Looking For Reliable Employer of Record Services California?
Here’s some essential employment information we think you should know.
Clear Details of New Hire
Paperwork Requirements in California
California employers are required to provide the following documents and notices to new hires:
Employee Withholding Forms
Employers must provide the IRS Form W-4 and California Form DE 4 for state personal income tax (PIT) withholding.
California Family Rights Act Notice:
Employers must notify new hires of their rights under the California Family Rights Act (CFRA).
Pregnancy Rights Notice:
Employers must inform new hires about their right to request reasonable accommodations related to pregnancy under California law.
California Paid Sick Leave Law Notice:
Employers must inform employees of their rights to paid sick leave under California’s Paid Sick Leave Law.
Harassment, Discrimination, and Retaliation Prevention Policy:
Employers must provide notice of their policies against harassment, discrimination, and retaliation.
Warehouse Production Quota Notice:
Employers in certain industries, such as warehouses, must notify employees about any production quotas they are subject to
Lactation Policy Notice:
As California law requires, employers must notify new hires of their lactation accommodation policy.
California Consumer Privacy Act (CCPA) Notice:
Employers must inform new hires about the categories of personal information collected under the California Consumer Privacy Act (CCPA) and the purposes for which it is used.
Documents to Provide to New Employees:
Employers must ensure new employees complete or receive the required paperwork specific to California regulations at the time of hire.
Local Requirements:
Additional notice requirements may apply in certain localities, such as Los Angeles, San Diego, and San Francisco.
Stalking Notice:
Employers with 25 or more employees must also distribute a Domestic Violence, Sexual Assault, and Stalking Notice.
Retirement Savings Program:
Employers with five or more employees without a private workplace retirement savings plan must provide information about the CalSavers Retirement Savings Program.
Employment Taxes in California
In California, various statutory fees and employment taxes affect the payroll and paychecks. Here’s a breakdown of the relevant taxes in the state:
Employer Taxes
| Employment Tax | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| State unemployment insurance tax (SUTA) | 1.5% to 6.2% |
| Federal unemployment insurance tax (FUTA) (charged on the first $7,000 earnings per year of an employee) | 6% |
Employee Taxes
| Tax Type | Tax Percentage |
|---|---|
| FICA (Medicare) | 1.45% |
| FICA (Social Security | 6.2% |
| State income tax | 1% to 12.3% |
| Federal income tax | 10% to 37% |
Important Leave Laws in California
| Leaves Title | Law |
|---|---|
| Bereavement Leave | Employers with 5+ employees must provide leave for the death of a covered family member or reproductive loss events. |
| Sick Leave | All employers must provide paid sick leave for personal illness or to care for a sick family member. Employees can earn one hour of paid sick leave for every 30 hours worked. |
| Blood/Organ/Bone Marrow Donation Leave | Employers with 15+ employees must provide leave for bone marrow or organ donation. |
| Court Attendance/Witness Leave | All employers must allow employees to attend court as witnesses or for legal proceedings. Employees may need to use personal leave. |
| Crime Victims' Leave | Under the victim leave law, employees can take leave to obtain relief. Employers with 25 or more employees must provide leave for medical attention, counseling, victim services, safety planning, and related activities. From January 1, 2025, this law will also extend to allow employees to take leave to care for a family member who is a victim and participate in legal services or proceedings. |
| Domestic/Sexual Violence Victims' Leave | All employers must provide leave for domestic/sexual violence victims. Employers with 25+ employees must provide leave for additional services. |
| Paid Family Leave | Employers that pay $100+ in wages per quarter must provide paid family leave for bonding or caring for a seriously ill family member. |
| Family and Medical Leave | Employers with 25+ employees must provide leave for family members of service members under federal law. |
| Military Service/Veterans' Leave | All employers must provide leave for military service. Employers with 15+ employees must also allow leave for Civil Air Patrol. |
| Jury Duty Leave | All employers must allow employees to serve on jury duty without penalty. Employers may offer unpaid leave. |
| Pregnancy Disability Leave | Employers with 5+ employees must provide leave for pregnancy-related medical conditions. |
| Public Health Emergency (Quarantine/Isolation) Leave | California does not have a state law mandating public health emergency leave. However, employers can offer this benefit as part of their company policies, which may be paid or unpaid. |
| School Activities/Visitation Leave | All employers must allow leave for school discipline-related meetings, and employers with 25+ employees must allow leave for school or daycare activities. |
| Volunteer Emergency Responder Leave | All employers must allow leave for volunteer emergency responders, and employers with 50+ employees must provide time off for training. |
| Voting Leave | All employers must provide up to 2 hours of paid time off for employees to vote if their work schedule conflicts with voting hours. |
Comprehensive Employment Termination Details for California
Probation Period
In California, there is no state law for a probation period for new employees. Still, many employers implement one to evaluate the employee's performance and suitability for the role. Probation periods typically range from 3 to 6 months, depending on the company's policies.
