California Labor Laws

The United States has enacted federal labor laws to regulate employees’ time in the workplace, safeguard their rights, and ensure fair compensation for their work. These laws serve as directives for employers, helping to prevent abuse and exploitation across various sectors, including non-profit, public, and private organizations.

The Fair Labor Standards Act (1938) sets standards for hourly wage rates and overtime pay, requiring employers to maintain accurate records of their employees’ working hours. Overtime pay must be at least 1.5 times the regular hourly rate for employees who work more than 40 hours a week. California overtime exemptions are determined through a three-pronged test that evaluates salary specifics for certain job categories like executives, professionals, and administrative employees.

Violations of federal time management laws may result in fines, penalties, and damages. Workers can file complaints with the Department of Labor’s Wage and Hour Division to initiate an investigation and legal action.

Another interesting fact is that California law on reporting time pay obliges employers to compensate employees if they report to work but spend time waiting. This reporting could be both physical or remote and 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 rout
• Telephoned in advance

Exceptions to this rule include emergencies such as when operations cannot begin or continue due to threats to employees or property, or when civil authorities recommend that work not begin or continue.

Learn more about California Working Time and its suggested 4-day Workweek.

When hiring, according to California’s Fair Employment and Housing Act (FEHA) 1959, employers are not allowed to discriminate against employees based on characteristics such as:

• Race, religion, ethnicity, national origin, and ancestry
• Physical or mental disability
• Medical condition
• Marital status
• Age
• Sex, gender identity/expression
• Sexual orientation
• Military/veteran status
• Genetic information

People who report discrimination on any of these accounts are protected by FEHA from any harassment and retaliation.

The California Division of Occupational Safety and Health (DOSH) is responsible for maintaining safe working conditions for employees in California. It carries out on-site investigations to prevent work-related injuries and illnesses caused by hazards. 

Employees can refuse work in hazardous conditions, and report violations to relevant authorities. Among DOSH’s responsibilities is also to set and enforce standards; provide outreach, education, and assistance; and issue permits, licenses, certifications, registrations, and approvals.

In California, employers and employees operate under an ‘at-will’ employment system. This means that either party can end the employment relationship at any time without giving a specific reason. However, California regulations dictate certain obligations when terminating employees, which are as follows:

• Final wages in California must be paid within 72 hours to all employees without a fixed-term contract who resign without giving prior notice. If the employee provides at least 72 hours’ notice before quitting, their wages must be paid on their last day of work. The law also provides that any accrued vacation time be paid out.
• For plant closures or mass layoffs, California WARN Act requires employers with any number of employees to give at least a 60-day notice to affected employees and local representatives. The notice is also needed when 50 or more employees are being laid off within the next 30 days, or if there’s a relocation of at least 100 miles of any number of employees. The Act applies to employers who have employed 75 or more full and part-time employees in the preceding 12 months and employees who have worked for at least six months out of the preceding 12 months.

Some other key legislations in California that may not be related to the categories above include:

