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Federal Employer Updates for California Businesses, 2026

Federal changes in 2026 that bind California employers or their records. Where California law sets a higher standard, the higher standard still applies.

Each item was checked against its official source on October 18, 2026.

October 8, 2026

Federal contractor minimum wage under Executive Order 13658, 2027

Beginning Jan. 6, 2027, the minimum wage for workers on federal contracts covered by Executive Order 13658 rises to $14.05 per hour, and the minimum cash wage for tipped employees to $9.85. It applies to certain contracts entered into between Jan. 1, 2015 and Jan. 29, 2022 that were not renewed or extended on or after Jan. 30, 2022. California's higher state and local minimum wages still apply.

October 7, 2026

Wage and Hour interpretive guidance stays in place

The Department of Labor withdrew its July 2025 proposal to remove Wage and Hour interpretive guidance parts from 29 CFR Chapter V, Subchapter B, so those parts stay in place.

May 27, 2026

No 2026 inflation adjustment to Labor Department penalties

The Department of Labor will not make an inflation adjustment to its civil monetary penalties for 2026. The law requires October CPI-U data for the adjustment, and that data was never published during the funding lapse, so the 2026 adjustment is cancelled.

August 12, 2026

E-Verify Status Change Report covers more invalidated work permits

USCIS expanded the Status Change Report to include invalidated EADs for TPS and asylum-related categories beyond parolee (C11).

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