The National Federation of Independent Business (NFIB) in California has announced its legislative priorities for 2026, with a focus on protecting Proposition 13, opposing minimum wage increases, and enforcing retail theft laws. “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.”
Kabateck recently joined leaders from 26 other business associations at a strategic planning session of the California Business Leaders Alliance in San Diego. The group aims to promote pro-business candidates across the state. Kabateck co-chairs this effort, which includes organizations such as the California Business Roundtable and the California Farm Bureau.
NFIB California congratulated Elmy Bermejo on her appointment as Director of the Office of Small Business Advocate at GO-Biz by Governor Gavin Newsom. The organization expressed readiness to partner on initiatives that benefit small businesses.
NFIB reminded members about their legal obligation to have written Workplace Violence Prevention Plans available for inspection. Senate Bill 553 created this requirement, despite opposition from NFIB, and it became law on July 1 of last year. The Department of Industrial Relations provides a model plan and guidance for compliance through its website and FAQ page (https://www.dir.ca.gov/dosh/Workplace-Violence-Prevention-in-General-Industry.html).
The Department of Industrial Relations also announced that California’s minimum wage will rise to $16.90 per hour starting January 1, 2026 (https://www.dir.ca.gov/DIRNews/2024/2024-11.html).
NFIB highlighted the role of the Office of Administrative Law (OAL), which reviews regulations proposed by over 200 state agencies for compliance with administrative procedures (https://oal.ca.gov/about-oal/). Members can track regulatory matters affecting their industries via OAL’s Proposed Regulations Under Review section.
Additionally, NFIB encouraged business owners to subscribe to Nielsen Merksamer’s Regulatory Weekly File publication to stay informed about regulatory developments (https://www.nmgovlaw.com/regulatory-weekly-file-subscription/). Recent topics include affordable housing project timelines and changes in contractor nondiscrimination requirements.
California continues to carry an outstanding unemployment insurance loan balance of $21 billion borrowed during the COVID pandemic. NFIB reports that increased costs related to this debt are impacting small businesses’ ability to operate effectively.
On national issues, NFIB issued a key vote in favor of H.R. 6703, citing concerns over rising health care premiums for small employers. President Brad Close stated: “Small businesses are in the middle of a full-blown health care crisis that is one of the greatest threats to their ability to grow, hire, and invest back into their communities. Since the turn of the century, small employers have seen their premiums increase by over 120%.”
NFIB also supported passage of the SPEED Act in Congress due to concerns about permitting delays harming economic growth. Louis Bertolotti commented: “The current permitting process delays and cancels potential projects and development in every industry, resulting in long-term negative impacts on U.S. economic growth.”
In addition, NFIB filed an amicus brief before the U.S. Supreme Court regarding arbitration agreements used by small businesses. Beth Milito said: “Small businesses rely on arbitration agreements as an alternative to the costly, time-consuming legal process. If this new interpretation is upheld … small businesses everywhere will be caught in the crosshairs.”
Key upcoming dates include:
— January 5: Legislature reconvenes; NFIB State Ballots mailed
— January 7: NFIB California Leadership Council meets
— January 8: Governor Newsom delivers State-of-the-State address
The next Main Street Minute update is scheduled for December 29.