• California Whistleblower Protection Laws: If an employer is violating a state or federal statute, the California Whistleblower Protection Act encourages employees to report it to relevant authorities which may include law enforcement agencies, persons with authority over the employee, or another employee authorized to investigate, discover, or correct the violation or noncompliance. This Act protects the whistleblowing employees from any retaliatory measures.
• Fair Chance Act (Ban the Box Law): California Fair Chance Act 2018 prohibits employers with at least five or more employees, from ascertaining the criminal history of prospective applicants prior to extending a formal job offer. Once made, the offer cannot be rescinded without following due procedures such as issuance of written notice, report of conviction history, and a buffer period of five days for response. The law also covers union hiring halls, labor contractors, short term employment agencies, and client employers. However, farm labor contractors, certain positions at healthcare facilities and criminal justice agencies, as well as those required by law to restrict employment based on background checks, are exempted.
• Employer Use of Social Media Laws: California Assembly Bill No. 1844 outlines that employers are not allowed to ask their employees or prospective candidates to reveal their social media login credentials, open their accounts while the employer is present, or share any personal social media information. Moreover, employers cannot take retaliatory measures, including threatening or disciplining an employee for not complying with such requests. However, exceptions to employer use of social media include cases involving investigation of misconduct or unlawful conduct by the employee, or where an employer issued electronic device needs to be accessed.
• Employee Electronic Monitoring Law: Employers in California are prohibited from recording employees without a court order in certain workplace locations, they also must first provide notice to employees if they wish to perform any form of electronic monitoring, except in specified circumstances, as per California Senate Bill 1841.
• California Warehouse Quotas Law: California Warehouse Quotas law 2022 puts a limit on the work standards (quotas), requiring employees to meet specific productivity targets within a set time frame, such as processing 200 packages per hour. If a quota prevents employees from taking a meal or rest break, using bathroom facilities, or complying with occupational health and safety standards, it is deemed illegal. Employees may initiate legal action and report quota violation to the California Department of Industrial Relations.
• Continuation of Health Coverage Laws (COBRA): 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.
• Termination Expense Reimbursement Law: State law requires payback for losses caused by termination in California. Essentially, the employer must reimburse employees for any expenses or losses they incur as a result of being terminated from employment or obeying employer directions. Such payments may include but are not limited to attorney fees and interest will accrue from the date the employee incurs the loss.
• COVID-19 Laws: The COVID-19 Exposure Act (AB 685) was signed into law in September 2020, requiring employers to notify employees of potential COVID-19 exposure within one business day, report outbreaks to local public health departments within 48 hours, and maintain such records for at least three years. Many provisions of this Act have since expired or been amended as of January 1, 2023, and employers are advised to refer to updated regulations for current compliance requirements. Additionally, the COVID-19 Vaccination Order for Healthcare Workers mandated that healthcare workers be vaccinated against COVID-19. The latest guidelines on this Order can be found on the California Department of Public Health (CDPH).
• Drug and Alcohol Testing Laws: Drug and alcohol testing in California is constrained to limited and specific situations, despite being allowed. Random drug tests are not encouraged and strictly defined, yet suspension-based alcohol/drug tests are allowed. Suspicionless drug tests are acceptable as a job condition once an offer is made and work has not yet begun. Discrimination against employees for the use of marijuana/cannabis off-duty/site is not allowed (effective January 1, 2024) and employers with over 25 employees are encouraged to accommodate rehabilitating employees. Additionally, wrongful termination due to drug testing can be brought to court. It’s worth noting that employers are allowed to set drug-free workplace policies with guidelines, despite the legality of marijuana in the state. Further, certain job categories impose drug and alcohol testing due to their intricate nature such as commercial transportation operators.
• Sexual Harassment Prevention Laws: The Silenced No More Act in California prohibits the use of nondisclosure and non-disparagement provisions that prevent disclosure of information relating to illegal workplace activities, such as sexual assault, sexual harassment, sex-based discrimination, and retaliation against reporting associated violations.  Additionally, employers with five or more employees are required by the Department of Fair Employment and Housing (DFEH) to schedule 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. 
• Record-keeping Laws: Employers are required by law to maintain personnel files and records for four years, as per Senate Bill No. 807. This updated regulation replaces the earlier requirement of keeping such records for two years. Maintaining personnel files and records in California 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: The ABC test in California is used to determine if a worker is an employee or an independent contractor. To be considered an independent contractor, the worker must meet all of the following conditions: they must work free from the hiring entity’s control and direction, their performed work must be outside the usual course of business of the hiring entity, and they must ordinarily work in a trade/occupation set independently and of the same nature as the work performed. Employers who willfully misclassify independent contractors can face penalties and damages, including fines ranging from $5,000 to $25,000 per violation.

Beginning January 1, 2024, the California minimum wage for all employees is $16.00 per hour, with a few notable exceptions:

• California minimum wage for fast food workers increased to $20.00 per hour on April 1, 2024​.
• California minimum wage for healthcare workers ranges from $18.00-$23.00 per hour based on the type of facility (as of June 1, 2024), with increments expected in upcoming years.

The U.S. Department of Labor defines a tipped employee as a worker who regularly receives at least $30 per month as tips. 

Following federal regulations, employers can pay tipped employees a reduced minimum wage of $2.13, with a tip credit of $5.12/hr. This tip credit combined with the reduced wage will ensure that they would receive, at least, the federal minimum wage of $7.25.​

However, tip credit is not allowed in California. Employers can not pay tipped employees less than the state’s minimum wage i.e. $16.00/hr.  

Further, California Assembly Bill 286 (effective January 2022) protects the minimum wage rights of food delivery workers. The law mandates that tips or gratuities received from online food delivery platforms must be given to the delivery worker and cannot be kept by the platform. 

In California, minimum wages differ by city and county, and even by company size, with some rates being higher than the state or federal minimum. When this happens, the highest wage rate applies. 

