California Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2024)

In this article, we’ll dive deep into California’s labor laws, with details on all the important aspects of the state’s regulations on your employees.
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California labor laws are the backbone of a fair and just workforce. They ensure that both employers and employees are protected and treated equitably. So, understanding the intricacies of California labor laws is not just a legal requirement but a fundamental necessity for businesses and workers alike.

As part of our 50-state series, this article will unravel the nuances of California labor laws, providing a comprehensive guide tailored to the needs of both employers and employees.

We aim to equip you with a comprehensive understanding of California labor laws. We’ll delve into the crucial aspects of labor laws, including wages, breaks, overtime, leave, child labor, and more. By the end of this article, you’ll be armed with the knowledge needed to foster a fair and productive work environment in the Golden State.

Meals and Breaks in California

Let’s begin by addressing one of the most commonly discussed laws—meal and break laws.

California's Meal & Rest Break Requirements

In the Golden State, employers are legally obliged to provide meal and rest breaks to their employees depending on how long they work.

Break Type

30-minute Lunch Break

When an employee works more than five hours in a single day.

2nd 30-minute Lunch Break

When an employee works more than twelve hours in a single day.

10-minute Rest Break

For every four hours worked.

California vs. Federal Regulations

Under federal regulations, there’s no mandate for meal or rest breaks. Federal law leaves the decision to give breaks up to states and employers.

California, on the other hand, sets the bar high. The state’s labor laws are more employee-friendly, ensuring Californians get the breaks they deserve.

Leave and Paid Time Off (PTO) in California

Leave and paid time off (PTO) is a crucial part of work-life balance.

Family and Medical Leave

California has its own Family Rights Act (CFRA), which runs in tandem with the federal Family and Medical Leave Act (FMLA). It means that eligible employees in California can take up to 12 weeks of unpaid leave within a 12-month period without the fear of losing their jobs. The reasons for the leave can include the birth or adoption of a child, a serious health condition, pregnancy, or caring for a family member with a serious health condition.

The CFRA applies to employers with just five or more employees, while FMLA only kicks in at 50 or more employees. California ensures that smaller businesses also provide these important benefits to their staff.

Sick Leave

State law requires employers to provide paid sick leave to employees. For every 30 hours worked, employees accrue one hour of paid sick leave. 

Employers must permit unused paid sick leave to carry over to the following year. However, they can set a cap on carryover hours, which cannot be lower than 80 hours or ten days.

Vacation Days

California labor laws don’t mandate that employers provide paid vacation days.

Paid Time Off (PTO) Obligations for Employers

As an employer, you should know that employees can enjoy their leave without fearing job loss or retaliation. Employers are expected to adhere to these regulations and provide employees with the time off they’ve earned.

Overtime Regulations in California

With California overtime, extra hours can turn into a great payday.

Overtime Pay

California has some of the most employee-friendly overtime laws in the nation. If you’re an eligible employee who works more than eight hours in a workday or more than 40 hours in a workweek, you’re eligible for overtime pay.

Break Type

Daily Overtime

1.5 times regular pay for every hour worked beyond eight in a single workday.

Weekly Overtime

1.5 times regular pay if you exceed 40 hours in a workweek — even if you didn’t work more than eight hours in any day.

Exemptions

Not everyone is eligible for overtime. There are some important exemptions to consider.

Exempt Employees

Exempt employees are typically salaried workers who are exempt from overtime pay under the Fair Labor Standards Act (FLSA) in the United States. They are exempt because they meet specific criteria related to their job duties, salary level, and responsibilities, which classifies them as ineligible for overtime pay.

The Alternative Workweek Schedule

The Alternative Workweek Schedule (AWS) is a system in California that allows eligible employers and employees to agree on alternative workweek arrangements, such as four 10-hour workdays instead of five 8-hour days.

Workers under an approved AWS are exempt from daily overtime pay, typically receiving overtime only after exceeding 40 hours in a workweek, which provides flexibility in work hours while maintaining fairness in compensation.

