While there are many employment laws already in place at the Federal and State level, many employees are not fully aware of their rights. Often, language differences, complex legal verbiage, or lack of appropriate communication tools create barriers around understanding employee rights. Senate Bill 294 focuses on one goal – to make sure workers are informed about their legal rights in the workplace in a transparent manner. On an annual basis starting February 1, 2026, employers are to provide a Workplace Know Your Rights Act Notice to their employees in a clear, standalone communication.
What is Included in the Notice:
Last month, the California Department of Industrial Relations released this model notice that complies with the law and can be shared with workers (also available in Spanish). This notice will be updated annually. The notice includes key information around:
- Wage & Hour Laws
- Overtime Rules
- Leave Rights
- Workers’ Compensation
- Anti-Discrimination Protections
- Union Organization
- Retaliation Protection
In addition to the notice, the DIR plans to release educational videos by July 1, 2026 to further assist with the understanding of this information.
What are Employers Required to Do?
- Language – Employers are to provide a notice to workers in a language that the employee understands and is typically used in work related communication – that is, if that language is available on the Labor Commissioner’s website. If it is not available, then employers may provide the English copy. Additional languages are expected to be released in the future.
- Record-keeping – Employers are to keep records for at least 3 years, documenting when each notice was shared/provided.
- Retaliation – Employers are prohibited from retaliation against an employee who exercises their rights. This includes filing complaints, cooperating in an investigation, or assisting enforcement under this law.
Emergency Contact Designation for Arrest or Detainment
Another element to SB 294 is that employers must allow workers to designate an emergency contact in the case of arrest or detainment at work or offsite (during work hours or while performing known job duties). California employers must allow workers to make this delegation by March 30, 2026. Should the occasion arise, employers are required to contact that designated person. This information is to be collected from all new hires moving forward.
Penalties
Failure to comply with SB 294 may incur penalties of up to $500 per employee for each violation. The penalty for the provision about emergency contact information is expected to be up to $500 per employee per day the violation occurs (up to a maximum of $10,000 per employee).
Contact Innovative
If you have not already done so, now is the time to utilize your HR system to send and track the Workplace Know Your Rights communications with workers. Plus, you’ll want to collect their arrest/detainment contact information and update employee records. If you do not have an HR platform to streamline these processes, contact us at 707-586-4300 and one of our Business Development Specialists can assist in getting our solution in place for you!
Resources:
https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB294
https://calmatters.digitaldemocracy.org/bills/ca_202520260sb294
https://www.dir.ca.gov/dlse/Garment/New-Labor-Laws-in-California.html
https://www.cdflaborlaw.com/blog/workplace-know-your-rights-act-notices-effective-february-1-2026
Disclaimer: These materials are provided for informational purposes only and are not intended as legal or tax advice. Readers of the IBS Blog should contact their legal or tax professionals to discuss how these matters relate to their individual circumstances.