Businesses expanding into California and those hoping to start a company in California need to ensure they comply with all state regulations. Many industries are subject to legal requirements, such as professional license standards and mandated insurance coverage.
Any company that has employees also needs to ensure compliance with both state and federal employment regulations. Particularly when business leaders currently operate companies in other jurisdictions or have experience running companies elsewhere before moving to California, they may be at risk of making mistakes because of California’s unique employment laws. There are multiple statutes that expand on federal employment regulations in California, including the three explained below.
1. Expanded overtime pay rules
Hourly workers and non-exempt salaried employees are typically eligible for overtime wages if they work more than 40 hours per week. The federal law establishing the right to overtime pay applies in every state, including California.
However, California has enacted statutes that make overtime pay available in additional situations. Workers may have the right to overtime wages if they work seven consecutive days in a row or if they work more than eight hours per shift under California state statutes.
2. Enhanced disability protections
Under the Americans with Disabilities Act (ADA), employees can request disability accommodation if they require support to safely perform job functions. The ADA only applies to companies with 15 or more employees, leaving workers at smaller businesses with few options.
California regulations have expanded the protection offered under the ADA. In California, workers have the right to request reasonable accommodations if their employers have five or more employees.
3. Increased unpaid leave rights
Under the Family and Medical Leave Act (FMLA), workers in qualifying circumstances can take up to 12 weeks of unpaid leave for personal medical issues or when supporting a family member. The California Family Rights Act (CFRA) expands on the FMLA. While the amount of leave that is available remains the same, there are more family relationships that may make an employee eligible for unpaid leave to act as a caregiver.
Businesses operating in California need to be fastidious in their adherence to state and federal employment regulations. Reviewing company practices and ensuring compliance with all applicable employment laws can help businesses avoid employee litigation and defend against lawsuits if employees claim that the company violated their rights.