2026 Business Law Changes Every Murrieta Business Owner Must Know (And How to Stay Compliant)

Stephanie Peterson
Jan 17
3 min read

Running a small business in Murrieta, California means more than great service and happy customers — it means staying compliant with laws that change every year. 2026 brings a wave of new laws, tax updates, and compliance requirements that impact payroll, recordkeeping, reporting, and financial planning. Understanding these changes now will help you avoid fines, improve operations, and get the professional bookkeeping support you need.

1. California Minimum Wage & Exempt Salary Requirements Increase

Starting January 1, 2026, California’s statewide minimum wage increased — currently set at $16.90 per hour — and the minimum annual salary to qualify for "exempt" employee status has risen as well. This change affects payroll calculations, overtime eligibility, and employee classification for many Murrieta businesses.

What small business owners should do:

Review current payroll setup
Reclassify exempt vs non‑exempt employees
Adjust your monthly bookkeeping to reflect new wage thresholds

2. New Pay Transparency & Employer Reporting Laws

Two important California laws — S.B. 464 and S.B. 642 — took effect in 2026 and require employers to enhance pay data reporting and transparency. These laws are designed to close wage gaps and require employers to document and report compensation metrics more comprehensively.

How your bookkeeping matters:

Accurate, documented payroll data is essential
Prepare for monthly/quarterly pay reporting to avoid penalties
Partner with a bookkeeper who understands California payroll compliance

3. Employment Contract Changes: No “Stay or Pay” Debts

Under new California rules effective in 2026, employers are prohibited from entering contracts that require employees to pay back training costs and other employment‑related debts when their employment ends.

Why this matters for bookkeeping:

Update employee contract templates
Adjust payroll and expense handling for training reimbursements
Keep detailed records to support compliance

4. Expanded Wage & Pay Equity Requirements

California has broadened equal pay protections, expanding how “wages” are defined, including bonuses and benefits. These laws require employers to review compensation practices and documentation.

Bookkeeping implications:

New bookkeeping policies may be needed to track wage components
Regular audits of payroll records will help protect your business

5. California Privacy & Data Protection Requirements

As of early 2026, California’s Delete Act allows residents to request deletion of their data from data brokers; reflecting a broader push for privacy protections. While not directly a bookkeeping law, this means any business collecting personal data must have secure systems and documented data management policies.

What to do:

Maintain secure accounting and CRM systems
Document data collection and retention practices

6. Federal Tax Law Changes That Impact Business Deductions

At the federal level, 2026 brings significant tax law changes tied to the One Big Beautiful Bill Act (OBBBA), including:

Permanent 100% bonus depreciation for equipment and property
Expanded deductions that benefit small business owners
Changes in how interest expense deductions are calculated

Small business bookkeeping insight:

Timely tracking of capital expenditures is more important than ever
Proper bookkeeping ensures you capture all eligible deductions

7. Avoid Costly Compliance Mistakes in 2026

Many business failures stem not from lack of revenue — but from poor financial recordkeeping and failure to adapt to new laws.To thrive in 2026:

✅ Update payroll and HR systems

✅ Streamline expense and revenue tracking

✅ Reconcile accounts monthly

✅ Partner with a knowledgeable bookkeeper familiar with California laws

Why Accurate Bookkeeping Matters Now More Than Ever

With wage changes, reporting requirements, payroll transparency laws, and evolving tax rules, business accounting is not just about numbers; it’s about legal compliance and strategic planning. If your books aren’t up‑to‑date, you could be at risk for fines, audits, and lost deductions.

As a Murrieta bookkeeping specialist, we help small business owners stay compliant while freeing up their time to grow their business.