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Christine Mardikian is an associate in Dykema's Los Angeles office. She focuses her practice on litigation and labor and employment matters.

The 2026 statutes enacted by the legislature that impact employment are fewer in number than in prior years. Still, California employers need to be aware that the new 2026 employment laws focus on strengthening existing laws to further expand employee rights and extend job protections. Amendments imposing stricter and more complicated requirements were enacted, and sanctions for employer non-compliance increased. The most notable among them are minimum wage increases, prohibitions on “Stay or Pay” employment contracts, and notice requirements.

This article summarizes the key employment laws to take effect in 2026 and beyond, along with the significant court decisions that will have the most impact on the workplace—but it does not cover everything. Please reach out to any of Dykema’s Labor and Employment attorneys to discuss the impact of the new regulations on your business and to assess the best approach for complying with these new developments.Continue Reading New 2026 California Employment Laws: How Businesses Can Protect Themselves

Takeaways

  1. The duty to initiate arbitration may fall on the party seeking redress, even if they opposed arbitration in court.
  2. Arbitration policies must be interpreted in conjunction with the broader arbitration agreement, not in isolation.
  3. Clear and precise drafting of arbitration agreements and policies is essential to avoid procedural confusion and litigation delays.

The Second Appellate District of the California Court of Appeal published an opinion shedding light on the commonly raised dispute of which party bears the burden of initiating arbitration proceedings after an order compelling arbitration. The case, Arzate v. Ace American Insurance Company, delves into the nuances of the interpretation of arbitration clauses and contractual agreements, ultimately clarifying which party is expected to take the first step in the arbitration process. As employers increasingly rely on arbitration to resolve disputes, understanding the outcome and effect of Arzate is crucial to ensuring clarity in future agreements and policies.Continue Reading Arbitration Obligations for Employers: A Decision on the Duty To Initiate

Takeaways

  1. Starting July 1, Los Angeles will gradually increase the minimum wage for airport and hotel workers.
  2. Eligible employees will also receive a healthcare benefit payment.
  3. LAX concessionaires with 50 or fewer employees may be eligible for a hardship exemption.

Starting in July of this year and continuing through 2028, Los Angeles is poised to implement incremental increases to its minimum wage for airport and hotel workers, impacting businesses throughout the city. The new wage adjustments are part of ongoing efforts to address the anticipated increase in tourism for the FIFA World Cup in 2026, Super Bowl LXI in 2027, and the Summer Olympics in 2028 and ensure fair compensation for workers impacted by these impending events.Continue Reading Attention L.A. Employers: Minimum Wage Increases Ahead for LAX and Los Angeles Hotel Workers

As the devastating wildfires continue to burn across Southern California, businesses and employers in the area face unprecedented challenges. The fires, which have scorched more than 30,000 acres of land and have now lasted more than two weeks, are wreaking havoc on both communities and workplaces. With the situation continuing to evolve, employers must be mindful of the legal rights of their employees, especially when it comes to safety, leaves of absence, and workplace accommodations during such a crisis.

The following are key employment rights employers need to consider as they navigate the impact of the ongoing wildfires on their workforce.Continue Reading Critical Considerations for Employers During Southern California’s Wildfire Crisis: Supporting the Workforce and Business Continuity