Potential Incoming New Laws – Protections for Immigrant Workers

California’s sanctuary policies date back decades with individual cities adopting policies to limit their cooperation with federal immigration enforcement. In 2018, when tensions between the federal government and California ran high, the state introduced new legislation (Senate Bill 54) to establish California as a “sanctuary state” by restricting how state and local law enforcement can engage in immigration enforcement.

At the same time, California also passed the Immigrant Worker Protection Act that imposed fines[1] on employers who 1) voluntary consent to an Immigration and Customs Enforcement (ICE) agent accessing nonpublic areas of the workplace without a judicial warrant, or 2) voluntary provide access to employee records without a subpoena or judicial warrant with limited exceptions related to Form I-9 compliance. Employers are expected to have policies and train staff to ensure compliance.

Importantly, sanctuary state laws do not block federal immigration authority. ICE retains full power to enforce immigration law, and recent workplace raids and mass arrests in California have heightened tensions between federal and state authorities once again. In response, the California legislature added two bills to the pile on the Governor’s desk, Senate Bill 294 and Assembly Bill 1136. If these bills pass, they will further define employer obligations and expand protections for employees.

Some key features of SB 294 include:

• Employers must provide a stand-alone written notice to all new and current employees (and their representatives) by February 1, 2026, and annually thereafter. Notices must outline employee rights, including immigration-related protections and rights during encounters with law enforcement in the workplace.
• The Labor Commissioner will have to publish a template notice by January 1, 2026, and videos by July 1, 2026.
• Employers must retain proof of notice delivery for three years.
• Employers must allow employees to designate an emergency contact by March 30, 2026 (or at hire for new employees) and notify that emergency contact if they know the employee is arrested or detained. Penalties for violations are up to $500 per employee per violation, with a maximum of $10,000 per employee.
• Employers may not retaliate against employees for exercising rights under this law.

SB 294 emphasizes transparency and requires clear procedures for notices, recordkeeping, and emergency contacts.

This bill is designed to protect employees affected by immigration status or proceedings that interfere with their employment for employers with more than 25 employees.

• Employees may request up to five unpaid days in a 12-month period to attend to any immigration-related matters.
• If an employee is terminated for lack of work authorization but provides proper authorization within 12 months, they must be reinstated with seniority and prior pay to the former job classification. If no position is available, the employer must offer subsequent openings, in writing, within that 12-month period, in order of seniority.
• If the employee demonstrates the need for additional time, the employer must rehire the employee into the next available role within an additional 12-month window, but without seniority.
• If an employer is notified that an employee is detained or incarcerated as a result of pending immigration or deportation proceedings, the employer must place them on unpaid leave of absence for up to a maximum of 12 months. If the employee is released and provides proper authorization within that time, they are entitled to reinstatement without loss of seniority or pay. If the position is not available, the employer is required to offer a preference of available job positions that become available within 12 months for which the employee is qualified.
• If more than one employee is entitled to preference for a position, the employer shall offer the position to the terminated employee with the greatest length of service based on the employee’s date of hire. The employee shall receive their prior pay rate and seniority. If the employee communicates to the employer that they are no longer interested in working for that employer, the employer is not obligated to offer any further job positions that become available.
• Employers must not discipline, discharge, or discriminate against any employee based on national origin, immigration status, or pending immigration or deportation proceedings, except as required to comply with the law.
• The bill does not override CBAs or MOUs with equal or stronger protections, nor seniority provisions in those agreements.
• AB 1136 protection would become inoperative July 1, 2029, and be repealed on January 1, 2030.

For California employers, AB 1136 will mean additional compliance burdens including tracking usage of “immigration leave days,” ensuring proper reinstatement practices, and avoiding discrimination or retaliatory actions tied to immigration status.

Stay tuned for our New Laws Newsletter that will be published next week for all incoming 2026 employment law & HR updates!