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2026 California Legislative Updates Compilation

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As 2025 comes to a close, we provide this alert highlighting key California employment and labor legislation from the 2025...

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We are Morrison Foerster — a global firm of exceptional credentials. Our clients include some of the largest financial institutions, investment banks, and Fortune 100, technology, and life sciences companies. Our lawyers are committed to achieving innovative and business-minded results for our clients, while preserving the differences that make us stronger.Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Prior results do not guarantee a similar outcome.

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As 2025 comes to a close, we provide this alert highlighting key California employment and labor legislation from the 2025 legislative session. These new laws will take effect in 2026 and beyond, expanding employer obligations in areas such as workplace safety, pay data reporting, leave rights, wage enforcement, bias mitigation, and the use of artificial intelligence in employment decisions. We also note select proposals that were vetoed or remain inactive that nonetheless may provide insight into enforcement priorities and potential future regulation. For each update, we summarize the core requirements and note practical considerations for employers as they assess compliance obligations, implementation timelines, and emerging risk areas.Read the <a href="https://elc.mofo.com/topics/2026-california-legislative-updates-compilation" target="_blank">full blog post</a>.

2026 California Legislative Updates Compilation

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Eric Akira Tate co-chairs the firm’s Global Employment and Labor Group. He represents technology and other companies in bet-the-company trade secrets and employee mobility cases. Eric also represents boards of directors and companies in #MeToo and other sensitive internal investigations and disputes with executives, whistleblower, wrongful termination, discrimination and harassment, and other employment litigation.Eric also advises companies in employment law compliance and transactional matters, including restrictive covenants and other personnel policies and procedures, and employment aspects of mergers and acquisitions throughout the United States and globally.Eric’s recent board of directors and executive dispute matters include: defending a publicly traded UK company in the defense of a wrongful termination suit by the former CEO of its U.S. subsidiary; representing a TSX-traded Canadian company in wrongful termination and other claims alleged by two terminated C-suite executives; represented a publicly traded Japanese investment firm in separation of a C-suite executive; represented a publicly traded Japanese healthcare company in the separation of the CEO and 20+ other U.S. executives, including defense of several wrongful termination and discrimination claims; and represented a publicly traded Fortune 200 technology company in investigation of discrimination and harassment claims against a C-suite executive, who subsequently resigned without incident. Regarding trade secrets and employee mobility issues, Eric represented Uber in its diligence investigation as part of its acquisition of Ottomotto, the autonomous vehicle startup founded by former Google engineers. He then helped lead Uber’s defense of the subsequent patent infringement and trade secrets misappropriation suit, which settled several days into trial in February 2018. In addition to technology companies, Eric has handled similar matters for companies across many industries, including, but not limited to, Williams Sonoma v. Restoration Hardware, International Lease Finance Co. v. Air Lease Corporation, Melaleuca, Inc. v. Shaklee Corporation, and New Century Mortgage v. Encore Credit.Most recently, Eric was recognized by Chambers USA for Labor & Employment, again by Best Lawyers as a leading lawyer in employment law, again by the Daily Journal as one of California’s Top Labor and Employment Lawyers and Top Trade Secrets Lawyers, again by Benchmark Litigation as a Labor and Employment Star, and again named to Law360’s 2023 EA Discrimination Editorial Advisory Board. Eric was elected as a Fellow of the College of Labor and Employment Lawyers in 2021.Eric is committed to advancing diversity, equity, and inclusion at the firm and development of the legal profession generally. Eric has served on the firm’s Diversity Strategy Committee since its inception and is a past co-chair. Eric is a former hiring partner for the Palo Alto office and past member of the firmwide Pro Bono and Litigation Evaluations Committees. Eric serves on the Points Committee for the firm. Eric serves as a partner sponsor for multiple affinity groups at the firm and as a formal and informal mentor to associates around the firm. Eric is a leader in the American Bar Association’s (ABA’s) Labor and Employment (LEL) Section and LEL’s Employment Rights and Responsibilities (ERR) Committee. Eric is serving his second term on the governing Council (Board of Directors) for the LEL Section. Eric serves as co-chair of ERR’s Covenants Not to Compete and Trade Secrets Subcommittee. Eric is a past co-chair of the ABA LEL Annual Meeting Committee, the LEL Section Annual CLE Conference, and ERR’s Alternative Dispute Resolution, Employment