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The Mandate Monitor

What employers in California must do

Checked November 9, 2026From the agencies that run each program

Short answer

Employers in California must pay at least $16.90 an hour, rising to $17.40 on January 1, 2027.

California runs a paid leave program, California State Disability Insurance (SDI) and Paid Family Leave, funded by a premium of 1.3% of wages in 2026.

California employers covered by CalSavers that don’t offer a qualified retirement plan must register by their deadline.

The next employer deadline in California is December 31, 2026: Annual deadline for employers newly notified by CalSavers in 2026 (based on 2025 DE 9C filings) to register.

Does your payroll handle California’s programs? See the free state route and the 3 payroll systems with help docs that cover them.

California requirements at a glance

RequirementStatusWhat it means for you
Minimum wageIn effect$16.90 an hour; $17.40 from January 1, 2027
Paid leave: California SDI and Paid Family LeaveIn effectAny business with employees in California. You must register with the California Employment Development Department (EDD) within 15 days once you pay more than $100 in wages in a calendar quarter, or $750 in cash wages in a quarter for household employees. State Disability Insurance (SDI) is then withheld from every covered employee’s wages.
Retirement mandate: CalSaversIn effectPrivate employers with one or more California employees (counted as the average reported on the four quarterly California Employment Development Department (EDD) Form DE 9C filings for the prior year) that don’t sponsor a tax-qualified retirement plan. Exempt: employers with a qualified plan (401(k), 403(b), Simplified Employee Pension (SEP), SIMPLE individual retirement account (IRA), defined benefit, or an auto-enroll payroll IRA), owner-only businesses, and government organizations. CalSavers’ FAQ also lists religious and tribal organizations as exempt, but says they must still complete the exemption form by the December 31 deadline. Eligible employees are 18 or older and receive a W-2 with California wages.

Pay rules California employers must follow

Paydays
At least twice a month on regular paydays set in advance. Executive, administrative and professional employees may be paid monthly.
Final paycheck, fired
Immediately, at the time of termination.
Final paycheck, quit
On the last day if the employee gave at least 72 hours’ notice; otherwise within 72 hours of quitting.
Meal breaks
30-minute meal break for workdays over 5 hours (can be waived by agreement if the day is 6 hours or less), and a second 30-minute break for workdays over 10 hours.
Rest breaks
Paid 10-minute rest break for every 4 hours worked (or most of 4 hours). Not required if the workday is under 3.5 hours.
Overtime
Daily overtime: time and a half after 8 hours in a day or 40 in a week, and for the first 8 hours on the 7th day in a row in a workweek. Double time after 12 hours in a day and after 8 hours on that 7th day.
New hire reporting
Within 20 days of the first day of paid work, to the California Employment Development Department (New Employee Registry). Independent contractors must also be reported to the Employment Development Department within 20 calendar days (form DE 542) when a federal Form 1099 is required for the work, the contractor is an individual, sole proprietor or single-member limited liability company, and you pay $600 or more in a calendar year or sign a contract for that much.

From the California Department of Industrial Relations and the U.S. Department of Labor’s state tables, checked November 8, 2026.

What changed in California

  1. · New law

    California widens the military reason for Paid Family Leave

    Assembly Bill 2054 expands California Paid Family Leave’s definition of covered active duty beyond deployment to a foreign country. It adds training, deployment elsewhere and, for reserve members including the National Guard, a call or order to federal or state active duty. It starts on July 1, 2028, or sooner once specified changes are made to the California Employment Development Department (EDD) claims system.

Every change, newest first

Upcoming California deadlines

  1. · Retirement mandate

    CalSavers: Annual deadline for employers newly notified by CalSavers in 2026 (based on 2025 DE 9C filings) to register

    1+ employees

  2. · Paid leave

    California SDI and Paid Family Leave: State Disability Insurance (SDI) withholding rate rises to 1.4% of all wages for 2027

  3. · Minimum wage

    California minimum wage rises to $17.40

  4. · Paid leave

    California State Disability Insurance (SDI) and Paid Family Leave: Fourth-quarter 2026 DE 9 and DE 9C wage reports are delinquent if not filed by this date

    They cover October through December 2026 wages and the State Disability Insurance withheld.

  5. · Retirement mandate

    CalSavers: Annual deadline for employers newly notified by CalSavers in 2027 (based on 2026 DE 9C filings) to register

    1+ employees

  6. · Paid leave

    California State Disability Insurance (SDI) and Paid Family Leave: Latest date for the wider Paid Family Leave military definition in Assembly Bill 2054 to start

    It starts sooner once specified changes are made to the California Employment Development Department (EDD) claims system.

  7. · Retirement mandate

    CalSavers: Annual deadline for employers newly notified by CalSavers in 2028 (based on 2027 DE 9C filings) to register

    1+ employees

Deadline calendar for every state · How to hire your first employee · Employer law changes for 2027 · All states

Sources

  1. California Department of Industrial Relations, Labor Commissioner’s Office
  2. California Employment Development Department (EDD)
  3. CalSavers Retirement Savings Board (California State Treasurer’s Office)
  4. State Payday Requirements (last revised January 1, 2023), U.S. Department of Labor, Wage and Hour Division (read Nov 7, 2026)
  5. Minimum Length of Meal Period Required under State Law for Adult Employees in Private Sector (last revised January 1, 2023), U.S. Department of Labor, Wage and Hour Division (read Nov 7, 2026)
  6. Minimum Paid Rest Period Requirements Under State Law for Adult Employees in Private Sector (last revised January 1, 2023), U.S. Department of Labor, Wage and Hour Division (read Nov 7, 2026)
  7. State Minimum Wage Laws, including premium (overtime) pay after designated hours (updated November 5, 2026), U.S. Department of Labor, Wage and Hour Division (read Nov 7, 2026)
  8. Paydays, pay periods, and the final wages, California Department of Industrial Relations, Labor Commissioner’s Office (read Nov 7, 2026)
  9. Meal periods FAQ (revised 7/11/2012), California Department of Industrial Relations, Labor Commissioner’s Office (read Nov 7, 2026)
  10. Rest periods FAQ, California Department of Industrial Relations, Labor Commissioner’s Office (read Nov 7, 2026)
  11. Overtime FAQ, California Department of Industrial Relations, Labor Commissioner’s Office (read Nov 7, 2026)
  12. California’s New Employee Registry, California Employment Development Department (read Nov 8, 2026)
  13. Independent Contractor Reporting, California Employment Development Department (read Nov 8, 2026)