| Each month, Optimum HR gathers the latest updates and changes to federal and state employment law. Read on to learn how these changes may affect you, and how Optimum can help you ensure compliance. |
| Federal Updates 2026 IRS Mileage Rate The IRS has increased their recommended mileage reimbursement rate to 72.5 cents per mile effective 1/1/2026. State Updates California New Workplace Know Your Rights Notice Requirement Action Required The Workplace Know Your Rights Act (SB 294) requires all employers to provide a stand-alone written notice to each current California employee. The written notice must contain a description of the following: workers’ compensation (including disability pay and medical care for work-related injuries), notice of inspections by immigration agencies, protection against unfair immigration-related practices, organize, join a union, or engage in concerted activity, and constitutional rights when interacting with law enforcement at the workplace (Fourth and Fifth Amendment rights). Although the new required notice doesn’t create any new rights or obligations for employees, employers are still obligated to provide this notice Fortunately, employers do not have to assemble this information themselves. The Labor Commissioner published a template notice for employers that is available in English and in Spanish. The written notice must be provided to an employee in the language the employer normally uses to communicate employment-related information and that the employee understands. Employers can deliver the notice in-person or through other methods such as email or text message, as long as it can “reasonably be anticipated to be received by the employee within one business day of sending.” Employers must provide written notice to their employees by February 1, 2026, and annually thereafter. They must also give the notice to new hires on or after February 1, 2026. Lastly, the law requires employers to keep compliance records for at least three years, including the date each written notice is provided or sent. Fines apply for non-compliance. Emergency Contact Designation: SB 294 also creates new obligations around employees’ emergency contacts. The law states that if an employee has notified their employer that they would like their designated emergency contact notified if the employee is arrested or detained at the worksite, then the employer must notify the emergency contact. If the arrest or detention occurs away from the worksite but during working hours or during the performance of the employee’s job duties, then the employer must notify the emergency contact if the employer has actual knowledge of the arrest or detention. Employers must provide current employees with the opportunity to name an emergency contact by March 30, 2026, and at the time of hire for new employees hired after that date. Employers must also allow employees to indicate whether the emergency contact should be notified if the employee is arrested or detained. Employers must allow employees to update their emergency contact at any time. You are responsible for providing and documenting that all current employees have received this notice. |
