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Capital City
Sacramento
Timezone
PST
(
GMT -8
)
Paid Leave
No legal requirement
Income Tax
1%-13.3%
Employer Tax
7.65%
Capital City
Sacramento
Timezone
PST
(
GMT -8
)
Paid Leave
No legal requirement
Income Tax
1%-13.3%
Employer Tax
7.65%
California enforces strong worker protections, including strict regulations on meal and rest breaks.
The state has progressive environmental policies, influencing workplace practices, especially in urban areas.
California’s diverse economy spans tech, entertainment, agriculture, and tourism, offering varied employment opportunities.
Employers in California are required to have both a Federal Employer Identification Number and a California payroll tax number to hire employees.
Standard working hours are 8 hours per day and 40 hours per week.
There is no mandated amount of hours. However, 35 to 40 hours per week is generally considered full-time.
Probation periods are not legally mandated, either federally or by state laws.
As of January 1, 2024, California's statewide minimum wage is $16.00 per hour for all employers.
Employees may not be unfairly discriminated by against:
Californian law mandates that employers pay employees at least twice a month. This requirement ensures employees are paid no less frequently than semimonthly.
Employers and employees are responsible for specific employment taxes that contribute to federal and state programs, supporting benefits such as unemployment insurance, disability, and healthcare.
Employees are subject to several payroll taxes, contributing to state programs and federal benefits.
In the United States, both federal and California state income tax returns are typically due on April 15 each year. If April 15 falls on a weekend or holiday, the deadline is extended to the next business day. California has, in certain years, provided automatic extensions for state tax filings, differing from the federal schedule.
In California, private-sector employers with five or more employees must offer a retirement plan (this is going to extend to employers with 1 -4 employees with deadline for compliance being 31 December 2025). If they don’t already have one, they’re required to enrol in the state-sponsored CalSavers program. This program is easy to set up and doesn’t require employer contributions—employers simply facilitate employee participation. Employees are automatically enrolled but have the choice to opt out, and they can adjust their contribution rates from the default setting. Employers who already offer a qualified retirement plan can certify their exemption from CalSavers.
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There is no legal requirement for the employer to provide the employee with paid or unpaid vacation leave. However, providing employees with 10-15 days of paid leave is common in California.
There is no requirement for employers to offer Paid Time Off (PTO) for personal use or vacation. However, if PTO is provided, it is treated as earned wages, meaning it cannot be forfeited. Employers must pay out unused PTO upon termination. Employers can set policies on accrual limits, caps, or usage terms, provided these comply with state regulations.
Maternity leave is supported through Pregnancy Disability Leave (PDL) and the Family Rights Act (CFRA). Under PDL, employees disabled by pregnancy or childbirth are entitled to up to four months of unpaid, job-protected leave for medical appointments, childbirth, and recovery. Following PDL, employees may take an additional 12 weeks of unpaid bonding leave under CFRA. While PDL and CFRA do not mandate paid leave, the Paid Family Leave (PFL) program offers partial wage replacement for up to 8 weeks, funded through employee payroll deductions.
Paternity leave is available under the Family Rights Act (CFRA), allowing new fathers up to 12 weeks of unpaid, job-protected bonding leave within the first year of a child’s birth, adoption, or foster care placement. The Paid Family Leave (PFL) program also provides partial wage replacement for up to 8 weeks to support bonding with a new child. PFL benefits are funded by employees and do not provide job protection, though CFRA can be used to secure job reinstatement.
Paid sick leave is required, with a minimum accrual rate of one hour for every 30 hours worked. Employers may set a minimum entitlement of 24 hours or three days per year. Sick leave can be used for personal illness or to care for family members. Unused sick leave can carry over to the following year, with a maximum accrual cap of 48 hours or six days.
Employees who serve in the military are entitled to leave under both federal (USERRA) and state laws, which provide job reinstatement rights and protections for benefits and seniority. Additional provisions also apply to employees called to state military service or emergency duty, such as the National Guard.
In California, employers are not legally obligated to pay employees for time spent on jury duty, but they must allow unpaid leave and cannot penalize anyone for serving. Some companies offer paid jury duty leave as part of their benefits, though it’s not required. Employees can often use vacation or paid time off if they choose, but employers may not force them to. Starting from the second day of service, California courts provide jurors with a $15 daily stipend and a mileage reimbursement.
The Family Rights Act (CFRA) provides up to 12 weeks of unpaid, job-protected leave for new parents to bond within the first year after a birth, adoption, or foster placement. The Paid Family Leave (PFL) program offers up to 8 weeks of partial wage replacement for bonding time, though PFL does not guarantee job protection.
Employers with five or more employees must provide up to five days of leave following the death of a family member. This leave can be unpaid unless an employer’s policy offers pay.
Employers must allow up to two hours of paid leave for employees to vote in state elections if there is insufficient time outside work hours.
Employers with 25 or more employees at the same location must provide up to 40 hours per year of unpaid leave for participation in children’s school activities.
Employers are subject to specific requirements regarding employee benefits, which vary based on company size and employee status. These benefits include health insurance, retirement plans, and other forms of assistance. Meeting these requirements ensures compliance and enhances a company’s offerings to its workforce.
Employers with 50 or more full-time employees must offer health insurance under the federal Affordable Care Act. Smaller businesses are not required to provide health coverage, though many choose to offer it to attract and retain talent. State health insurance marketplaces, such as Covered California, provide affordable plan options for those without employer-provided coverage.
Part-time employees are not automatically entitled to the same benefits as full-time employees unless the employer’s policy includes them. However, employers may choose to extend health insurance, paid leave, or other benefits to part-time employees. Eligibility may depend on hours worked, with employees averaging 30 or more hours per week often qualifying for benefits similar to those provided to full-time employees.
In California, private-sector employers with five or more employees are required to provide a retirement plan, either by offering a traditional 401(k) or enrolling in the CalSavers program if no other plan is available.
In California, employment is generally "at-will," meaning either the employer or employee can end the employment relationship at any time, with or without notice. However, employers must follow key requirements:
There is no general requirement for employers to provide advance notice before terminating an employee. However, under the Worker Adjustment and Retraining Notification (WARN) Act, employers with 75 or more employees must provide 60 days’ notice if conducting a mass layoff, plant closure, or significant downsizing affecting a substantial number of employees.
California law does not require severance pay, though it may be offered at the employer's discretion.
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As of January 1, 2024, California’s minimum wage rates are:
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