Here’s a breakdown of California county minimum wage rates.

While the minimum wage in California is an obligation that cannot be waived by the employer or the employee, certain employees may receive lower wages if they are:

• Outside salespeople
• Employees who are the employer’s spouse, parent, or child
• Apprentices who have been indentured regularly with the California Division of Apprenticeship Standards (DAS)
• Learner-employees with no previous experience in their occupations, for their initial 160 hours of work (at a rate equal to 85% of the minimum wage rounded offer to the nearest nickel, which is $13.60)
• People with mental or physical disabilities or both and non-profit organizations employing such workers 

Note: Effective January 1, 2025, California Senate Bill 639 will require employers to pay employees with disabilities at least the state minimum wage or the local minimum wage, whichever is higher. 

Split shifts, which are work schedules that are interrupted by non-paid or working time, mandate additional wages for the employee. 

An example of a split shift is a nurse working a morning shift (10:00 a.m. to 1:30 p.m.) and having to return for a night shift (4 p.m. to 11 p.m.).

The pay for such a split shift in California is called a premium and is worth an additional 1 hour’s wage for a day’s work. For a minimum wage worker, this would be an additional $16.

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. 

Employees who earn more than the minimum wage are also eligible for the split shift premium, but the higher the minimum wage is, the lower the premium becomes. 

To qualify for split shift premiums, employers 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 residing within the work premises or one that voluntarily chooses to pick up an extra shift or requests a break for their own convenience, is not eligible. 

Employers are generally required to pay their employees at least twice a month on predetermined paydays. 

Paydays, pay periods, and the final wages in California are governed by the California Department of Industrial Relations. 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:

Overtime in California constitutes any hours worked beyond the limits of 8 hours in a workday, 40 hours in a workweek, or 6 days in a workweek for nonexempt employees. 

The rate for overtime payment depends on the number of hours and days worked and can be elaborated as follows:

• 1.5x the regular rate: 
  • for any hours worked beyond 8 hours, but up to and including 12 hours in a workday, or
  • for the first 8 hours worked on the seventh consecutive day of the workweek.
• 2x the regular rate:
  • for all hours worked beyond 12 hours on a workday and,
  • all hours worked beyond 8 hours on the seventh consecutive day of the workweek.

Employees are prohibited from working overtime without authorization and concealing such information from the employer to later claim compensation.

However, employers are responsible for tracking overtime hours worked, whether they are authorized or not, and must compensate employees accordingly. 

Exemptions from overtime refer to individuals who are not legally eligible to receive any overtime compensation. These individuals can have various occupations and salary rates. They include:

• Executive, administrative, and professional employees (earning $1,280 a week/$66,560 yearly)
• Computer software professionals paid hourly (if they earn $55.58 an hour/ $115,763.35 yearly)
• Outside salespersons
• State/government employees
• Employees in national service programs
• Parents, spouse, child, or legally adopted child of the employer
• Drivers (under certain regulations/regulators)
• Individuals under certain collective bargaining agreements
• Individuals earning over 1.5x minimum wage with commissions representing more than half of their wages (minors excluded)
• Student nurses in certain accredited schools
• Taxicab drivers and professional actors 
• Airline employees with specific conditions
• Full-time carnival ride operators employed by a traveling carnival
• Crew members employed on a commercial fishing boat
• Employees whose duties are exclusively those of a motion picture projectionist
• Announcers, news editors, or chief engineers working for a radio or television station under certain conditions
• Any employee whose job is mainly intellectual, managerial, or creative, requiring the use of discretion and independent judgment, and whose salary is at least twice the monthly state minimum wage for full-time work
• Certain personal attendants
• Babysitters under 18, for an employer’s minor child 

For a detailed breakdown of the above, view California exemptions from the overtime laws, and ways the listed employee categories can be affected.

Learn more in detail about California Salaried Employees Laws and California Overtime Laws.

Overtime exceptions are instances where the general overtime laws of California may not apply or may be restricted, they include the following:

• 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 in certain conditions
• Employees in ski establishments at certain times of the year
• Extra players
• Minors with certain exceptions
• Agricultural workers with certain requirements
• Sheepherders
• Irrigators in agricultural occupations in certain conditions
• Licensed crew members on commercial fishing vessels
• Live-in employees
• Certain non-live-in employees

For a detailed list of categories of affected employees, view California exceptions to the general overtime law.