At-Will and Collateral Torts, and Worker Dislocation Subcommittees. He also has served on the Planning Committee for the National Employment Law Council’s Annual Conference.For nearly 15 years, Eric has served as a mediator for the Northern District of California’s Alternative Dispute Resolution Program, handling employment discrimination and harassment, wrongful termination, trade secrets and employee mobility, and other employment-related and disability matters.Additionally, Eric is a thought leader in various employment law areas and recognized authority in trade secrets and employee mobility. He serves on the Board of Review for leading BNA treatises Trade Secrets: A State-by-State Survey; Covenants Not to Compete; Employee Duty of Loyalty; and Tortious Interference in the Employment Context. He is author of “Protecting Investment in IP and People” in Today’s General Counsel; “SCOTUS Poised to Resolve Circuit Split on SOX Federal Whistleblower Standard and Other Statutes” in the Daily Journal; “Workplace Bias and Gender Pay Equity in the Silicon Valley” in LJN Employment Law Strategist; “Trade Secrets and the Activision Case: Lessons for Employers and Employees” in the IP Litigator; “Protect Your Investments: Recent Developments in California Law Regarding Non-competition Agreements and Other Restrictive Covenants” in NVCA Today; “Microinequities: Can Bad Behavior Be Actionable?” in National Law Journal; “The When, Who and How of Workplace Investigations” in The Practical Litigator; and “California Raises Bar for Employers Again: Gender Pay Bias Claims Set to Take Off with New Gender Pay Equity and Anti‑Discrimination Law” in Bloomberg BNA Daily Labor Report.Eric is active in community endeavors. He founded and is a former president of the Board of Directors of Hapa Issues Forum, Inc., a nonprofit community organization that addresses issues relating to persons of partial Asian descent. Eric is a past president of the Board of Directors of the Japanese Cultural and Community Center of Northern California. He also is a member of the INROADS Alumni Association, The National Black Lawyers Top 100, the 100 Black Men of the Bay Area, Inc., and he has served as a mentor for students in the Level Playing Field Institute’s IDEAL Scholars Program.A representative sampling of Eric’s key matters is further below.<h4 dir="ltr">Trade Secrets and Employee Mobility Litigation</h4><ul dir="ltr"><li>Defending leading multi-cloud security and application management company in federal court lawsuit by competitor alleging trade secrets misappropriation, various employment-related contract and tort claims, and copyright and trademark violations based on alleged conduct in Russia and California.</li><li>Represented industry-leading enterprise data cloud company in multiple trade secrets and employee mobility lawsuits against former employees and competitor, including obtaining TRO on behalf of client enforcing restrictive covenants against Georgia employee and successfully opposing motions to dismiss and motions to stay in various actions.</li><li>Represented leading shared electric vehicle company in federal court lawsuit alleging against its former head of supply engineering and his new employer trade secrets misappropriation and related claims involving the downloading of thousands of our client’s files upon resignation.</li><li>Represented Springshot in federal court lawsuit to invalidate non-competition agreement that the former employer, Georgia-based INFORM Software, of its newly hired Chief Commercial Officer, sought to enforce to bar the CCO from working for Springshot. </li><li>Represented veterinary orthopedics client in federal court lawsuit against the founder of an acquired company over the enforcement of restrictive covenants, resulting in entry of a permanent injunction enforcing our client’s non-compete agreement against the founder.</li><li>Represented leading cloud computing and virtualization technology company in breach of duty and breach of contract lawsuit against departed executive.</li><li>Represented Fortune 50 corporation in trade secret and employee- and customer-raiding lawsuit against former co-founder and top executives who launched a competing business that achieved a nearly $1 billion IPO.</li><li>Represented international virtualization software company in trade secret misappropriation and employee- and customer-raiding lawsuit against several former executives.</li><li>Represented North American provider of IT solutions and services in series of lawsuits across the United States to combat alleged employee- and customer-raiding activities by competitor.</li><li>Defended investment bank in lawsuit involving enforceability of departing executive’s post-termination non‑competition agreement.</li><li>Represented pharmaceutical company in trade secret misappropriation lawsuit against former finance employee.</li><li>Represented international video game maker in trade secret misappropriation lawsuits against former executives and new competing business.</li><li>Defended national mortgage company in trade secret misappropriation and employee- and customer-raiding lawsuit filed by competitor.</li><li dir="ltr">Defended North American home furnishings retail chain in trade secret misappropriation and employee‑raiding lawsuit filed by competitor.</li></ul><h4 dir="ltr">Board of Directors, Investigations, and Whistleblower and other Employment Dispute Matters</h4><ul><li>Represented board of directors of NASDAQ-traded technology company in negotiation of CEO employment agreement.