The Social Security Administration announced a 3.6% cost-of-living increase for 2027. The maximum amount of earnings subject to Social Security payroll tax will increase from $184,500 to $192,300.
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New Law Update: Penalties for Worker Misclassification
SB 1444 allows employees, the Labor Com., or a public prosecutor to collect penalties for willful independent-contractor misclassification of $5,000 to $15,000 per violation and $10,000 to $25,000 for a pattern or practice.
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It's open enrollment season! Employees can contribute up to $7,500 in pre-tax income to a Dependent Care Flexible Spending Account (DCFSA) if offered by their employer. This benefit isn't restricted by income.
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Employees can use the money to pay for expenses when the employee (or both spouses if the employee is married) works, looks for work, or attends school full-time. These expenses can include daycare, nannies and caregivers. fsafeds.gov/explore/dcfsa
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Federal 2026 Overtime Reporting Reminder:
Employers must separately track federal overtime for 2026 wages. The prior grace period for 2025 wages no longer applies. Employers must report the total FLSA overtime premium on Form W-2 in Box 12 using Code TT.
irs.gov/newsroom/what-to-kno…
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New Law Update: Anti-Discrimination Rules
AB 2563 clarifies that California’s sex discrimination protections include gender stereotypes, gender identity or expression, pregnancy and related conditions, sexual orientation, and variations in sex characteristics.
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New Law Update: Workplace Violence Restraining Orders
AB 1961 expands employers’ ability to seek workplace violence restraining orders.
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New Law Update: Expanded Immigration Protections
AB 2495 expands protections beyond retaliatory immigration practices. The new law protects workers who make complaints, request info, & inform & assist others w/ immigration rights based on actual & perceived immigration status.
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New Law Update -- Expanded Paid Family Leave
AB 2054 broadens CA's Paid Family Leave benefits for military reasons. “Covered active duty” now includes deployments, training, and calls to federal or state active duty, including the armed forces, reserve and national guard.
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New Law Update: Cal/OSHA Investigations
AB 2321 will require Cal/OSHA's Board of Investigation (BOI) to immediately investigate workplace safety violations of a death, serious injury, serious illness or exposure, a request for prosecution, or a citation for willful violation.
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New Law Update: Stay or Pay Delay
Last year, CA enacted a law prohibiting employers from imposing fees on workers if a worker's employment ends. AB 1697 delays the implementation of this law until 1/1/27 and shields employers from liability for 2026.
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California Employers: Per Elections Code Section 14001, at least 10 days before a statewide election you must post a notice informing employees of their right to take time off to vote. This year that deadline is October 24th.
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You can find the poster online at sos.ca.gov/elections/time-vo… You must display the poster in a conspicuous location at your workplace or where employees can see it when entering or leaving work.
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New Law Update -- Equal Pay Act Revisions
SB 642 amends a number of definitions in CA's Equal Pay Act. Employers w/15 or more employees must ensure job postings contain a good faith estimate of compensation upon hire. This is what employers expect to pay, not just a pay range.
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