California Employment and Labor Laws

Keeping up with state employment and labor laws can substantially complicate compliance efforts. Here’s what employers in California need to know.

In California, employers must navigate a wide-ranging legal framework extending well beyond federal employment standards. From pay equity and leave policies to workplace safety and anti-discrimination rules, state laws set detailed expectations that influence daily operations and reinforce employee protections.

When it comes to talent and workforce management, California-based employers need to comply with the following state employment laws:

Pay transparency and equity
Final paychecks and PTO payouts
Paid leave and work breaks
Workplace health and safety
Anti-discrimination and harassment

The below information was last updated May 7, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.

California Labor Laws

A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.

Central to US labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.

Is California a Right-to-Work State?

Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).

California currently has no right-to-work laws or regulations. Although, under section 14(b) of the National Labor Relations Act (NLRA), California can pass a right-to-work law in the future if it chooses.

California Employment Laws

Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.

California Wage Laws

California Minimum Wage	For workers not covered by a local minimum wage, California uses its own minimum wage rate of $16.50, including a tipped minimum wage rate of $16.50 for employees who earn tips with their base pay. Note: California also has local minimum wage laws and provisions for fast food and health care workers.
California Overtime Pay Laws	According to state law, overtime pay in California is calculated at no less than one and one-half times the regular pay rate. This is owed for: Any work exceeding eight hours in one workday Any work exceeding forty hours in one workweek The first eight hours of work performed on the seventh day of work in any one workweek Overtime pay of at least twice the regular pay rate is owed for any work that exceeds 12 hours in one day. Note, California has specific industry wage orders and requirements for piece rate workers.
California Pay Equity Law	Under the Fair Employment and Housing Act (FEHA), California public and private employers, labor organizations, apprentice training programs, employment agencies, and licensing boards cannot discriminate in employment (or housing) based on 18 protected characteristics, including: Age Race or Color Religious Creed National Origin Ancestry Physical or Mental Disability Medical Condition or Genetic Information Marital Status Sex or Sexual Orientation Gender, Gender Identity, or Gender Expression Reproductive Health Decision Making Military or Veteran Status
California Pay Transparency Law	In September 2022, California passed its Pay Transparency Act and became one of 14 states (plus Washington D.C.) to have pay transparency laws. Under this law, employers with 15 or more employees must disclose pay scales in job postings and provide them to current employees upon request. California private employers must also file an annual California Pay Data Report if they have at least one employee in California and at least 100 employees nationwide.
California Final Paycheck Law	In California, employees who voluntarily resign from a job must receive their final paycheck within 72 hours if they give no prior notice or quit earlier than planned when notice was given. If, however, they provide at least 72 hours’ notice, they must receive their final paycheck immediately. Similarly, involuntarily terminated employees in California must receive their final paychecks immediately.
California PTO Payout Laws	California currently requires employers to pay out earned, unused vacation time and prohibits the use of "use-it-or-lose-it" policies.

California Leave Laws

California Paid Sick Leave (PSL)	California currently requires all employers to provide eligible employees with 5 days or 40 hours of paid, protected sick leave under its Paid Sick Leave Act. All employees must work at least 30 days for the same employer within California. Eligible employees accrue one hour for every 30 hours worked. Note, California also has several local paid sick leave programs, each with its own requirements.
California Paid Family and Medical Leave (PFML)	The California Family Rights Act (CFRA) requires private employers with five or more employees to provide eligible employees (those who have worked for the employer for more than 12 months and at least 1,250 hours in the 12 months prior to their leave) with up to 12 weeks of unpaid, job-protected leave to care for their own serious health condition or a family member with a serious health condition, or to bond with a new child. Furthermore, CFRA-covered employers must also provide unpaid, protected leave (and/or accommodations) to employees disabled by pregnancy, childbirth, or a related medical condition and must grant an eligible employee’s request for up to five days of bereavement leave upon the death of certain family members. In addition to these unpaid protections, California is also one of over a dozen states with a Paid Family Leave (PFL) program. Along with its Disability Insurance (DI) program, California’s PFL program only provides wage replacement benefits. Neither program changes federal or state leave laws (i.e., CFRA) as they’re both completely separate from such laws. DI provides up to 52 weeks of paid benefits when an employee is unable to work and has a wage loss due to their own non-work-related illness, injury, pregnancy, or childbirth. PFL provides up to eight weeks of paid benefits when an employee has a wage loss due to taking time off work to care for a seriously ill family member, bond with a new child, or participate in a qualifying event because of a family member’s military deployment to a foreign country.
California Maternity Leave	California doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Employees typically rely on a separate type of employer-provided leave, the federal Family and Medical Leave Act (FMLA), or a state-mandated PFML program to obtain maternity leave.
California Voting Leave Law	Under California's state voting leave law, California-based employers must provide employees with up to 2 hours of paid leave to vote in an election if the voter/employee doesn’t have sufficient time outside of working hours to vote in a statewide election. The time may be taken at the beginning or end of a shift, whichever provides the most free time for voting and the least time off from the regular working shift, unless otherwise mutually agreed.

