Starting January 1, 2026, California physician practices with as few as one non-owner employee must participate in CalSavers, the state’s retirement savings program for employees without access to a workplace retirement plan.

This change stems from SB 1126, signed into law by Governor Gavin Newsom in 2022, which expands the definition of an “eligible employer.” (Previously, the requirement to participate only applied to employers with 5 or more employees.)

If you have at least one eligible employee (age 18 or older, meeting basic work requirements) and do not already offer a qualified retirement plan, your practice must register with CalSavers by December 31, 2025.

There is no cost to employers to participate, and CalSavers handles account management, contributions, and communications with employees. Employers only need to submit basic employee information and facilitate payroll deductions.

Already offer a qualified plan? You must still request an exemption through the CalSavers portal.

Why It Matters: Noncompliant employers could face penalties of up to $750 per eligible employee, so it's important to determine your status and start the registration or exemption process as soon as possible. You can verify your eligibility and begin the registration or exemption process at employer.calsavers.com.

For more information, see the California Medical Association (CMA) fact sheet, “Recent Changes to CalSavers Requirements for Employers.”

Questions can be directed to CalSavers support at (855) 650-6916 or the CMA Center for Legal Affairs at legalinfo@cmadocs.org.