California’s New Employment Laws for 2027: Key Employment Laws Impacting Employers in the New Year and Beyond

By Swerdlow Florence Sanchez Swerdlow & Wimmer

October 9, 2026

California’s 2026 legislative session produced fewer major employment bills than in recent years. Nevertheless, the laws that were enacted will require employers to revisit workplace technology, training, leave administration, and retaliation prevention. Perhaps most notably, this legislative session demonstrates California’s growing focus on employers’ use of artificial intelligence and workplace technology, an area that is likely to see continued regulation, enforcement activity, and litigation in the coming years. The measures discussed below create meaningful compliance obligations beginning in 2027 and 2028.

SB 947: Human Review of Automated Decisions

Effective July 1, 2027, SB 947, the “No Robo Bosses Act,” restricts the use of automated decision systems in disciplinary and termination decisions. Employers may not rely solely on an automated output. A human reviewer must independently investigate and corroborate the information before adverse action is taken.

The law reaches more than products marketed as “artificial intelligence.” For example, attendance systems, productivity tools, performance platforms, and workforce analytics may qualify if their scores, classifications, or recommendations materially influence a decision. Employers also must provide employees with notice when an automated decision system is used in connection with certain disciplinary or termination decisions and, upon request, must disclose the categories of employee data primarily relied upon by the system.

Employer Action Items

• Conduct an inventory of systems that influence discipline, termination, or deactivation decisions.
• Require and document independent human review of underlying facts.
• Develop notice, data-response, and recordkeeping procedures.
• Train HR and managers not to treat automated recommendations as determinative.

SB 951: Technology-Displacement WARN Notices

Effective January 1, 2027, SB 951 adds new disclosure requirements to California WARN notices when a covered mass layoff, relocation, or termination is caused in whole or in substantial part by artificial intelligence or other automated technology replacing or automating jobs.

The notice must, among other things, identify the number, classification or occupation and work location of the positions that were laid off due to the replacement or automation by automated technology, and the type of AI that is causing the displacement of the workers. Existing coverage thresholds and the 60-day notice period remain unchanged.

Employer Action Items

• Update reduction-in-force notices if necessary.
• Evaluate automation-related WARN issues early in workforce planning.

AB 1803: Anti-Hate Speech Training

Beginning January 1, 2028, California’s required harassment-prevention training for employers with five or more employees must include practical guidance on recognizing, reporting, and confronting workplace speech that vilifies, humiliates, or incites hatred based on characteristics protected by the Fair Employment and Housing Act.

The change is likely to broaden the range of workplace comments and communications addressed in training and internal investigations, including conduct that may not fit traditional harassment examples.

Employer Action Item

• Confirm that training providers will update California-compliant training materials to address the new anti-hate speech requirements. SFSSW is available to assist employers with compliant training programs delivered either onsite or through remote instruction.

SB 1149: Bereavement Leave for a Designated Person

Effective January 1, 2027, SB 1149 expands California bereavement leave to include the death of an employee’s designated person. The employee may make the designation when requesting leave, and an employer may limit the employee to one designated person in a 12-month period.

Employer Action Items

• Revise bereavement leave policies to include a designated person.
• Update leave forms and administration procedures, if necessary.
• Train HR personnel on permissible designation limits and consistent handling of requests.

AB 2495: Immigration-Related Retaliation

Effective January 1, 2027, AB 2495 expands California’s protections against immigration-related retaliation. The law broadens the scope of prohibited conduct and makes clear that employers may not use an individual’s actual or perceived immigration status in a manner that could discourage employees from exercising workplace rights, reporting concerns, participating in investigations, or otherwise engaging in protected activity.

Violations may result in civil penalties of up to $10,000 per affected employee or person for each violation, in addition to other available remedies.

Employer Action Items

• Update anti-retaliation policies and supervisor training.
• Ensure I-9 and work-authorization processes are not used or referenced as leverage in workplace disputes.

California Minimum Wage and Exempt Salary Increases

Effective January 1, 2027, California’s statewide minimum wage will increase from $16.90 to $17.40 per hour for all employers. The increase also will raise the minimum salary threshold for California’s executive, administrative, and professional exemptions to $72,384 annually ($6,032 monthly). Employers should review compensation levels before year-end to ensure exempt employees continue to satisfy the salary-basis requirement and all other applicable exemption criteria.

Certain occupations and industries remain subject to separate compensation requirements. Although 2027 rates have not yet been released, employers with exempt computer software employees, licensed physicians and surgeons, or employees in the fast-food and health care industries should monitor for updated wage and salary thresholds.

Lastly, many local jurisdictions maintain higher minimum wage rates. For example, the City of Los Angeles currently requires a minimum wage of $18.42 per hour.

Employer Action Items

• Review employee pay rates and exempt salaries before January 1, 2027.
• Monitor updated compensation thresholds for occupations and industries with special wage requirements.
• Confirm compliance with applicable local minimum wage ordinances, particularly for remote and hybrid employees.

Now is the time for employers to review their policies, training materials, and workplace practices before the new requirements take effect. Your SFSSW attorney is available to assist with compliance planning and implementation for 2027.

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