on or retention bonuses in some regulated professions. California already voids most non-compete agreements, and these rules add another layer of protection for workers who want to change jobs.

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Pay data reporting and workplace safety enforcement

Private employers with 100 or more employees must file annual pay data reports with the Civil Rights Department under Government Code section 12999. SB 464, signed in 2025, expands the job categories in those reports from 10 to 23 starting in 2027, giving regulators a more detailed view of pay gaps. SB 1237, signed in 2026, increases the penalty for an employer’s subsequent failure to file from $200 to $1,000 per employee. These reports work alongside the pay transparency rules explained in our guide to California’s salary range law.

AB 2321 strengthens Cal/OSHA investigations, including referrals for criminal investigation in serious cases and penalties for interfering with inspectors. For workers, stronger enforcement can mean faster responses when hazards are reported.

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What these changes mean for you

1. Check your January 2027 pay stub. Your hourly rate should be at least $17.40, or your local minimum if higher.
2. If you are salaried and exempt, confirm you earn at least $72,384 a year. If not, you may be owed overtime.
3. Keep any notice about automated decision systems, AI-related layoffs or monitoring tools.
4. Review any repayment agreement tied to training or bonuses before you sign it or leave your job.
5. Do not assume an arbitration agreement controls if you are a transportation worker or have a sexual harassment claim.
6. Talk to a lawyer if your employer cuts hours, retaliates, or ignores these new rules.

New laws often bring new employer mistakes in the first months. Keeping records from the start makes any later claim much easier to prove.

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Frequently asked questions

When do the new California employment laws for 2027 take effect?

Most take effect January 1, 2027. Exceptions include SB 947, effective July 1, 2027, and AB 1803, effective January 1, 2028. AB 1697 took effect immediately when signed.

What is the California minimum wage in 2027?

$17.40 per hour statewide, starting January 1, 2027. Higher local minimums and industry-specific rates still apply where they are higher.

Can my employer fire me based on an AI system’s recommendation?

Starting July 1, 2027, not solely on that basis. If the employer primarily relies on an automated system, a human must independently review the decision, and you must receive written notice.

Do the new laws apply to small employers?

The minimum wage applies to all employers. Bereavement leave and FEHA apply to employers with five or more employees, and Cal-WARN applies to covered establishments with 75 or more employees. Coverage varies by law.

Will this guide be updated?

Yes. Agencies often issue guidance and model notices before or after laws take effect. We will update this page as new information becomes available.

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