Non-exempt employees in California are entitled to a ten-minute break for every four hours worked, which must be given as close to the middle of the work period as possible. 

Rest breaks are considered working time and are therefore compensable at the regular rate by the employer. 

Employees who work below 3.5 hours in a day are not entitled to a rest break.

Employers have the responsibility to make available resting facilities separate from toilet rooms during work hours.

On certain occasions, breaks in California can be modified in various ways. These include, but are not limited to:

• Limiting Break Times: for certain employees of 24-hour residential care facilities. 
• Adding Break Interims: for swimmers, dancers, skaters, and other performers engaged in strenuous physical activities.
• Staggering Breaks: for on-site occupations in construction, drilling, logging, and mining.

Under California meal break laws, employees are entitled to a 30-minute unpaid meal break after five consecutive hours of work.

This break may only be waived by mutual agreement if the work period in the day is six hours or less.

If the employee works more than 10 hours a day, a second meal break of 30 minutes is required.

If the total work hours don’t go beyond 12 hours, the second meal break can also be mutually waived provided that the employee has at least had one meal period that day.

Employees in motion pictures must receive a 30-minute to 1-hour meal break after working 6 hours, followed by another break 6 hours after the first break.

Employers who fail to offer employees meal breaks must pay one additional hour at the regular pay rate for each day the employee did not receive a meal break. (Note: this hour is not considered as work time in overtime calculations)

Meal breaks are not compensated and are periods of time when the employee should be relieved of all work duties. 

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 break is compensable. 

If agreed to by employers and employees through written agreements, “on duty” means can applied, and the employee may revoke this at any time.

Further, certain jobs require “on duty” meal breaks including being the only worker on a shift in a coffee kiosk, an all-night convenience store, or a remote site security guard.

Employees required to eat on work premises must be provided a designated place to have their meal. This excludes construction employees in drilling, logging and mining. 

There are also laws dictating additional requirements of employers such as providing facilities for hot food and beverages or heating them or even providing meals to employees after certain hours.

California breastfeeding laws mandate that employers provide reasonable lactation breaks to employees who need to express breast milk. 

Ideally, lactation breaks should be coordinated with other break times; failing which the employer is not bound to pay for such breaks. 

Employers who deny their employees lactation breaks must pay the employee one hour’s pay for each violation at their regular rate of pay if a wage claim is filed.

Further, if an employee reports a violation with the Bureau of Field Enforcement (BOFE), a $100 citation may be issued for each day the employee was denied the time and space to express milk. 

California entitles employees to at least one guaranteed day of rest per workweek. This means that employees who work 6 days in a workweek must take the seventh day as a day off.

This day of rest does not apply to every consecutive 7-day period and is exclusive to a defined workweek.

Rest days could be accumulated if the nature of the work requires an employee to work for seven consecutive days or more, provided that they are still taken within the calendar month at a ratio of 1 rest day every 7 working days.

Rest days may be waived if the employee’s total weekly hours are 30 hours or below, or their daily hours are consistently 6 hours or less.

Further, exceptions to taking a rest day include cases of emergency, when the work nature protects lives or property, and jobs involved in train movements.

Employers who fail to provide rest days to employees are liable for a $100 civil penalty per employee for every pay period.

However, employees may choose to forgo their rights to a rest day and employers will not be liable if such permission is given.

It’s worth noting that provisions related to day of rest in California were solidified in 2017, when the California Supreme Court confirmed its requirements as a verdict in a lawsuit in the case of Mendoza v. Nordstrom. 

California laws offer a number of leave entitlements and protections to ensure the well-being of employees as they go about their career, including:

