HR and future of work · Industry brief

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The California Civil Rights Council has released proposed regulations updating pregnancy-related leave, workplace accommodations, and child bonding leave under the Fair Employment and Housing Act (FEHA) and California Family Rights Act (CFRA). The proposal broadens the definition of pregnancy-related conditions to include endometriosis, sciatica, and lactation-related conditions, and expands examples of reasonable accommodations such as telework, remote work, worksite changes, and temporarily suspending essential job functions. The regulations would expand qualifying health care providers to include nurses, doulas, and psychiatrists, and would remove the requirement that CFRA bonding leave be taken in two-week increments, allowing greater flexibility. A significant change requires employers to respond to accommodation requests "as soon as practicable," with unnecessary delays potentially constituting a violation. Written comments are due by 5:00 PM PT on December 8, 2026, and a public hearing will be held the same day at 11:00 AM PT. Source: California Civil Rights Council.

California employers face significant regulatory changes in 2027 affecting multiple compliance areas. The statewide minimum wage increases to $17.40 per hour with exempt salary thresholds rising to $72,384 annually, while new restrictions limit automated decision systems in employee discipline and termination under SB 947, requiring human review and employee notification when AI "primarily relies" on such systems. Additional requirements include expanded pay data reporting for employers with 100+ employees using the federal Standard Occupational Classification system (effective May 2027), stricter AI-driven layoff notice requirements under Cal-WARN identifying the technology causing displacement, new prohibitions on immigration-related retaliation, bereavement leave for designated persons, revised stay-or-pay agreement restrictions, sex discrimination definition expansion to include gender stereotype conformity, increased penalties for independent contractor misclassification (up to $1,000 per violation for repeat failures), and enhanced workplace violence restraining order procedures. Mandatory harassment prevention training must include anti-hate speech requirements beginning January 1, 2028. Source: Potomac Law Group employment law updates.