California Labor Laws

In the US, there are federal laws in place to manage the time spent by employees in the workplace, safeguarding their rights and guaranteeing fair pay for their efforts. These laws act as directives for employers, keeping them in check, and minimizing any forms of abuse or exploitation.

The Fair Labor Standards Act (FLSA), which dates back to 1938, is a critical federal law for time management, setting hourly wage rates and overtime pay, and requiring employers to keep an accurate record of their employees’ working hours. Overtime is pegged at 1.5 times the regular hourly rate for workers who exceed 40 hours a week. However, certain job categories, including executives, professionals, and administrative employees, are exempt from overtime pay depending on their job description and salary.

The Family and Medical Leave Act (FMLA) is another essential federal law that governs time management in the workplace, entitling eligible employees to up to 12 weeks of unpaid leave for specific family and medical reasons, such as the birth or adoption of a child or caring for a family member with a serious health condition. This act also requires employers to maintain employees’ health benefits during their leave and restore them to their previous or equivalent positions upon their return to work.

Employers who contravene federal time management laws face severe legal ramifications, including fines, back pay, and damages. If workers feel that their employer has violated federal time management laws, they can file complaints with the Department of Labor’s Wage and Hour Division for investigation and legal action.

Overall, federal time management laws are instrumental in ensuring that workers are compensated fairly for their time and effort in the workplace, protecting them from abuse and exploitation by employers. The Fair Labor Standards Act and the Family and Medical Leave Act are vital federal laws that govern time management and worker compensation, ensuring fair labor practices across various sectors, including non-profit, public, and private organizations.

Learn more about California Working Time and it’s suggested 4-day Workweek.

Another very interesting fact is that California obliges employers to compensate employees for the time they spend waiting for work to begin. To put it simply, California law recognizes that “reporting time pay constitutes wages,” which means that employers must compensate employees for the time they spend waiting for work to begin. This includes instances where the employee has:

• Physically arrived at the workplace (in time)
• Logged in remotely
• Reported to a client’s job site
• Set out on a route
• Telephoned two hours prior

Exceptions to this rule exist in cases of emergencies like violence or public utility failures, as well as in situations of inclement weather.

When hiring, according to California’s Fair Employment and Housing Act (FEHA), employers are not allowed to discriminate against employees based on specific characteristics such as:

• Race (including hair texture, protective hairstyles, and other race-related characteristics)
• Religion, race, and ethnicity; national origin and ancestry
• Physical or mental impairments
• Medical problems
• Information on the human genome
• Relationship status
• Pregnancy (including childbirth and related medical issues)
• Age
• Sex (including breastfeeding and related conditions)
• Sexual orientation
• Gender identity/expression
• Military service status

The FEHA act prohibits any harassment and retaliation against people who report discrimination on any of these accounts.

In California, employers and employees operate under an “at-will” employment system. This means that when terminating, either party can end the employment relationship at any time without giving a specific reason. However, there are specific regulations in place in California when it comes to terminating employment, such as the requirement to provide final paychecks promptly and the recent mass layoff notification act, as seen below:

• When terminating employment in California, the employer must pay the employee’s final wage immediately if the employee provided a 72-hour notice of termination. If the employee provides less than 72 hours notice, the final wage must be paid within 72 hours of termination. Any accrued vacation time must also be paid out.
• For plant closures or mass layoffs, California requires employers with 75 or more employees to give at least 60 days notice to affected employees and local representatives. This applies to employees who have worked for at least six months out of the preceding 12 months. The WARN Act also requires notice when 50 or more employees are being laid off, the plant is closing or relocating in less than 30 days.

The California Division of Occupational Safety and Health (DOSH) is responsible for maintaining safe working conditions for employees in California. They carry out on-site investigations to prevent work-related injuries and illnesses caused by hazards. In order to protect themselves, employees are allowed to refuse to work in hazardous conditions, and can also report any violations to the relevant authorities.

