Feb. 13, 2026: Article updated to include information about CalSavers registration requirements in 2026.
All California employers with at least one employee and who do not sponsor a qualified retirement plan are required to facilitate their employees’ enrollment in the CalSavers Retirement Savings Program, including new hires within 30 days of hiring. CalSavers is the state’s Roth IRA voluntary retirement savings program initiated in 2019 for workers who do not have access to a retirement plan at work.
Initially, the state requirement applied only to employers with at least five employees, but legislation signed into law in August 2022 by Gov. Gavin Newsom expanded the CalSavers registration requirement to include employers with one to four employees. Unless employers qualify for and request an exemption, they must either either establish a qualified payroll-deposit retirement savings program or be registered with CalSavers to enable their employees’ participation.
Each year, newly mandated employers have until Dec. 31 to register their workplace or request an exemption. Newly mandated employers should receive official registration information from the program by mail as early as February but regardless should visit the CalSavers website to either register or request an exemption.
Employers who had at least one employee in 2025 and did not register with CalSavers or request an exemption by Dec. 31, 2025, are out of compliance. Noncompliance can result in enforcement action, including financial penalties.
Employee participation is optional, but employers must facilitate enrollment
CalSavers participation is optional for employees. They can choose not to participate in the program and to reduce or increase their payroll contribution, which is initially set at 3% of the worker’s annual salary or wages, but employers must facilitate initial enrollment and any ongoing payroll contributions for them.
The CalSavers FAQ for employers states, “All employees of a participating employer are eligible if they are at least age eighteen and have the status of an employee under California law. There are no minimum requirements based on hours worked or tenure with their employer.”
Employers do not pay any fees for participating in the program, and they are prohibited from contributing to employee accounts.
Exempt employers — those who employ only the business owner or who already provide an employer-sponsored plan as defined in the bill — should visit the CalSavers website to exempt their business as early as possible but no later than Dec. 31, 2026.