Mark E. Terman, Author at Laborsphere

New California Laws for 2026 and Beyond: What Employers Should Know

At a Glance

AB 692 builds upon California law that can void contracts prohibiting competition after an employee’s employment ends by prohibiting certain contracts with “workers” (not only employees) that may have that effect but do not explicitly block competition.

SB 294 establishes the Workplace Know Your Rights Act and requires employers to provide a stand-alone written notice to all current employees by February 1, 2026, and annually thereafter.

SB 642 expands pay transparency requirements, by revising the definition of “pay scale” to mean a good-faith estimate of the wage range employers reasonably expect to pay for a position upon hire.

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Supreme Court Decision in Trump v. CASA Does Not Affect Ryan Court’s Universal Injunction of the FTC Noncompete Rule

The Supreme Court has issued its decision in Trump v. CASA, ruling that district courts generally lack the authority to issue nationwide, universal injunctions.

For employers, a key question arises: What impact does the CASA decision have on the FTC’s final rule banning the use of most noncompete agreements, which was set aside in August 2024 by the Northern District of Texas in the Ryan decision?

To view the full alert, visit the Faegre Drinker website.

The FTC’s Noncompete Ban: An Update on Legal Challenges and What Comes Next

While the FTC’s noncompete ban is still scheduled to go into effect on September 4, 2024, there are three ongoing legal challenges to it; and there are pending motions in all three cases that could enjoin it either nationwide or on some limited basis before then. In the meantime, employers may wonder what to do. We outline several options.

To view the full alert, visit the Faegre Drinker website.

Are You Ready? Notice to Employees of Void CA Non-Competes Required by February 14, 2024

California law has for many years treated agreements that restrain one from engaging in a lawful profession, trade, or business as void and unenforceable, unless an exception applies. This applies to most non-compete and non-solicitation agreements with California employees.

Citing to California Supreme Court precedent that voided a post-employment non-compete and to state public policy favoring employee mobility, AB 1076 and SB 699, both effective January 1, 2024, prohibit employers from including, entering into, and attempting to enforce a noncompete clause in an employment contract, or otherwise requiring an employee to enter a noncompete agreement, absent an exception.

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Don’t Labor Under New Laws

California is a state of perpetual motion when it comes to new and evolving employer regulations. While most of the 305 bills introduced in the last legislative session mentioning “employer” did not pass the Legislature, many did and were signed into law by Gov. Gavin Newsom. With that comes more rules and risks for employers dealing with non-compete agreements, anti-discrimination, Labor Code enforcement, workplace safety, leaves of absence and a plethora of minimum wage increases.

To borrow from Kelly Clarkson, “… what doesn’t kill you makes you stronger, stand a little taller …”

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New California Laws for 2024 and Beyond: What Employers Should Know

California Gov. Gavin Newsom signed several laws impacting California employers in 2023. Some of the new laws became effective immediately and others, including some that were signed into law just weeks ago, take effect January 1, 2024, or later. These new laws address several topics, including expanding paid sick leave, leave of absence for reproductive loss, minimum wage increases for fast-food restaurant employees and health care workers, restraint on trade, and workplace violence prevention standards.

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