Termination Process
California follows the "at-will" employment rule, meaning either employee or employer can terminate the employment with or without cause. However, employers must ensure that terminations are not discriminatory or retaliatory, as California law protects from unjustified termination. Our EOR service experts at HR Options can assist employers in navigating the termination process to reduce the risk of legal challenges and disputes.
Notice Period
Under California law, employers must provide notice before termination in specific cases. Employees with less than one year of service require 90 days, while those over one year need at least 60 days. The Cal-WARN Act also mandates a 60-day notice for mass layoffs or closures involving 50+ employees. Employees typically give two weeks' notice when resigning, though it's not legally required.
Which Laws Law Apply to Your Organization?
In the United States, each state has its own laws governing the relationship between employers and employees. Businesses must comply with these regulations to ensure compliance, protect their workforce, and avoid penalties. At HR Options, our EOR specialists provide comprehensive Employer of Record services to help you navigate and adhere to both state and federal employment laws relevant to your organization. Here are some of the key regulations that may affect your business in California:
| Law | Applies To | Description |
|---|---|---|
| Access to Personnel Files Law | All employers | Requires employers to provide employees or their representatives access to personnel files. |
| Ban the Box Law | Employers with five or more employees | Prohibits employers from asking about criminal history on job applications. |
| Bereavement Leave Law | Employers with five or more employees | Requires employers to provide bereavement leave for the death of a family member. |
| Bone Marrow and Organ Donor Leave Law | Employers with 15 or more employees | Provides unpaid leave for employees to donate bone marrow or an organ. |
| Breastfeeding Breaks Law | All employers | Requires employers to provide time and space for breastfeeding breaks. |
| California Continuation Benefits Replacement Act (Cal-COBRA) | Employers with two or more employees | It requires employers to continue providing healthcare benefits for employees who leave. |
| California Fair Employment and Housing Act (FEHA) | Employers with five or more employees (but harassment provisions apply to all employers) | This law prohibits discrimination in employment based on various characteristics. |
| California Family Rights Act (CFRA) | Employers with five or more employees | Provides job protection and leave for employees to care for a family member with a serious health condition. |
| California Military and Veterans Code | All employers | It protects employees serving in the military and veterans from discrimination or job loss. |
| California Occupational Safety and Health Act (Cal/OSH Act) | All employers | This act mandates a safe and healthy working environment for employees. |
| California Unemployment Insurance Code | Employers paying $100 or more in wages in a calendar quarter | Helps to establish unemployment insurance and requirements for eligible employees. |
| California Worker Adjustment and Retraining Notification Act (Cal-WARN Act) | Employers with 75 or more employees | Employers must provide advance notice of mass layoffs, plant closures, or significant workforce reductions. |
| Child Labor Laws | All employers | These laws regulate the employment of minors, including work hours and types of work. |
| Civil Air Patrol Leave Law | Employers with more than 15 employees | It provides job protection for employees serving in the Civil Air Patrol. |
| Consumer Credit Reporting Agencies Act (CCRAA) | All employers | Regulates the use of consumer credit reports in employment decisions. |
| Day of Rest Law | All employers | Requires employers to provide employees with at least one day of rest per week. |
| Domestic Violence and Crime Victim Leave Law | All employers | This law provides job protection and unpaid leave for victims of domestic violence or crime-related activities. |
| Drug and Alcohol Rehabilitation Leave Law | Employers with 25 or more employees | Requires employers to provide unpaid leave for drug or alcohol rehabilitation. |
