October 8, 2024    |    By

Graphic titled '10 California Labor Laws' listing key employee protections. The items are numbered as follows: 1) Minimum wage, 2) Overtime, 3) Double-time pay, 4) Off-the-clock work, 5) Final paychecks, 6) On-call pay, 7) Rest and meal breaks, 8) Child labor, 9) Paid sick leave, and 10) PTO payout. At the bottom, there is a disclaimer: '©Patriot Software, LLC. All Rights Reserved. This is not intended as legal advice.' The logo of Employment Services is visible in the lower-right corner.

Running a business in California comes with a unique set of challenges, particularly regarding labor laws. California is known for having some of the most comprehensive and employee-friendly labor regulations in the country. As a small business owner or decision-maker, staying compliant with these laws can feel overwhelming. 

However, it’s essential to protect your business and your employees. Knowing these laws will help you create a fair, safe, and legally sound workplace. The following guide breaks down the most critical aspects of California labor laws so that you can navigate them confidently and avoid costly penalties.

 

California Labor Laws Simplified

California’s labor laws are designed to safeguard employees’ rights while maintaining fair business practices. Some of the key regulations that every employer must adhere to include minimum wage requirements, overtime pay, meal and rest breaks, anti-discrimination policies, and rules regarding employee classification. Understanding the foundation of these laws is vital to ensuring your business remains compliant.

The following will explore each of these laws in more detail and provide practical guidance on integrating them into your business operations. Whether dealing with hourly employees, salaried staff, or independent contractors, a solid grasp of these essentials will set you up for long-term success.

 

Hiring Laws

Hiring practices are governed by laws to promote fairness and protect candidates from discrimination and privacy violations. These regulations ensure that all job applicants have equal opportunities when it comes to the hiring process, regardless of their background or personal characteristics. For small businesses, following these laws helps avoid legal issues and fosters a positive workplace environment and reputation.

The following are the key regulations that you need to be aware of to stay compliant and protect both your business and potential employees:

 

California Equal Pay Act (Labor Code Section 1197.5)

The California Equal Pay Act mandates that employees performing substantially similar work must be paid equally, regardless of gender, race, or ethnicity. This law differs from federal regulations, such as the Equal Pay Act of 1963, by covering not only gender-based pay discrepancies but also race and ethnicity. Employers must ensure that any differences in pay are based on legitimate job-related factors like experience, education, or performance rather than discriminatory reasons.

In addition to these protections, California law requires employers to be transparent about wages and prohibits retaliation against any employees who inquire about or discuss their pay. Businesses are also obligated to maintain detailed records of wages and provide justifications for any pay differences to demonstrate compliance with the law. 

 

California Investigative Consumer Reporting Agencies Act (ICRAA) (Civil Code Section 1786)

The ICRAA regulates how employers can obtain and use background checks, or investigative consumer reports, during the hiring process. Under this law, employers must provide job candidates with clear written notice before requesting background checks and obtain candidates’ explicit consent. This notice must outline the purpose of the report and the rights of the individual being screened, including their right to access the report and dispute any inaccuracies.

In contrast to federal laws, such as the Fair Credit Reporting Act (FCRA), California’s ICRAA imposes stricter requirements on employers, particularly regarding the disclosure and consent process. Employers are also required to inform candidates if adverse action, such as a hiring decision, is taken based on the report’s findings. Additionally, California businesses must safeguard the privacy of the information obtained and ensure that it is used only for its intended purpose.

 

Pay Transparency Act (California Labor Code Section 432.3)

The Pay Transparency Act in California prohibits employers from asking about the salary history of job applicants. This is because employers cannot use an applicant’s salary history to decide whether to offer employment or what salary to offer. It also requires businesses to provide a pay scale for a position upon request. This law promotes fair compensation practices and helps reduce wage gaps based on race, gender, and ethnicity. 

Unlike some federal regulations, California’s Pay Transparency Act offers more robust protections by preventing the perpetuation of wage disparities that could occur when past salary information is used to set pay. Additionally, employers cannot retaliate against candidates or employees who request salary information.

 

Fair Chance Act (Government Code Section 12952)

The Fair Chance Act, also known as California’s “Ban the Box” law, restricts employers from asking about a job applicant’s criminal history during the early stages of the hiring process. This law mandates that businesses eliminate questions about criminal history from job applications and postpone background checks until a conditional job offer is extended. This regulation ensures that individuals with criminal records are given a fair opportunity to be considered for employment without being disqualified at an early stage in the hiring process.

