By: David B. Nusz, Partner, and Lauren Peterkin, Associate

In addition to death and taxes another certainty for CA employers is each new year brings with it new laws and legal compliance challenges.  It gives the Plaintiff attorneys great joy in the holiday season to know they will have new and exciting ways to get employers to wonder why they are only getting coal in their stockings.  While there are many written personnel policies we typically recommend to our clients, most are not legally required, such as Arbitration Agreements and Employee Handbooks.  However, there are some that are mandatory and there is now another one that falls into that category.  SB 294, the “Workplace Know Your Rights Act” was signed into law by Governor Newsom on October 12, 2025. This law establishes new requirements for employers regarding written notices for workers’ compensation and immigration rights.

The intent of this law is to provide California workers with information about their rights and equip them with the ability to protect themselves, their families, and their community. Agree, or disagree with the stated objective, this law requires two main actions to be taken by employers.

Know Your Rights Notice

By February 1, 2026, employers will be required to annually give a “Know Your Rights” notice to all current employees and new hires. This notice must include information regarding:

    • Workers’ compensation rights
    • Employees’ rights regarding immigration inspections
    • Protections against unfair immigration-related practices
    • Rights to organize, form, or join a union or engage in concerted activity
    • Constitutional rights, including Fourth Amendment protections against unlawful searches and seizures and Fifth Amendment protections against self-incrimination and the right to due process

The California Labor Commissioner has been directed to post more specific content guidance on their website by January 1, 2026, and possibly a recommended policy template.  Depending on the specific guidance from the Labor Commissioner on required immigration rights content, there will likely be legal challenges from the Federal government which could impact how this eventually shakes out.

Presently there is little clear consensus in the legal community or courts about what “immigration rights” are or how they can be exercised.  In the meantime, we are recommending the written notice adhere to their template if available before February 1, 2026, deadline to provide the notice to all employees and we will update you with any recommended changes as appropriate.  In the absence of an available Labor Commissioner template by the deadline we can assist you in drafting it.

By July 1, 2026, the Labor Commissioner’s office will also post videos for employees and employers advising them of their rights and requirements under the law.

Notification of Designated Emergency Contact

By March 30, 2026, employers must give existing workers and new hires the opportunity to designate an emergency contact who should be notified if the employee is arrested or detained at work. Employers must also allow employees to indicate whether the emergency contacts should be notified only when the employee is on their work site, or also during any work hours or during any time when the employee is performing their job duties.

Penalties

Any employer that violates this bill may be subject to a penalty of up to $500 per employee for each violation. Specifically for the notification of a designated emergency contact, an employer may be subject to up to a $500 penalty per employee for each day the violation occurs. This violation can cost an employer a maximum of $10,000 per employee.

Conclusion

Employers should follow the law closely to avoid penalties. Employers should also keep an eye on the Labor Commissioner’s website to review the annual templates uploaded and update their notices accordingly.