CALIFORNIA - As California enters 2026, a series of landmark laws is set to take effect on January 1st. These statutes aim to strengthen environmental protections, expand access to healthcare, and bolster rights for workers and renters.
Here are five of the most significant new laws taking effect in the Golden State this New Year.
1. Closing the Plastic Bag Loophole (SB 1053)
Building on the state's long-standing effort to eliminate plastic waste, Senate Bill 1053 officially ends the distribution of all plastic shopping bags at grocery and retail checkout counters.
- The Change: Previously, a loophole allowed stores to sell thicker, "reusable" plastic bags for a small fee. Starting January 1st, these bags are banned entirely.
- The Alternative: Retailers will now only be permitted to offer recycled paper bags (for a minimum 10-cent fee) or sell truly reusable bags made from cloth or other durable materials.
2. A Statewide Ban on Cat Declawing (AB 867)
California has become the latest state to prohibit the declawing of cats for non-medical reasons. Assembly Bill 867 makes it illegal for any person to perform, or for any veterinarian to conduct, an "onychectomy" unless it is deemed medically necessary.
- Animal Welfare: Advocates argue that declawing is a major surgical procedure involving the amputation of the last bone of a cat's toes, often leading to chronic pain.
- Penalties: Veterinarians who violate this law could face fines or disciplinary action by the state’s Veterinary Medical Board.
3. Ban on "Stay-or-Pay" Clauses (AB 692)
In a major shift for the labor market, Assembly Bill 692 restricts "stay-or-pay" provisions in employment contracts. These clauses typically required employees to reimburse their employer for training or relocation costs if they quit before a specific date.
- The Restriction: Under the new law, these repayment requirements are largely considered an "unlawful restraint of trade" for contracts signed after the start of the year.
- Exceptions: There are limited exceptions for certain discretionary bonuses, but these now require strict transparency and a mandatory 5-day "cooling off" period for employees to review the agreement before signing.
4. The $35 Insulin Price Cap (SB 40)
To combat rising costs of managing diabetes, Senate Bill 40 mandates a cap on out-of-pocket insulin costs.
- Financial Relief: For Californians with state-regulated large-group health insurance plans, the cost for a 30-day supply of insulin is now capped at $35.
- Deductible Ban: The law also prohibits insurance companies from requiring patients to meet their deductible before this $35 cap kicks in, ensuring immediate savings at the pharmacy counter.
5. Right to Essential Appliances (AB 628)
For California renters, Assembly Bill 628 establishes new baseline standards for habitable housing. The law requires that landlords provide and maintain a working stove and refrigerator in all rental units.
- New Standards: While many units already include these, this law makes it a legal requirement for all new or renewed leases starting in 2026.
- Maintenance: Landlords are now legally responsible for ensuring these appliances remain in good working order throughout the tenancy.
Additional New Year Changes
In addition to these five laws, California's statewide minimum wage officially increases to $16.90 per hour on January 1, 2026. This adjustment also raises the minimum salary for "exempt" employees to $70,304 per year.