Now, we will discuss some key labor laws in California that may not be related to the categories we have previously explored. Some of these regulations include:

• California Warehouse Quotas Law – California has implemented the Warehouse Quotas law to limit the quotas that warehouse distribution centers can impose on their employees. This law applies to a single distribution center that hires 100+ employees or 1000+ employees at multiple locations, effective January 1, 2022. If a quota prevents employees from taking a meal or rest breaks, using bathroom facilities, or complying with occupational health and safety standards, it is illegal, and employees may take legal action against the employer who requested it. Those who feel that their rights are being violated due to imposed quotas may report the violation to the California Department of Industrial Relations.
• COVID-19 Exposure Act
• COVID-19 Vaccination Order for Healthcare Workers
• California Whistleblower Protection Laws – If an employee suspects that their employer is violating a state or federal statute, the California Whistleblower Protection Act encourages them to report it to the relevant authorities, including law enforcement agencies, persons with authority over the employee, or another employee authorized to investigate, discover or correct the violation or noncompliance. This act strictly prohibits state officials and employers from taking any retaliatory measures against employees who file complaints.
• California Background Check Laws – Starting in 2018, California employers with five or more employees are prohibited by the “ban the box” law from asking job applicants about their criminal history before offering the job. Furthermore, once the job offer has been made, it cannot be rescinded due to knowledge of the applicant’s criminal past without a written report. However, there are exceptions to this law for community care license applicants and licensees, adult residents of community care facilities, and volunteers and employees of such facilities who have contact with clients. Individuals with convictions more serious than a minor traffic violation are not permitted to work or be present at community care facilities unless they receive an exemption from the Care Provider Management Bureau (CPMB).
• Employer Use of Social Media Laws – A California law outlines that employers are not allowed to ask their employees or job candidates to provide login credentials or any other means of accessing their private social media accounts. Moreover, employers cannot take retaliatory measures, including threatening, punishing, firing or discriminating against an employee for not complying with such requests.
• The Employee Monitoring Law – In California, it is against the law to electronically monitor employees without a court order, as stated in a Senate Bill implemented in 2004. Doing so is considered a misdemeanor. However, employers can conduct electronic monitoring on an employee without prior notice only if they have reason to suspect the employee is engaged in unlawful conduct, and the electronic monitoring would provide evidence of such conduct.
• Drug and Alcohol Testing Laws – Drug and alcohol testing is permitted in California but under specific circumstances and with proper justification. These include testing job applicants during the hiring process, testing if there is reasonable suspicion, testing after a severe injury, testing employees and operators involved in commercial transportation, and testing an employee who is part of a drug or alcohol rehabilitation program.
• Sexual Harassment Training Laws – To prevent sexual harassment in the workplace, California employers with five or more employees are required by the Department of Fair Employment and Housing to provide sexual harassment prevention training. Non-supervising employees must receive at least one hour of training, while supervisors and managers must receive at least two hours every two years. The training must include practical examples that consider gender identity, expression, and sexual orientation.
• The “Silenced-No-More” Act – The Silenced No More Act in California prohibits the use of separation agreements that prevent disclosure of information relating to illegal workplace activities, such as sexual assault, sexual harassment, sex-based harassment, sex-based discrimination, and retaliation against reporting violations in these areas. As a result, confidential settlement agreements in sex-based claims are no longer permitted under this law.
• Cal-COBRA Laws – COBRA is a federal law that permits employees and their families to maintain group health benefits after losing employer-sponsored coverage. The law provides temporary health coverage, which can last between 18 to 36 months, depending on the circumstances surrounding job loss, a reduction in work hours, or major life events such as divorce, the death of a family member, or transitioning between jobs. In California, there is an additional program called Cal-COBRA, which extends the period of health coverage to 36 months if an employee’s federal coverage was initially 18 months.
• Expense Reimbursement Laws – California Labor Code outlines the employee reimbursement obligations for employers. Essentially, the employer is required to compensate employees for any expenses or losses they incur while fulfilling their work obligations. This includes but is not limited to travel expenses, fees for conferences, use of the personal phone for work purposes, work uniforms entertaining business associates, driving costs including tolls and mileage reimbursements, postage, and fees for training and education.
• Record-keeping Laws – Starting from January 1, 2022, employers are now required by law to maintain job applicant information for four years, as per Senate Bill No. 807. This updated regulation replaces the earlier requirement of keeping such records for three years. The retention of personal information for a prolonged period is necessary to help employers make informed decisions when it comes to promotions, providing extra compensation, and taking disciplinary action or terminating an employee. Personal records that fall into this category may include employment applications, payroll authorization forms, performance reviews, attendance records, and various types of notices such as absence, vacation, education, warnings, and termination.
• Independent Contractor ABC Test – In California, there is an ABC test used to determine if a worker is an employee or an independent contractor. To be considered an independent contractor, the worker must meet the following conditions: they must work free from control and direction by the hiring entity, perform work that is outside the hiring entity’s usual course of business, and customarily engage in an independently established trade or occupation. Employers who misclassify independent contractors can face penalties and damages, including fines ranging from $5,000 to $25,000 per violation.

