- within Insolvency/Bankruptcy/Re-Structuring topic(s)
Beginning February 1, 2026, all California employers must provide to all new hires and each existing employee on an annual basis written notice of employee's workplace and constitutional rights. Prompted by the recent enforcement actions by United States Immigration and Customs Enforcement personnel in California, the notice specifies that labor laws apply to all workers in the state regardless of immigration status. It also requires employers to request from employees a designated special emergency contact (separate from the customary emergency contact) in case they are arrested at the workplace, Cal. Labor Code § 1555. Additionally, the notice includes an anti-retaliation clause to protect employees from being retaliated against based on their immigration status.
The law comes out of California Senate Bill 294, the Workplace Know Your Rights Act, which aims to ensure transparency surrounding employee immigration-related protections and constitutional rights in the workplace. It also establishes a process for emergency contact notification in the event of workplace arrests or detentions.
To remain compliant, employers must (1) provide the notice to all current employees; (2) provide the notice at the time of hire; and (3) if applicable, provide the notice annually to the employee's authorized representatives (i.e., union representative).
The Notice Includes the Following Protections:
Employees' Right to Notice of Immigration Inspections (Cal. Labor Code § 90.2)
If an employer receives notice of an upcoming immigration agency's inspection of I-9 Employment Eligibility Verification forms or other employment records, the employer must post a notice informing workers and their union representative, if applicable, within 72 hours of receiving that notice.
Employees' Right to Designate an Emergency Contact (Cal. Labor Code § 1555)
Employees may request notifications in the case of arrest or detention at work. Employers must allow employees to provide them with emergency contact information and to indicate if that employee prefers their emergency contact be notified upon arrest or detention at work.
If an employee is arrested or detained at work and an employer has knowledge of it, they must notify the employee's designated emergency contact if the employee has chosen that option.
Employees' Right to Organize a Union or Engage in Protected Activity in the Workplace
Most employees in California have the right to organize, join, or participate in union activities. Employees similarly have the right to not participate in union activities or protected activities where they so choose.
These rights include employees' ability to jointly act with co-workers to address work-related issues and concerns, to improve working conditions or for the purpose of collective bargaining. This means employees have the right to join with co-workers to request better working conditions or to raise work-related concerns, including about wages, hours, health and safety, and other terms of employment.
Note that it is illegal for employers to do the following:
- Interfere with or discourage employees' union activity or protected activities.
- Threaten, retaliate against, or discriminate against employees because of their union support or participation in protected activities.
Employee Protections Against Unfair Immigration-Related Practices (Cal. Labor Code §§ 1019–1019.2)
An employer may not retaliate against employees for exercising their rights, including:
- Filing a complaint with the California Labor Commissioner, Cal/OSHA, the California Civil Rights Department, or another government agency.
- Asking about an employer's compliance with federal, state, or local law.
- Talking with others about their rights or helping them exercise their rights under federal, state, or local law.
**Examples of illegal retaliation include firing employees, reducing employees' work hours, or threatening to report employees or a relative to immigration authorities because the employees exercised their rights.
Enforcement and Penalties
Employers who fail to comply with the emergency contact notification requirement may be subject to significant penalties. These penalties include fines of up to $500 per employee per day, with a maximum total penalty of $10,000 per employee.
For the California DIR Know Your Rights Poster see: SB294 Know Your Right's Notice.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
