California’s July 1, 2026 Laws: A Compliance Briefing
Key Changes for Employers, Businesses, Landlords, and Investors
It’s that time of year again. Nearly 800 new laws passed in California’s most recent session. Although most of them will take effect on January 1, 2027, many will take effect on July 1, 2026.
While California’s statewide minimum wage remains at $16.90/hour, a wave of local ordinances, industry-specific mandates, and zoning reforms took effect on July 1, 2026. For employers, business operators, and real estate investors, these mid-year changes demand immediate compliance action—particularly given the 2024 PAGA reform’s penalty-capping incentive for documented good-faith wage compliance.
EMPLOYERS & WAGE COMPLIANCE
Local Minimum Wage Increases: Employers must pay the highest applicable rate where the employee works. Notable July 1 rates: City of LA $18.42; LA County (unincorporated) $18.47; Pasadena $18.57; Santa Monica $18.47; Berkeley $19.61; San Francisco $19.61; Fremont $18.05; Milpitas $18.50; Malibu $17.91; Alameda $17.76.
Healthcare Worker Wages (SB 525 Phase-In): Large health systems and dialysis clinics rise to $25/hr; physician groups with 25+ physicians to $23/hr; community clinics to $22/hr. Groups with ≤24 physicians remain exempt.
Exempt-Salary Knock-On (SB 525): Covered exempt healthcare employees must earn the greater of 150% of the applicable healthcare minimum or 200% of the state minimum. New thresholds: $78,000/yr (large systems/$25 facilities); $71,760/yr ($23 facilities); $70,304 floor ($22 facilities). Part-time NPs and PAs cannot have salaries prorated—employers may need to increase pay or reclassify.
Hotel & Hospitality: City of LA hotels (60+ rooms) $25.00/hr plus $4.25/hr health benefit; Long Beach $26.50; Glendale $25.00; Santa Monica $25.00; West Hollywood $20.87; San Diego hospitality ordinance $19.00 (hotels/amusement parks) and $21.06 (event centers).
PAGA Compliance Leverage: Under the 2024 PAGA reform, documented “reasonable steps” toward wage compliance cap penalties at 15% (30% if steps taken after notice). Accurate wage schedules are now a frontline litigation defense.
INDUSTRY-SPECIFIC BUSINESS MANDATES
SB 68 – Allergen Disclosure (ADDE Act): Restaurant chains, franchises, and ghost kitchens with 20+ locations must disclose nine major allergens on physical menus or accessible digital alternatives (QR codes, allergen grids). First-of-its-kind state law.
AB 660 – Food Date Labeling: Manufacturers and retailers must use “best if used by” (quality) or “use by” (safety) labels and eliminate consumer-facing “sell by” dates. Exemptions: eggs, infant formula, beer.
AB 1127 – Firearms Retail: Licensed dealers must cease selling semiautomatic pistols reclassified as “machinegun-convertible” (notably Glock-style handguns with easily converted trigger mechanisms).
SB 576 – Streaming Ad Volume: Video streaming services may not play ads louder than accompanying content, extending the federal CALM Act to digital platforms.
AB 1777 – Autonomous Vehicle Operators: Self-driving vehicle companies face traffic citations routed to DMV for penalty assessment and must maintain a 24/7 emergency line connecting first responders to a remote human operator.
REAL ESTATE, LANDLORDS & HOUSING
SB 79 – Transit-Oriented Development: A landmark zoning reform overriding local restrictions to allow multi-family residential construction near major transit hubs. Significant for developers, multifamily investors, and landowners near transit—alternative development plans are subject to state oversight. Phasing begins around July 1, 2026.
Note for Landlords: Several high-profile 2026 rental laws took effect January 1, not July 1—including AB 628 (working stove and refrigerator now required as habitability elements for new/renewed leases under Civ. Code §1941.1) and AB 246 (Social Security Tenant Protection Act eviction defense). These are current-year obligations landlords should already be tracking.
Key Takeaway: Businesses should update payroll systems now to reflect locality- and industry-specific rates. Document all compliance steps to preserve PAGA penalty-cap eligibility. Restaurant operators should deploy allergen-disclosure materials before July 1. Real estate developers should be aware of SB 79’s development opportunities and zoning preemption effects near major transit hubs.