California has its own laws governing the minimum wage that employers must pay their workers, and it is not tied to the Federal Minimum Wage. Currently, beginning January 1, 2024, the minimum wage for all employees is $16.00 per hour.

We should also examine how California governs the minimum wage for workers who receive tips, as well as the minimum wage rates established by local municipalities within the state. According to the US Department of Labor, tipped employees are those who receive over $30 per month in tips on a customary and regular basis. This classification allows employers in many states to pay a reduced minimum wage to tipped workers, as long as it meets the federally mandated minimum of $2.13.

However, California has different regulations that do not permit employers to pay their tipped workers less than the regular minimum wage. Additionally, employees must be given the full amount of their tips earned. This means that in California, tipped employees are entitled to the same minimum wage as other workers i.e. $16.00 per hour. The same situation applies to food delivery positions. In a first-of-its-kind move, California has enacted a new law that specifically addresses how food delivery companies handle tips and gratuities. Assembly Bill 286, which was passed in October 2021, mandates that online food delivery platforms are not allowed to keep any part of a tip or gratuity. The full amount of the tip must be passed on to the delivery person or to the restaurant in the case of a pickup order.

Various California communities can elect to set their own unique minimum wages, which cannot be lower than the state’s minimum wage. Employers are expected to apply the harshest relevant standard that delivers the most benefits to their employees in cases where federal, state, and local minimum wage rules overlap. This indicates that employee pay is based on the highest available rates.

We’ve collected a list of all communities in California that have specific local minimum wage rates to assist you to navigate the various local minimum wage rates. Nevertheless, these wages are subject to change, so we recommend double-checking with local authorities to ensure you have the most up-to-date information.

It is against the law for employees to accept a job for less than the minimum wage unless they are exempt from this regulation due to their specific job category.

In California, the exemptions to the minimum wage law include:

• Outside salespeople
• Employees who are the employer’s spouse, parent, or child
• Apprentices who have been registered with the California Division of Apprenticeship Standards (DAS)

However, there are some exceptional cases that still fall under the minimum wage law but offer specific exclusions from the minimum wage rates. These cases include:

• Physically or mentally challenged workers and non-profit organizations employing such workers (sheltered workshops). These organizations must apply for a license with the California Division of Labor Standards Enforcement to pay special wage rates. Disabled employees must be paid a subminimum wage that corresponds with their productivity when compared to non-disabled employees performing the same job duties. Despite this, the new Senate Bill 639 in California states that this subminimum wage is going to be gradually phased out by January 1, 2025. This is going to result in all employers paying disabled employees at least the minimum wage.
  This exemption is set to be phased out, and more information will be provided in the next heading.
• Learner-employees with no previous experience in their occupations, for their initial 160 hours of work. Employers may pay learners a rate equal to 85% of the minimum wage, which is $13.60.

Download U.S. FLSA Exemption Salary Threshold 2024 Poster now.

The California Department of Industrial Relations confirms that employees who work split shifts are entitled to an extra payment equal to one hour’s worth of wages at the minimum wage rate, whether at the state or local level. This extra pay must be listed as a separate item on the employee’s pay stub, and it is the employer’s responsibility to track any split shifts that are worked. To qualify for the extra pay, the employer must establish an interruption in the work schedule that is longer than a bona fide meal break and is unpaid and non-working. An employee who voluntarily chooses to pick up an extra shift or requests a break for their own convenience is not eligible for the extra pay. Finally, the employee must not live on the premises where they work. While employees who earn more than minimum wage may also be eligible for the split shift premium, the amount of the premium will decrease the higher their wage is.

Under California law, employers are generally required to pay their employees at least twice a month on predetermined paydays. Employers must provide clear information to their employees about when, where, and how they will receive their pay. Additionally, specific deadlines apply for when wages earned during particular pay periods must be paid, as outlined in the following table.