Unlike federal law, which offers more limited protections, California’s Fair Chance Act has strict guidelines for how and when an employer can consider an applicant’s criminal history. If an employer chooses to take negative action based on an individual’s criminal record, they must provide the candidate with a written explanation, allow time for the candidate to respond, and offer an opportunity to present evidence of rehabilitation or mitigating circumstances.

 

California Privacy Rights Act (CPRA) (Civil Code Section 1798.100)

The CPRA strengthens and expands the privacy protections provided under the California Consumer Privacy Act (CCPA). This law grants employees and job applicants the right to know what personal data employers collect, how it is used, and whether it is shared with third parties. Employers are required to inform individuals about the categories of personal information collected and must provide a mechanism for individuals to request access, correction, or deletion of their data.

The CPRA gives employees more control over their personal data and imposes stricter compliance requirements on businesses. It also mandates that employers take reasonable steps to protect sensitive information and provides rights for any person to opt out of the sale or sharing of their personal information.

 

Wage, Deductions, And Breaks

California has some of the nation’s most stringent labor laws regarding employee wages, overtime, deductions, and breaks. As a business owner, it is crucial to remain informed and adhere to these regulations to prevent costly fines, legal actions, and potential harm to your company’s reputation. Noncompliance can lead to fines, back wages, and even class-action lawsuits, making it essential for employers to fully understand and implement these requirements. 

The following are the specific laws that govern wage deductions, overtime, off-the-clock work, and employee breaks in California.

 

California Minimum Wage (Labor Code Section 1182.12)

California’s minimum wage laws require employers to pay workers no less than the state-mandated hourly rate, which is higher than the federal minimum wage. For 2024, California’s minimum wage is set at:

  • $16 per hour for businesses with 25 or fewer employees.
  • $17 per hour for businesses with 26 or more employees. 

Many local jurisdictions in California have even higher minimum wage requirements, so employers must be aware of both state and local laws. In contrast, the federal minimum wage is set at $7.25 per hour and has remained unchanged since 2009. California’s higher wage standards reflect the state’s cost of living and progressive labor protections. 

 

California Labor Code Sections 221-224

California Labor Code Sections 221-224 govern the rules around wage deductions, ensuring that employers only make lawful deductions from an employee’s wages. Under these regulations, employers are prohibited from taking back any portion of wages paid to employees, regardless of the circumstances, unless the deductions are explicitly authorized by law or by the employee in writing.

Permitted deductions include those for taxes, health insurance premiums, retirement contributions, and other deductions required by law or agreed upon in a collective bargaining agreement. Employers must also ensure that any deductions for benefits or employee-reimbursed expenses are reasonable and do not reduce wages below the minimum wage.

These regulations differ from federal laws, which generally allow for more flexibility in wage deductions as long as the employee’s pay doesn’t fall below the federal minimum wage. 

 

California Labor Code Section 510

California Labor Code Section 510 outlines specific requirements for paying overtime, ensuring employees are compensated fairly for any extra hours worked. In California, overtime is calculated differently than in many other states, with strict rules about when employees are eligible for additional pay. The following is a breakdown of how overtime eligibility and pay work:

  • Time and a half (1.5x regular rate):
    • Time and a half applies to hours worked over eight hours in a single day.
    • This also applies to hours worked beyond 40 hours in a workweek.
    • This applies to the first eight hours that are worked on the seventh straight day within a single workweek.

 

  • Double time (2x regular rate):
    • Double time applies to hours worked beyond 12 hours in a single day.
    • This applies to hours worked beyond eight hours on the seventh consecutive day of work in a single workweek.

 

California Labor Code Section 512

California Labor Code Section 512 governs employee meal and rest breaks, ensuring that workers are given the necessary time to rest and recharge during their shifts. Additionally, this section includes provisions for lactating workers, allowing them the space and time needed to express milk. Complying with these regulations is critical for business owners to avoid penalties and create a positive work environment. The following is a breakdown of the key requirements:

 

  • Meal breaks:
    • Employees who work more than five hours a day must receive an unpaid, off-duty meal break of at least 30 minutes.
    • If the total work time does not exceed six hours, the meal break can be waived as long as there is mutual consent between the employee and employer.
    • If an employee works over 10 hours in a day, a second meal break of at least 30 minutes is required, though this can also be waived if the total hours worked are no more than 12 and the first meal break was taken.

