The Employer’s Guide to Labor Laws in California [2024]

The most common labor laws every california employer needs to know. Bookmark this page for easy reference!

Hiring Laws

Anti-Discrimination Laws

Federal and state law prohibit california employers from making employment decisions* based on:
* Employment decisions can include recruiting, hiring, promoting/demoting, transferring, training, disciplining, firing, furloughs, reduction in force, assignments, performance evaluation, compensation, benefits etc.

“Ban the Box” Law

The “Ban the Box” law, among other things, prohibits employers from asking about an applicant’s criminal history on a job application.

Instead, employers are generally required to wait until later in the hiring process, such as during an interview or after a conditional job offer, to inquire about an applicant’s criminal background.
*california was the first state to “ban the box”, which refers to the checkbox on job applications asking applicants if they’ve ever been convicted of a crime.

Salary History Ban

In 2018, california passed a law prohibiting employers from asking job applicants about their previous salary or compensation history. 

The law addresses wage gaps and promotes pay equity by ensuring that a person’s previous salary does not influence their potential future earnings. Such laws are designed to encourage employers to determine compensation based on the applicant’s skills, experience, and the value of the position.

Pay Transparency Law

Starting January 1, 2024, california businesses with more than 50 employees must disclose the hourly rate or salary ranges on job postings and advertisements.

Wage Laws

$14

california Minimum Wage
As of January 1, 2024, the minimum wage in california is $14.00. Additional increases are slated for 2026 ($16) and 2028 ($18).

$12.75

Tipped Minimum Wage
For businesses taking advantage of california’s tip credit law, the minimum wage for tipped employees is $12.75.

1.5X

california Overtime Pay
california employers must pay non-exempt employees overtime pay (at a rate of 1.5X their regular rate) when they work more than 40 hours in a work week.

Final Paychecks in california

Employees who are fired or laid off must receive their final paycheck at the time of discharge or no later than the next working day.

Employees who quit or resign must receive their final paycheck by the next regular payday. If the employee gives notice one pay period in advance, employers must pay all wages on their last day of work.

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Hiring Laws

None

california Break Laws
california does not require employers to provide meal breaks. However, if you choose to give workers a break according to federal law:

30 min

california Break Laws (Minors)
In california, employers must give employees who are 14 or 15 years old a 30-minute break every 5 consecutive hours of work.

Healthcare Laws

Employer-Provided Health Insurance

Under california’s Prepaid Health Care Act, employees working at least 20 hours per week for four consecutive weeks are eligible for employer-provided health insurance.

However, there are exceptions for commission-based roles, seasonal agricultural workers, and family-employed individuals.

Once eligible, coverage begins on the first day of the following month. If an employee wishes to opt-out (e.g., due to existing coverage), they should complete an HC-5 form annually.

Employee Leave Laws

Employee
Eligibility
Employee
Eligibility
Employee
Eligibility
Employee
Eligibility
Employee
Eligibility

Workers’ Comp Leave
Required by State Law

When an employee gets injured or ill on the job or related to the job
1 or more employee
As determined by a physician
Yes
Partial paid leave (wage replacement) Paid at 66.66% of average weekly wages after 3-day waiting period.

TDI Leave
Required by State Law

When an employee gets injured or ill outside of work
1 or more employee
Up to 26 weeks per calendar year
No
Partial paid leave (wage replacement) Paid at 58% of average weekly wages after 7-day waiting period.

Pregnancy Leave*
Required by State Law

When an employee needs time off for pregnancy-related reasons
1 or more employee
Reasonable period of time, as determined by physician
Yes
Unpaid

Family Medical Leave*
Required by Federal Law

When an employee or family member has a serious health condition
50 or more employees
Up to 12 weeks
Yes
Unpaid

Hawaill Family Leave Law*
Required by State Law

When an employee with at least 6 months tenure needs tim off to care for a family member with serious health condition or newly born/adopted child
100 or more employees
Up to 4 weeks
Yes
Unpaid

Vacation/Sick Leave
Not required by law

As determined by company-provided written policy
Not required by law
As determined by written company policy
As determined by written company policy
Paid Leave

Military Leave
Required by Fedearl Law

When an employee is on active duty, in training, or related leave is needed AND has been employed for a least 6 months
1 or more employee
Not to exceed 5 years (doesn’t need to be consecutive)
Yes
Unpaid

Victim’s Leave
Required by State Law

When an employee or minor child is a victim of sexual or domestic violence
1 or more employee
Up to 5 days if employer has <50 employees Up to 30 days if employer has >50 employees
Yes
Unpaid

Bereavement Leave
Not required by law

When an employee loses a spouse or family member as defined by company policy
Not required by law
As determined by written company policy. Best practice = 3 days.
Yes
Paid

Voting Leave

When an employee wants to vote in the primary, general or special elections
Not required by law (Law repealed in 2019. No longer need to provide leave on election day)
As determined by written company policy
As determined by written company policy
As determined by written company policy
* If more than one leave applies, the employer may run leaves concurrently
Note: This material has been prepared for informational purposes only,
and is not intended to provide, and should not be relied on for, legal or tax advice.