Last updated: November 4, 2026.
If you’ve been hearing about “new California employment laws for 2027,” you’re not alone. A batch of worker-facing bills signed in 2026 kicks in next year. The statewide minimum wage also rises under existing Labor Code rules. Below is a plain-English look at the changes that may matter most to employees—pay, bathroom privacy, AI used in discipline or layoffs, bereavement leave, immigration-related retaliation, and how California defines sex discrimination. Every workplace is different, and nothing here predicts what will happen in any one person’s case.
Key takeaways
- On January 1, 2027, California’s statewide minimum wage rises to $17.40 an hour. The related exempt salary threshold figure DIR published is $72,384 a year. That salary number is only one part of overtime-exemption analysis—duties and other rules still matter. (DIR Release No. 2026-66)
- Workplace bathroom surveillance limits (AB 1331), limits on AI emotion-tracking and neural-data collection (AB 1883), and expanded immigration-related retaliation rules (AB 2495) are scheduled for January 1, 2027.
- Rules on automated decision systems used in discipline or termination (SB 947) become operative on July 1, 2027.
- Cal/WARN notices for certain AI-related displacements (SB 951), bereavement leave for a designated person (SB 1149), and a clarified statewide definition of sex discrimination (AB 2563) are also among the 2027 changes verified from chaptered bill text and official announcements.
- City of Los Angeles and unincorporated Los Angeles County minimum wages already sit above the statewide rate for many workers. Where a higher local rate applies, that higher rate controls, according to DIR. Local rates typically change each July 1; the July 2027 city and county figures are not published yet.
Will my paycheck go up on January 1, 2027?
What changes. According to DIR Release No. 2026-66 (August 13, 2026), the statewide minimum wage increases to $17.40 per hour on January 1, 2027. DIR also shows the related minimum annual salary figure used as part of the overtime-exemption salary threshold: $17.40 × 2 × 40 × 52 = $72,384. Meeting that salary figure alone doesn’t make someone exempt. The employee still has to meet the duties and other requirements for the specific exemption.
Who it may cover. DIR says most California workers must be paid at least the state minimum wage, including people paid on a piece-rate basis. Some cities and counties set higher local rates. When a local rate is higher, DIR says employers must follow the higher rate.
When. January 1, 2027.
Where to read more. DIR news release 2026-66; Labor Code § 1182.12. If you think you’ve been underpaid, the Labor Commissioner’s Office explains how to file a wage claim.
Workers with questions about underpayment may also want to read about California wage and overtime protections and recovering unpaid wages in California.
Los Angeles local floors already above the state rate
If you work inside the City of Los Angeles or in unincorporated Los Angeles County, check the local floor—not only the statewide number.
As of July 1, 2026, the City of Los Angeles Office of Wage Standards lists a citywide minimum wage of $18.42 per hour. The Los Angeles County Department of Consumer and Business Affairs lists $18.47 per hour for work in unincorporated Los Angeles County. Both of those local floors are already higher than the January 2027 statewide rate of $17.40. Coverage depends on where the work is performed and the ordinance’s other rules—for example, many local ordinances apply when someone works at least two hours in a week in the covered area.
Local rates usually update every July 1. The July 1, 2027 city and county amounts are not out yet, so don’t assume $18.42 or $18.47 will still be the local floor mid-year.
Sources: City of Los Angeles Office of Wage Standards; LA County DCBA minimum wage page.
Can my employer watch me in the bathroom? (AB 1331)
Starting January 1, 2027, California adds clearer bathroom privacy rules at work.
What the chaptered law says. AB 1331 (Chapter 851, Statutes of 2026) generally bars an employer from using a workplace surveillance tool to monitor or surveil employees in a bathroom located in the workplace, unless a court order directs it. Employees generally have a right to leave workplace surveillance tools behind when they enter a bathroom. There are narrow exceptions—for example, certain identification or safety tools (like a badge or personal alarm) that don’t detect or record audio or video and don’t have physically embedded or attached AI, when the employer’s policy requires them for identification, safety, or access to a locked bathroom. The Labor Commissioner and public prosecutors may enforce the law. The chaptered text allows a civil penalty of up to $500 per violation.
Who it may cover. Employees of covered employers as defined in the bill, including many public entities and labor contractors.
When. January 1, 2027 (non-urgency chaptered bill).
Sources: AB 1331 chaptered text; Governor’s September 30, 2026 signing announcement.
Can my employer use AI to read my emotions at work? (AB 1883)
What the chaptered law says. AB 1883 (Chapter 853, Statutes of 2026) generally prohibits an employer from using a workplace surveillance tool that uses artificial intelligence on employees to recognize—or make inferences or predictions about—an individual’s emotional state, or to collect neural data. Safety uses that don’t meet those specifications aren’t barred by that section. Enforcement may include Labor Commissioner action or a public prosecutor civil action, with a penalty of up to $500 per violation under the chaptered text.
