IWC WAGE ORDERS UPDATED FOR 2026
Portions of the Industrial Welfare Commission (IWC) Wage Orders are required to be updated by the Department of Industrial Relations (DIR) annually to adjust various provisions including the permissible credits employers can take for providing meals and lodging to employees, aligning these credits with increases in the state’s minimum wage. Wage Orders have recently been republished to reflect these changes and other legislative updates, ensuring consistency and compliance.
While the face page of the Wage Orders state “Effective January 1, 2001 as amended”, the date in the footer of the Wage Order shows the most recent revision; e.g., IWC FORM 1104 (Rev. 11/2025)
With the recent revisions, the following sections have been amended in Wage Orders 1 through 15:
- Section 4(A) reflecting the 2026 increase in the California minimum wage
- Section 10(C) (Meals and Lodging Credits) in Wage Orders #1 through #15
In Wage Order 16 (Construction Industries Wage Order) Sections 4(A) (minimum wage) and 9(C) (Meals and Lodging) have been updated.
Employer Posting Requirement: Affected employers must post these updated wage orders in a conspicuous place at the workplace. Employers with remote employees can satisfy mandatory labor law poster requirements by providing digital copies, such as emailing PDFs, posting them on a company intranet/HR portal, or using specialized compliance services. The digital access must be readily available at all times to employees who work remotely and do not visit a physical office.
EMERGENCY CONTACT INFORMATION FORM
With the recent passage of the new law, and the publication of the California Workplace – Know Your Rights notice, no later than March 30, 2026 employers must allow their employees and new hires to designate their emergency contact in case the employee is arrested or detailed at work.
If an employee is arrested or detained at work and the employer has knowledge of it, the employer must notify the employee’s designated emergency contact if the employee so elects.
A sample emergency contact form can be found here.
FREQUENTLY ASKED QUESTIONS AND BEST PRACTICES
Often employers are presented with situations for which they are uncertain as to how to proceed. Below are a few examples of these frequently asked questions and some “best practices” to implement.
Question: What Can an Employer Do If An Employee Refuses to Sign the Employee Handbook?
With the new year upon us, many employers are updating their employee handbooks and presenting them to employees to acknowledge receipt. What action can an employer take if a current or new hire refuses to sign for the receipt of an employee handbook?
Why This is Important: The implementation and distribution of an employee handbook is a “best practice” for employers to ensure that policies and procedures are clearly explained and that expectations are defined. While there is no California law that mandates or requires an employee to sign an acknowledgment that they received a handbook, obtaining a signature is optimal for documentation and to ensure that all employees have adequate notice of the policies, procedures and rules governing their employment.
Recommended Action: If an employee or new hire refuses to sign for the receipt of the Employee Handbook, which receipt should state that they have received it, and are obligated to comply, employers can take the following steps:
- Ask the employee what their concern is with signing an Acknowledgement of Receipt.
- Explain that even if they do not sign for the receipt of the Handbook their employment is governed by the policies and procedures detailed in the handbook.
- Employees should be aware that the policies will be enforced, and that refusal to sign the acknowledgment does not excuse the employee from following company policies.
Document the employee’s refusal to sign by noting “Employee Refused to Sign.” You can ask the employee to initial the statement, or they can write on the acknowledgement form “I refuse to sign.” You may wish to ask a witness to be present to verify the employee’s refusal to sign.
Question: What If A New Hire or a Current Employee Refuses to Sign the Arbitration Agreement?
Why Is This Important: Currently, assuming the arbitration agreement meets all requirements for enforceability (e.g. is not procedurally or substantively unconscionable) California law generally permits an employer to condition employment upon the employee’s consent for mandatory arbitration a condition of employment.
Recommended Action:
- New Hires: Candidates for employment and new hires should be advised during the interview process that a condition of employment is acceptance of the Mandatory Arbitration Agreement. If the new hire refuses to sign a mandatory arbitration agreement, the employer may choose not to make or rescind the job offer.
- If entering into a mandatory arbitration agreement is a new concept, not previously addressed, the employer should consider offering some additional “consideration” to the current employee to support their waiver of the right to a trial by jury.
- Requiring current employees to sign a mandatory arbitration agreement without additional consideration may render the agreement unenforceable.
- Additional consideration such as additional benefits (e.g., a raise, bonus, additional vacation day, etc.) should be offered to the employees as “consideration” to support the agreement.
- If the current employee continues to refuse to enter into the arbitration agreement, even with additional consideration, termination may result, but it is not without risk.
Final Wage Payment Questions: 
Question: Can I pay the final wages in the next regular pay period?
Answer: No. A terminated employee must be paid on the date of termination to avoid “waiting time penalties.” An employee who resigns must be paid within 72 hours of their notice of resignation; if no notice is provided, then the employer has 72 consecutive hours (including weekends) to pay the final wages. Waiting for the next pay period likely will be untimely and could result in waiting time penalties.
Question: How should a final paycheck be made available to an employee who quits?
Answer: Terminated employees must be paid at the place of termination. The place of termination is the employee’s location, not the employer. If you terminate an employee who is not at your place of business, such as an employee who works remotely, you must be prepared to deliver the final paycheck at the moment the employee is notified of the termination.
An employee who quits without providing a 72-hour notice shall be entitled to receive payment of their final wage by mail, but only if they request it and designate a mailing address. The date of the mailing shall constitute the date of payment for purposes of the requirement to provide payment within 72 hours of the notice of quitting.
If the employee does not request the check be mailed, the employer may hold the check at their place of business for the employee to pick it up.
If the employee doesn’t come to pick up the check, after being notified that it is available for pickup, then an employer may opt to mail the check to the employee’s last known address. The final check should be sent by mail (via overnight delivery or other reliable delivery method) but should not be sent via certified or registered mail that requires a signature. The check should be sent without “signature required” but “track delivery.”
Question: Can I pay final wages via direct deposit?
Answer: Due to the strict time requirements for providing final paychecks and the potential delays due to bank processing, paying by direct deposit may not be timely and may result in a claim of “waiting time penalties”
For employees who have previously authorized direct deposit, there is a conflict as to whether the final check can be paid via direct deposit. Labor Code Section 213 (d) provides that if an employee is fired or the employee quits, the employer can pay the final wages via direct deposit; the Labor Commissioner’s website does not reflect this and states the employer must obtain new authorization from the employee to provide the final paycheck by direct deposit to the employee’s account. To err on the side of caution, ask the employee to request payment via direct deposit in writing.
This Newsletter is intended as a brief summary of employment law. While every effort has been made to ensure the accuracy of the information contained herein, it is not intended to serve as “legal advice,” or to establish an attorney-client relationship. If additional information is needed on any of the topics contained herein, please contact our office. All rights reserved. ©2026