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“In towns and cities... there is no more important institution than the local paper.”
Warren Buffett
January 2, 2026
By Laurie Hanson
California is ushering in a sweeping set of legal changes in 2026 that will affect employment practices, real estate transactions, and consumer protections for used car buyers, with new laws expanding worker rights, increasing regulatory oversight, and strengthening protections for buyers and tenants.
“In terms of employment, new wage rules, pay transparency expansions, mobility protections, and enforcement powers will take effect in 2026,” said Edwin Aiwazian, CEO of Lawyers for Justice, who specializes in employment law. He noted that employers across the state should prepare for broader compliance obligations and heightened liability.
One of the most immediate changes is a statewide minimum wage increase. As of January 1, 2026, California’s minimum wage rises to $16.90 per hour for all employers, regardless of size, with some local and industry-specific rates already exceeding that level.
Several new laws expand pay equity and transparency enforcement. The Pay Equity Enforcement Act broadens definitions under existing equal pay laws and extends the statute of limitations, significantly increasing potential employer exposure in pay inequity claims. Another measure expands employer pay data reporting requirements, mandating that demographic pay data be maintained separately from personnel files and authorizing civil penalties when such information is not produced upon request.
Employee mobility and access to information are also being strengthened. A new law bans so-called “stay-or-pay” agreements that require workers to repay training or other costs if they leave a job, limiting arrangements that restrict employee movement. Additional legislation expands the scope of personnel records that current and former employees may access, increasing compliance responsibilities for employers. Protections for crime victims have also been broadened, increasing both protected leave time and workplace accommodations.
Employers will face new notice and compliance requirements as well. A “Know Your Rights” mandate requires employers to provide annual written notices outlining employee rights beginning February 1, 2026. Other legislation codifies and strengthens notice obligations related to layoffs, relocations, and terminations, with stiffer penalties for noncompliance.
The gig economy is also affected. New legislation grants transportation network company drivers expanded unionization rights, signaling a notable shift in gig worker labor relations. Separately, protections for workers laid off due to COVID-related circumstances have been extended through January 1, 2027.
Changes are also coming in real estate law. Itay Simchi, founder of Proven House Buyers and a national real estate investor, said California is likely to continue tightening regulation on investor activity and housing transactions.
“California continues to lead the country in housing regulation,” Simchi said. He expects increased disclosure requirements for investors, expanded tenant protections, and stricter enforcement of rent-control laws. Rather than banning practices such as wholesaling, he said lawmakers appear focused on increasing transparency and oversight.
Tenant protections and eviction restrictions are also expanding nationwide, with lawmakers pushing for longer eviction timelines, stronger just-cause eviction standards, and limits on rent increases in high-cost markets. Simchi said many investors are already adjusting their strategies as holding costs and legal timelines grow longer.
Several states are also formalizing wholesaling laws, requiring registration, licensing, or clearer disclosure to sellers. While these changes raise compliance costs, Simchi said they are more likely to increase paperwork than eliminate the practice altogether. He also expects continued experimentation with higher transfer taxes and investor-specific fees to fund housing programs, measures that can reduce margins and slow resale activity.
Energy and climate-related housing regulations are another area of growth. California is expected to add requirements tied to electrification, solar readiness, and energy efficiency in both renovations and new construction, increasing upfront costs and reshaping how deals are evaluated.
Regulators are also paying closer attention to fair housing compliance and advertising practices, particularly online. Simchi said scrutiny of investor marketing language, seller outreach, and tenant screening is likely to continue into 2026.
“In short, most 2026 real estate laws won’t be about stopping investing,” Simchi said. “They’re about increasing transparency, consumer protections, and affordability controls. Investors who adapt early tend to stay profitable.”
Major changes are also coming for used car buyers. Michael Ouziel, founder of MMO Law, APC, said California’s new CARS Act represents a significant expansion of consumer protections. Signed by Gov. Gavin Newsom, the law takes effect October 1, 2026.
“For the first time in the nation, California will require dealers to give buyers of most used cars priced at $50,000 or less a mandatory three-day cooling-off period,” Ouziel said. During that time, buyers may return a vehicle for any reason, provided it has been driven fewer than 400 miles and returned without damage beyond normal wear and tear. Dealers may charge a restocking fee.
Ouziel said the law fills a long-standing gap in consumer protection. While California’s Lemon Law strongly protects new-car buyers, it generally does not apply to used vehicles unless they are sold with a manufacturer-backed certified pre-owned warranty.
He noted that court rulings have confirmed Lemon Law coverage for certified pre-owned vehicles, but not for standard used car sales, making the new cooling-off period a major shift for consumers navigating the used car market.
Taken together, the 2026 legal changes signal a broader push by California lawmakers to expand worker protections, regulate housing markets more closely, and strengthen consumer rights, reshaping the legal landscape for employers, investors, and buyers alike.