CALIFORNIA - As the calendar turns to January 1, 2026, California residents and business owners are bracing for a series of legislative changes that will directly impact their finances. While some laws are designed to save consumers money in the long run, others introduce immediate out-of-pocket costs and significant operational expenses for employers and landlords.From higher checkout fees to sweeping changes in the rental market, here is how the new laws will cost you in 2026.
1. The Paycheck Push: New Wage Thresholds
The most immediate financial shift comes in the form of the State annual minimum wage adjustment.
- Hourly Workers: The statewide minimum wage is increasing to $16.90 per hour, up from $16.50 per hour. While a win for employees, the win for small businesses is factoring in higher labor costs and potential price increases to maintain margins.
- Salaried Employees: The cost of keeping "exempt" employees is also rising. To remain exempt from overtime, a salaried worker in California must now earn at least $70,304 annually (double the state minimum wage).
2. Checkout Charges: The End of Plastic Bags (SB 1053)
The "reusable" plastic bag loophole is officially closed. Starting January 1, grocery stores and retailers can no longer offer the thicker plastic bags that were previously sold for 10 cents.
- The Cost: If you forget your own bags, you will now be required to pay a minimum of 10 cents for a recycled paper bag.
- The Goal: While the fee remains the same as before, the durability of paper vs. plastic means many shoppers may choose higher-quality, more expensive permanent bags or pay the 10-cent fee more frequently.
3. The Landlord's Burden: Mandatory Appliances (AB 628)
In a massive shift for the rental market, Assembly Bill 628 adds working stoves and refrigerators to the State legal "habitability" standards.
- Landlord Costs: Property owners must now provide and maintain these appliances for all new or renewed leases. For buildings that previously required tenants to "bring your own fridge," landlords face immediate Capital Expenditures (CAPEX) of roughly $1,500 to $2,500 per unit for purchasing and installing a fridge.
- Potential Rent Impacts: While the law provides greater security for tenants, the increased maintenance and initial investment costs are expected to be reflected in rent adjustments for new tenancies.
4. The Healthcare Balancing Act: Insulin Caps (SB 40)
For Californians living with diabetes, Senate Bill 40 offers a significant financial reprieve by capping out-of-pocket costs for a 30-day supply of insulin at $35.
- Direct Savings: Thousands of residents will save hundreds of dollars a year on life-saving medication.
- The Insurance Trade-off: However, state analyses suggest that to cover these reduced costs, health insurance premiums for large-group plans may increase slightly—estimated at roughly $0.04 per member per month—as the cost burden shifts to the broader insurance pool.
5. Consumer Wins: Delivery Refunds and "Stay-or-Pay" Bans
Two new laws are designed to prevent "hidden" costs or financial traps for workers and consumers.
- AB 578 (Delivery Fairness): Food delivery platforms can no longer force you to accept "app credit" for a failed delivery. They are now legally required to offer full refunds to your original payment method.
- AB 692 (Worker Mobility): Most "stay-or-pay" clauses in employment contracts—which forced workers to repay training or relocation costs if they quit early—are now void and unenforceable. This prevents employers from hitting departing workers with thousands of dollars in surprise debt.