| Drug Testing Law | All employers | Regulates drug testing policies and procedures in the workplace. |
| Election Official Leave Law | All employers | Requires employers to provide leave for employees serving as election officials. |
| Emergency Responder Leave Law | All employers | Provides job protection for employees serving as emergency responders. |
| Employee Literacy Education Assistance Act | Employers with 25 or more employees | Requires employers to provide literacy education assistance to employees. |
| Equal Pay Law | All employers | Ensures equal pay for equal work regardless of gender. |
| Family Military Leave Law | Employers with 25 or more employees | Provides leave for employees whose family members are on active military duty. |
| Family Temporary Disability Insurance Program | Employers paying $100 or more in wages in a calendar quarter | Provides temporary disability insurance for employees unable to work due to illness or injury. |
| Healthy Workplaces, Healthy Families Act (HWHFA) | All employers | Employers must provide paid sick leave for employees to recover from illness or care for a sick family member. |
| Investigative Consumer Reporting Agencies Act (ICRAA) | All employers | Regulates the use of investigative consumer reports in employment decisions. |
| Jury Duty Leave Law | All employers | Requires employers to allow employees to take time off for jury duty without retaliation. |
| Kin Care Leave Law | All employers | According to this law, employers can allow employees to use paid sick leave to care for a sick family member. |
| Leave to Attend Judicial Proceedings Law | All employers | Requires employers to allow employees to take leave to attend judicial proceedings. |
| Meal Breaks Law | All employers | Requires employers to provide meal breaks for employees working over a certain number of hours. |
| Minimum Wage Order | All employers | Establishes minimum wage rates and requirements for employers to comply with. |
| Overtime Law | All employers | Employers must pay employees overtime wages for hours worked over the standard workweek. |
| Payment of Wages Law | All employers | Regulates the timely payment of wages to employees, including final paychecks after termination. |
| Payment of Wages Law | All employers | Regulates the timely payment of wages to employees, including final paychecks after termination. |
| Pregnancy Accommodation Law | Employers with five or more employees | Requires employers to provide reasonable accommodations for pregnant employees. |
| Pregnancy Disability Leave Law | Employers with five or more employees | Provides unpaid leave for employees with pregnancy-related medical conditions. |
| Rest Breaks Law | All employers | Requires employers to provide employees with rest breaks during their shifts. |
| Safe Driving Laws | All employers | Imposes restrictions on employees' driving behavior, including prohibiting phone use while driving. |
| Salary History Inquiry Law | All employers | Prohibits employers from asking for salary history during the hiring process. |
| School Activities Leave Law | Employers with 25 or more employees | It requires employers to provide leave for employees attending school-related activities for their children. |
| Smoke-Free Workplace Law | All employers | Prohibits smoking in the workplace to ensure a healthy environment. |
| State Disability Insurance Program | Employers paying $100 or more in wages in a calendar quarter | Provides temporary disability insurance for employees who cannot work due to illness or injury. |
| Voting Leave Law | All employers | Requires employers to provide employees with time off to vote during elections. |
| Wage Disclosure Law | All employers | Allows employers to disclose salary information upon request. |
| Wage Theft Prevention Act | All employers | Protects employees from wage theft and ensures timely and accurate payment. |
| Workers' Compensation Law | All employers | Requires employers to provide workers' compensation insurance for work-related injuries or illnesses. |
| Whistleblower Protection Laws | All employers | Protects employees who report illegal activities or unsafe work conditions from retaliation. |
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