What steps do I need to take as a new employer to comply with labor laws in California?

Complying with Labor Laws in California: A Guide for New Employers

As a new employer in California, there are several steps you need to take to comply with labor laws in the state. These laws cover issues such as minimum wage, overtime, meal and rest breaks, discrimination, harassment, and workers' compensation. Failure to comply with these laws can result in significant financial penalties and legal liability.

1. Obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS).

This number is used to report taxes and other information to the government.

2. Register with the California Employment Development Department (EDD) within 15 days of becoming an employer.

This agency administers state payroll taxes, including unemployment insurance, disability insurance, and paid family leave.

3. Display required labor law posters in a prominent location visible to all employees.

These posters provide information on minimum wage, overtime, workplace safety, and other important employment laws.

4. Comply with minimum wage and overtime laws.

As of January 1, 2021, the minimum wage in California is $14.00 per hour for employers with 26 or more employees and $13.00 per hour for employers with 25 or fewer employees. Overtime must be paid at one and a half times an employee's regular rate of pay for all hours worked over 8 in a day or 40 in a week.

5. Provide meal and rest breaks in accordance with state law.

Employees are entitled to a 30-minute uninterrupted meal break for every five hours worked and a 10-minute rest break for every four hours worked.

6. Prevent and address discrimination and harassment in the workplace.

California law prohibits discrimination against employees based on their race, gender, religion, sexual orientation, and other protected characteristics. Employers must have policies in place to prevent harassment and take prompt action when complaints are made.

7. Provide workers' compensation insurance.

California law requires all employers to provide workers' compensation insurance to their employees. This coverage protects workers who are injured or become ill as a result of their job.

By following these steps, you can ensure that you comply with labor laws in California and avoid legal liability. However, it is important to seek the advice of a licensed attorney if you have specific questions or concerns about your legal obligations as an employer.