What steps should I take before hiring an employee in California?
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Before hiring an employee in California, an employer should take the following steps:
- Verify the candidate’s eligibility to work in the United States: Under federal law, employers are required to verify the employment eligibility of all new hires through the completion of Form I-9 within three days of hire. The employer should ensure that all required documentation is properly completed and submitted, including the employee’s passport or other acceptable documents that prove their eligibility to work in the United States.
- Review the candidate’s resume and application: The employer should carefully review the candidate's resume and application to confirm that the candidate has the qualifications required for the open position.
- Conduct background checks: California law requires employers to obtain written authorization from a job applicant before conducting a background check. The employer should also confirm that any background check agency used is in compliance with state and federal laws regarding background checks.
- Determine the employee’s classification: Under California law, workers must be classified as either independent contractors or employees. Employers should ensure that workers are properly classified, as misclassifying an employee as an independent contractor can result in costly legal consequences.
- Draft an employment agreement or offer letter: An employment agreement or offer letter should be drafted to set forth the terms of the employment relationship. The employment agreement should specify the employee’s compensation, duties, and benefits, as well as any employment policies that the employee is expected to follow.
- Comply with wage and hour laws: California has strict wage and hour laws, including minimum wage and overtime requirements. Employers should ensure that they are in compliance with all applicable laws and regulations.
- Purchase workers’ compensation insurance: California law requires employers to provide workers’ compensation insurance to their employees. Employers should obtain workers’ compensation coverage before hiring any new employees.
- Provide required notices: California law requires employers to provide certain notices to their employees, such as notices regarding workers’ compensation coverage and the right to time off for family and medical reasons.
- Create employee personnel file: Employers should create a personnel file for each employee that contains important information such as their resume, job application, performance evaluations, and disciplinary actions.
These steps should be taken before hiring an employee in California to ensure compliance with the state’s labor and employment laws. It is important for employers to consult with a licensed attorney to ensure that they are in compliance with all applicable laws and regulations.
