Attorney Ward Heinrichs breaks down new minimum wage laws, signing bonus repayment rules, and the growing legal risks of using AI in hiring. If you’re an employer, HR professional, or employee — this is a must-listen (episode above, article below)
HIRING IN 2026: NEW MANDATES & MILESTONES
By S. Ward Heinrichs, Esq.
Job Posting Wage Rates: The Equal Pay Act requires employers with 15 or more employees to include wage scales with job postings. It also requires employers of any size to provide job-specific wage scales when an applicant requests them. To combat vague or inaccurate listings, a new law requires employers to provide wage scales that are “good faith” estimates of actual wage rates. This means employers must provide true wage ranges, rather than overly broad figures that have little chance of actually applying.
AI and Discrimination: As AI tools become standard in recruitment, it is vital to remember that automated systems are not infallible. The California Civil Rights Department amended workplace anti-discrimination regulations to include potential discrimination at the hands of AI; these regulations went into effect on October 1, 2025.
Now, if the data or criteria AI uses to measure job seekers results in the disproportionate exclusion of individuals based on characteristics protected by the Fair Employment and Housing Act, the employer will be held responsible for those discriminatory results. Employers using AI to screen applicants should audit the system’s logic and carefully review results before issuing offer letters. Furthermore, new regulations require employers to retain computer-related information—such as input data, selection criteria, audit findings, and results—for four years.
Signing Bonus Repayment: California Business & Professions Code §16608 now forbids employers from recouping many types of incentives given to new employees. However, employers may still require the payback of properly drafted discretionary signing bonuses, provided:
The bonuses are not tied to performance.
The bonus agreement is a stand-alone document.
The agreement states that the employee has at least five days to consult an attorney.
Repayment is not subject to interest accrual.
The retention period is not more than two years.
The payback amount is prorated by the time remaining in the retention period.
The employee may defer receiving the bonus until the end of the retention period.
Repayment is only triggered if the employee quits or is terminated for misconduct.
Minimum Wage: Remember to pay at least the applicable minimum hourly rates and salaries. The state minimum wage is $16.90 per hour, with a minimum salary of $70,304.00 per year. Fast food employers must pay a minimum of $20 per hour and an exempt salary of $83,200 per year.
Healthcare workers have even higher requirements depending on the facility type. The maximum healthcare minimum wage reaches $25 per hour on July 1, 2026, for qualifying employers. Additionally, the minimum salary for exempt healthcare workers is the greater of $70,304.00 or 1.5 times the applicable healthcare minimum wage. For example, systems paying the $25 rate must pay exempt employees a minimum salary of $78,000.00 (1.5 x $25/hour x 40 hours x 52 weeks).
Based in San Diego, California the Employment Law Office of Ward Heinrichs represents both employers and employees in almost all areas of labor law. He and his firm litigate cases that have been filed in many different parts of California. Keep up with him at https://bestemploymentattorneysandiego.com/
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