HR and future of work · Industry brief

California Governor Gavin Newsom signed AB 1697 into law on September 30, 2026, amending the state's clawback (stay-or-pay) law to provide employers significant relief. The amendments delay the law's effective date to January 1, 2027, expand bonus timing flexibility by removing the "at outset of employment" requirement for sign-on, retention, and recruiting bonuses, create a new exception for financial services employees (securities broker-dealers, insurance providers, investment advisers) allowing full repayment of discretionary payments with interest capped at the IRS applicable federal rate, and permit employers to recover advances of up to 40 hours of PTO when employees voluntarily separate before earning the advanced leave. The law maintains enforcement mechanisms allowing workers to sue individually or as a class, with prevailing plaintiffs recovering the greater of actual damages or $5,000 per worker plus attorney fees. Source: Epstein Becker Green (EBG Law).

On September 23, 2026, the National Labor Relations Board restored the Wright Line standard in Lion Elastomers LLC, 375 NLRB No. 41, reversing a 2023 shift to a context-specific rule for evaluating employer discipline during protected union activities. Under Wright Line, employers now need only demonstrate that they would have imposed the same discipline regardless of the protected activity, rather than justify discipline against offensive conduct through contextual factors. This standard gives employers greater latitude to enforce workplace conduct policies consistently, with the burden shifting to employees to prove the protected activity was a motivating factor in discipline. Employers should review and clearly define conduct policies, enforce them consistently across all employees, train supervisors on Section 7 rights, and document disciplinary decisions with business justifications.

California enacted multiple employment law changes effective January 1, 2027, with significant implications for workforce management and compliance. SB 947 (No Robo Bosses Act) restricts employers' use of automated decision systems in hiring, discipline, and termination decisions, requiring human corroboration and employee notices; violations carry $500 civil penalties enforceable by the Labor Commissioner. SB 951 amends Cal/WARN to require disclosure when AI or automation causes mass layoffs, with penalties up to $500 daily. AB 1883 prohibits AI-enabled workplace surveillance tools that infer emotional state or collect neural data, while AB 1331 restricts bathroom surveillance; both carry civil penalties up to $500 per violation. AB 1803 mandates anti-hate speech training as part of required sexual harassment prevention training. AB 2495 expands retaliation protections for immigration-related practices with penalties up to $10,000 per affected employee. AB 2563 codifies broad sex discrimination protections covering gender identity, pregnancy care access, and sexual orientation. SB 1237 increases penalties for repeated failure to submit pay data reports to the California Civil Rights Department from $200 to $1,000 per employee. AB 1697 delays the stay-or-pay prohibition to January 1, 2027, and creates new exceptions for government-grant-funded bonuses and paid time off repayment. SB 1149 expands bereavement leave to include designated persons beyond family members. AB 1961 permits employers to seek workplace violence restraining orders protecting entire workplaces rather than individual employees.

Where a business restructure involves a TUPE transfer under Irish law, liability for employing foreign nationals without valid immigration permission transfers to the new employer. Both parties must notify the Department for Enterprise, Tourism and Employment of employer name changes on employment permits using the prescribed Transfer of Undertaking Form, or risk jeopardizing permit validity. The Employment Permits Act 2024 makes it a criminal offence to employ or engage foreign nationals without permission, with penalties up to €250,000 and 10 years imprisonment on indictment. Immigration compliance should be prioritized in all M&A transactions including asset sales, share acquisitions, and mergers. Buyers should seek warranties confirming all foreign national employees hold valid immigration permission and that record-keeping obligations under the 2024 Act have been met, plus indemnities covering pre-completion non-compliance losses including fines and legal costs. Due diligence should verify the seller ensured foreign national employees worked in compliance with immigration permission conditions.