Employment Law Keypoints

As an employer, it is essential to the success of your business that you understand and comply with Federal and State Labor Laws. In doing so you will not only prevent possible future headaches and penalties but also promote a positive image of your business while protecting your investment.

Listed below are a few key points that we feel important to highlight regarding current California Employment Law:

• As of January 1st, 2018 the minimum wage in California is $11.00/hour for employers with 26 or more employees, and $10.50/hour for employers with 25 or fewer employees. Some localities have enacted higher minimum wage rates.

• Misclassifying an employee as an “independent contractor” can result in fines from $5,000 to $25,000 per violation plus unpaid payroll taxes.

• You must keep records of all employees for the past 4 years. This includes: name, address, job type and last four numbers of their Social Security Number. For minors under 18, you must also list their date of birth.

• Failure to have workers’ compensation insurance may lead to a fine of at least $1,500 per employee.

• Drug testing of job applicants is allowed in California. An employer must provide applicants with notice of the drug testing requirement.

• Tips must be counted as separate from wages.

• An employer cannot deduct any credit card processing fees from a tip left to an employee through a patron’s credit card. Therefore, the full tip left by the customer must be given to the employee and the employer must pay the full cost of the processing fee.

• Workers must receive:
  • • • A paid 10 minutes break for every 4 hours of work.
      • An un-paid meal break of at least 30 minutes if they work 5 or more. However an employee can agree to skip meal breaks if the workday is 6 hours or less.

• A California employer may not make, adopt or enforce any rule, regulation or policy preventing an employee from being a whistleblower. 

Explore the resources provided to learn more about California Labor Law:

https://www.dir.ca.gov/letf/loh_Employer_bro_15_restaurants_P_press_singles.pdf

https://www.worklawyers.com/tip-gratuity-laws-california/

https://labor.ca.gov/laborlawreg.htm