SACRAMENTO, Dec. 26, 2025, 4:46 p.m. PT
New California Laws in 2026: From Car Returns to Food Delivery Refunds
Starting January 1, a wave of new California laws will impact everything from your job to your grocery shopping.
- California employers can no longer require employees to repay training costs if they leave their job.
- A broader ban on plastic bags will go into effect, limiting shoppers to paper or reusable totes.
- Food delivery services must now offer full refunds for undelivered or incorrect orders.
- Car buyers will have a three-day window to return used vehicles under certain conditions.
Californians should prepare for a significant shift in consumer protections and workplace regulations as a host of new laws take effect in 2026. Many of these changes, impacting daily life for residents across the state, aim to provide greater financial security and clarity in various transactions. Some laws begin on January 1, while others will be implemented later in the year.
SB 692: ‘Stay or Pay’ Contracts Banned
A new law, SB 692, makes it illegal for employment contracts to require employees to reimburse employers for training costs if they choose to leave their position. This protects workers from being saddled with debt simply for pursuing other opportunities, effectively banning “stay or pay” agreements.
SB 1053: Plastic Bag Ban
California is doubling down on its efforts to reduce plastic waste. Building on the existing ban on single-use plastic bags—which were replaced with reusable plastic bags available for a 10-cent fee—SB 1053 now extends the ban to all plastic bags. Shoppers will now need to bring their own reusable totes or opt for recyclable paper bags.
AB 578: Full Refunds for Undelivered Food
Ordering takeout? Food delivery services like Uber Eats, DoorDash, and Grubhub will face new restrictions in 2026. It will be illegal for these platforms to:
- Deny a full refund if an order is not delivered or the wrong order is received, provided the customer isn’t at fault.
- Charge a higher price for food than what’s listed on the platform at the time of the order.
- Retain any portion of a customer’s tip.
- Fail to provide itemized bills detailing all costs and fees.
More details about these changes can be found on the state legislature’s website.
SB 766: Used Car Returns
The Combating Auto Retail Scams Act (CARS), taking effect October 1, 2026, introduces a significant benefit for used car buyers: a three-day right to return the vehicle. This allows Californians with buyer’s remorse to return a used car purchased or leased within that timeframe. The law also mandates specific disclosures from dealerships during the buying process.
AB 406: Paid Leave for Victims of Crimes
Starting January 1, employers are prohibited from discriminating against or denying paid leave to employees summoned for judicial proceedings related to a crime, as outlined in AB 406.
AB 628: Fridge and Stove in Rentals
Tenants signing leases on or after January 1 will be legally entitled to a working stove and refrigerator provided by their landlord, according to AB 628. The bill also specifies other essential habitability requirements, including waterproofing, heating, and hot water.
Additional Laws
Other new laws and official acts to be aware of include changes to California’s minimum wage.
What’s the Minimum Wage in California in 2026?
California is among 19 states increasing the minimum wage in the new year, according to reporting by the Arizona Republic. Here’s a look at the 2026 minimum wages across several states:
- Arizona: $14.70 raising to $15.15
- California: $16.50 raising to $16.90
- Colorado: $14.81 raising to $15.16
- Connecticut: $16.35 raising to $16.94
- Hawaii: $14.00 to $16.00
- Maine: $14.65 raising to $15.10
- Michigan: $12.48 raising to $13.73
- Minnesota: $11.13 raising to $11.41
- Missouri: $13.75 raising to $15.00
- Montana: $10.55 raising to $10.85
- Nebraska: $13.50 raising to $15
- New Jersey: $15.49 raising to $15.92
- New York (upstate): $15.50 raising to $16
- New York (New York City and Long Island): $16.50 raising to $17
- Ohio: $10.70 raising to $11
- Rhode Island: $15 raising to $16
- South Dakota: $11.50 raising to $11.85
- Vermont: $14.01 raising to $14.42
- Virginia: $12.41 raising to $12.77
- Washington: $16.66 raising to $17.13
