1. Wage and Hour Laws
Federal and State Minimum Wage:
California’s minimum wage is higher than the federal minimum wage, and it varies based on the size of the business. Ensure you are paying your employees the correct minimum wage to comply with state laws.
Overtime Pay:
Non-exempt employees must receive overtime pay for hours worked beyond 8 in a day or 40 in a week at 1.5 times their regular rate. Be aware of specific exemptions and classifications to determine which employees are eligible for overtime.
Meal and Rest Breaks:
California law mandates that non-exempt employees receive a 30-minute meal break for every five hours worked and a 10-minute rest break for every four hours worked. Failure to provide these breaks can result in penalties.
2. Anti-Discrimination Laws
Title VII of the Civil Rights Act:
Prohibits discrimination based on race, color, religion, sex, or national origin. Ensure your hiring, firing, and workplace policies are free from discriminatory practices.
California Fair Employment and Housing Act (FEHA):
Extends protections to include marital status, sexual orientation, gender identity, age, disability, and more. It also mandates reasonable accommodations for employees with disabilities.
3. Harassment Prevention
Sexual Harassment Training:
California requires that businesses with five or more employees provide sexual harassment prevention training. Supervisors must receive two hours of training every two years, while non-supervisory employees need one hour of training.
Creating a Safe Workplace:
Implement and enforce a zero-tolerance policy for harassment. Provide clear reporting procedures and promptly address any complaints.
4. Employee Classification
Independent Contractors vs. Employees:
Misclassifying employees as independent contractors can lead to significant penalties. The ABC test in California determines if a worker is an independent contractor: they must be free from control, perform work outside the usual course of business, and be engaged in an independently established trade.
Exempt vs. Non-Exempt Employees:
Properly classify employees to determine eligibility for overtime. Exempt employees generally include executive, administrative, and professional roles that meet specific criteria.
5. Family and Medical Leave
California Family Rights Act (CFRA):
Allows eligible employees to take up to 12 weeks of unpaid, job-protected leave for certain family and medical reasons. This includes caring for a newborn, a seriously ill family member, or the employee’s own health condition.
Paid Sick Leave:
California law requires that employees accrue at least one hour of paid sick leave for every 30 hours worked. Ensure your sick leave policy complies with state regulations.
6. Workers' Compensation
Mandatory Coverage:
California law requires all employers to carry workers’ compensation insurance, covering medical expenses and lost wages for employees injured on the job. Failing to provide coverage can result in severe penalties.
7. Employment Agreements and Policies
At-Will Employment:
While California generally follows at-will employment, meaning either party can terminate the relationship at any time, having clear employment agreements and policies helps protect against wrongful termination claims.
Employee Handbook:
An employee handbook outlines company policies, procedures, and expectations. It serves as a valuable resource for both employers and employees and helps ensure compliance with employment laws.