As the new year rushes in, so do the legislative bills and amendments passed by the Golden State’s lawmakers, which are eventually signed or rejected by the governor. In 2025, California Gov. Gavin Newsom vetoed 123 out of the 917 total bills passed by state legislators. Several new laws proposed in 2026 will significantly affect Los Angeles food vendors and restaurants, including measures on third-party delivery apps, another mandated minimum wage increase, labor laws, and more. Here are the biggest new laws impacting California restaurants and bars in 2026 and beyond.

Beginning January 1, 2026, California’s minimum wage is $16.90 per hour for all employers. This is a 40-cent increase over the previous year, with some Southern California cities maintaining higher rates. Los Angeles is $17.87, while West Hollywood tops the list at $20.25 per hour. Since Assembly Bill 1228 was signed in 2023 and took effect in 2024, California’s fast food workers have been paid $20 per hour.

California has gradually been reducing the use of plastic bags since 2014. Senate Bill 1053 went into effect on January 1, placing restrictions on the types of bags used at most grocery stores, retail stores with a pharmacy, convenience stores, food marts, and liquor stores. SB 1053 strengthens existing regulations by prohibiting single-use plastic carryout bags and requiring stores to offer recycled paper bags for 10 cents. To avoid the charge, shoppers must bring their own bags. SB 1053 does not apply to restaurants.

Third-Party Delivery Apps and Gig Worker Drivers

Newsom signed two laws in the fall related to food delivery apps such as Postmates, Uber Eats, and DoorDash, as well as their drivers. Assembly Bill 578 requires all food delivery platforms to issue a refund if the food is not delivered or the wrong order is delivered. The bill also requires an itemized breakdown of food and services, and for delivery platforms to provide access to human customer service if issues remain unresolved through their automated service. AB 578 addresses tipping, making it unlawful for a food delivery platform to maintain a payment model that uses any amount designated as tips or gratuity to offset the delivery driver’s base pay.

Assembly Bill 1340 permits transportation network drivers, including those driving for food delivery apps, to form or join a union, even as independent contractors. The bill also requires companies like Lyft and Uber to bargain in good faith.

Assembly Bill 1830 requires California manufacturers to add folic acid to dry and wet corn masa products, and the addition is to be noted on the nutrition label. The bill exempts small-batch producers, restaurants, and markets that make their own tortillas from scratch, as well as cottage food operations, also known as Microenterprise Home Kitchen Operations.

On July 1, Senate Bill 68 requires restaurants with 20 or more national locations to list the major food allergens on each menu item. The law declared the following foods as allergens to its list: milk, eggs, fish, crustacean shellfish, tree nuts, wheat, peanuts, soybeans, and sesame.

Labor Law Organization and Unfair Practices

Assembly Bill 288 expands the power of the state-run Public Employment Relations Board (PERB). The bill grants PERB jurisdiction over private employers in matters typically handled by the National Labor Relations Board. Workers can now petition the PERB to certify a union, and employers must bargain in good faith if the NLRB does not act.

Law Enforcement Mask Requirement

In 2025, law enforcement and federal immigration agents wearing face masks became a contentious issue as ICE raids spread across the United States, with their impacts felt most acutely by Los Angeles restaurants and local communities. Senate Bill 627 would make it a crime for a law enforcement officer to wear a mask while on duty, except in specific circumstances. SB 627 will impose a specified civil penalty against offending officers, including, but not limited to, false imprisonment or false arrest of an individual while wearing a facial covering. The Trump administration is challenging the law in court.

Retirement Plan Requirement

As of January 1, all California businesses are required to have a qualified retirement plan in place, or face fines. California law requires employers that do not offer a qualified retirement plan to provide employees with access to the state-sponsored CalSavers program. Newsom signed Senate Bill 1126 in 2022 to expand it to employers with at least one employee. Eligible employers with 1-4 employees were required to register or be exempt by December 31, 2025. For additional information, click here.

Adjustments to existing outdoor dining regs and requirements

A lot is covered under Assembly Bill 592, starting with the permanent removal of parking requirements for outdoor dining. In the early days of the COVID-19 pandemic, restaurants received a lifeline in May 2020, when indoor dining was temporarily banned under social distancing requirements. Easing outdoor dining requirements was permitted under a Department of Alcoholic Beverage Control’s (ABC) COVID-19 Temporary Catering Authorization, which expanded restaurants’ “existing licensed premises to include an area that is adjacent to the licensed premises and under the control of the licensee,” according to the ABC. AB 592 preserves the temporary workaround that allows the use of parking lots and other designated areas for outdoor dining. The temporary authorization to use these spaces was set to expire in 2026 but has been extended through 2029.

Accelerated restaurant building plan approval

Restaurant plan checks are crucial for new restaurants, as building officials review plans to ensure compliance with building code requirements, permitting, zoning, and code inspections. The process can be lengthy and costly for operators, who often delay their openings while the reviews are underway. Assembly Bill 671 could streamline the process by allowing self-certification of restaurant plan checks while maintaining health and safety protections. Restaurant owners who hope to modify existing spaces can allow licensed architects and engineers to self-certify plans under this law. On average, Los Angeles restaurants can wait up to two years to finalize permits and compliance; if signed by Newsom, AB 671 might help reduce that.