California labor laws are some of the most comprehensive and complex in the nation. As an employer, understanding these laws is critical to ensuring compliance, avoiding costly penalties, and creating a workplace that aligns with state regulations. This guide breaks down key California labor laws for employers to help you navigate the rules effectively.
Wage and Hour Laws
Minimum Wage
California’s minimum wage varies based on the size of your business:
- Employers with 26 or more employees: $15.50 per hour.
- Employers with 25 or fewer employees: $15.00 per hour.
Additionally, some cities and counties, such as Los Angeles and San Francisco, have higher local minimum wage rates.
Overtime Pay
Under California law, non-exempt employees are entitled to overtime pay:
- 1.5 times the regular rate of pay for hours worked over 8 in a day or 40 in a week.
- Double time for hours worked over 12 in a day or over 8 hours on the seventh consecutive workday in a workweek.
Meal and Rest Breaks
Employers must provide:
- A 30-minute unpaid meal break for employees working more than 5 hours.
- A second meal break for shifts over 10 hours.
- Paid rest breaks of 10 minutes for every 4 hours worked.
Failure to provide these breaks can result in penalties.
Employee Classification
Independent Contractors vs. Employees
California’s AB5 law uses the “ABC Test” to determine if a worker is an independent contractor:
- The worker is free from control and direction of the hiring entity.
- The work performed is outside the usual course of the hiring entity’s business.
- The worker is engaged in an independently established trade, occupation, or business.
Misclassifying employees as independent contractors can lead to significant fines and back pay obligations.
Harassment and Discrimination
Protected Characteristics
California law prohibits harassment and discrimination based on:
- Race, religion, gender, sexual orientation, disability, age, marital status, and more.
Training Requirements
Employers with 5 or more employees must provide:
- 2 hours of sexual harassment training to supervisors.
- 1 hour of training to non-supervisory employees every 2 years.
Workplace Investigations
Handling Complaints
Employers are required to investigate workplace complaints promptly and thoroughly. Failure to do so can result in legal consequences, especially in cases involving harassment, discrimination, or retaliation claims.
Retaliation Prevention
Employees are protected from retaliation when they:
- File a complaint.
- Participate in an investigation.
- Exercise their workplace rights.
Ensure policies are in place to prevent retaliation and address complaints fairly.
Leaves of Absence
California Family Rights Act (CFRA)
Employers with 5 or more employees must provide up to 12 weeks of unpaid, job-protected leave for:
- The birth of a child.
- A serious health condition of the employee or a family member.
Paid Sick Leave
All employees in California are entitled to:
- 1 hour of paid sick leave for every 30 hours worked.
- A minimum of 24 hours (or 3 days) of sick leave per year.
Recordkeeping Requirements
Employers must maintain records for:
- Payroll: Retain for at least 3 years.
- Personnel Files: Retain for at least the duration of employment plus 3 years.
- Workplace Investigations: Retain documentation for at least 2 years.
Failure to maintain proper records can lead to penalties during audits.
Compliance Tips for Employers
- Conduct Regular Audits: Review payroll, classifications, and workplace policies.
- Stay Updated on Laws: Monitor changes in California labor laws and local regulations.
- Provide Training: Ensure employees and supervisors understand workplace rights and responsibilities.
- Partner with Experts: Work with HR professionals or legal counsel to address complex issues.
Conclusion
California labor laws are designed to protect employees, but they also place significant responsibilities on employers. Staying compliant requires vigilance, education, and sometimes, professional assistance. California Labor Solutions specializes in helping businesses navigate these complexities. Contact us today to ensure your business is compliant and positioned for success.
Contact California Labor Solutions for expert guidance on California labor laws for employers.