Employment and labor laws in California [Updated 2023]

When setting hourly wages for employees, Rippling automatically flags minimum wage violations based on the state regulations where employees are located—which especially comes in handy for ensuring compliance in California, where the minimum wages are higher.

Overtime pay in California

Every so often employees need to work outside of their typical hours to knock out a time-sensitive project. When this occurs, California requires employers—unless otherwise exempt—to pay overtime to employees based on how much extra time they work, at the rate of:

• 1.5x pay per hour after working eight hours (up to and including 12 hours) in a workday, and for the first eight hours worked on the seventh consecutive workday in a week.
• Double pay per hour after working 12 hours in a workday, and after eight hours worked on the seventh consecutive workday in a week.

To adhere to these overtime pay laws in California, Rippling’s payroll software automatically applies the correct pay rates when an employee’s hours trigger overtime pay requirements.

Pay transparency in California

Gone are the days of gatekeeping salary ranges from job candidates in hopes of trimming headcount costs. Pay transparency laws have been picking up steam across the US and even abroad in hopes of preventing wage disparities based on factors like gender, race, and age—equal pay for equal work. It’s no surprise that California—being one of the most worker-friendly states—was the first to introduce this legislation in 2018. 

As of January 1, 2023, California’s Pay Transparency Act (SB-1162) requires employers with 15 or more employees—with at least one working in California—to include a compensation range on all job postings whether they are shared internally, externally, or on third-party platforms. In a similar vein, this bill mandates employers with one or more employees to disclose a position’s pay scale to current employees upon request. Employers who violate these laws in California could face up to $10,000 in penalties.

Rippling enforces compensation bands during onboarding and flags out-of-band adjustments, so you can approve special cases and block others as needed.

Breaks and rest periods in California

California employers are obligated to provide nonexempt employees with ample opportunity to rest and eat meals. The number of hours an employee works determines the duration of the rest break they’re entitled to—and whether they’re compensated during it—with most California employees receiving:

• An unpaid, uninterrupted 30-minute, at minimum, meal break when they work for more than five hours a day
• An additional unpaid 30-minute meal break if they work for more than 12 hours a day
• A paid 10-minute rest period for every four hours they work

Leaves of absence in California

Whether recovering from an illness, caring for a loved one, or navigating a serious medical condition, every so often employees need to take some time off from work to deal with a personal matter. During those times, work should be the last thing on their minds; that’s why there are US laws in place to protect employees’ jobs until they return to work. The California Family Rights Act (CFRA)—similar to the federal Family Medical Leave Act (FMLA)—gives employees the right to take this protected leave of absence. However, this bill doesn’t protect every employee. Let’s dive into what is required in California.

To be eligible for CFRA leave, a California employee must:

• Have worked at the company for more than 12 months
• Have worked for 1,250 minimum hours in the 12-month period before their leave date
• Work for an employer that has five or more employees

Once these qualifications are met, many employees have the right to take leave for up to 12 work weeks in a 12-month period for: 

• A serious personal health matter
• A family member’s or “designated person’s” serious health matter
• A child’s birth, adoption, or foster care placement

While there's no legal mandate for CFRA leaves to be paid, some employers may choose to pay their employees, and under certain circumstances, employees may be able to use accrued paid leave. Employees also may be eligible for benefits administered by the Employment Development Department.

Pregnancy disability leave in California

Even if an employee is ineligible for CFRA leave, they’re entitled to pregnancy disability leave for up to four months if disabled by pregnancy, childbirth, or a related medical circumstance. If they do happen to be a CFRA-eligible employee at that time, they may be able to take a CFRA leave for the birth of their child on top of pregnancy disability leave. 

In California, both CFRA and pregnancy disability leave guarantee an employee to be reinstated to their same—or a comparable—position when the leave comes to a close. 

Paid sick leave in California

California requires employers to provide a minimum of 40 hours—the equivalent of five typical working days—of paid sick leave (PSL) per year for a worker to:

• Recover from a physical condition, mental illness, or injury
• Seek a medical diagnosis, treatment, or preventative care
• Take care of a sick family member

California workers who are full-time employees, part-time employees, and independent contractors are all eligible for PSL, as long as they:

• Have worked for the same employer for at least 30 days within the year
• Are employed for at least 90 days before taking paid sick leave

Rippling allows you to automate and customize your leave policy, giving you full visibility into how employees are utilizing it.

Workplace safety in California

Employers have a responsibility to maintain a safe working environment for all employees by providing safe equipment, training employees on safety procedures, and implementing company-wide safety policies. 

The US has federal laws in place to protect employees from unsafe working conditions, but you guessed it—California has even stricter state regulations. The California Occupational Safety and Health Administration (Cal/OSHA), responsible for enforcing these laws, has the authority to inspect a workplace at any time, issue citations for non-compliance, and provide training on workplace safety.

In certain situations where federal health and safety laws do provide some protections, Cal/OSHA takes it a step further. Some examples of these instances include:

• Exposure to chemicals (including acetone, aniline, manganese, and diacetyl) or concrete and masonry dust
• High-rise window cleaners
• Mining and tunneling jobs

Sometimes, Cal/OSHA provides protections that the federal law does not, like in cases where there are:

• Repetitive motion injuries
• Heat-related illnesses
• Aerosol transmissible diseases (airborne diseases like tuberculosis, measles, and flu)

Cal/OSHA also requires California employees to develop an Injury and Illness Prevention Program (IIPP) to inform employees of the potential hazards in their workplace.

