Usually, when a new year starts, new laws come into effect. 2026 is no different – which means a couple of things will change for San Diegans. From healthcare to tipping and employment, here’s what’s new:
1. Ban on “Stay or Pay” contracts
This law prohibits employers from using “stay or pay” provisions in employment contracts entered into on or after January 1, 2026. These provisions previously allowed employers to charge employees for training, relocation, or other costs if they quit before a certain date. It makes such contracts void and unenforceable. Exceptions exist for specific government loan repayment programs or certain signing bonuses.
2. Expanded pay transparency
January 1, 2026 California already requires pay scales in job postings, but SB 642 tightens these rules. It changes the requirement from a general pay scale to a “good faith estimate” of what the employer reasonably expects to pay upon hire. Moreover, it also expands the definition of “wages” for equal pay claims to include all forms of compensation (bonuses, stock options, etc.), not just salary.
3. Restrictions on Private Equity in Healthcare
This law targets the “corporate practice of medicine” by barring private equity firms and hedge funds from interfering with the professional judgment of physicians and dentists. In other words, it prohibits investment firms from controlling clinical decisions. These could be tests to run, how many patients a doctor must see, or the selection of medical equipment.
4. The Responsible Textile Recovery Act
This is a first-in-the-nation environmental law that effectively forces the fashion industry to take responsibility for its waste. While passed in 2024, the first real change comes this year. By July 1, 2026, producers must form and join a “Producer Responsibility Organization.” This organization will assess fees on the companies to fund a massive statewide program for collecting, sorting, and recycling used textiles.
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If you work in retail, fashion, or logistics, this will change how returns and waste are handled.
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For consumers, it aims to create more drop-off points for old clothes and reduce the amount of fast fashion filling up landfills.
5. Healthcare Minimum Wage
Under SB 525, the minimum wage for covered healthcare workers at large health systems and dialysis clinics is scheduled to hit $25.00 per hour starting July 1, 2026.
6. The “Black Box” Loophole
Effective January 1, 2026, this law strictly prohibits food delivery platforms (like DoorDash or UberEats) from using customer tips to offset the base pay they owe to drivers. While this was technically already enforced, because the apps didn’t have to show a detailed breakdown of how they calculated the base offer before the tip was added, it was nearly impossible to prove this was happening. This change should fix the loophole.