• Family leave: The Family and Medical Leave Act (FMLA) entitles 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 serious health conditions. This act also requires employers to maintain employees’ health benefits during their leave and to restore them to their previous or equivalent position upon their return to work. Eligibility for this leave working for the same employer for 12 months or more, working over 1,250 hours in the previous 12 months, in a work premise of 75 miles with over 50 employees. In addition to the FMLA, California also enforces the California Family Rights Act Leave (CFRA) which offers similar benefits.
• Sick leave: As of January 1, 2024, most employees are eligible for at least 40 hours (or 5 days) of paid sick leave annually for diagnosis, treatment, and preventative care for themselves, a family member, or a designated individual. Full-time, part-time, and temporary workers are eligible for paid sick leave in California if they work for 30 days or more in a year with the same employer a year in California or if they have fulfilled a work duration of 90 days prior to taking sick leave. Employers may extend sick leave hours, create policies to offer it all in one time, or make it part of an accrual plan. 
• Bereavement leave: California bereavement leave policy requires private employers with five or more employees to provide up to five days of unpaid bereavement leave upon the death of a family member. The leave came into effect on January 1, 2023 and is available upon the death of a spouse, child, parent, sibling, grandparent, grandchild, domestic partner, or parent-in-law
• Jury duty leave: California jury duty leave mandates employers to allow employees to take time off for jury duty, although it does not have to be paid, provided that employees give reasonable notice of the service beforehand. Employers cannot discriminate or retaliate against employees who are a victim of a crime or who are summoned through a court order.  
• Voting time leave: California Elections Code section 14001 allows employees who are scheduled to work during elections and do not have time outside of work hours to vote to take up to two hours of paid voting time. This can be taken at the beginning or end of a regular workday. Any time beyond the given 2 hours will not be paid. Employers must post a “time off to vote” notice on work premises 10 days before the elections. Employees should inform their employers two days in advance about voting time leave if they wish to participate. 
• Domestic violence/sexual assault leave: California assault and violence leave policy guarantees time off for victims of domestic violence or sexual assault to get court relief for 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. Accrued paid sick leave, vacation or personal leave, or comp time may also be used by the employee.  Employees are not required to provide proof for this type of leave but are encouraged to inform their employers in advance before taking time off. 
• Emergency response leave: California requires employers to provide unpaid leave to employees who need to attend emergency duties as volunteer firefighters, emergency rescue personnel, or reserve peace officers. Employers with 50 or more employees must provide up to 14 days of unpaid leave to employees training in these occupations. Health care providers must inform their employer if they become designated as emergency rescue personnel and if they are notified to be deployed.
• Donor leave: Employees who have used up their sick leave and intend to donate an organ are eligible for up to 30 days of paid leave in one year. An additional 30 days of unpaid leave may also be taken if required in a separate one-year period. In case of bone marrow donation, a leave of five business days in one year may be granted. Employees eligible for this type of leave include permanent, intermittent, hourly, daily, and temporary employees. 
• Child care leave: Employers with 25 or more personnel are required to provide time off to parent employees for their child’s school activities and emergencies. This leave is set at 40 hours in a year, with an 8-hour limit each month (this limit does not apply to school emergencies). Parent figures such as stepparents, foster parents, guardians, or grandparents are also eligible.
• Military leave: Employers are required to grant military leave in California to employees called for active duty in the Armed Forces, National Guard, or Naval Militia. The duration of the leave should be the duration of the service ordered, but not exceeding five years (with exceptions) for a permanent, probationary, or exempt employee, among others. Employees must be paid their regular salary for the first 30 days of service with varying qualification criteria based on the duration of the service. 
• Vacation Leave: Employers are not required by law to offer their employees vacation time in California. However, if an employer has promised such benefits in their workplace policy, they are required to follow the processes in place for fulfilling this obligation.
• Holiday leave: Employers are not required to grant their employees any  holidays in California. Time worked on holidays or the weekend is counted as regular working hours. However, employers may choose to offer such holidays as part of workplace policies.

Here is a table of official state holidays observed in California for the year 2024:

* Employers are not obligated to grant public holidays by law in California.

California law defines minors as individuals under the age of 18 who are required to attend school under state education provisions or any individual under the age of 6. 

Children who have dropped out of educational facilities are still under the provisions of education laws and remain protected by child laws.

Children who are emancipated can apply for a work permit without parental permission, but they remain protected under child laws.

There are certain limitations imposed on the nature and hours of work undertaken depending on:

During school:

• Minors Aged (16-17) – 4 hours on school days and 8 hours on a non-school day or a day preceding a non-school day, with a 48 hours weekly total.
• Minors Aged (14-15) – 3 hours apart from school hours and 8 hours on non-school days, with a weekly total of 18 hours.
• Minors Aged (12-13) – Cannot be employed on school days and can only work during school holidays and vacations (a work week including weekends). The maximum weekly work hours are indicated on the work permit.

When school is not in session:

• Daily hours: 8 hours/day for minors aged 12-17.
• Weekly hours: 40 hours for minors aged 12-15, and 48 hours for minors aged 16-17. 

Note: Failure to comply with work scheduling guidelines can lead to fines from $5000 to $10,000, imprisonment, or both. 

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.