 

  • Rest breaks:
    • Employees are legally entitled to a paid 10-minute period of rest for every four hours worked or a substantial portion thereof.
    • The rest break must be in the middle of the work period, insofar as it is practicable, and employees should be relieved of all duties during this time.
    • If an employer does not provide an employee with a required rest or meal break, the employee is legally entitled to receive an additional hour of pay at their regular rate for each day the break is not provided.

 

  • Lactating workers:
    • Employers must provide a reasonable amount of time for lactating workers to express milk. This time can run concurrently with the rest period, but additional time must be provided if needed.
    • Employers are also required to provide a private, non-bathroom space that is safe and close to the employee’s work area for milk expression.
    • Failure to provide these accommodations may result in penalties and fines.

 

California Labor Code Sections 204 and 226

California Labor Code Sections 204 and 226 establish clear guidelines for payment schedules and wage statements, ensuring that employees are paid accurately and on time. These laws apply to both hourly and salaried employees, requiring all employers to comply with specific standards regarding when wages are paid and what details must be included on wage statements.

 

  • Payment schedules (Section 204): The following are key requirements for payment schedules in California:
    • Employers must pay wages to their employees at least twice per calendar month on designated paydays.
    • Wages for work performed between the 1st and 15th of the month must be paid by the 26th.
    • Wages for work performed between the 16th and the last day of the month must be paid by the 10th of the following month.
    • Exempt salaried employees may be paid once a month, but wages must still be paid by the designated pay date.

 

  • Detailed wage statements (Section 226): Employers are required to provide employees with a detailed, itemized wage statement each payday. The wage statement must include:
    • Total hours worked
    • Gross wages earned
    • Net wages earned
    • Any deductions (e.g., taxes, benefits)
    • Pay period dates
    • Employee’s name and ID number
    • Employer’s name and address
    • Applicable hourly rates and total hours worked at each rate

 

Noncompliance can lead to penalties, employee lawsuits, and back pay obligations. Ensuring accurate payment schedules and wage statements is critical for California business owners to avoid costly legal issues.

 

Employee Leave Rights And Policies

California provides robust protections for employees when it comes to taking time off, ensuring that workers can attend to personal or family needs without fear of losing their jobs. From paid sick leave to family and medical leave, employers are required to offer various types of leave to eligible employees. Understanding these policies is crucial to remaining compliant with state regulations while supporting the well-being of your workforce.

Below is an overview of key leave policies in California, including sick leave, family leave, and other protected leave types.

 

Healthy Workplaces, Healthy Families Act of 2014

The Healthy Workplaces, Healthy Families Act of 2014 mandates that California employers provide paid sick leave to their employees. This law ensures that workers can take time off for their illness, care for a sick family member, or address certain medical needs without losing income. Key provisions of the Act include:

  • Eligibility:
    • This applies to all employees who work at least 30 days within a year in California.
    • Full-time, part-time, and temporary employees are covered by this law.
  • Accrual of paid sick leave:
    • Employees accumulate at least one hour of paid sick leave for every 30 hours they work.
    • Employers may limit accrual to no more than 80 hours (or 10 days), and employees can carry unused sick leave over to the next year.
  • Usage of paid sick leave:
    • Employees can begin using accrued sick leave after 90 days of employment.
    • As of January 1, 2024, employers must allow employees to use at least 40 hours (or five days) of paid sick leave annually. Prior to this, the cap was 24 hours or three days per year.
  • Permitted uses:
    • Employees can use paid sick leave for not just personal health needs, but also to care for a family member or for specific needs related to domestic violence, sexual assault, or stalking.

 

Family and Medical Leave Act (FMLA) 

The FMLA is a federal regulation that lets eligible employees take upwards of 12 weeks of unpaid, job-protected leave annually for designated family and medical purposes. California employers must comply with both FMLA and the state’s family leave laws, such as the California Family Rights Act (CFRA), which often offers additional protections. Key provisions of FMLA include:

  • Eligibility:
    • Employees must have worked for the employer for at least 12 months.
    • Employees must have worked at least 1,250 hours over the past 12 months.
    • The employer must have at least 50 employees within a 75-mile radius to be covered by FMLA.

