During the recently concluded 2025 legislative session, PRISM’s Legislative Committee reviewed and followed 142 bills, taking formal positions on 48 bills. The Governor vetoed 17 bills and signed 52 bills. Note that all bills mentioned below are effective January 1, 2026, unless stated otherwise in the specific bill. There are a few noteworthy bills that we want to bring to your attention. Some good, some not so good. 

Employee Benefits:

  • SB 590 expands California’s Paid Family Leave program to include "Designated Persons" starting July 1, 2028, in this regard aligning Paid Family Leave with the 2023 expansion of the California Family Rights Act (CFRA). The program will allow employees to take up to 8 weeks of wage replacement benefits to care for a "designated person" - any individual related by blood or whose association with the employee is equivalent to a family relationship, significantly broadening eligibility beyond the current list of specific family members to include chosen family, close friends, and other significant relationships. Employees must identify the designated person and attest under penalty of perjury to the nature of their relationship when first claiming benefits for that person, with the state Employment Development Department administering the program and making final eligibility determinations. Public sector employers should use the nearly three-year implementation window to update policies, train staff, and plan for potential increased leave usage.
  • AB 339 Expands union notice requirements for public agency contracting. Effective January 1, 2026, California public agencies must provide employee unions with at least 45 days' advance written notice before contracting out services that fall within represented job classifications. AB 339 requires detailed information including cost estimates, scope of work, draft solicitations, and justifications—significantly expanding transparency requirements and potentially extending procurement timelines. There are some exclusions for planning, design, and public works. Employers should review their procurement processes now and implement new coordination protocols between labor relations and purchasing departments to ensure compliance.
  • AB 692 states that California employers—including public agencies—can no longer require employees to repay training costs or incur other penalties when leaving employment, with limited exceptions for government loan programs, certain transferable credentials, approved apprenticeships, and properly structured sign-on bonuses. This new law declares such "Training Repayment Agreement Provisions" void and provides strong enforcement mechanisms including $5,000 per affected worker in penalties, making immediate contract review essential for public sector employers who commonly use training repayment agreements for police academies, professional certifications, signing bonus and educational assistance programs. Public agencies should audit all labor agreements, personnel rules and employment contracts by year-end and cease using non-compliant repayment provisions starting January 1, 2026.

Liability:

  • AB 370 amends the California Public Records Act (CPRA) to address how public agencies manage records in the event of a cyberattack. The bill specifies that if a local or state agency’s electronic records are made unavailable because of a ransomware or other cyber incident, the agency is not considered in violation of the CPRA for being unable to produce those records during the period of disruption. Once the system is restored, the agency must promptly resume compliance and respond to outstanding requests. For PRISM member agencies, this law provides temporary legal protection during cyber incidents, clarifying that inability to access data due to a cyberattack is not a CPRA violation. The bill continues to emphasize the importance of robust cybersecurity practices, data recovery plans, and incident response protocols to minimize downtime and maintain transparency obligations once normal operations resume.
  • AB 1178 enhances confidentiality protections for peace officer personnel records in California. It reaffirms that files related to officer discipline, investigations, and employment matters remain confidential, with limited disclosure allowed under the California Public Records Act and Penal Code Section 832.7 for certain cases involving serious misconduct. The bill also refines procedures for redaction and access and extends confidentiality to records created by oversight bodies or outside investigators. For PRISM member agencies, AB 1178 requires policy updates, staff training, and close legal coordination to ensure compliance. It strengthens protections against unauthorized disclosure while emphasizing accuracy and adherence to legal standards when responding to records requests. 
  • SB 627 establishes new rules governing the use of masks and face coverings by California law enforcement officers. The bill prohibits officers from intentionally concealing their identity while performing official duties, such as by wearing masks, balaclavas, or similar coverings that obscure facial features. However, it allows specific exceptions—such as for personal protective equipment, safety gear, or when anonymity is necessary for undercover work or specialized tactical operations. For PRISM member agencies, this law requires policy updates and officer training to ensure compliance with the new standards, including revising uniform and equipment protocols. It also has risk management implications, as noncompliance could raise liability concerns and public accountability issues. Agencies will need to clearly document approved exceptions and ensure supervisors monitor adherence during operations.
  • SB 707 updates California’s open meeting laws to refine requirements for public agency meetings and teleconferences. The bill mandates that all teleconference locations be identified in the meeting notice and remain accessible to the public, ensuring transparency and participation rights under the Brown Act. It also clarifies the conditions under which remote participation is allowed, including provisions for emergencies and accessibility needs, while requiring agencies to maintain clear technological and procedural standards for virtual meetings. For PRISM members, this legislation will require policy and procedural adjustments in how governing boards, committees, and joint powers authorities conduct meetings—particularly around teleconferencing logistics, public access, and compliance documentation.

Workers’ Compensation:

  • AB 1293 will require the Department of Industrial Relations (DIR) to develop a standard template by 01/01/27 for Qualified Medical Evaluators (QME) to use as part of their reporting. This will aide in consistency and thorough reporting on key issues as part of the med/legal evaluation process and potentially minimize the need for supplemental reports.
  • SB 459 expands the confidential communications for Peer Support Programs (Police/Fire) to include “group peer support services”.
  • SB 230 expands the cancer presumptions to commercial airport fire departments.  While this primarily only impacts a few members that collectively contribute to these services at the Burbank Airport at this time, it is an expansion of a presumption to private employers.
  • SB 487 limits the subrogation recoveries by the employer for certain peace officers and firefighters on claims in which a third-party is at fault for an injury. This bill provides that the employer shall receive no more than one-third of a recovery from a third-party if certain criteria are met. Further, any portion of a recovery received by the injured worker cannot be asserted or applied towards a future credit for benefits. Despite many efforts to negotiate with the sponsors of the bill and the associated labor unions, they were unwilling to waiver on any terms of the proposed language that the Governor ultimately signed. Notably, the State has been excluded from this bill due to the significant fiscal impact. The bill is effective January 1, 2026; however, it is unclear if this pertains only to injuries arising on/after that date, or if applicable to all existing unresolved claims involving a third-party. Be on the lookout for an upcoming webinar specific to this bill.

For more information about these bills, or any other bills of interest, please contact the following based on the area of coverage/interest:  Jill Abel for Employee Benefits, Heather Fregeau for Liability, Sidney DiDomenico for Health, Chandler Wright for Work Safety or Jen Hamelin for Workers’ Compensation or general legislative questions.