New California Immigration Law Employers Need to Know

A new California law, the Workplace Know Your Rights Act (SB 294), includes important immigration-related employer responsibilities taking effect in early 2026. 

Advanced planning is needed to ensure compliance, especially given the heightened attention to these topics in the current period of enhanced immigration enforcement.

Required Notice

First, SB 294 directs the California labor commissioner to issue model notices and digital resources that employers must distribute or post annually advising employees of their rights when interacting with law enforcement. 

Among the required notices are (1) a description of employees’ right to be notified when an immigration enforcement agency is inspecting their Form I-9 or other employment records, (2) protection against unfair immigration-related practices against a person exercising protected rights, and (3) constitutional rights when interacting with law enforcement at the workplace. The notice must also include a description of legal developments in workplace-related laws that the California labor commissioner deems material.

The labor commissioner will publish the new model notice by January 1, 2026. Employers are required to distribute the notice to employees by February 1, 2026, and at the time of hire and annually thereafter. Employers must circulate the notice to existing employees and to new employees upon hire in the manner and language the employer normally uses to communicate employment-related information.

Designated Employee Contacts

Separately, the new law allows employees to authorize their employer to notify a designated person if the employee is arrested or detained during work hours or while performing job duties. If, for example, an employee is detained by ICE while working, having a prior designation facilitates employer decision-making: they will be required to notify the designated contact. Employers must implement a system that allows employees to authorize notification by March 30, 2026.

Penalties

Employers may be subject to penalties for violations of the law. For each day of an employer’s noncompliance, the labor commissioner is authorized to fine up to $500 per employee, with a maximum of $10,000 per employee. The law also prohibits retaliation against any employee who seeks to enforce its requirements.

Action Items

In advance of the effective dates, employers should:

• Promptly obtain and distribute the labor commissioner’s model notice or draft their own notice(s) that comport with the model.
• Determine the system the employer will use to allow both current and new employees to designate an emergency contact in the event of arrest or detention.
• Inform current employees of their right to designate an emergency contact in the event of arrest or detention.
• Mandate employees to name a contact on or before March 30, 2026.
• Develop a protocol for responding to employee arrests or detainments and train management and/or human resources representatives accordingly.
• Regularly monitor for updates to these requirements, especially given the recent rapid rate of change to immigration enforcement rules and priorities.