 

  • Permitted reasons for leave:
    • Birth or care of a newborn child.
    • Adoption or foster care placement of a child.
    • Care for an immediate family member (such as a child, parent, or spouse) with a serious health condition.
    • The employee’s own serious health condition.
    • Certain situations related to a family member’s military service.

 

  • Job protection:
    • Employees are guaranteed the same or a comparable position upon return from FMLA leave.
    • Employers must maintain the employees’ health benefits during the leave period as if they were still working.

 

FMLA is unpaid, but employees may choose to use accrued paid leave concurrently with FMLA leave.

 

California Family Rights Act (CFRA)

The CFRA allows employees in California to take up to 12 weeks of unpaid, job-protected leave within a 12-month period for certain medical and family reasons. Similar to the federal FMLA, CFRA allows employees to take time off while ensuring their jobs are protected. However, CFRA offers additional protections and covers more family members than FMLA. Key provisions of CFRA include:

  • Eligibility:

    • To qualify, employees must have worked with the employer for a minimum of 12 months.
    • They must have completed at least 1,250 hours of work in the 12 months prior to taking leave.
    • The CFRA applies to employers who employ five or more persons, unlike the FMLA, which requires 50 or more employees.

 

  • Permitted reasons for leave:
    • Birth, adoption, or foster care placement of a child.
    • Care for a child, parent, sibling, grandchild, grandparent, spouse, or domestic partner with a serious health condition.
    • The employee’s own serious health condition.
    • Leave due to a qualifying exigency that is related to a family member’s military service.

 

  • Job protection:
    • Employees must be reinstated to the same or a comparable position upon returning from leave.
    • Health benefits must be maintained during the leave period, just as if the employee were still working.

 

California Ab 1949 (Labor Code Section 230.5)

California Assembly Bill (AB) 1949, enacted in 2022, adds protections to the state’s leave laws by granting eligible employees the right to take up to five days of bereavement leave upon the death of a close family member. This law, under Labor Code Section 230.5, applies to all employers in California with five or more employees and ensures workers can take time to grieve without fear of job loss or retaliation. Key provisions of AB 1949 include:

 

  • Eligibility:
    • Employees must have worked for the employer for at least 30 days before the start of the bereavement leave.
    • This applies to businesses with five or more employees.

 

  • Permitted use of leave:
    • Leave can be used upon the death of a family member, defined as a child, sibling, grandchild, spouse, domestic partner, grandparent, parent, or parent-in-law.
    • The five days of leave do not need to be taken consecutively but must be completed within three months of the family member’s death.

 

  • Paid or unpaid:
    • Bereavement leave can be unpaid unless an existing policy or collective bargaining agreement provides for paid leave.
    • Employees may use accrued vacation, sick leave, or other paid time off for bereavement leave if they choose.

 

  • Documentation:
    • Employers are allowed to request documentation of the family member’s death, such as a published obituary, death certificate, or verification from a funeral home.

 

California Government Code Section 6700

California Government Code Section 6700 outlines the official public holidays recognized by the state. These holidays apply to public offices, but private employers may also choose to observe them. While this law primarily affects public sector employees, it is important for private employers to be aware of these holidays, as many businesses close or offer additional compensation for work performed on these days.

While observing these holidays is optional for small businesses, many choose to offer time off or additional compensation for work on public holidays to stay competitive and attract top talent. Maintaining clear policies regarding holiday pay and time off can help avoid misunderstandings and ensure employee satisfaction. The following are the recognized holidays outlined in Government Code Section 6700:

  • New Year’s Day
  • Martin Luther King Jr. Day
  • Presidents’ Day
  • Cesar Chavez Day (Observed)
  • Memorial Day
  • Independence Day
  • Labor Day
  • Veterans Day
  • Thanksgiving Day
  • Day after Thanksgiving
  • Christmas Day
  • Any other day appointed as a public holiday or day of thanksgiving by the Governor or President

 

Private employers are not required by law to provide paid time off for these holidays unless stated in an employment contract or collective bargaining agreement. However, many employers offer paid time off or holiday pay to remain competitive and foster employee goodwill.

 

California Business And Professions Code Section 16600 Amended By SB 699

California has long maintained one of the strictest stances against non-compete agreements in the United States. Under California Business and Professions Code Section 16600, all non-compete agreements are considered void and unenforceable, as they are seen as restricting employees’ freedom to pursue their professions. 

