California’s 2026 Law Changes: A Guide for Residents & Businesses
As the calendar turns to 2026, Californians will see a wave of new laws impacting everything from employment and shopping to tenant rights and consumer protection. These changes, passed by the state legislature, aim to address evolving needs and concerns within the state. Here’s a breakdown of what you need to know.
The End of “Stay or Pay” Contracts: Empowering Employees
California’s SB 692 effectively bans “stay or pay” contracts, a practice where employers required departing employees to reimburse training costs if they left within a certain timeframe. This often created a financial burden, discouraging job mobility. The law protects workers from being locked into positions due to fear of hefty bills. A recent study by the Economic Policy Institute showed that non-compete agreements (often linked to training reimbursement clauses) suppress wages by as much as 22% for affected workers.
Expanding the Plastic Bag Ban: A Step Towards Sustainability
Building on the existing ban of single-use plastic bags, SB 1053 goes further. It now prohibits all plastic bags, meaning shoppers must use recyclable paper bags or bring their own reusable totes. This move is part of a broader effort to reduce plastic pollution, which, according to the EPA, saw over 32 million tons of plastic waste generated in 2018 alone. Cities like San Francisco, which implemented similar bans earlier, have seen a significant reduction in plastic bag litter.
Food Delivery Fairness: Protecting Consumers & Drivers
AB 578 introduces crucial protections for consumers using food delivery services like Uber Eats, DoorDash, and Grubhub. The law mandates full refunds for undelivered or incorrect orders (when the customer isn’t at fault), prohibits price gouging beyond what’s listed on the platform, and ensures delivery drivers receive their full tips. This addresses growing complaints about hidden fees and unreliable service, issues highlighted in a recent report by Consumer Reports.
Used Car Returns: A Three-Day Window for Peace of Mind
The Combating Auto Retail Scams Act (CARS), or SB 766, offers a significant benefit to used car buyers. Effective October 1, 2026, Californians will have three days to return a used vehicle if they experience buyer’s remorse. This provides a crucial safety net, particularly given the complexities and potential for misrepresentation in the used car market. The California Department of Motor Vehicles estimates that fraudulent auto sales cost consumers over $1 billion annually.
Protecting Victims of Crime: Paid Leave for Recovery
AB 406 provides a vital support system for victims of crime, granting them paid leave from work to address legal proceedings, medical appointments, and emotional recovery. This acknowledges the significant disruption and hardship experienced by victims and allows them time to heal without facing financial insecurity. Organizations like the National Center for Victims of Crime have long advocated for such protections.
Tenant Rights: Ensuring Basic Living Standards
AB 628 strengthens tenant rights by requiring landlords to provide a working stove and refrigerator in rental units. This builds upon existing requirements for waterproofing, heating, and hot water, ensuring basic living standards for all renters. Housing advocates argue this is a critical step towards addressing California’s housing affordability crisis and ensuring safe, habitable living conditions.
Minimum Wage Increases Across the Nation
California’s minimum wage is rising to $16.90 in 2026, joining 18 other states in increasing their minimum wage. This reflects a national trend towards providing a living wage for workers, though debates continue about the economic impact of such increases. A study by the University of California, Berkeley, found that minimum wage increases have a minimal impact on employment levels.
Here’s a quick look at 2026 minimum wages in select states:
- Arizona: $15.15
- California: $16.90
- Colorado: $15.16
- Connecticut: $16.94
- Hawaii: $16.00
- Michigan: $13.73
Frequently Asked Questions (FAQ)
- When do these laws take effect?
- Most laws take effect on January 1, 2026. However, SB 766 (used car returns) goes into effect on October 1, 2026.
- Where can I find the full text of these bills?
- You can find the full text of each bill on the California State Legislature’s website: https://leginfo.legislature.ca.gov/
- What if I have a dispute with a food delivery service?
- Under AB 578, you are entitled to a full refund for undelivered or incorrect orders. Contact the delivery service directly and, if unresolved, file a complaint with the Better Business Bureau.
Stay informed about these changes to ensure you’re prepared and can take advantage of the new protections and benefits available to you. For more information on California laws and regulations, visit the official state government website.
What are your thoughts on these new laws? Share your opinions in the comments below!
