Happy Tuesday!

A few important compliance updates to keep on your radar:

• “Know Your Rights” Notice. Right on time, the California Department of Industrial Relations has published the updated “Know Your Rights” notice. Employers must provide a copy to all current employees on or before February 1, 2026, and thereafter annually and to all new hires. Because the Department may update the notice, be sure you are distributing the most current version. English and Spanish versions are available now, with additional languages forthcoming.
• 2026 IRS Mileage Rates. The IRS has released the 2026 standard mileage rates, effective January 1, 2026. The business rate increases to 72.5 cents per mile, while the rate for medical and qualifying moving purposes decreases slightly to 20.5 cents per mile. The charitable mileage rate remains 14 cents per mile, as set by statute. These rates apply to gasoline, diesel, hybrid, and electric vehicles. Employers should confirm that reimbursement policies and payroll systems reflect the updated rates.
• Reminder: New Exempt Salary Thresholds. With California’s minimum wage increasing to $16.90 per hour effective January 1, 2026, the salary basis for many white-collar exempt employees must also be adjusted. Executive, administrative, and professional exemptions generally require pay of at least twice the state minimum wage for full-time work, raising the minimum annual salary threshold to $70,304 for 2026 (up from $68,640 in 2025). Other exemptions, including the computer professional exemption, carry their own higher compensation requirements. Now is the time to audit exempt classifications and confirm that both duties and pay meet the updated standards.

And the good news? None of this requires a full policy overhaul—just a thoughtful check-in with your notices, pay practices, and classifications. A little proactive cleanup now can save a lot of headaches later. You’ve got this—and we’re here to help keep things running smoothly as 2026 gets underway.

About Shaw Law Group

At Shaw Law Group, we do more than practice employment law—we partner with employers to build compliant, respectful, and productive workplaces. From day-to-day advice and counsel to impartial workplace investigations, proactive HR audits, dynamic training programs, and sensitive pre-litigation matters, our experienced team helps clients stay ahead of the curve—and out of court.