People Advisors / HR Resources
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When you started your business, you probably did not dream about handbooks, pay stubs, or safety plans. You started it because you are great at what you do.
Read the article →Managers make employment decisions every day. They interview candidates, approve schedules, address performance issues, respond to employee concerns, and decide when discipline is warranted.
Read the article →Workplace safety is more than a compliance requirement. For California employers, it is an ongoing responsibility that affects employees, daily operations, and the business's ability to manage risk.
Read the article →Quick Answers
Short, plain-English answers for California business owners and managers. Each answer is a starting point. The right approach for your business depends on your size, industry, and situation.
Do I need to give new employees an offer letter?
An offer letter isn't legally required, but it's the best way to confirm pay, schedule, and at-will status in writing. Separately, California requires a written Notice to Employee (Labor Code 2810.5) for non-exempt employees at hire, showing pay rate, payday, and other key details.
When does the Form I-9 need to be completed?
Employees must complete Section 1 by their first day of work. You must review their documents and complete Section 2 within three business days of their start date.
What do I need to report when I hire someone?
California requires you to report each new hire to the EDD on Form DE 34 within 20 days of their start date.
Can I ask applicants about their salary history?
No. California prohibits asking about an applicant's salary history, and you can't use it to decide whether to hire someone or how much to pay them. You must provide the pay scale for a position if an applicant asks.
Do I have to include a pay range in job postings?
Yes, if you have 15 or more employees. Every employer, regardless of size, must give current employees the pay scale for their own position if they ask.
Can I ask about criminal history on a job application?
If you have 5 or more employees, no. You can consider conviction history only after making a conditional job offer, and you must follow a specific process, including an individualized assessment and notice to the applicant, before withdrawing an offer.
Can I have employees sign a non-compete agreement?
No. Non-compete agreements are void in California for almost all employees, and including one in an employment agreement is itself unlawful. You can still protect trade secrets and confidential client information through a confidentiality agreement.
Do salaried employees get overtime?
It depends on whether they're exempt, not on whether they're salaried. Exempt employees must perform qualifying executive, administrative, or professional duties and earn a salary of at least twice the state minimum wage for full-time work. Salaried employees who don't meet both tests are entitled to overtime.
When does overtime start in California?
Non-exempt employees earn overtime after 8 hours in a workday or 40 hours in a workweek, and for the first 8 hours on a seventh consecutive workday. Double time applies after 12 hours in a day and after 8 hours on the seventh consecutive day.
What are the meal and rest break rules?
Non-exempt employees get a paid 10-minute rest break for every four hours worked, or major fraction of four hours. They must get an unpaid, duty-free 30-minute meal break that starts before the end of the fifth hour of work, and a second one if they work more than 10 hours. If a break is missed, late, or interrupted, the employee is owed one extra hour of pay for that day.
Can an employee skip lunch to leave early?
Only in limited cases. If the employee's total workday is six hours or less, the meal break can be waived by mutual consent, preferably in writing. For longer shifts, the meal break must be provided.
What if an employee works overtime I didn't approve?
You must pay for all time worked, including unapproved overtime. You can address unapproved overtime as a policy issue, but you can't withhold pay for it.
How often do I have to pay employees?
Most employees must be paid at least twice a month on regular paydays. Exempt salaried employees can be paid once a month.
What has to be on a pay stub?
California wage statements must show gross and net wages, total hours worked (for non-exempt employees), all deductions, the pay period dates, hourly rates and hours at each rate, the employee's name and last four digits of their Social Security number or an employee ID, the employer's legal name and address, and available paid sick leave.
Can I deduct the cost of damaged equipment or a cash shortage from a paycheck?
Generally no. California allows these deductions only when the loss was caused by the employee's dishonest or willful act or gross negligence. Ordinary mistakes and accidents are a cost of doing business.
Can employees talk to each other about their pay?
Yes. Employees have the right to discuss and disclose their own wages and the wages of coworkers. A policy that forbids pay discussions is unlawful.
Do I have to reimburse employees who work from home?
Yes, for necessary work expenses. California requires employers to reimburse a reasonable share of costs such as personal cell phone and internet use when employees use them for work.
How much paid sick leave do I have to give?
Employees earn at least 1 hour for every 30 hours worked and can use at least 40 hours (5 days) per year, starting on their 90th day of employment. You can cap total accrual at 80 hours (10 days). Unused paid sick leave carries over but doesn't have to be paid out when employment ends.
Can I require a doctor's note when an employee uses sick leave?
You shouldn't. Requiring documentation as a condition of using paid sick leave can interfere with the employee's rights under California law.
Can I have a "use it or lose it" vacation policy?
No. In California, earned vacation and PTO are wages and can't be forfeited. You can set a reasonable cap so employees stop earning more until they use some.
Do I have to pay out unused vacation or PTO when someone leaves?
Yes. All earned, unused vacation and PTO must be paid with the final paycheck. If paid sick leave is tracked separately from vacation, the sick leave doesn't have to be paid out.
Do I have to offer paid holidays?
No. California doesn't require private employers to offer paid holidays or pay a premium for working on a holiday. If you offer holidays, your written policy controls, so make it clear who is eligible.
