The National Federation of Independent Business (NFIB) in California has outlined its main legislative priorities for 2026, ahead of the state legislature’s return on January 5. The organization said it will focus on six key issues impacting small businesses.
“We will certainly be lobbying for or against many more bills, but these six are our top priorities,” said John Kabateck, state director for NFIB in California. “We’ve already received some spoken bipartisan support for our number-one priority; we’ll see if that translates into real votes.”
The first priority is to pay off California’s $21 billion unemployment insurance debt to the federal government. The group noted that California is the only state that has not repaid the money borrowed to keep its unemployment insurance trust fund solvent during the pandemic. NFIB says business owners alone pay UI taxes and that interest continues to accrue.
Second, NFIB seeks reforms to the Americans with Disabilities Act (ADA), modeled after previous changes to the Private Attorneys General Act (PAGA), with a goal of reducing lawsuits that they argue threaten business closures. The organization plans to work with Sens. Roger Niello, Angelique Ashby, and Anna Caballero on Senate Bill 84 as a potential vehicle for ADA reform.
Fully funding Proposition 36, which deals with retail theft laws, is another focus. According to NFIB, last election’s strong voter support for Proposition 36 indicated public concern about retail theft and frustration over what they see as slow action by lawmakers and Governor Newsom in implementing these changes.
NFIB also wants continued protection of Proposition 13 property tax rules. The group says most of its members own their business properties and will oppose efforts to reduce those protections while supporting ballot measures aimed at preserving them.
Stopping further minimum wage increases is another stated goal. NFIB pointed out that voters rejected Proposition 32 last year, which they say should discourage new attempts by lawmakers to raise the minimum wage rate statewide. They argue higher local minimum wages have created confusion and believe entry-level jobs are intended primarily for teenagers and young adults.
Lastly, NFIB opposes additional employee leave-time proposals. The group notes that California currently offers 17 types of leave time for employees and cites recent legislation expanding eligibility under paid family leave laws. They say finding workers to fill positions when employees are out on leave remains difficult for small businesses.
“We will continue our advocacy efforts in Sacramento on behalf of small businesses across California,” Kabateck said.
NFIB has advocated for small and independent business owners nationally since its founding in 1943.