For detailed information on paydays and pay periods, visit the California Department of Industrial Relations website  

In California, any hours worked beyond the limits of 8 hours in a workday, 40 hours in a workweek, or 6 days in a workweek, are considered overtime for nonexempt employees. The employer is forced to pay their employee’s overtime work at either one and a half or double the regular rate of pay.

For any hours worked beyond 8 hours, but up to and including 12 hours in a workday, or the first 8 hours worked on the seventh consecutive day of the workweek, the rate is one and a half times the regular pay rate. Double the regular rate applies to all hours worked beyond 12 hours on a workday and all hours worked beyond 8 hours on the seventh consecutive day of the workweek.

Employers are responsible for keeping track of all overtime hours, worked, authorized or not, and compensating employees accordingly. However, employees are prohibited from working overtime without authorization, concealing such information from the employer, and later claiming for recovery.

California has provisions for calculating overtime based on circumstances that differ from the standard state regulations or circumstances where they don’t apply at all. These exceptions are known as overtime exceptions. They can be applied to the following types of employees:

• Employees working on an alternative workweek schedule
• Health industry employees on an alternative workweek schedule
• Hospital and care center employees with on-site patients
• Camp counselors
• Personal attendants of nonprofit organizations
• Resident managers in retirement homes with under 8 beds
• Employees providing 24-hour residential care for minors
• Ambulance drivers or attendants
• Employees in ski establishments
• Live-in employees

For a complete list of categories of affected employees, as well as regulations that apply to each of them, we advise you to visit this official web page of the California Department of Industrial Relations.

There is another category that is important to mention — exemptions. These apply to employees and occupations where overtime provisions do not necessarily apply. Some examples of employee categories that fall under this list are:

• Executive, administrative, and professional employees who earn a minimum of $1280 weekly (or $66,560 annually)
• Employees in the computer software industry
• Employees of the State and any of its political subdivisions
• Outside salespersons
• Individuals who are the spouse, child, or parent of the employer
• Drivers
• Taxicab drivers
• Airline employees

As above, we will direct you to a government website listing all exemptions from the overtime laws, and ways the listed employee categories can be affected.

Employees in California are entitled to a ten-minute break for every four hours worked. This break must be paid at the regular rate. If an employee works more than two hours in a four-hour period, they are also entitled to a rest period. Employers have the responsibility to provide resting facilities separate from toilet rooms for their employees and should make sure that these accommodations are available as close to work time as possible.

Under California employment laws, employees are entitled to a 30-minute meal break after five consecutive hours of work. However, this break can be waived if the employee works less than six hours a day or both parties agree to forgo it. Additionally, an employee who works more than 10 hours a day is entitled to receive another 30-minute meal break. This second break can only be granted if the total number of hours worked is more than 12 and there is mutual agreement between the employer and employee. If an employee isn’t relieved of all duties during their meal break or they’re required to remain on-site while taking it, then the entire time should be paid as compensation.

In California, it is mandatory for employers to provide their employees with meal breaks. Failure to do so results in a meal penalty, where the employer must pay one additional hour at the regular pay rate for each day the employee did not receive a meal break.

There are certain situations where exceptions apply to resting periods, which do not follow the standard rules. These are some of the occupations and scenarios where such exceptions are applicable:

• Employees who work for less than three and a half hours within a workday are not forced to have a break.
• Rest periods for employees working in residential care facilities may be restricted.
• Performers such as dancers, skaters, swimmers, and others who engage in strenuous activities are entitled to additional rest periods.
• Employers of construction workers may stagger their rest periods so that it does not disrupt the workflow.
• Crew members of commercial fishing boats need to have at least 8 hours of rest during an overnight trip.

California employment laws mandate that employers must provide lactation breaks to employees who need to express breast milk. This is to be done in a clean and private area, with a reasonable amount of time given for the activity. Ideally, lactation breaks should be coordinated with other break times already established by the employer. However, if this is not possible, the employer is not bound to pay for lactation breaks. If the employer fails to provide adequate facilities and time for expressing milk, the employee can lodge a complaint with the Bureau of Field Enforcement (BOFE), which may then issue a citation of $100 per day for each day the employee was denied the opportunity to express milk.

According to a rule of The Supreme Court, which intervened and clarified the Labor Code, it could be lawful to work seven consecutive days in California. To be precise, an employee can work up to 12 days straight if their rest days are scheduled on the first day of the initial week and the last day of the following workweek.