Do small businesses have to provide family and medical leave?
If you have 5 or more employees, eligible employees can take up to 12 weeks of job-protected leave under the California Family Rights Act. Pregnancy disability leave of up to four months is also required at 5 or more employees.
Can I fire an employee who is on leave?
Be very careful. Ending employment during or shortly after protected leave creates significant legal risk. Talk to your HR advisor or employment counsel before taking any action.
Can I pay someone as an independent contractor?
Only if the worker passes California's ABC test. The test presumes the worker is an employee unless all three of these are true: the worker is free from your control and direction, the work is outside the usual course of your business, and the worker runs an independently established business doing that type of work. A signed contractor agreement doesn't change the result.
What happens if I misclassify a worker?
You may owe back wages, overtime, missed break premiums, payroll taxes, and penalties. Willful misclassification carries additional civil penalties. Review classifications before engaging a worker and whenever the role changes.
Do I need a Workplace Violence Prevention Plan if I only have a few employees?
Most likely yes. The exemptions are narrow. For example, a workplace closed to the public with fewer than 10 employees on site at any time may qualify. Employees working remotely from a location of their choice are also exempt.
Do I need an Injury and Illness Prevention Program?
Yes. Every California employer must have a written IIPP that fits its actual workplace and hazards. Employers with fewer than 10 employees have some simplified recordkeeping options but still need a written program.
What do I do if an employee gets hurt at work?
Make sure the employee gets medical care. Give them a workers' compensation claim form (DWC-1) within one working day of learning about the injury. If the injury requires inpatient hospitalization or is otherwise serious, report it to Cal/OSHA within 8 hours.
Do I have to provide a lactation space?
Yes. Every employer must provide reasonable break time and a private space, other than a bathroom, that is close to the work area, has a place to sit, a surface for a pump, and access to electricity. You must also provide access to a sink and refrigerator nearby.
What does at-will employment mean?
Either you or the employee can end the employment at any time, with or without cause or notice. At-will doesn't allow terminations for unlawful reasons, such as discrimination, retaliation, or because an employee took protected leave.
Do I have to provide harassment prevention training?
Yes, if you have 5 or more employees. Supervisors need 2 hours and other employees need 1 hour, within six months of hire or promotion and every two years after that. Smaller employers aren't required to train but are still responsible for preventing harassment.
What should I do if an employee complains about harassment or discrimination?
Take it seriously, document it, and make sure it's investigated promptly and fairly. Never retaliate, including by changing the employee's schedule or duties because of the complaint. Bring in your HR advisor, and for serious matters, an outside investigator or employment counsel.
An employee mentioned a medical restriction. What do I need to do?
Treat it as a possible accommodation request, even if the employee didn't use that word. If you have 5 or more employees, California requires you to engage in a good-faith interactive process to identify a reasonable accommodation. Keep medical information confidential.
Can I record meetings or phone calls with employees?
Only with the consent of everyone on the call or in the conversation. California is an all-party consent state for confidential communications.
When is an employee's final paycheck due?
If you end the employment, final pay is due immediately at the time of termination. If the employee quits with at least 72 hours' notice, it's due on their last day. If they quit with less notice, it's due within 72 hours. Late final pay can result in a penalty of up to 30 days of wages.
What do I have to give an employee when they leave?
A written notice of the change in employment status, the EDD pamphlet For Your Benefit (DE 2320), and information about continuing health coverage if they're enrolled in your group plan.
Can I hold the final paycheck until equipment is returned?
No. Final wages can't be withheld for unreturned property. Address the property separately.
Do I need an employee handbook?
California doesn't require a handbook. It does require certain written policies, including a harassment prevention policy (5 or more employees), an Injury and Illness Prevention Program, and for most employers a Workplace Violence Prevention Plan. A handbook is the easiest way to keep them in one place and show they were shared.
Which workplace posters do I need?
Federal and California law require a set of notices on topics like minimum wage, discrimination, paid sick leave, and safety. Post them where employees can easily see them, and provide them electronically to remote employees. Review them every January, since several update each year.
How long do I keep employee records?
Generally keep personnel and payroll records at least 3 years after employment ends, and job applications and hiring records at least 4 years. Some records, such as Cal/OSHA injury logs, I-9s, and tax records, have their own requirements.
Can employees see their personnel file?
Yes. Current and former employees can inspect and receive a copy of their personnel file within 30 days of a written request, and copies of their payroll records and any documents they signed relating to their employment.
Do I have to offer health insurance?
Not if you have fewer than 50 full-time equivalent employees. Many small businesses offer coverage anyway to attract and keep good people. Ask us about options through ScoutCovered.
Have a question that isn't here? Contact Scout People Advisors at 626-231-8671 or hello@scoutfi.com.
These answers are general information for California employers and are not legal advice. Scout People Advisors, LLC provides HR consulting and is not a law firm. Employment laws change often and depend on your specific circumstances. For guidance on your situation, contact our team or your employment attorney.
These resources are general information for California employers and are not legal advice. For guidance on your specific situation, contact our team or your employment attorney.