Calculating Overtime

Calculating overtime in California is straightforward.

Note: Your regular rate might vary if you have different pay rates for different tasks, so it’s essential to keep a close eye on your earnings.

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Wages and Benefits in California

Minimum Wage

As of 2023, California’s minimum wage is $15.50 per hour, regardless of company size. On January 1st, 2024, it will increase to $16.00 per hour. 

Exceptions and Special Cases

Employees exempt from California’s minimum wage law include outside salespersons, people who are immediate family members of the employer, and apprentices regularly indentured under the State Division of Apprenticeship Standards

Additionally, there are exceptions for learners, disabled employees, and nonprofit organizations employing disabled workers, allowing for specialized wage arrangements in certain cases.

Pay Frequency

In California, wages must be paid at least twice during each calendar month, with regular paydays designated in advance by the employer.

Wages earned between the 1st and 15th days of the month must be paid by the 26th day of that month, and wages earned between the 16th and the last day of the month must be paid by the 10th day of the following month.

Pay Stubs

Pay stubs must include essential information about the employee, employer, rate of pay, and other relevant details. This information is typically included on a detachable part of the employee’s paycheck or direct deposit statement.

Final Paychecks

If an employee quits without giving 72 hours prior notice, they may request their final wage payment to be mailed to a designated address, with the date of mailing considered the date of payment. 

For employees who are terminated or laid off, the final wage payment should be made at the place of termination. For employees who quit without notice and do not request mailed payment, it should be made at the employer’s office within the county where the work was performed.

Benefits

In addition to the leave and PTO we discussed earlier, California employers are required to offer the following benefits.

Prevailing Wages in California

Prevailing wages are the hourly wage rates, including benefits and overtime pay, determined by government agencies and enforced on publicly funded construction projects.

Public Works Projects

In California, state law requires that workers on public construction projects, such as roads, bridges, and government buildings, be paid prevailing wages. These wages are determined by the California Department of Industrial Relations (DIR) based on surveys of wages paid in the local labor market. 

Contractors and subcontractors working on public works projects must pay their workers these predetermined prevailing wages, which include not only the base hourly rate but also fringe benefits like health and pension contributions.

The goal of prevailing wage laws in California is to ensure that workers are compensated fairly, maintain decent living standards, and promote a level playing field for contractors bidding on public projects. It helps prevent the exploitation of workers and the race-to-the-bottom scenario where contractors cut labor costs at the expense of workers’ wages and benefits. 

Compliance with prevailing wage laws is a legal requirement, and contractors must submit certified payroll records to demonstrate that they are paying the mandated prevailing wages on public works projects.

Click here for the current prevailing wage rates in California.

Hiring Practices in California

Hiring practices are the methods and procedures employed by employers to recruit, select, and onboard new employees for their organizations. Whether you’re looking for a job or recruiting new candidates, knowing the guidelines is crucial!

Job Postings

When it comes to job postings, employers are required to provide the following details in their job listings.

Background Checks and Drug Testing

While background checks and drug testing are common in hiring processes, California has its own rules.

Anti-Discrimination Laws

In California, anti-discrimination laws are comprehensive and cover various aspects of employment, including advertisements, job applications, interviews, hiring, working conditions, and participation in training programs or employee organizations. 

The Fair Employment and Housing Act (FEHA) extends its protections to public and private employers, labor organizations, and employment agencies, making it illegal for employers with five or more employees to discriminate against job applicants or employees based on protected categories or retaliate against them for asserting their rights. 

Equal Employment Opportunity (EEO)

The state government is committed to providing equal employment opportunities for all individuals, regardless of various protected categories, such as age, disability, gender identity, race, religion, and sexual orientation. 

This commitment extends to all state departments, which must proactively prevent and address workplace discrimination and harassment while integrating equal employment opportunity principles into their human resource management policies and practices, including recruitment, training, and employee advancement. 

Want to ensure your company stays compliant with leave, PTO, overtime, and wage laws in California – or in any other state? Try Workyard!