This legal stance was further reinforced by SB 699, which expands protections and strengthens enforcement against non-compete clauses, making it clear that employers cannot prevent employees from working for competitors or starting their own businesses after leaving a job. The following are the key points concerning non-compete agreements in California:

 

  • Non-competes are generally unenforceable:
    • California law prohibits agreements that prevent employees from engaging in lawful employment after leaving a company.
    • SB 699 clarifies that non-compete clauses are unenforceable, even if the agreement was signed in another state.

 

  • Penalties for violations:
    • Employers who attempt to enforce non-compete agreements may face penalties, including lawsuits and claims for damages by former employees.
    • SB 699 strengthens the ability of employees to challenge non-compete clauses in court, emphasizing employee protection.

 

  • Alternatives to non-compete agreements:
    • Confidentiality agreements: Employers can require employees to sign confidentiality agreements that protect trade secrets and sensitive information.
    • Non-solicitation agreements: While more limited than non-compete agreements, non-solicitation clauses may prevent former employees from poaching clients or employees, as long as they do not overly restrict future employment.
    • Intellectual property agreements: Employers can safeguard intellectual property by requiring employees to assign ownership of any inventions or work created during their employment.

 

Work Permits, Hours, And Compliance For Minors

Hiring minors in California comes with specific regulations designed to protect their safety, education, and well-being. Employers must ensure compliance with both state labor and education laws that govern work permits, allowable work hours, and conditions for employing minors. Noncompliance can result in fines, penalties, and potential legal action, making it crucial to fully understand and follow these rules.

 

California Labor Code Sections 1290-1312

California Labor Code Sections 1290-1312 regulate the employment of minors, establishing guidelines for work permits, restricted hours, and prohibited job types. Employers must comply with these laws to ensure minors are not subjected to unsafe or inappropriate working conditions. Some of the provisions include:

  • Work permits:
    • Before they can be employed, a minor under the age of 18 must have a valid work permit issued by their school.
    • Work permits are required year-round, even when school is not in session, and must be renewed annually.

 

  • Restricted hours:
    • For minors aged 16-17, work is generally limited to four hours on school days and eight hours on non-school days, with no work allowed between 10 p.m. and 5 a.m.
    • For minors aged 14-15, work is limited to three hours on school days and eight hours on non-school days, with no work allowed between 7 p.m. and 7 a.m. (9 p.m. during summer).

 

  • Prohibited occupations:
    • Minors are restricted from working in hazardous occupations, including construction, manufacturing, and operating heavy machinery.
    • Specific job types that involve dangerous equipment or environments are off-limits to ensure the safety of young workers.

 

California Education Code Sections 49110-49200

The California Education Code Sections 49110-49200 works in tandem with labor regulations by requiring minors to maintain educational responsibilities while working. This law ensures that the employment of minors does not interfere with their schooling or academic progress. Its provisions include:

  • Work permits and academic performance:
    • Work permits for minors are issued by the school and can be denied or revoked if a minor’s academic performance or attendance is adversely affected by their job.
    • The school monitors the minor’s work permit and attendance to ensure employment doesn’t hinder their education.

 

  • Work experience education programs:
    • Certain exceptions allow minors to work longer hours if they are participating in school-supervised work experience programs or vocational education.
    • These programs integrate on-the-job training with academic learning, providing students with valuable skills while ensuring they meet educational standards.

 

Workplace Safety Regulations

Workplace safety is a significant concern in California, with stringent regulations in place to protect employees from accidents and injuries. Employers must provide a safe working environment, comply with safety standards, and take immediate action in the event of an injury. Failure to meet these obligations can result in fines, lawsuits, and other legal consequences. Adhering to occupational safety regulations protects your employees and reduces the risk of costly workplace incidents.

The following are the key regulations and procedures you should follow to ensure compliance and maintain a safe workplace.

 

Cal/OSHA Regulations (California Labor Code Sections 6300-6725)

Cal/OSHA (California Division of Occupational Safety and Health) is responsible for enforcing workplace safety regulations under the California Labor Code Sections 6300-6725. These regulations are designed to protect employees from workplace hazards and ensure employers provide a safe environment. The main provisions of Cal/OSHA regulations include:

  • Health and safety standards:
    • Employers must adhere to industry-specific safety standards set by Cal/OSHA, which cover everything from the use of protective equipment to safe machinery operation and proper ventilation.
    • Employees must receive regular safety training, and employers are required to establish and maintain an effective Injury and Illness Prevention Program (IIPP).

