July 1, 2026 brought a significant wave of new California laws covering everything from minimum wage increases and employer health coverage mandates to food labeling, school cell phone restrictions, and housing near transit. If you are a California employer, business owner, or resident, here is a clear breakdown of what changed and what you need to address.

Minimum Wage Increases

California's statewide minimum wage increased to $16.90 per hour for most employers effective July 1, 2026. Many local jurisdictions exceed the state rate, and several updated their ordinances as of July 1. Here are the new minimum hourly rates for general workers in key areas:

• Los Angeles County: $18.47
• City of Los Angeles: $18.42
• Santa Monica: $18.47
• Pasadena: $18.57
• Malibu: $17.91
• Long Beach (hotel and hospitality): $26.50
• West Hollywood (hotel and hospitality): $20.87
• City of LA, Santa Monica, Glendale (hotel and hospitality): $25.00

Health care workers also saw updated minimum rates effective July 1:

• Large hospitals with 10,000 or more full-time employees: $25.00 per hour
• General health care workers: $23.00 per hour
• Clinics including urgent care: $22.00 per hour
• Independent rural hospitals: $19.28 per hour

Employers should confirm the rate applicable to their specific location and industry. Many cities maintain rates above the state floor and update independently.

New Employer Requirements

Fertility Treatment Coverage: SB 729

Large-scale employers with 100 or more employees are now required to expand health insurance coverage to include infertility diagnosis and treatment, including IVF. The required coverage includes three complete egg retrieval procedures and an unlimited number of embryo transfers. Employers should review their group health plans to confirm compliance and coordinate with their benefits providers if updates are needed.

Food Allergen Disclosures: AB 68

California is now the first state in the nation to require restaurant chains with 20 or more locations to clearly disclose the use of the Big 9 major food allergens in menu items. The required allergens are milk, eggs, peanuts, tree nuts, wheat, soybeans, fish, crustacean shellfish, and sesame. The disclosure requirement applies to chains with 20 or more locations nationwide, not mom-and-pop shops and small independent restaurants. Covered chains should audit menus and update allergen labeling immediately.

Streaming Ad Volume Regulations: SB 576

Streaming platforms such as YouTube and Peacock are now required to regulate the audio volume of commercials. Advertisements must not play at a volume louder than the actual show, movie, or video content being watched. The law reflects the CALM Act framework that has applied to traditional television since 2010. This requirement applies to streaming platforms directly and is not a direct compliance obligation for most employers, but businesses that advertise on streaming platforms should be aware of the regulatory landscape.

Autonomous Vehicles: AB 1177

As more autonomous vehicles and robotaxis operate in California, AB 1177 gives law enforcement new authority to ticket autonomous vehicle fleets that do not comply with traffic laws. All autonomous vehicles are now required to have a 24/7 free emergency response hotline for first responders, and autonomous vehicle companies must maintain a human remote operator available at all times. Businesses operating autonomous vehicles or working with autonomous vehicle fleets should confirm compliance with these requirements immediately.

Food and Consumer Labeling: AB 660

AB 660 standardizes how food expiration language is used on products sold in California. The goal is to reduce food waste by making expiration language clearer and more consistent. Here is what the new rules require:

• Best if used by or best if frozen by: labels indicating peak quality, taste, or freshness. These are quality-related dates, not safety dates.
• Use by or freeze by: labels for high-risk food items where the deadline reflects a genuine food safety concern.
• Sell-by dates are largely eliminated under the new rules.
• Wine: producers may continue to note packaging dates.
• Deli and prepared foods: grocery stores may use a packed on label.
• Exemptions: infant formula, eggs, and beer are exempt from the new labeling requirements.

Food manufacturers and grocery retailers selling products in California should review their labeling practices and update packaging to comply with the standardized language.

California Gas Tax Increase

The California gasoline tax increased by 2.2 cents per gallon to 63.4 cents per gallon effective July 1, 2026. Diesel fuel increased by 1.6 cents per gallon to 48.2 cents per gallon. The increase was made automatically under Senate Bill 1, the Road Repair and Accountability Act, which went into effect in 2017 and requires the tax to adjust for inflation. The revenue is designated for road and bridge maintenance across the state.

Schools and Students

Cell Phone Ban: AB 3216

All California school districts are now required to have a policy in place to limit or prohibit student use of cell phones while under supervision on school campuses. The law, also known as the Phone-Free Schools Act, is designed to reduce classroom distractions and support student mental health. Limited exceptions apply for emergency situations and activities specifically allowed by teachers or instructors.

Gender-Neutral Restrooms: SB 760

All public and charter schools in California are now required to provide at least one non-gendered restroom that is accessible to all students. The restrooms must come with clear signage notifying students and staff that they are open to all gender identities.

Crisis Hotline on Student IDs: AB 727

All middle schools, high schools, colleges, and universities must now include the Trevor Project 24/7 crisis and suicide prevention hotline on student ID cards. Schools that have already printed ID cards prior to the enactment without the hotline number may use up their remaining supply before newly printed badges are required to include it.

Housing Near Transit: SB 79

SB 79 creates a significant shift in California's housing policy by overriding local zoning regulations to allow multi-family residential developments within half a mile of frequently used Metro lines and rapid bus stops. The intent is to increase housing density near transit and help reduce housing costs. Neighborhoods that are at least half a mile from qualifying transit lines will effectively lose single-family zoning protections. The law targets high-density areas, including Los Angeles and San Francisco counties, and went into effect over significant opposition from local officials in some affected areas.

What California Businesses Should Do Right Now

• Update payroll to reflect the new minimum wage rate applicable to your specific city, county, and industry.
• If you have 100 or more employees, audit your group health plan for IVF and infertility treatment coverage compliance under SB 729.
• If you operate a restaurant chain with 20 or more locations, update your menus to include allergen disclosures for the Big 9 allergens under AB 68.
• If you manufacture or sell food products in California, review your expiration date labeling language for compliance with AB 660.
• If you operate autonomous vehicles or work with robotaxis, confirm your emergency hotline and remote operator requirements are in place under AB 1177.
• If you operate a school or educational institution, confirm cell phone policy, gender-neutral restroom, and student ID crisis hotline requirements are met.

Conclusion

July 1, 2026 was a significant date for California compliance. From payroll updates to health insurance mandates to food labeling and school safety requirements, the scope of changes is broad. The businesses most at risk are those that have not yet audited their practices against these new requirements.

I help California businesses stay compliant with state and local employment laws, contracts, and workplace requirements. If you have questions about how any of these new laws affect your business, I am here to help.

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Disclaimer: This post is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.