With Workyard, you can…

Click the links above to discover how Workyard can help handle your employment compliance needs, or go to the link below to start a fully-featured 14-day free trial today:

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Health and Safety Standards in California

Health and safety standards in California encompass regulations and requirements that aim to ensure safe and healthy workplaces, covering aspects such as workplace conditions, equipment safety, hazard communication, and employee training.

Workplace Safety Regulations

California’s Division of Occupational Safety and Health (Cal/OSHA) is the powerhouse behind enforcing workplace safety. They set the standards and make sure employers play by the rules.

California’s Division of Occupational Safety and Health (Cal/OSHA) is the powerhouse behind enforcing workplace safety. They set the standards and make sure employers play by the rules.

Employers are responsible for providing training to employees on workplace safety. This includes proper procedures, emergency response plans, and how to use safety equipment.

If you ever find yourself in a situation where you believe your workplace is unsafe, you have the right to report it. California encourages employees to speak up without fear of retaliation.

Note: The California Whistleblower Protection Act protects employees who report workplace safety violations.

Child Labor Laws in California

Child labor laws in California establish rules and restrictions regarding the employment of minors, including work permits, age limitations, and hour limitations for various industries. Child labor laws apply to almost all minors under the age of 18, with exceptions for emancipated minors, who can apply for work permits without parental consent.

Work Permits

Work permits are a requirement for minors under 18, and they are obtained through the school during the academic year or from the school district superintendent during summer months or when school is not in session. 

The permit, known as the “Permit to Employ and Work,” is acquired by completing a “Statement of Intent to Employ Minor and Request for Work Permit” form, signed by both the minor’s parent or guardian and the employer. Permits issued during the school year expire five days after the start of the next school year and must be renewed.

The Entertainment Industry

For minors aged 15 days to 18 years employed in the entertainment industry, including those making phonographic recordings or working as advertising or photographic models, specific permits are required. 

These entertainment work permits, both for employing and working, are issued by the Labor Commissioner’s Office and are mandatory, even for noncommercial entertainment activities. The regulations ensure that minors in the entertainment sector are protected and that their work is carried out safely and complies with labor laws.

Employee Termination and Resignation in California

Employee termination and resignation in California are subject to specific legal requirements and notice obligations, including considerations for notice periods, severance pay, and the state’s at-will employment doctrine.

At-Will Employment

California is an at-will employment state, meaning employers can terminate employees for any reason (with some exceptions) and without notice. Similarly, employees can resign without notice.

Exceptions

While at-will employment is the general rule, there are exceptions. Employers cannot terminate employees for discriminatory reasons or for violating public policy. It’s crucial to ensure that terminations are not based on factors like race, gender, religion, or other protected characteristics.

Notice

California labor law does not require employers to notify terminated employees. However, employees may be entitled to certain notices, such as the federal WARN Act’s notice requirements for mass layoffs.

Resignation

While employees aren’t legally required to provide notice of resignation, it’s considered a professional courtesy. Giving notice allows employers to plan for a smooth transition.

As we discussed, employers in California are required to provide the final paycheck promptly, typically on the last day of work. This paycheck should include all wages earned, including unused vacation time.

Severance Pay and Agreements

Severance pay isn’t mandated by California labor law, but some employers offer it as part of an employment agreement or policy. Severance agreements may include financial compensation, continued benefits, or other terms and conditions.

Right-to-Work State

California is not a “right-to-work” state. This means that employees covered by a collective bargaining agreement are typically required to pay union dues or fees, even if they choose not to join the union.

Unemployment Benefits in California

Unemployment benefits in California provide financial assistance to eligible individuals who are unemployed through no fault of their own and meet the state’s requirements.

Eligibility

Not everyone who loses their job qualifies for unemployment benefits. California has specific eligibility criteria, including:

Work History

You must have a recent work history and have earned a minimum amount of wages over a specific base period. The base period is generally the first four of the last five calendar quarters before you file your claim.