 

  • Injury and Illness Prevention Program (IIPP):
    • Every employer must create an IIPP that includes regular safety inspections, employee training, and a system for reporting and addressing hazards.
    • The IIPP should include protocols for preventing workplace injuries and illnesses, identifying potential risks, and taking corrective actions.

 

  • Steps to take when an injury occurs:
    • Immediate action: Employers must ensure that the injured worker receives prompt medical attention in the event of a workplace injury.
    • Incident reporting: Employers are required to report serious injuries, illnesses, or fatalities to Cal/OSHA within eight hours. This includes injuries requiring hospitalization, amputation, or loss of consciousness.
    • Accident investigation: After an injury occurs, employers must perform a comprehensive investigation to identify the cause and take steps to prevent future incidents.
    • Documentation: Employers must maintain records of all workplace injuries and illnesses through Cal/OSHA’s Form 300 log and provide these records to employees or inspectors upon request.

 

Injury And Illness Prevention Program (IIPP)

IIPP is a key component of workplace safety in California, mandated by Cal/OSHA. This program requires employers to proactively identify and address possible hazards, thereby creating a safer work environment for all employees. Regardless of size, every California employer must establish and implement a written IIPP that complies with Cal/OSHA regulations. The components of an effective IIPP include:

  • Responsibility: Employers must assign a person or team responsible for overseeing the IIPP and ensuring compliance with safety regulations.
  • Hazard identification: Regular inspections should be conducted to identify potential safety hazards in the workplace. Risks such as unsafe machinery, hazardous materials, or ergonomic issues should be addressed before they lead to accidents or illnesses.
  • Accident investigation: Workplace accidents, injuries, and illnesses must be investigated to determine their cause and prevent future occurrences. Corrective measures should be implemented to eliminate hazards that may contribute to repeated incidents.
  • Employee training: Regular safety training and updates should be provided for employees, ensuring they understand how to avoid workplace hazards and respond to emergencies. Training should cover safe operating procedures, the use of protective equipment, and the specific risks associated with the job.
  • Communication: Employees should be able to report unsafe conditions without fear of retaliation. Workers should be encouraged to participate in identifying and solving safety issues in the workplace.
  • Hazard correction: Procedures should be implemented to correct unhealthy or unsafe conditions in a timely manner. This may include replacing faulty equipment, revising work practices, or implementing new safety technologies.
  • Record keeping: Thorough records must be kept of workplace inspections, employee safety training, accident investigations, and any corrective actions taken. Documentation should be available for Cal/OSHA inspections and employee review.

 

California Labor Code Section 6409.1

California Labor Code Section 6409.1 mandates that employers promptly report work-related injuries and illnesses to the appropriate authorities, ensuring that workplace incidents are documented and investigated. This regulation is critical to maintaining workplace safety and compliance with Cal/OSHA regulations. The following are the key requirements of this section:

  • Reporting serious injuries:

    • Employers must report serious work-related injuries, illnesses, or fatalities to Cal/OSHA within eight hours of learning about the incident.
    • If the employer can demonstrate exigent circumstances, the reporting deadline may be extended up to 24 hours​.
    • Serious injuries include incidents that result in hospitalization (other than for observation), amputation, the loss of an eye, or any injury that causes permanent disfigurement or impairment.

 

 

  • Injury log and reporting:

    • Employers must keep accurate and up-to-date records of all injuries and illnesses, regardless of severity, to ensure that any trends or safety issues can be addressed.
    • Reports and records must be readily accessible for Cal/OSHA inspection and provided to employees upon request.

Penalties for failing to report serious injuries within the required timeframe or for not maintaining accurate records can be substantial, including significant fines and other penalties. Noncompliance with these reporting requirements may trigger additional investigations by Cal/OSHA, potentially leading to further legal and financial consequences for the employer.

 

California Labor Code Section 6401

California Labor Code Section 6401 requires employers to take proactive measures to maintain a safe workplace and prevent employee injuries. This section emphasizes the employer’s responsibility to implement effective safety programs and practices to identify and eliminate hazards. Some of the obligations under this law include:

  • Employers must provide necessary safety devices and safeguards, and adopt methods to ensure a safe work environment.
  • Employers are required to regularly inspect the workplace, identify potential hazards, and correct unsafe conditions.
  • Adequate training must be provided to ensure employees understand how to safely perform their job duties and handle workplace risks.

