New California Record-Keeping Requirements for 2026

Beyond the Paystub: New California Record-Keeping Requirements for 2026

While the paystub has long been the gold standard for California record-keeping, a wave of new legislation effective January 1, 2026, has moved the goalposts. Employers must now track everything from “core competencies” in training to granular demographic data, stored separately from personnel files.

If your HR and compliance systems haven’t been updated since December, you may already be out of compliance. Here are the four critical record-keeping shifts now in effect.

The “Training Audit” Rule (SB 513)

Formerly, keeping a simple sign-in sheet for safety or harassment training was enough. Under SB 513, education and training records are now officially part of the “personnel records” that employees have a right to inspect. If you maintain these records, they must now include specific data points:

Required Fields: Employee name, name of the trainer/provider, date, and duration.

The “Core Competencies” Clause: You must now document the specific skills or software competencies addressed.

Certifications: Any qualification or certificate earned through training must be retained in the file.

Access: These must be produced within 30 days of a written request from a current or former employee.

The “Separate & Equal” Data Rule (SB 464)

To prevent bias in hiring and promotion, California now requires a physical and digital “wall” between an employee’s performance file and their demographic data.

Strict Separation: Any demographic info collected (race, ethnicity, gender identity) for state pay data reporting must be stored separately from the employee’s general personnel record.

Expanded Categories: For the 2026 reporting cycle, employers with 100+ employees must now classify workers using 23 job categories (up from 10).

Preservation: This data must be preserved for at least three years.

“Know Your Rights” Annual Documentation (SB 294)

Starting February 1, 2026, California will require recurring notices. It is no longer “one and done” at the time of hire.

Annual Notice: Employers must provide a standalone “Workplace Know Your Rights” notice to all employees annually.
Record of Delivery: You must keep a record of when and how each notice was sent (email, text, or hand-delivery) for three years.
The “One-Day” Rule: If sent digitally, it must be sent via a method reasonably expected to be received within one business day.
Violence Prevention & Incident Logs (SB 553). While the requirement to have a plan began in 2024, record-keeping enforcement peaked in 2026 as Cal/OSHA finalized its permanent standards.
Violent Incident Log: Every incident (including verbal threats) must be recorded in a detailed log.
Five-Year Retention: Unlike most labor records (3 years), the violent incident log and investigation records must be kept for five years.
Privacy Guardrails: The log must omit personally identifiable information (PII) of those involved but must be available for employee inspection within 15 days.

Your Immediate Next Step

Review your “Stay-or-Pay” contracts. As of January 1, AB 692 prohibits requiring employees to repay training or relocation costs if they leave (with very narrow exceptions). Any such agreement executed after Jan 1 is likely void and creates a record-keeping liability.

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