California employers now face significant compliance obligations under the Workplace Know Your Rights Act (Senate Bill 294), which took effect February 1, 2026, and includes steep penalties. The law requires employers to provide annual employee rights notices, post a notice if they receive advance notice of an immigration inspection, and allow employees to designate a special emergency contact in case of arrest or detention at work. These requirements are especially important for employers that sponsor foreign national employees and maintain Form I-9 records.
What Is California SB 294 (Workplace Know Your Rights Act Explained)?
SB 294 expands California’s existing worker-protection framework by adding new employer notice and procedural requirements designed to inform employees of their workplace and immigration-related rights.
Under this bill, employers should:
- Provide an annual stand-alone workplace rights notice.
Employers must distribute a separate written notice to all current employees each year, to new hires at onboarding, and to any authorized employee representative. The notice must address labor protections, immigration-related rights, and workplace-based constitutional protections. - Post notice within 72 hours of receiving advance notice of an immigration inspection.
If an employer receives advance notice of a Form I-9 inspection (for example, a Notice of Inspection from DHS or ICE), the employer must post a notice to employees within 72 hours. For employers that sponsor foreign national workers, this requirement is critical because I-9 inspections are a routine part of federal immigration enforcement, and response protocols must now incorporate California’s posting mandate. - Allow employees to designate a special emergency contact.
Employees must be allowed to designate a separate emergency contact who is to be notified if the employee is arrested or detained at work due to an enforcement action. This contact is distinct from the standard medical emergency contact. - Understand the potential penalties.
Failure to comply with the emergency contact requirement may result in penalties of up to $500 per employee per day, capped at $10,000 per employee. For employers with larger California workforces, these penalties can add up quickly.
Why SB 294 Matters for Employers Sponsoring Foreign Nationals
Employers that sponsor foreign national workers (such as H-1B, L-1, TN, E-3, O-1, or PERM-sponsored employees) face added compliance risk because SB 294 intersects directly with federal immigration enforcement and Form I-9 audit obligations.
I-9 Compliance and Audit Preparedness
The 72-hour posting requirement makes it essential for employers to maintain accurate, audit-ready Form I-9 records and have a clear, written response plan for Notices of Inspection. HR, legal, and leadership teams should identify in advance:
- Who receives and reviews inspection notices
- Who is responsible for posting the required employee notice
- Who is responsible for ensuring the 72-hour deadline is tracked and met
Workforce Communication Considerations
Because the required notice addresses immigration-related and constitutional protections, employers should ensure that internal communications are thoughtful and consistent. Managers should understand the limits of employer authority during enforcement actions, and workplace policies should not be drafted or applied in ways that could be interpreted as interfering with protected rights. This is particularly important in workplaces with a significant foreign national population.
Multi-State Employer Coordination
Employers operating in multiple jurisdictions should integrate SB 294 into their broader immigration compliance framework while maintaining California-specific procedures where required. Consistency in approach, paired with state-specific compliance, will reduce risk.
Immediate Action Steps for California Employers
Because the law is already in effect, employers that have not yet implemented these requirements should move promptly. At a minimum, employers should:
- Conduct an internal audit of Form I-9 records and confirm procedures for handling ICE or DHS inspection notices.
- Integrate the required stand-alone workplace rights notice into onboarding and annual distribution processes.
- Update HR forms and HRIS systems to allow designation of a separate immigration-related emergency contact.
- Train HR and managers on the 72-hour posting rule and lawful conduct during workplace enforcement actions.
- Coordinate state-law compliance measures with immigration counsel to ensure alignment with I-9 worksite enforcement rules.
Key Takeaways
SB 294 represents another significant expansion of California’s workplace protections in the immigration context. For employers that sponsor foreign nationals, the law adds an additional layer of compliance risk at the intersection of state labor protections and federal immigration enforcement. Taking proactive steps now will help minimize disruption, reduce potential penalties, and ensure that workplace policies are aligned with both state and federal requirements.
This alert is intended to help California employers understand SB 294 compliance requirements, including immigration inspection posting rules, employee notice obligations, and emergency contact procedures. For guidance tailored to your workforce or sponsored employee population, including reviewing your I-9 compliance program, updating onboarding procedures, or developing a worksite enforcement response plan, please reach out to a member of our worksite compliance team or request a consultation here.
The material contained in this alert does not constitute direct legal advice and is for informational purposes only. An attorney-client relationship is not presumed or intended by receipt or review of this presentation. The information provided should never replace informed counsel when specific immigration-related guidance is needed.
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