California Employment Law:
Your Rights as a Worker.

Overview: California Worker Protections (2026)

California workers benefit from overlapping protections under the California Labor Code, the Fair Employment and Housing Act (FEHA), the California Family Rights Act (CFRA), and numerous recent statutes including AB 5 (gig worker classification), SB 616 (paid sick leave), and SB 699 (non-compete ban). California regularly passes legislation that leads the nation in worker rights — and enforcement has intensified significantly through 2025–2026.

Minimum Wage in California (2026)

California's statewide minimum wage is $17.00/hour as of January 1, 2026, indexed annually to the Consumer Price Index. Several industry-specific and local minimum wages are higher:

• Statewide general: $17.00/hour
• Fast food workers (covered chains with 60+ locations): $20.00/hour (AB 1228, effective April 1, 2024)
• Healthcare workers at covered facilities: $21.00/hour (SB 525, phased in from July 2024)
• San Francisco: $18.67/hour (July 2025 rate)
• Los Angeles City: $17.28/hour (July 2025 rate)
• Long Beach, Santa Monica, West Hollywood: Higher local rates — check the city website for current amounts

Overtime in California is calculated differently from federal law: overtime is owed after 8 hours in a workday (not just 40 hours in a week), and double-time is owed after 12 hours in a day or for the 7th consecutive day of work.

AB 5 and Worker Classification (2026)

AB 5 (Assembly Bill 5), effective January 1, 2020, codified the Dynamex ABC test as the standard for determining whether a worker is an employee or an independent contractor in California. It remains fully in effect in 2026, with significant enforcement activity.

The ABC test (Labor Code §2775)

A worker is presumed to be an employee unless the hiring entity can prove all three prongs:

• (A) Free from control: The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract and in fact
• (B) Outside the core business: The worker performs work that is outside the usual course of the hiring entity's business
• (C) Independently established: The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed

Industries with special rules or exemptions

• App-based gig workers (Prop 22): Uber, Lyft, DoorDash, and similar companies retained independent contractor status for drivers and delivery workers under Proposition 22, passed in November 2020. Prop 22 provides some minimum protections for these workers but not full employment status. As of 2026, legal challenges to Prop 22 are ongoing.
• Professional exemptions: Licensed professionals (doctors, lawyers, architects, engineers, licensed insurance agents) are exempt from the ABC test and use the older Borello multi-factor test
• Freelance writers, photographers, translators: May work under modified rules if they work for multiple clients

Non-Compete Agreements in California (2026)

California has prohibited non-compete agreements since 1872 under Business and Professions Code §16600. California courts have consistently refused to enforce them regardless of where the contract was signed. Recent legislation has strengthened this protection significantly:

• SB 699 (effective January 1, 2024): Employers cannot require California employees or prospective employees to sign non-competes, and cannot enforce non-competes signed in other states against California-based workers. Employees can now affirmatively sue employers who attempt to enforce void non-competes — and recover attorney's fees.
• AB 1076 (effective January 1, 2024): Employers must notify current and former employees (by February 14, 2024) that any existing non-compete agreements are void under California law. Failure to notify was itself a violation.
• NDAs: Non-disclosure agreements protecting legitimate trade secrets remain valid; the ban is specifically on agreements that restrict the worker's ability to compete or work in their field

Paid Leave in California (2026)

Paid sick leave — SB 616 (effective January 1, 2024)

• Minimum: 5 days (40 hours) of paid sick leave per year for most employees
• Accrual: 1 hour of sick leave per 30 hours worked, with a cap of 5 days per year (or frontload 5 days at start of year)
• Qualifying uses: own illness, family care, domestic violence, sexual assault, stalking

California Family Rights Act (CFRA)

• Up to 12 weeks of unpaid, job-protected leave per year for: new child bonding, serious health condition (own or family), qualifying military exigency
• Applies to employers with 5 or more employees (broader than federal FMLA's 50-employee threshold)
• Covers care for a broader range of family members than FMLA (siblings, grandparents, grandchildren, domestic partners)

California Paid Family Leave (PFL)

• 8 weeks of paid benefits per year for bonding with a new child or caring for a seriously ill family member
• Benefit rate: 60–70% of average weekly wages (higher rate for lower-wage workers)
• Maximum weekly benefit: approximately $1,620/week in 2026
• Funded by employee SDI payroll deductions — no employer contribution required

California FEHA: Anti-Discrimination Protections

The Fair Employment and Housing Act (FEHA) is California's primary anti-discrimination law and is considerably broader than federal Title VII. It applies to employers with 5 or more employees (1 employee for harassment claims) and prohibits discrimination and harassment based on:

• Race, color, national origin, ancestry
• Sex, gender, gender identity, gender expression
• Sexual orientation
• Religion
• Age (40+)
• Physical and mental disability (including AIDS/HIV status)
• Pregnancy, childbirth, breastfeeding, and related medical conditions
• Marital status
• Military and veteran status
• Reproductive health decisions (SB 523, effective January 1, 2024)

FEHA claims must be filed with the California Civil Rights Department (CRD) within 3 years of the discriminatory act before filing a lawsuit.

PAGA: The Private Attorneys General Act

PAGA (Labor Code §2698 et seq.) is a uniquely California statute that allows employees to sue their employer on behalf of themselves and other aggrieved employees for Labor Code violations. After significant reform under SB 92 (effective June 2024), PAGA works as follows:

• Workers receive 35% of all PAGA civil penalties recovered (previously 25%)
• The remaining 65% goes to the California Labor and Workforce Development Agency (LWDA)
• Employers can reduce penalties by showing they took reasonable steps to comply with labor law before the claim
• Common PAGA violations: failure to provide meal/rest breaks, off-the-clock work, improper pay stubs, not paying all wages at termination
• PAGA claims cannot be waived in arbitration agreements — this is a significant protection confirmed by the California Supreme Court

How to File a California Employment Claim

Wage and hour claims

• California Labor Commissioner's Office (DLSE): dlse.ca.gov — file a wage claim for unpaid wages, overtime, meal/rest breaks; free, no attorney required
• Statute of limitations: 3 years for most wage claims; 4 years for written contract wage claims
• PAGA claim: File a PAGA notice with the LWDA (online) and wait 65 days before filing a lawsuit

Discrimination and harassment claims

• California Civil Rights Department (CRD): calcivilrights.ca.gov — file within 3 years of the discriminatory act; CRD will investigate and issue a right-to-sue letter
• EEOC (federal): file within 300 days for federal claims (Title VII, ADA, ADEA)

Worker misclassification (AB 5)

• File a claim with the California Labor Commissioner's Office
• File a UI fraud complaint with the California Employment Development Department (EDD)
• Consult an employment attorney — PAGA provides additional enforcement tools