The required leave cases are:

• Family and medical leave – The Family and Medical Leave Act (FMLA) provides certain employees with the right to take up to 12 weeks of unpaid, job-protected leave per year. This leave can be used for a range of reasons, such as caring for a newborn child, an adopted or foster child or a family member with a serious health condition. It can also be used if the employee themselves have a serious health condition that prevents them from working.
• Sick leave – Employers are also required to provide sick leave to all employees who have worked for them for more than 30 days. This can be used for an employee’s own illness or to care for a close family member. Sick leave is accrued at a rate of one hour for every 30 hours worked and can be carried over from one year to the next, with a cap of 48 hours.
• Jury Duty leave – In addition to these, employers are required to allow their employees to take time off for jury duty, although it does not have to be paid.
• Voting time leave – They must also provide at least 2 hours of time off for employees to vote, provided they receive notice at least 3 days in advance. It’s worth noting that there are other types of leave that employers can provide, such as bereavement leave, holiday leave, and maternity leave, but these are not required by law in California.
• Domestic violence/sexual assault leave – If an employee is a victim of domestic violence or sexual assault, they can request time off to protect themselves and their children. Employers with 25 or more employees must also provide time off for medical examinations or care services related to domestic violence or sexual assault.
• Emergency response leave – If an employee needs to attend emergency duties as a volunteer firefighter, rescue personnel, or peace officer, the employer must provide them with unpaid leave. Employers with 50 or more employees must also provide up to 14 days of unpaid leave for employees to acquire training in these occupations.
• Organ and bone donation leave – If an employee wishes to donate bone marrow or an organ, employers must provide up to 60 days of leave per year. The first 30 days must be paid, and the following 30 days can be unpaid. The employer may also ask the employee to use up to 5 days of their accrued paid time off for bone marrow donation leave and up to 15 days off for organ donation leave.
• School leave – For employees with school-age children, employers must allow unpaid time off to attend disciplinary meetings or hearings. Employees are also entitled to up to 40 hours of time off per calendar year for general school involvement activities for their children.
• Military leave – For active service members of the Armed Forces, employers must provide leave for the duration of their deployment and the same conditions of employment upon their return. For members of the National Guard or the Naval Militia, employers must provide 17 days of unpaid leave and 15 days for members of the state military reserve. Additionally, larger companies with 25 or more employees must provide the spouse of a military service member with 10 days of unpaid leave while their spouse is on leave from deployment.

In contrast, there are situations where the employer is not forced to grant the employee a leave of absence. For instance:

• Bereavement Leave – When it comes to taking leave for bereavement, employers do not have any legal obligation.
• Vacation Time – Employers are not required by law to offer their employees paid vacation time. However, if an employer has promised such benefits in their company policy, they are obligated to compensate their workers for any unused vacation time.
• Holiday Leave – Employers are not required to grant their employees any paid time off for holidays.

Here is a table of official state holidays observed in California:

If minors want to work in California, they need to obtain an Employment Certificate, which is also referred to as a Work Permit. The issuance of these certificates is done by either the California Department of Labor or the minor’s school, but minors working in the entertainment industry can only obtain them through the state Labor Department. Furthermore, there are limitations on the work hours and night shifts that minors can work, which vary depending on whether they are under 16 years old or between 16 and 17 years old:

• If you are under the age of 16 and not in school, you may work up to 8 hours per day, 48 hours per week, or 6 days per week. However, you are only permitted to work 3 hours each school day or 18 hours per week during school hours.
• From June 1 through Labor Day, you are not permitted to labor between the hours of 7 p.m. and 7 a.m.
• Still, you may work up to 8 hours per day, 48 hours per week, If you’re between the ages of 16 and 17. You can work 4 hours per day and a total of 28 hours per week for combined work and academy conditioning throughout the academy week.
• There are several limits on working hours that apply to children in this age range. Work is specifically prohibited between 10 p.m. and 5 a.m., or between 12.30 a.m. and 5 a.m. if the following day isn’t an academy day.
• In order to safeguard minors from hazardous work environments, California has implemented all federal regulations. Consequently, employers are restricted from hiring minors for certain occupations that are considered hazardous, which include handling explosives, operating a motor vehicle, mining, quarrying, logging, and operating power-driven machinery like circular or band saws or guillotine shears.

For a full list of prohibited occupations for minors in California, you can take a look at this official guide to California Child Labor Laws.