California employment laws: what employers must comply with (and what’s changing)
If you’re searching for California employment laws, you’re likely trying to confirm what rules apply to your workplace, what posters/notices you must provide, and how compliance changes as you hire more employees. California is one of the most regulated labor-law states in the U.S., with requirements that often exceed federal standards—especially around wages, paid leave, discrimination, and recordkeeping. This guide summarizes the core rules HR teams and business owners should prioritize, including new CA labor laws trends and California employment laws by company size.
Core California employment laws employers should know
California employment compliance generally flows from the California Labour Code, Industrial Welfare Commission (IWC) Wage Orders, and enforcement agencies like the Labor Commissioner (DLSE) and Civil Rights Department (CRD). For a deeper statutory overview, see the California Labour Code resource.
Wage & hour: minimum wage, overtime, meal/rest breaks
Minimum wage
- California’s statewide minimum wage is set by statute, but many cities/counties have higher local minimum wages. Always apply whichever rate is higher (state vs. local).
- If you want context on how wage proposals and headlines can differ from enforceable law, see California 50 dollar minimum wage.
Overtime
- In general, California overtime is more protective than federal law:
- Overtime after 8 hours/day (not just 40/week)
- Double time after 12 hours/day (and in some cases on the 7th consecutive day)
- Correct classification (exempt vs. nonexempt) is critical because misclassification is a common enforcement target.
Meal and rest breaks
- Nonexempt employees generally must receive:
- A 30-minute unpaid meal period when working more than 5 hours (with limited waiver rules)
- A second meal period when working more than 10 hours (again, limited waiver rules)
- Paid rest breaks (typically 10 minutes per 4 hours or major fraction thereof)
- Missed-break “premium pay” exposure can be significant, so document schedules and attestations.
Paid sick leave and paid time off basics
California’s paid sick leave rules are primarily governed by the Healthy Workplaces, Healthy Families Act and related amendments. Employers must track accrual/carryover and provide compliant usage and notice practices.
If you operate in multiple states, compare how states diverge—Arizona, for example, has its own rules; see Arizona sick leave law for a useful contrast when building multi-state leave policies.
Anti-discrimination, harassment prevention, and accommodations
California’s anti-discrimination and harassment obligations (including FEHA protections) are broad and heavily enforced. Requirements typically include:
- Maintaining anti-discrimination/anti-harassment policies
- Prompt investigation and corrective action processes
- Reasonable accommodations and interactive process obligations
- Harassment prevention training requirements for many employers (see “company size” section below)
For a compliance-focused breakdown, review anti discrimination laws in california.
Payroll, pay statements, and final pay rules
California has detailed rules on:
- Itemized wage statements (specific fields required)
- Paydays and payroll frequency
- Final pay timing (including rules for resignations vs. terminations)
- Paystub and timekeeping record retention expectations
Action step: audit your wage statement template and termination checklist annually—many wage claims stem from technical paystub errors or late final pay.
California employment laws by company size (key thresholds)
Many California requirements apply to all employers, but several expand based on headcount or other thresholds. Here are common triggers HR teams should track.
1–4 employees: “small employer” doesn’t mean “few rules”
Even very small employers are generally covered by wage/hour rules, payroll requirements, workers’ compensation, and many anti-discrimination protections. Action items:
- Use an IWC Wage Order applicable to your industry/occupation
- Set up compliant timekeeping for nonexempt employees
- Ensure required notices/posters are provided (see “posters” section)
5+ employees: major FEHA expansion point
At 5 or more employees, FEHA anti-discrimination protections commonly apply more broadly, and accommodation obligations become a central compliance area.
Action item: ensure job descriptions reflect essential functions and that you have a documented interactive process workflow.
15+ employees: federal overlap increases
At 15+ employees, federal laws like Title VII often apply, adding layers of compliance (and parallel enforcement risk). For a broader federal baseline, see the employment legislation list.
50+ employees: leave and policy complexity increases
At 50+ employees, additional obligations frequently come into play (for example, federal FMLA coverage, and more robust leave administration). Action item: centralize leave tracking (FMLA/CFRA where applicable) and train managers on escalation triggers.
Tip: If your headcount fluctuates (seasonal hiring, multiple worksites, staffing models), track “employee count” definitions carefully—some thresholds count part-time employees, and some consider integrated employer/joint employer concepts.
New California employment laws and “new CA labor laws”: how to stay current
Searches for new California employment laws and new california labor laws spike every year because California frequently updates:
- Minimum wage rates (state and local)
- Leave entitlements and protected time off
- Retaliation protections and enforcement tools
- Workplace safety and industry-specific standards
Actionable compliance workflow for “new CA labor laws”:
- Create an annual Q4/Q1 update cycle: review legislative changes, adjust handbook language, and refresh required notices.
- Schedule manager training refreshers for leave, accommodations, harassment prevention, and wage/hour basics.
- Run a poster/notice audit whenever laws change (and when opening a new site or hiring remote staff).
- Document policy rollouts (effective dates, acknowledgments, translations where required).
Required workplace notices and postings (California + federal)
A common compliance miss is failing to provide the correct notices—especially when you have remote workers, multiple locations, or a mix of exempt/nonexempt roles. At a minimum, most employers must also comply with federal poster rules under the Fair Labor Standards Act (FLSA).
SwiftSDS helps employers centralize compliance documentation; for federal wage-and-hour posting, reference:
- Employee Rights Under the Fair Labor Standards Act (English)
- Derechos de los Trabajadores Bajo la Ley de Normas Justas de Trabajo (FLSA) (Spanish)
Action steps:
- Post required notices where employees can readily see them (breakroom, near time clock, intranet for remote staff where permitted/required).
- Provide Spanish-language versions where required or where a significant portion of employees are Spanish-speaking.
- Keep a record of poster version dates and update logs.
For related California hiring-process compliance (especially relevant to multi-site employers), see Are employers required to post job openings california.
Practical compliance checklist for HR and owners
Policy and documentation
- Confirm your policies align with the California Labour Code and applicable Wage Order.
- Update harassment prevention and accommodation procedures consistent with anti discrimination laws in california.
- Maintain accurate job classifications and exemption analyses.
Pay practices
- Validate minimum wage against local ordinances (city/county) and update payroll systems.
- Audit overtime calculations (daily/weekly) and missed break premium logic.
- Review wage statements for California-required fields.
Notices and training
- Ensure FLSA posters are current: FLSA Employee Rights / FLSA Spanish.
- Track California training requirements and document completion.
- Re-check postings whenever you open a new location or change workforce composition (remote/hybrid).
FAQ: California employment laws
Do California employment laws apply to small businesses with only a few employees?
Yes. Many foundational requirements—minimum wage, overtime rules, meal/rest breaks (for nonexempt employees), payroll timing, workers’ compensation, and various notice obligations—apply even to very small employers. Additional requirements may trigger at thresholds like 5, 15, or 50 employees.
How do I keep up with new California employment laws each year?
Set a recurring annual compliance review (often Q4–Q1), subscribe to agency updates (DLSE/CRD), update policies and posters, and retrain managers. “New CA labor laws” often impact wages, leave, retaliation protections, and enforcement—so plan for operational updates, not just handbook edits.
What’s the fastest way to reduce risk from wage-and-hour claims in California?
Start with classification accuracy, timekeeping discipline, and break compliance. Then audit pay statements and final pay procedures. Wage-and-hour exposure frequently comes from small process gaps that repeat across payroll cycles.
This article is for informational purposes and does not constitute legal advice. For complex questions (multi-state operations, acquisitions, or high-risk terminations), consult qualified California employment counsel.