MICHAEL SULLIVAN & ASSOCIATES BLOG

California employers have a compelling reason to review their employment practices before year-end: proactive compliance can help prevent violations and provide substantial protection if a PAGA claim arises.

Under California’s reformed Private Attorneys General Act (PAGA), qualifying employers that take all reasonable steps to comply with the law before receiving a PAGA notice, or certain employee records requests, can limit covered PAGA civil penalties to 15% of the amount otherwise sought—an 85% reduction.

What Employers Need to Know for 2027

Gov. Gavin Newsom’s September 30 deadline to sign or veto legislation brought a new slate of employment laws governing artificial intelligence, discrimination, wages, leave and other workplace issues. Many take effect in 2027 and will require California employers to review existing policies, practices and workplace technology.

California lawmakers are taking a closer look at how artificial intelligence is shaping the workplace—and what it means for employers.

A new slate of proposed legislation—supported by organized labor and policymakers involved in recent worker protection efforts—aims to introduce guardrails around the use of AI on the job. Two key bills—SB 951 and SB 947—take different but complementary approaches.

California Senate Bill 487, signed into law in 2025, brings significant changes to the way employers and insurers can recover costs in workers’ compensation cases involving peace officers. The new law, heavily opposed by the employer community, places strict limits on subrogation recovery and eliminates a long-standing credit right that has been a cornerstone of cost control in public safety claims.

These changes will have a substantial impact on counties, cities, and other public entities that handle workers’ compensation claims for law enforcement officers.

Two weeks ago, we reported on some exciting new reforms to the Private Attorneys General Act of 2004 (“PAGA”) that were beginning to take shape in the California Legislature. We are now happy to report that those changes have been formally adopted and approved!

These changes only apply to future PAGA lawsuits for which a notice was filed with the Labor and Workforce Development Agency (“LWDA”) after June 19, 2024. Pending PAGA lawsuits and ones filed based on LWDA notices that predate June 19, 2024 are not impacted. Still, the reforms provide employers with new tools to manage their PAGA exposure. Now that we have had the chance to review the text of “PAGA 2.0”, here are the biggest improvements and drawbacks we see coming down the pike.

Governor Newsom’s office announced Tuesday, June 18th, that much needed and long-awaited reform to the Private Attorneys General Act ("PAGA") is finally on the horizon! While we’re still waiting to see the exact text of the bill, here is what we expect from "PAGA 2.0" based on a release from the Governor’s office.

We’re excited to announce that our Employers’ Legal Lounge podcast is now live! Episode 1, with special guest Tara Fournier, is ready to listen to on your favorite podcast app or website — just visit the podcast's web page for links.

Tune in every month as Michael Sullivan & Associates attorney, Eric De Wames, and a rotating roster of guest experts discuss the most recent developments, emerging trends, and effective strategies within California's dynamic employment law environment. Each month, Eric will dive deep into the most recent cases, legislation, and general trends to provide you with valuable insights and guidance for navigating the complex world of employment regulations in the Golden State.

The California Legislature has concluded its final session of the year, passing an abundance of new employment laws. Now that the Governor’s time to veto, approve, or allow these bills to take effect has passed, here are some key new laws that California employers should be aware of. Please note that this is only a summary of important new laws, and covers neither every new law nor every aspect of the laws below.