Rippling PEO offers a convenient pay-as-you-go workers’ comp plan that doesn’t require you to pay upfront for the whole year, so you can scale your business stress-free in California and anywhere else in the US. 

Discrimination and harassment laws in California

California has some of the most comprehensive legal protections in place against discrimination and harassment in the workplace, set forth by the California Fair Employment and Housing Act (FEHA). Under FEHA, it’s illegal for employers, regardless of company size, to discriminate against or harass employees on the basis of a variety of factors. Let’s get into it.

The Civil Rights Department (CRD) enforces laws that protect against discrimination and harassment based on:

• Race
• Ethnicity
• Ancestry
• Religion
• Sex
• Sexual orientation
• Gender identity and expression
• Disability (physical and mental)
• Genetic information
• Marital status
• Military or veteran status
• Age (40 and over)
• Medical condition

Employers are responsible for complying with anti-discrimination laws during the entirety of the employment relationship, from hiring to paying, promotions, termination, and more. For example, it’s prohibited to let someone go due to race or religious beliefs or pay people different wages based on their gender identity. 

FEHA considers harassment to be a form of discrimination. Harassment occurs when there is unwelcomed behavior toward an employee—based on the characteristics listed above—such as offensive jokes, insults, racial or sexual slurs, physical or sexual assaults, verbal threats, inappropriate objects or photos, and other conduct that interferes with an employee’s well-being and performance at work. 

Another situation that qualifies as harassment is when an employee is forced to withstand an offensive environment as a condition of their employment. However, it’s important to distinguish minor annoyances like a one-off joke from harassment. As a rule of thumb, offensive conduct crosses over into illegal territory when it’s extreme enough to create a hostile work environment. 

Sexual harassment training requirements vary by state, and employers in California must provide at least one hour of sexual harassment training to all employees—two hours to supervisors—every two years. Rippling’s Learning Management System is pre-loaded with core sexual harassment training courses to ensure each employee meets the state requirements based on where they live. 

In California—and federally—employers aren’t only liable for the discrimination and harassment they commit; they are also on the hook for the words and actions of their employees, regardless of whether they knew about it happening. California takes workplace discrimination and harassment seriously, and violations may result in penalties and hefty fines.

Unions in California

A labor union is a group of employees who join together—or “act collectively” in the advancement of fair working conditions, such as higher wages, more time off, and better benefits. The National Labor Relations Act (NLRA) guarantees employees the right to:

• Organize or join a union to negotiate with their employer
• Bargain collectively by choosing employee representatives for a contract setting work conditions 
• Discuss their employment terms and conditions with co-workers
• Take action to improve working conditions by filing complaints with their employer or the government, or seeking help from a union
• Strike and picket, depending on the reason
• Abstain from joining a union

Under the NLRA, It’s illegal for unions to threaten employees about losing their jobs or take any adverse actions against them if they don’t support the union. Similarly, employers can’t prohibit, discourage, bribe, fire, demote, or threaten employees who wish to support a union. 

However, some union-related legislation is on a state-by-state basis, like “right-to-work” laws. These laws prevent employers from mandating their employees to join a union as a condition of their employment. In other words, in states with right-to-work laws, employers can’t retaliate if an employee chooses not to join a union. California is not a right-to-work state, meaning private employers can require their employees to join a labor union. 

FAQs about California labor and employment laws

Are independent contractors covered under California employment laws?

In short, it depends on the law. Some employee rights extend to contractors, like paid sick leave, whereas others, like wage laws, do not. Our analyzer tool can help you ensure you’re classifying workers correctly and complying with employment regulations.

Does at-will employment exist in California?

Yes, California is an at-will employment state—meaning employers can fire employees without warning, at any time, for any reason, and employees can do the same with quitting.

What privacy rights do employees have in California?

The California Consumer Privacy Act (CCPA) requires employers to grant employees the right to:

• Know what personal information is being collected and how it is used
• Delete personal information collected about them (with exceptions)
• Opt out of the selling or sharing of their personal information
• Not be discriminated against for exercising their CCPA rights

Are background checks legal in California?

Yes—employers in California are allowed to run background checks on job applicants and employees, but there are some specifications around when they conduct them and what they’re permitted to ask. For example, the Fair Chance Act prohibits employers from asking candidates about their criminal history.

Are whistleblowers protected in California?

Yes. The California Whistleblower Protection Act protects employees who inform the government of illicit activities from retaliation.

Is workers’ compensation coverage required in California?

Yes. In California, it’s a criminal offense for employers to not provide workers’ compensation for employees during a work-related injury or illness. Employers who don’t comply with this law may rack up hefty fines between $10,000 and $100,000—or even jail time.

Are there required healthcare benefits in California?

Under federal law, employers with 50 or more full-time employees are required to provide health insurance benefits. According to the Insurance Equality Act, California employers who provide healthcare plans must offer equal coverage for spouses and registered domestic partners.

Are California employers required to provide bereavement leave?

Yes. As enforced by the Civil Rights Department, most employees are entitled to at least five days of bereavement leave following the death of a family member.

What employee protections are available in California if layoffs occur?

If a business is covered by the federal Worker Adjustment and Retraining Notification (WARN) Act, employees have the right to a 60-day notice before being laid off, whether in California or anywhere else in the US.

Disclaimer: Rippling and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.