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June closes with a consolidated reference of the significant California business law changes that have taken effect since January 2024 — the legislation and regulatory changes that should be on every California business owner’s compliance radar heading into the second half of 2026.
Labor Law Changes
Minimum wage: statewide to $16/hour January 2024; fast food sector minimum $20/hour under AB 1228; healthcare worker minimum wage phasing in under SB 525. Paid sick leave: increased from 3 to 5 days (40 hours) under SB 616, effective January 2024. PAGA reform: SB 92 and AB 2288 creating cure mechanisms and penalty caps for certain technical violations. Non-compete prohibition: SB 699 making non-compete agreements void regardless of where signed and creating private cause of action.
Privacy and Consumer Protection
CPRA enforcement: California Privacy Protection Agency actively enforcing CCPA/CPRA with publicized enforcement actions and ongoing rulemaking. Data broker registration: CPPA began enforcing new data broker registration requirements. Financial Privacy: DFPI expanding examination authority under the CCFPL to new categories of fintech businesses.
Business Formation and Governance
Corporate Transparency Act: beneficial ownership reporting to FinCEN required for most small businesses, with penalties now actively enforced after legal challenge resolution. DFPI licensing: Debt Collection Licensing Act in full enforcement mode; new categories of financial service providers subject to DFPI licensing. Securities: additional reporting requirements for certain pass-through entities and enhanced DFPI enforcement of private offering notice filing requirements.
HOA Law
SB 900 (2024): clarifying HOA solar panel approval timelines. AB 1572 (2024): restrictions on HOA water waste in connection with certain landscaping requirements. Ongoing Davis-Stirling amendments: the Legislature continues to add to and clarify Davis-Stirling annually — reviewing the current year’s amendments in September of each year (when they typically take effect) is standard practice for HOA-governed property owners.
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