</li><li>Represented board of directors of publicly traded energy company in negotiation of separation agreement with CEO in context of proxy fight with activist investor.</li><li>Represented Fortune 500 semiconductor company in negotiation of separation agreement of incumbent CEO and employment agreement with new CEO.</li><li>Represented Japanese exchange listed healthcare company in the separation of its CEO and 20+ other U.S. executives, including defense of several wrongful termination and discrimination claims.</li><li>Represented Japanese exchange listed investment firm in separation of a C-suite executive.</li><li>Representing Canadian exchange listed company in wrongful termination and other claims alleged by two terminated C-suite executives.</li><li>Defending U.K. exchange listed company in the defense of federal court wrongful termination suit filed by the former CEO of its U.S. subsidiary.</li><li>Represented publicly traded Fortune 200 technology company in investigation of discrimination and harassment claims against C-suite executive, who subsequently resigned without incident.</li><li>Obtained complete defense award on behalf of technology company in suit filed by former co-founder alleging that the company failed to repurchase upon termination restricted stock valued at more than $5 million.</li><li>Defended pre-IPO biotech company in wrongful termination suit by former co-founder and CEO terminated by board of directors.</li><li>Advised board of directors of leading IT infrastructure company in termination of CEO and CFO of U.S. subsidiary after misconduct investigation and represented board of directors in follow-on wrongful termination claims by CEO and CFO.</li><li>Investigated claims by in-house lawyer that public technology company executives engaged in sexual harassment and national origin discrimination and represented company in successful pre-litigation resolution of claims.</li><li>Investigated and advised board of directors of pre-IPO biotech company on #MeToo allegations regarding top executives.</li><li>Represented publicly traded pharmaceutical industry company in investigation and resolution of whistleblower claims by CFO.</li><li>Obtained complete dismissal in favor of publicly traded gig economy company of discrimination and wrongful termination claims by alleged whistleblower engineer.</li><li>Obtained complete walkaway voluntary dismissal of sexual harassment and discrimination claims by former accounting employee against venture capital and property management company after years of litigation.</li><li>Represented publicly traded technology company in investigation and resolution of alleged revenue and expense reimbursement irregularities involving top sales executive.</li><li>Defended venture capital fund in pregnancy discrimination and restrictive covenant lawsuit by former partner.</li><li>Defended leading corporate social responsibility company in whistleblower and employment discrimination suit filed by former finance executive.</li><li>Defended international laser and fiber-optics company in suit alleging fraud regarding stock options.</li><li>Defended international video game maker in whistleblower and employment discrimination suit filed by former executive.</li><li>Represented top human resources executive officer in discrimination and retaliation lawsuit premised on alleged toxic workplace culture.</li></ul><h4 dir="ltr">Representative Non-Litigation and Transactional Matters</h4><ul><li>Represented founder of private technology company in negotiation of employment agreement with board of directors.</li><li>Represented CEO in negotiation of executive employment agreement with publicly traded biotech company.</li><li>Represented former Managing Partner in separation from iconic Silicon Valley venture capital firm.</li><li>Represented pre-IPO company CEO/Founder in investigation and defense of potential securities fraud claims.</li><li>Represented minority-shareholder executives in negotiation of employment agreements with foreign buyer of company.</li><li>Revised nationwide restrictive covenant agreements for publicly traded technology company.</li><li>Advised leading venture capital fund on restrictive covenants strategy for fund managers.</li><li>Advised leading technology investment fund in worldwide reduction in force.</li><li>Advised leading digital operations management company in worldwide reduction in force.</li><li>Represented clients in employment aspects of buy-side and sell-side M&A transactions across the world with deal sizes ranging from several billion to millions of dollars.</li></ul><h4 dir="ltr">Wage-and-Hour Class and Representative Actions</h4><ul><li>Defended construction company in purported class action for failure to comply with California wage laws.</li><li>Defended international technology company in collective action alleging failure to accurately pay wages to technicians across the United States.</li><li>Defended national restaurant chain in class action regarding alleged failure to comply with California uniform and other wage laws for 10,000 employees.</li><li>Defended international engineering and construction company in class action regarding alleged failure to comply with California overtime laws.</li><li>Defended landscaping company in class action regarding alleged failure to comply with California meal- and rest-period laws.</li><li>Defended individual directors of bankrupt technology company in suit by former employees for unpaid wages.</li></ul>