 

Off-The-Clock Work And On-Call Pay Regulations

Off-the-clock work is any work performed by employees outside their scheduled hours without proper compensation. This can include tasks like checking emails, performing job duties after clocking out, or working during breaks. California labor laws strictly prohibit this practice, requiring employers to pay employees for all time worked. To prevent off-the-clock work, you should:

  • Implement clear policies outlining work hours.
  • Ensure accurate time-tracking systems.
  • Train managers to discourage unsanctioned work.

 

Failure to compensate employees for off-the-clock work can result in penalties, back pay, and lawsuits. The following are the specific labor code sections that define employee rights and employer obligations. 

 

California Labor Code Section 1194

California Labor Code Section 1194 ensures that employees have the right to recover unpaid wages, including both regular and overtime pay, if they have not been properly compensated by their employer. This law allows employees who have been underpaid to file a claim against their employer to recover the unpaid amounts, along with legal fees and interest. Importantly, this section protects employees regardless of whether they agreed to work for less than the minimum wage or agreed to work unpaid overtime.

 

California Labor Code section 226.7

California Labor Code Section 226.7 prohibits employers from requiring employees to perform work during meal or rest breaks without proper compensation. If an employee is required to work through their break, the employer must pay one additional hour of pay at the employee’s regular rate for every day a break is denied. This applies if the employee is also performing any off-the-clock work during their break.

 

California WARN Act

The California WARN Act requires employers with 75 or more employees to provide a 60-day written notice before mass layoffs, plant closures, or relocations affecting 50 or more employees. This notice must be given to employees, the Employment Development Department (EDD), local government officials, and employee representatives. The goal is to give workers time to prepare for job loss and to mitigate its impact.

Noncompliance can lead to significant penalties, including back pay and benefits for each day of violation. To reduce risks, employers should ensure timely communication, keep accurate records, and seek legal counsel if necessary. To reduce risks under the California WARN Act, employers should take several proactive steps:

  1. Plan in advance: To avoid last-minute errors, begin the notification process as early as possible, even beyond the 60-day requirement.
  2. Consult legal counsel: Work with legal experts to ensure compliance with notification requirements and avoid misunderstandings.
  3. Accurate record keeping: Maintain thorough documentation of all communications, including the notices sent to employees and relevant agencies.
  4. Employee assistance: Offer support, such as severance packages or job placement services, to help mitigate the impact on affected employees.

 

Termination Laws (California Labor Code Sections 201-203)

California Labor Code Sections 201-203 establish clear rules for paying final wages, which include all earned wages, overtime, accrued vacation, and any commissions due upon an employee’s termination or resignation. These laws ensure that employees are compensated promptly after their employment ends, protecting their financial security. 

When an employee is terminated, final wages must be paid immediately. For resignations, employers must provide final pay within 72 hours or, if notice is given, on the last day of work. Failure to comply can result in “waiting time” penalties. These penalties require employers to continue paying the employee’s daily wages for each day the payment is delayed, up to a maximum of 30 days.

 

The Importance Of Staying Updated With These Labor Laws

Staying compliant with California labor laws is crucial for protecting your business from costly legal risks, fines, and potential lawsuits. Regularly updating your understanding of employment regulations, such as termination laws, wage payments, and workplace safety, not only safeguards your business but also fosters a positive workplace culture. Compliance helps ensure employees feel respected and fairly treated, which boosts morale and reduces turnover. Proactively managing legal obligations enhances operational efficiency and your organization’s overall health.

 

Streamline Compliance With Skilled HR Professionals

Navigating California’s complex labor laws can be overwhelming for any business, but partnering with skilled HR professionals can make a significant difference. O2 Employment Services offers expert guidance to ensure your business stays compliant with all employment regulations, minimizing legal risks and penalties. 

By streamlining compliance processes, we not only help protect your business but also help foster a positive, legally sound workplace environment. Trusting experienced HR professionals allows you to focus on growth while maintaining peace of mind regarding labor law compliance.

Ensure your business is fully compliant with California labor laws with the expertise of O2 Employment Services today.

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This blog post is intended for informational purposes only and does not constitute legal advice. No attorney-client relationship is created between the author and reader of this blog post, and its content should not be relied upon as legal advice. Readers are urged to consult legal counsel when seeking legal advice.

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