If you’re planning on hiring employees in California, there are certain things you need to know to ensure that you comply with all applicable laws and regulations. California is known for having some of the strictest employment laws in the country, so it’s important to be aware of the rules and requirements that apply to your business. However, there are other options like EORs, which we explore below, that would allow you to hire employees in California.
Here are some key things to keep in mind when hiring employees in California:
- Know the minimum wage: California’s minimum wage is currently $14 per hour for employers with 26 or more employees, and $13 per hour for employers with 25 or fewer employees. However, some cities and counties have their own minimum wage rates that may be higher. It’s important to check the minimum wage rates in the area where your business is located and ensure that you are paying your employees at least the minimum wage.
- Understand overtime requirements: California law requires employers to pay non-exempt employees overtime at a rate of 1.5 times their regular rate of pay for all hours worked over 8 hours in a workday or 40 hours in a workweek. Additionally, employees who work more than 12 hours in a workday must be paid double their regular rate of pay for all hours worked over 12.
- Provide paid sick leave: California law requires employers to provide paid sick leave to their employees. Employees accrue 1 hour of paid sick leave for every 30 hours worked, and they can start using their accrued sick leave after 90 days of employment. Employers can cap the amount of sick leave employees can accrue at 48 hours per year.
- Use proper hiring practices: California law prohibits discrimination in employment based on certain characteristics, including race, gender, religion, age, and disability. Employers should make sure that their hiring practices do not discriminate against any protected class of individuals. Additionally, employers must comply with state and federal laws regarding background checks and employment verification.
- Provide workers’ compensation insurance: California law requires employers to provide workers’ compensation insurance to their employees. This insurance provides benefits to employees who are injured or become ill as a result of their job. Employers can purchase workers’ compensation insurance from a private insurance carrier or from the State Compensation Insurance Fund.
- Follow proper termination procedures: California is an at-will employment state, which means that employers can terminate employees at any time for any reason, as long as it’s not an illegal reason. However, companies that hire employees in California must still follow certain procedures when terminating employees, such as providing notice of termination or paying final wages in a timely manner.
Too complex? There is another way!
Some find hiring in California too complex and risky. However, California has some of the top talent in the world, especially in the technology, bio-science, and other fields. So, how can you hire in California without all this legal and compliance mess? Leveraging an Employer of Record (EOR) to hire employees in California is the fastest and least risky way to get the talent you need. EORs like FoxHire will be the legal employer of the worker, and simply invoice your company for that worker’s payroll, taxes, insurance, and other costs. They take on all the duties of complying with the above laws and regulations! Then they make a small margin on top of those costs as a management fee.
Hiring employees in California can be complex, but by understanding the state’s employment laws and regulations, you can ensure that your business is in compliance and avoid any legal issues. If you’re unsure about any aspect of the hiring process or employment law in California, it’s a good idea to consult with an experienced employment law attorney who can provide guidance and help you navigate the legal landscape.