Eric Tate

Co-Chair, Global Employment and Labor Practice

Keniece Gray is an associate in the Litigation Department of Morrison Foerster’s Washington, D.C. office.Keniece’s practice involves employment litigation and counseling. She litigates various employment disputes involving discrimination complaints, harassment and retaliation claims, and charges, audits, and enforcement actions by the Equal Employment Opportunity Commission, Office of Federal Contract Compliance Programs, and other similar civil rights agencies. Keniece also advises companies on workplace policies and procedures, diversity, equity, and inclusion plans, wage and hour issues, and reductions-in-force, and assists with the employment dimensions of corporate transactions including due diligence and agreement drafting.  Before joining Morrison Foerster, Keniece was a summer associate and law clerk at MoFo and a judicial extern for the Hon. Amit P. Mehta in the U.S. District Court for the District of Columbia. She also interned with the Executive Office of the President of the United States, Capitol Hill, and the Lawyers’ Committee for Civil Rights Under Law.Keniece received her J.D. from Georgetown University Law Center, graduating as a Business Law Scholar and recipient of the William J. Curtin Endowed Scholarship in Labor Relations. While in law school, she served as a research assistant analyzing issues related to ESG and employment practices, articles editor of the Georgetown Journal of Legal Ethics, alternative dispute resolution team member, career co-chair for the Black Law Students Association, and participant in Georgetown Law’s Early Outreach Program. In addition, Keniece was a student in the Civil Rights Clinic, where she represented clients in mediation and litigation in federal courts. Prior to law school, Keniece worked as an auditor with a global public accounting firm and a local government agency, where she performed risk advisory services and compliance assessments.Keniece received her B.S. in accounting and Master of Accountancy from Case Western Reserve University. She is a former Corporate Counsel Women of Color Fellow and Minority Corporate Counsel Association Lloyd M. Johnson, Jr. Scholar. Recently, Keniece was selected as a fellow in the National Bar Association’s Associate Academy of Excellence. She also completed the DC Bar’s John Payton Leadership Academy Program, an intensive three-month training focused on leadership skills in the legal field.

