placeholder
Stuart Gentle Publisher at Onrec

What are the Unique Aspects of California Employment Law?

California has earned its rightful place as being one of the most viable places in the world to do business.

California has significant differences from federal statutes in terms of employment laws and offers employees a greater level of protection than those provided by other states or federal laws. In turn, Orange County employment attorneys ensure that these provisions are followed, and that employee rights are protected.

While federal employment laws set the minimum requirements for every employer, California adds several rights and benefits under its state laws. Below are the unique aspects of California’s employment laws.

Compensation laws

California is a no-fault workers’ compensation system, making it beneficial for both employees and employers. This is most visible in the state’s laws on minimum wage, overtime policies, and rest breaks.

Minimum wage and hourly compensation

While the federal minimum wage in 2021 is $7.25 per hour, California’s minimum wage is $14. This makes California’s minimum wage one of the highest in the United States. California employees are also paid for all the hours worked, in contrast to federal labor law, which doesn’t allow compensation for “ancillary” tasks to the primary job duties. 

Wage deduction

An employer in California can’t deduct any amount from an employee’s salary under any circumstances. For example, an employer cannot take a particular value from an employee’s wages to compensate for any loss or damages resulting from the employee’s negligence. 

Overtime

Employees in California are paid overtime at one and a half times their regular rate of pay, both for the work over 40 hours in one week and the work over eight hours in one day. Any exemptions from overtime require that the employee earns a monthly salary equivalent that is no less than twice the California minimum wage for full-time employment.

Reimbursement

In federal law, employers can refuse to pay for business expenses as long as full-time workers earn minimum wage. In contrast, California required employers to provide reimbursement for all business expenses.

Rest breaks

Employers in California are required to provide rest breaks for their employees. Employees are entitled to an unpaid 30-minute meal period during the first five hours of work, where they’re free to leave the premises. They are also entitled to a ten-minute paid rest break every four hours of work. Federal law has no similar mechanisms.

Vacations and leaves of absence

While your employer is required to provide leaves for specific purposes, California has some of the most generous leave laws in the United States. Both leaves and vacation time are paid and count as earned wages.

Vacation policies

In California, an employer cannot enforce a use-it-or-lose-it policy because vacation time is considered a form of earned wages. Thus, if an employee leaves or is discharged, they must be paid for all unused accrued vacation time. 

Types of leaves

There are six situations in California where an employee is allowed to file a temporary leave, all of which are either paid or count as additional job benefits:

  • Pregnancy disability leave - An employee can take a maximum of four months of pregnancy leave and take another leave of up to 12 weeks.
  • Paid family leave - When employees have to file a leave to care for a sick family member, they receive benefits to replace a portion of lost wages. 
  • Sick leave - California law does not require employers to provide sick leaves, so these are often offered as benefits and are subject to the employer’s protocols.
  • Volunteer civil service - Volunteer firefighters, reserve peace officers, and emergency rescue personnel are allowed time off to perform emergency duties.
  • Time off to vote - An employee may take off up to two hours off to vote without losing pay.
  • School issues and activities - A total of 40 hours off per year is allotted for parents to participate in their children’s school activities.
  • Judicial proceedings - Employees who are either victims of certain felonies or are important witnesses can take time off to attend judicial proceedings.

Employee protection laws

The main difference between federal and California anti-discrimination laws is the number of employees. California’s prohibitions reach even the smallest private employers with just one employee in cases of harassment.

Discrimination

The California Fair Employment and Housing Act prohibit employers from any sort of discrimination. Protected characteristics include race, religion, color, national origins, disabilities, sex, sexual orientation, gender identity, and age. Employers are not allowed to use these factors as a reason to make changes to their salaries.

Harassment

California law requires employers to take all steps necessary to prevent harassment from happening in the workplace. This includes harassment training and orientations on existing policies. Employees are allowed to file complaints about cases such as sexual harassment to either internal departments or external agencies.

Takeaway

Whether you’re an employer or an employee, you need to be aware of the existing policies in place to protect your rights. Employment attorneys are your first line of defense in doing so because they help both parties be aware of the extent of the significant differences between California law and federal law, as well as other states.