In day-to-day terms: tools that try to score how “happy,” “angry,” or “engaged” you look on camera, or that collect certain nervous-system data, are the kinds of uses this bill targets. Ordinary safety cameras that aren’t doing that kind of AI analysis sit outside the ban described above.
Who it may cover. Employees of covered employers, including many governmental entities.
When. January 1, 2027.
Sources: AB 1883 chaptered text; Governor’s September 30, 2026 signing announcement.
If AI helped fire or discipline me, what changes in 2027? (SB 947)
This is one of the bigger AI-at-work shifts for employees—and it starts mid-year, not on New Year’s Day.
What the chaptered law says. SB 947 (Chapter 859, Statutes of 2026) limits how employers may use automated decision systems (ADS). Among other rules:
- An employer shall not rely solely on an ADS when making a disciplinary or termination decision.
- If an employer primarily relies on ADS output for discipline or termination, a human must corroborate the decision using specified kinds of information, and the employer must provide a written post-use notice.
- Employees may request a description of their own data primarily used by the ADS.
- Retaliation for asserting rights under the part is prohibited.
- A civil penalty of $500 per violation is stated in the chaptered text.
So if a productivity score or “risk” flag is the only thing behind a write-up or a firing, that setup is the kind of sole reliance the statute targets once the law is operative. How any one decision is evaluated still depends on the facts.
Who it may cover. Employees of covered employers as defined in the bill. A collective bargaining agreement may displace the part if it meets the bill’s waiver conditions.
When. July 1, 2027 (operative date in Labor Code § 1526.7 as added by the bill).
Sources: SB 947 chaptered text; Governor’s September 30, 2026 signing announcement.
Workers concerned about a termination decision may also review information on wrongful termination in California.
Will I get notice if AI replaces my job? (SB 951)
What the chaptered law says. SB 951 (Chapter 860, Statutes of 2026) amends the California Worker Adjustment and Retraining Notification (Cal/WARN) Act. When a covered mass layoff, relocation, or termination is caused in whole or in substantial part by an AI system or other automated technology replacing or automating positions, the required notice must include extra information—such as the number, classification or occupation, and work location of those layoffs; the job functions being automated; the category of technology involved; and a statement that the notice is for a technology displacement. EDD is directed to publish summaries of those notices.
Who it may cover. Workers at covered establishments under Cal/WARN—facilities employing, or that have employed within the preceding 12 months, 75 or more persons—subject to existing Cal/WARN definitions and exceptions.
When. January 1, 2027 (non-urgency chaptered bill; no later operative date for the notice amendments).
Sources: SB 951 chaptered text; Governor’s September 30, 2026 signing announcement.
Can my boss threaten immigration consequences if I speak up? (AB 2495)
What the chaptered law says. AB 2495 (Chapter 748, Statutes of 2026) amends Labor Code section 1019. Among other changes, it expands unlawful unfair immigration-related practices tied to retaliation for exercising rights under local, state, or federal employee statutes or regulations. It also makes it unlawful to engage in other conduct related to a person’s perceived immigration status that would reasonably tend to dissuade someone from exercising protected rights—or induce them to do something they have a legal right to refuse. The chaptered text provides for a civil penalty not exceeding $10,000 per employee or person for each violation, among other remedies. Actual immigration status is irrelevant to liability under the section, consistent with Labor Code section 1171.5.
In plain terms: threatening to call immigration authorities, or using immigration-related pressure to keep someone quiet about wage theft or other workplace rights, is the kind of conduct this expansion targets. Whether a particular situation is covered still depends on the facts.
Who it may cover. Applicants, employees, and former employees, as defined in the amended section.
When. January 1, 2027.
Sources: AB 2495 chaptered text.
Workers who face pushback after reporting workplace issues may also find related information on whistleblowing protections.
Can I take bereavement leave for someone who isn’t a legal relative? (SB 1149)
What the chaptered law says. SB 1149 (Chapter 679, Statutes of 2026) amends Government Code section 12945.7 so that “family member” for bereavement leave includes a designated person—any individual related by blood or whose association with the employee is the equivalent of a family relationship. An employer may limit an employee to one designated person per 12-month period. Existing bereavement-leave mechanics (up to five days, timing, documentation, and anti-retaliation rules) otherwise remain in the statute as amended.
That can matter if the person you lost was a close friend who was family in every way that counted, even if you didn’t share a last name or a legal status.
