If California were its own country, it would be the world’s 5th largest economy. It is considered the biggest economy of any sub-nation in the world, and with almost 40 million residents, employers from around the globe are drawn to do business there. With such a large population of both employers and employees, California’s legislature created strict employment laws to ensure employees are protected. This makes it critical for all businesses looking to operate in California to be aware of the unique employment laws the state has in place and the protections that employees are granted.
Here’s some basic information about California’s employment laws.
Federal Employment Law
To better understand why California employment law is unique, it’s important to know the general federal employment law in place. Some of the most commonly seen federal employment laws include:
Title VII of the Civil Rights Act of 1964
Title VII was one of the first progressive federal laws implemented to protect employees in the workplace. Through Title VII, it is illegal to discriminate against an employee based on their race, color, sex, national origin, or religion.
Family and Medical Leave Act (FMLA)
The Family and Medical Leave Act requires any employer with 50 or more employees to provide their workers with job-protected, unpaid time off for applicable circumstances. This act requires that eligible businesses allow up to 12 weeks off for circumstances such as personal health issues, spousal health issues, time to bond with a new child, or emergencies dealing with a family member’s military service.
Occupational Safety and Health Act (OSHA)
OSHA grants every employee the right to a safe workplace free of potential hazards that could cause illness or harm. After implementing the Occupational Safety and Health Act, Congress then created the Occupational Safety and Health Administration to ensure that employers follow the standard regulations that must be in place. OSHA also allows employees to request an inspection of their workplace if they feel it’s unsafe.
Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act outlines a federal minimum wage that must be followed, along with establishing that overtime pay must be 1.5x the normal pay rate. This act also puts restrictions on minors who work, limiting the number of hours they are allowed to work and establishing mandatory break time.
California Employment Law
California’s employment law was designed to build off of federal laws but grant even more protections to employees. Because of this, employment law can be incredibly strict on business owners. Some of the most important California legislation regarding employment law include:
California Fair Employment and Housing Act (FEHA)
All businesses in California with five or more employees must follow the regulations FEHA lays out. FEHA protects California employees from harassment, discrimination, or retaliation from their employer of any kind in the workplace. Unlike federal legislation, FEHA covers a much wider range of protected characteristics that cannot be discriminated against, such as medical conditions, gender identity, requesting family leave, and more.
California Family Rights Act (CFRA)
The CFRA requires employers to provide eligible employees with job-protected, unpaid leave for up to 12 weeks. Eligible circumstances include serious health conditions of the employee or their close family member or bonding with a new child. In some cases, employees may stack leaves if they’re eligible under both the CFRA and the FMLA.
The Differences Between California and Federal Employment Law
The main difference between California and federal employment law is that California law is more extensive. Because of this, California employees are granted more rights and protections, including:
Wages
California’s state minimum wage has been historically higher than the established federal minimum wage for years. Currently, the minimum wage for employers with over 25 employees is $15.00 an hour and $14.00 if you have less than 25 employees. The federal minimum wage is $7.25 an hour. In addition to higher minimum wage, California also requires overtime payments to be made when an employee works over 40 hours in one week, when an employee works more than 8 hours on their 7th consecutive shift, or if an employee works more than 12 hours in one day.
Employee Protections
While federal law protects employees from discrimination based on race, sex, religion, disabilities, color, and national origin, California’s employment law expands on those protected characteristics. Through FEHA, employees can’t be mistreated due to federally listed characteristics as well as gender identity, sexual orientation, medical conditions, ancestry, marital status, age, and criminal background.
Reimbursement
Federal law states that businesses have the right to refuse to pay the business expenses of an employee if they receive a full-time wage. California law, however, requires all businesses to pay business expenses despite the wage of their employees.
Sick Leave
There are no federal laws that require paid sick leave, whereas California employment law requires eligible businesses to provide some form of sick leave for their employees. At a minimum, an employee must take up to three sick days (24 hours) per year.
FAQs
Q: Is California a No-fault State for Employment?
A: California is a no-fault worker’s compensation system, meaning it doesn’t matter who or what caused the accident.
Q: When Does an Employer Have to Provide Unpaid, Temporary Leave?
A: In California, businesses with over five or more employees must provide up to 12 weeks of unpaid, job-protected leave for their workers, and under federal law, businesses with over 50 employees must also do the same.
Q: What Is the California Labor Code?
A: The California Labor Code is a collection of the state’s employment law legislation that governs employer and employee relationships and regulations.
Q: What Is a Hostile Work Environment?
A: A hostile work environment occurs when one individual makes another employee feel consistently uncomfortable, unsafe or threatened in their place of work.
California Employment Law Help
With such a wide range of state and federal employment laws, it can be difficult to ensure your business is following everything correctly. At Fishman, Larsen & Callister, Attorneys at Law, we are committed to serving businesses with employment law issues. To learn more about the services we can provide for your California business, contact us today.