New Year, New Laws: What Californians Need to Know in 2026

by VINEET DUBEY

Last Updated in Newsletter

 Happy New Year from all of us at CD Law! As we step into 2026, California welcomes a big wave of new laws bringing legal changes to various areas of life. Many of these go into effect January 1, so it’s a perfect time to be in the know about what’s changing for you, your family, and your workplace.

Here are just some of the most impactful laws and legal changes Californians should know about:

Consumers & Housing

• Plastic Bag Ban (SB 1053)
  California will now prohibit the distribution of single-use plastic bags at checkout. Instead, stores may only offer recycled paper bags or encourage you to bring your own reusable bags. 

• Mandatory Appliances in Rentals (AB 628)
  For the first time, landlords are required to provide working stoves and refrigerators in rented units. This aims to ease financial burdens on renters who have historically brought their own appliances.

Workplace & Employment

• Higher Minimum Wage
  Starting Jan. 1, the minimum wage in California rises to $16.90/hour.

• Ban on “Stay or Pay” Contract Terms (AB 692)
  Employers can no longer require workers to pay fees or repay certain costs at the end of employment.

• Wage Judgment Penalties (SB 261)
  Unpaid wage judgments can now carry civil penalties up to three times the amount owed. Businesses should resolve unpaid wages promptly to avoid costly consequences. 

School Policies

• All-Gender Restrooms in Schools (SB 760)
  Starting in 2026, California schools will be required to provide at least one all-gender restroom that is accessible during regular school hours and school-sponsored events.

Technology

•  AI Transparency & Chatbot Safety (SB 53)
  California now requires chatbot platforms to clearly disclose when users are interacting with AI and to maintain safeguards against harmful content, especially for minors. This is a big step in the tech world and is a glimpse at what more AI regulation may look like in the future.

Health

• Insulin Price Cap (SB 40)
  Insulin copays will be capped at $35 for a 30-day supply, offering relief to many Californians with diabetes.

At CD Law, we’re here to help you navigate what’s new, answer your questions, and support you if challenges arise. If you have specific concerns about how these laws affect your situation, don’t hesitate to reach out.

Here’s to welcoming 2026!