Employers in California should be aware of the new legislative changes coming in 2026.
Expansion of PERB to Private Sector Workers (AB 288) Starting January 1, 2026, AB 288 expands the jurisdiction of the Public Employment Relations Board (“PERB”) to adjudicate certain private-sector labor disputes when the National Labor Relations Board (“NLRB:) does not act within specific timeframes. Under this law, workers may bring unfair labor practice allegations or representation matters to PERB as an alternative forum if federal processes are stalled or inactive. Like the NLRB, PERB is authorized to issue remedies, certify bargaining representatives, and conduct hearings. While the law is currently the subject of a federal preemption challenge by the NLRB, unless halted by the courts, AB 288 creates a major shift by allowing state-level oversight of selected private-sector labor rights. On October 15, 2025, the NLRB filed a lawsuit against the State of California and PERB, seeking to declare and enjoin AB 288’s expansion of PERB’s jurisdiction as preempted by the National Labor Relations Act. We will keep an eye on this issue.
Transportation Network Company Drivers Labor Relations Act (AB 1340) In November of 2020, the passing of Proposition 22 officially categorized app-based drivers as independent contractors. Effective January 1, 2026, AB 1340 creates a state-regulated labor relations system specifically for transportation network company (“TNC”) drivers, such as those working for rideshare platforms. This law establishes procedures for drivers to voluntarily organize, join driver representative organizations, and engage in collective bargaining regarding working conditions, essentially giving them the right and means to unionization. The Public Employment Relations Board (“PERB”) is tasked with administering the certification process for driver organizations and resolving related labor disputes. Although TNC drivers are typically classified as independent contractors, AB 1340 allows them to collectively advocate for workplace improvements without altering their legal classification, significantly reshaping labor relations within the gig-economy sector.
Statute of Limitations Extended on Sexual Assault Claims (AB 250) AB 250 goes into effect on January 1, 2026, and expands access to civil remedies for survivors of sexual assault by reviving certain claims that would otherwise be barred by the statutes of limitations. This revival applies to cases where an entity or individual responsible for the harm engaged in a “cover-up” of the underlying assault. Under the statute, revived claims must be filed by December 31, 2027, unless already pending in court. This law aims to ensure accountability for institutions or responsible parties who concealed misconduct, providing survivors with an opportunity to pursue civil damages even in older cases where evidence of concealment has since emerged.
Transparency in Frontier Artificial Intelligence Act (SB 53) Effective January 1, 2026, SB 53 establishes new transparency, reporting, and safety requirements for developers of “frontier” or large-scale artificial intelligence systems. This law mandates that covered AI developers provide detailed disclosures about the design, testing, and risk-mitigation processes for their advanced models. It also includes broad whistleblower protections to allow employees or contractors to report safety risks, misuse, or non-compliance to authorities or internal compliance officers without retaliation. SB 53 positions California as one of the first jurisdictions to implement targeted regulation of high-risk AI development, reflecting growing national and international concerns about AI safety and oversight.
Bias Mitigation Training Does Not Constitute Discrimination (SB 303) Starting January 1, 2026, SB 303 clarifies that statements made by employees during bias-mitigation or anti-bias training, such as acknowledging personal biases in good faith, do NOT, by themselves, constitute unlawful discrimination under California law. The law provides reassurance to employers that facilitating these trainings will not expose them to liability solely based on participants’ reflective statements. This amendment encourages the continued use of structured bias-awareness and mitigation training programs by ensuring that good-faith participation does not create new grounds for discrimination claims.
FEHA Enforcement Procedures (SB 477) Starting January 1, 2026, SB 477 updates the Fair Employment and Housing Act (FEHA) by defining and expressly authorizing group or class complaints in administrative discrimination proceedings. This law also expands the tolling of the statute of limitations during specific administrative phases, including when the Civil Rights Department is conducting an investigation or when a complainant has a pending procedural appeal. These changes ensure that individuals and groups do not lose their ability to bring civil FEHA claims due to delays outside their control, ultimately strengthening access to remedies in discrimination, harassment, and retaliation cases.
JoLynn Scharrer is a shareholder at Hunt Ortmann Palffy Nieves Darling & Mah, Inc. and leads the Firm’s Labor & Employment and Insurance Practice. She can be reached at scharrer@huntortmann.com for further information and assistance.