Reason for Job Loss

You must have lost your job through no fault of your own. This typically includes layoffs, business closures, or circumstances beyond your control.

Availability and Willingness to Work

You must be ready and willing to work and actively seek employment. You’ll need to certify your job search efforts regularly.

The Application Process

Filing for unemployment benefits in California is a straightforward process. You can apply online through the California Employment Development Department (EDD) website. The EDD will review your application and notify you of your eligibility.

Benefit Amount

Unemployment benefits in California are calculated based on your past earnings. The EDD uses a formula to determine your weekly benefit amount. Currently, the maximum weekly benefit amount in California is $450.

For Employers

Employers play a crucial role in the unemployment benefits process. If an employee files a claim, employers will receive notices and have the opportunity to provide information about the claim. It’s important for employers to respond promptly and accurately.

Penalties for Noncompliance in California

Penalties for noncompliance with labor laws in California can include fines, penalties, and legal action, which can vary depending on the nature and severity of the violation.

Penalties and Fines

The penalty for an initial violation is $100 for each instance of failing to pay an employee, while for subsequent or willful violations, it increases to $200 for each instance, plus an additional 25% of the wrongfully withheld wages.

If you fail to provide an employee with the required meal break on any workday, you are liable to pay the employee an extra hour of wages at their regular rate, and this additional pay constitutes owed wages. Employees have a three-year window to file a claim for unpaid wages.

For misclassifying an employee and not paying them overtime, the final penalty can amount to the amount of unpaid overtime in addition to 30 days of wages.

The penalty for a child labor violation in California is:

Discrimination or harassment in the workplace can lead to hefty fines, legal actions, and potential lawsuits.

Enforcement and Reporting

Enforcing labor laws in California is a serious business, and several agencies are responsible for it:

California Department of Industrial Relations (DIR)

This agency is your go-to for issues related to wages, working conditions, and workplace safety.

California Labor Commissioner’s Office

If you have disputes over unpaid wages, you can file a wage claim with this office.

Equal Employment Opportunity Commission (EEOC)

For discrimination complaints, the EEOC plays a crucial role in investigating and resolving issues.

Labor Unions and Collective Bargaining in California

Labor unions facilitate collective bargaining between employees and employers to negotiate employment terms, wages, and working conditions.

California has a robust labor union presence, particularly in industries like healthcare and education. Labor unions play a significant role in advocating for workers’ rights, negotiating contracts, and addressing workplace issues. 

Collective bargaining agreements between unions and employers often determine wages, benefits, and working conditions.

The Bottom Line on California Labor Laws

Congratulations! You’ve made it to the end of our comprehensive guide on California labor laws. We’ve covered a lot of ground, so let’s take a moment to recap the key takeaways and why they matter for businesses and workers alike.

To navigate California’s labor laws effectively, it’s crucial to grasp the essentials.

Start by learning wage and benefit regulations. Ensure compliance with meal and rest break rules and accurate overtime calculations to prevent potential penalties. Familiarize yourself with family leave, sick leave, and vacation policies to support work-life balance for your employees. Be aware of child labor laws, which involve work permits and hour limitations when employing minors. 

Adhere to hiring practices laws, covering job postings, interviews, background checks, and anti-discrimination measures. Prioritize workplace safety to prevent accidents and injuries among your workforce. Understand the legal requirements for employee termination and resignation. Familiarize yourself with the unemployment benefits system, should the need arise. Lastly, ensure compliance with labor laws to avoid fines and legal consequences.

California labor laws aren’t just rules to follow; they’re a blueprint for fostering a fair, safe, and productive work environment. By adhering to these regulations, employers can build employee trust, reduce turnover, and maintain a positive reputation.

Employees, on the other hand, can rest assured that their rights are protected, ensuring they’re treated fairly and compensated appropriately for their hard work.

If you ever find yourself in a situation where you have specific questions or concerns about labor laws in California, don’t hesitate to seek legal advice. Employment attorneys are well-versed in the intricacies of these laws and can provide valuable guidance.

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