Keniece Gray

Associate

Will Martel is an associate in the Litigation Department of Morrison Foerster’s San Francisco office.Before joining Morrison Foerster, Will served as a law clerk to the Honorable Todd W. Robinson of the U.S. District Court for the Southern District of California, where he worked on a wide range of civil matters, including SEC enforcement actions, consumer class actions, and Federal Tort Claims Act litigation.Prior to his clerkship, Will was a summer Litigation associate at Morrison Foerster, where he worked on securities litigation, white collar, and consumer class action matters. His experience also includes roles with public defender offices, immigration-focused practices, appellate advocacy organizations, and academic research, reflecting a strong commitment to public service and complex litigation.Will earned his J.D., graduating first in his class, from the University of California College of Law, San Francisco. He received his B.A. in biochemistry and philosophy from Occidental College, where he was a four-year starting pitcher on the varsity baseball team and earned all-conference and all-region honors.

Will Martel

Niki Hendi is an associate in Morrison Foerster’s Washington, D.C. office and a member of the firm’s Litigation Group.Her practice focuses on employment matters.Prior to joining the firm, Niki was a summer associate in the New York office. She also spent time as a Criminal Division intern at the U.S. Attorney’s Office for the Southern District of New York. While at law school, Niki was an assistant online editor of the Virginia Journal of International Law.Niki earned her J.D. from the University of Virginia School of Law and her B.A. in economics and foreign affairs at the University of Virginia.

Niki Hendi

Zoë Escarcega is an associate in Morrison Foerster’s Los Angeles office and a member of the firm’s Employment and Labor Group.Zoë’s practice primarily focuses on Employment and Labor litigation.Before joining Morrison Foerster, Zoë gained experience as a summer associate and Wetmore fellow at the firm, where she conducted legal research and writing and assisted with onsite investigations.Prior to law school, Zoë worked for a public university as an assistant director overseeing academic support and retention programs.Zoë earned her J.D. from the University of Michigan Law School, where she served as a student attorney in the Veterans Legal Clinic, co-chair of the Oral Advocacy Competition, and a research assistant focusing on trade secrets and generative AI. She received a Master of Legal Studies in human resources and a B.A. in history from Arizona State University.

Zoe Escarcega

Armando Gonzalez is an associate in Morrison Foerster’s San Francisco office and a member of the firm’s Litigation Department.Prior to joining Morrison Foerster, Armando was a legal intern at California Rural Legal Assistance, where he researched relevant statutes and case law regarding housing and evictions as they pertain to migrant workers. He was also a legal extern in the U.S. Attorney’s Office, Eastern District of New York and was a summer associate at Morrison Foerster.Armando earned his J.D. from New York University School of Law, where he held leadership positions for the Latinx Law Students Association and the Sports Law Association. Armando earned his B.A. in sociology from UC Davis, with a concentration in law & society.

Armando Gonzalez

Marcus Grimes is an associate in the Litigation Department in Morrison Foerster’s San Francisco office.Marcus earned his J.D. from the University of California, Hastings College of Law, where he was an inaugural California Scholar, co-president of the Black Law Student Association, and a member of the Moot Court Board. During law school, Marcus worked as a summer legal associate for a popular ride share company and was a summer associate at Morrison Foerster for two years.He received a B.A., cum laude, in legal communications with a minor in business administration from Howard University.

Marcus Grimes

Idrian Mollaneda is an associate in the Employment + Labor Group of Morrison Foerster’s San Francisco office.Idrian litigates a wide range of employment and labor disputes before state and federal court, arbitration panels, and administrative agencies. Idrian also advises companies on employment and labor law compliance, including on workplace policies and procedures, terminations and reductions-in-force, restrictive covenants, DEI, wage-and-hour issues, and the employment and labor aspects of corporate transactions. In addition to his employment and labor practice, Idrian maintains an active pro bono practice focused on immigration, housing, and LGBTQ rights.Idrian serves on the board of directors of the Filipino Bar Association of Northern California and the AIDS Legal Referral Panel (ALRP), and volunteers as co-chair of the Asian American Bar Association’s LGBTQ Committee.In law school, Idrian was a judicial extern to the Honorable Jon S. Tigar of the U.S. District Court for the Northern District of California, a law clerk with East Bay Community Law Center and ALRP, and an editor for the California Law Review and Asian American Law Journal.Idrian is fluent in Tagalog.