Get an overview of the California labor laws small businesses should know when hiring, and updates on employment laws that could impact your business.
The state minimum wage in California is $16 per hour with some exceptions.
Some California cities and counties have their own wage requirements that exceed California’s state-wide minimum wage. Employers with potentially impacted employees should review both state and local requirements. Please check the references linked below for additional minimum wage requirements across localities.
California also has overtime requirements that exceed federal requirements, including requiring overtime for eligible employees who exceed 8 hours of work in a day, among others.
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The minimum salary threshold in California for eligible employees under the administrative, executive, or professional exemption is $66,560.
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In California, employees who work more than five hours are entitled to a 30-minute paid meal break, unpaid for nonexempt employees. A second 30-minute meal break is required for employees who work over 10 hours a day. Additionally, for every four hours worked, employees must be given a paid 10-minute break.
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Employers in California must provide a reasonable amount of break time, which can overlap with existing breaks, for employees to pump milk. Lactation breaks, unless overlapping with existing required rest periods, are unpaid. Refusal to provide lactation breaks may result in employee compensation equaling an hour of regular pay for each violation.
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Keep up to date with important changes to state and local employment laws in California.
Effective January 1, 2025, employers can no longer require employees to use up to 2 weeks of vacation leave before they receive paid family leave (PFL) insurance benefits paid by the state or their employer (if applicable). This new law may also affect other local paid family leave ordinances such as San Francisco.
Employers should update their leave of absence and paid time off (PTO) policies in accordance with the new law.
Effective July 1, 2024, California employers with 10 or more employees will be required to establish and maintain a workplace violence prevention plan, inclusive of training, as mandated by California’s Division of Occupational Safety and Health (Cal/OSHA). Cal/OSHA has released a model workplace violence prevention plan and fact sheet to assist employers in following the new requirements for the July deadline. Employers are encouraged to utilize Cal/OSHA's resources to develop their prevention plans in partnership with their legal counsel.
In 2023, California passed two laws impacting the use of non-compete agreements in the state. The first law invalidates non-compete clauses in employment agreements, requiring employers to notify current, and certain former, employees that such clauses are void. The second law creates a private rights of legal action against employers for illegal non-compete and confidentiality agreements. Employers who have previously used non-compete clauses in employment agreements must provide written notice to affected employees by February 14, 2024. Employers that have used, or currently use, non-compete agreements in any form should connect with legal counsel to review agreements and practices to ensure compliance.
Starting as early as August 1, 2024, California's new regulation requires employers to prevent heat illness in indoor workplaces. Key requirements include providing training, ensuring access to drinking water and cool-down areas, implementing emergency procedures, and creating a written heat illness prevention plan. The regulation applies when indoor temperatures reach 82°F or higher. Additional measures are required when temperatures hit 87°F. California’s Division of Occupational Safety and Health (Cal/OSHA) has released indoor heat illness prevention materials and a fact sheet to assist employers in following the new requirements ahead of the August deadline. Employers are encouraged to utilize Cal/OSHA's resources to develop their prevention plans in partnership with their legal counsel.
Beginning March 28, 2024, Los Angeles County employers with 5 or more employees in unincorporated areas of LA County must comply with additional requirements under the Fair Chance Ordinance For Employers, which supplements the existing California Fair Chance Act. Fully operational on September 3, 2024, the Ordinance outlines specific language employers must use in all job postings, prohibits pre-conditional offer inquiries about criminal history without written rationale, and requires employers to conduct individualized assessments before denying employment based on criminal history. Employers impacted by these changes should work with legal counsel to update their policies accordingly.
Starting January 1, 2024, California employers must update the mandatory notice given to new hires due to changes in state legislation. First, the notice must now include information about the increased amount of paid sick leave, which has been raised from three days (or 24 hours) to five days (or 40 hours). Secondly, it also has to reference any recent federal or state emergency or disaster declarations applicable to the county where the employee will work, particularly those issued within 30 days of the employee's first day. These declarations are relevant if they may affect the employee's health and safety during their employment. Employers should update their processes to include the new model notice provided by the Department of Industrial Relations.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
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