California Workplace Health and Safety Management

All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).

California, however, also adopted and imposes additional, OSHA-approved regulations that meet or exceed those federal standards. California’s State OSHA Plan is overseen by Cal/OSHA.

California Work Break Laws

California's meal and rest break laws require:

An uninterrupted 30-minute unpaid meal break when working more than five hours a day, unless waived by mutual consent of both the employer and employee.
An additional 30-minute unpaid meal break when working more than 12 hours a day, unless waived by mutual consent of the employer and employee after the first meal period break wasn’t waived.
A 15-minute rest period for every four hours worked.

California Harassment and Workplace Discrimination Laws

As described by the FEHA and enforced by the California Civil Rights Department, employers in California are prohibited from discriminating against employees on the basis of:

Race
Color
Age
Ancestry
Disability
Gender Identity
Marital Status

Medical Condition
National Origin
Religion
Sex/Gender
Sexual Orientation
Military Status

Moreover, California further requires employers to comply with specific anti-harassment mandates also outlined in the FEHA. Employers must, for example, take reasonable steps to prevent all forms of harassment and provide each employee with information about the illegal nature of sexual harassment and available legal remedies.

Finally, the state also requires employees to complete anti-harassment training courses. Public employers and private employers with five or more employees must train their staff on the prevention of sexual harassment, including harassment based on gender identity, gender expression, and sexual orientation.

Other California Employment Laws

California Non-Compete Agreement Laws	California is one of several states to completely ban non-compete agreements. Under amendments to the California Business and Professionals Code. As of January 1, 2024, it’s generally illegal for employers to enter into non-compete agreements with California employees, including agreements signed within and outside California. Moreover, it’s a civil violation to enforce unlawful non-compete agreements, and employees may seek damages, injunctive relief, and attorney fees if an employer attempts to do so. As of February 14, 2024, all existing non-compete agreements are void unless they fall under a specific statutory exception.
California Retirement Plan Laws	California is one of a handful of states with a mandatory retirement plan law. Its CalSavers program requires employers with five or more employees and no qualified retirement plan to register and facilitate employee access to the state-run savings program. Eligible employers must register by their assigned deadline, based on business size, or face penalties. Employees, meanwhile, benefit from automatic enrollment, flexible contribution options, and portable, Roth IRA-based accounts.
California Pre-Employment Inquiries Laws	California’s Fair Chance Act extends privacy protections to potential employees applying for a job. Among other requirements, the act prohibits employers with five or more employees from asking a job candidate about conviction history before making a job offer. Additionally, the California Consumer Credit Reporting Agencies Act stipulates that an employer may not acquire or consider a person's credit report in making job decisions, except for applicants or employees in certain positions, such as management, positions with the state’s Department of Justice, and law enforcement positions (e.g., peace officers). Finally, under California government code §12954, employers aren’t allowed to discriminate against applicants and employees based on: the person’s off-duty, off-site cannabis use; or an employer-required drug test that reveals nonpsychoactive cannabis metabolites Employers can, however, penalize applicants and employees based on drug screenings that test for THC.
California Lactation Laws	Under Chapter 3.8 (Lactation Accommodation) of the state’s labor code, employers must have a workplace lactation space for all employees that’s not a bathroom. Lactation spaces must be near where breastfeeding employees work and provide a place to sit, a surface for a pump, and electrical outlets. The space must also be near running water and a refrigerator to store pumped breast milk.
California Layoff Laws	As regulated by the state’s Employment Development Department, California’s Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide notice of a mass layoff trigger that differs from the federal WARN Act.

This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.

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