Who it may cover. Employees who have worked for a covered employer (generally private employers with five or more employees, plus public employers) for at least 30 days before the leave begins, subject to the statute’s definitions and collective-bargaining exception.
When. January 1, 2027.
Sources: SB 1149 chaptered text.
For broader leave questions, see MAGISA LAW’s page on leave of absence.
What does California mean by “sex discrimination” now? (AB 2563)
What the chaptered law says. AB 2563 (Chapter 952, Statutes of 2026) adds a statewide interpretive definition of “sex discrimination” across many codes, including FEHA-related definitions. The definition includes discrimination based on actual or perceived characteristics such as assigned sex or gender category (including nonbinary), degree of conformity to sex or gender stereotypes, gender identity and expression, pregnancy or related medical conditions, sexual orientation, and variations in sex characteristics. The Legislature stated that the bill is declarative of existing law and is not intended to expand or contract existing rights or responsibilities. Companion menopause language tied to AB 1940 does not apply because AB 1940 was vetoed.
Who it may cover. Workers protected by FEHA and other California anti-discrimination provisions that prohibit sex or gender discrimination, depending on the facts and the applicable statute. The Civil Rights Department explains how to start a CRD complaint if you believe you’ve faced unlawful discrimination or harassment.
When. January 1, 2027.
Sources: AB 2563 chaptered text; AB 2563 bill status; AB 1940 status (vetoed).
Related firm pages include gender discrimination and LGBTQ workplace rights.
What workers can do next
- Check your pay. Compare your rate to the statewide floor and any local ordinance that applies where you work. City and county sites above list current local rates.
- Save records. Keep pay stubs, schedules, notices, AI or discipline paperwork, and messages about leave or immigration-related threats.
- Use agency resources when they fit. Depending on the issue, options may include filing a wage claim with the Labor Commissioner, contacting the Civil Rights Department, or reaching a local wage agency such as WagesLA or LA County DCBA.
- Ask questions early. Deadlines and coverage rules depend on the facts of your situation.
FAQ
When do most of these new workplace laws start?
Many of the chaptered 2026 employment bills summarized here take effect January 1, 2027. SB 947’s automated-decision rules become operative on July 1, 2027.
Does the new statewide minimum wage replace Los Angeles local wages?
Not if the local rate is higher. DIR states that employers must follow the higher applicable local rate when a city or county rate exceeds the state rate. As of July 1, 2026, LA City’s rate is $18.42 and unincorporated LA County’s is $18.47—both above the January 2027 state floor of $17.40. July 2027 local rates are not published yet.
If my employer uses AI to discipline or fire people, what changes in 2027?
Under SB 947, beginning July 1, 2027, employers generally may not rely solely on an automated decision system for discipline or termination, and primary reliance triggers human corroboration and notice duties described in the chaptered text. How any one decision is evaluated still depends on the facts.
Does AB 2495 only protect immigrant workers?
The amended Labor Code section 1019 focuses on unfair immigration-related practices and conduct related to perceived immigration status. The statute also states that actual immigration status is irrelevant to liability. Whether a particular situation is covered depends on the facts.
Where can I get help if I think my rights were violated?
It depends on the issue. Wage underpayment often goes to the Labor Commissioner’s wage claim process. Discrimination or harassment complaints often go through the Civil Rights Department. You can also request a free consultation with MAGISA LAW to talk through your specific situation.
Talk with MAGISA LAW
MAGISA LAW is a Glendale employment law firm that represents employees throughout the Los Angeles area. If you have questions about pay, surveillance, AI discipline, leave, discrimination, or retaliation under these 2027 changes, request a free consultation to discuss your specific situation.
Disclaimer
This article is for general informational purposes only and is not legal advice. Reading it does not create an attorney-client relationship. Employment laws and agency guidance can change. Coverage, deadlines, and remedies depend on individual facts. No result is promised or guaranteed. Consult a licensed California attorney about your situation.
Sources
- DIR Release No. 2026-66: California minimum wage $17.40 on Jan. 1, 2027
- Labor Code § 1182.12
- How to file a wage claim (DIR / Labor Commissioner)
- City of Los Angeles Office of Wage Standards
- LA County DCBA minimum wage
- Civil Rights Department complaint process
- AB 1331 (Ch. 851, 2026)
- AB 1883 (Ch. 853, 2026)
- SB 947 (Ch. 859, 2026)
- SB 951 (Ch. 860, 2026)
- AB 2495 (Ch. 748, 2026)
- SB 1149 (Ch. 679, 2026)
- AB 2563 (Ch. 952, 2026)
- AB 1940 status (vetoed Sept. 30, 2026)
- Governor Newsom signing announcement (Sept. 30, 2026)