Avoid costly penalties: A checklist to ensure employment law compliance in the Bay Area 

By:  Leiann Laiks, Esq.

California’s stringent labor laws present unique challenges for businesses in San Jose. Whether you’re a new startup or an established enterprise, maintaining compliance is critical to avoid costly legal issues. Navigating these complex regulations can be overwhelming, but partnering with an experienced employment law attorney can help your business stay proactive and up-to-date with evolving legal requirements, ensuring smooth operations and reducing the risk of litigation.

Essential employment law compliance guidelines for Bay Area businesses

1. Wage and hour compliance

California has strict wage and hour rules that include requirements for meal and rest breaks, overtime compensation, and minimum wage standards. Businesses must ensure that employees receive fair compensation and the legally mandated breaks to remain compliant. Additionally, with the increasing prevalence of wage theft lawsuits in California, employers must be mindful of the severe penalties that can result from violating wage and hour laws. These violations can lead to expensive legal battles and significant damage to a company’s reputation.

• Solution: An employment law attorney helps minimize the risk of wage-related disputes by guiding businesses in implementing clear and transparent payroll processes that ensure compliance with California’s strict wage regulations.

2. Anti-discrimination and harassment policies

California law is expansive and protects workers from harassment and discrimination on the basis of race, gender, gender identity, gender expression, pregnancy, age, national origin, medical condition, disability, sexual orientation, and other protected categories. Harassment and discrimination is illegal under the California Fair Employment and Housing Act (FEHA). To stop harassment and discrimination in the workplace, San Jose businesses need to have explicit anti-discrimination policies in place. Furthermore, employers must regularly schedule employee anti-harassment training sessions to ensure ongoing compliance with the law and existing policies. Failure to do so could expose the company to legal action and reputational harm.

• Solution: Legal counsel can help your company develop comprehensive anti-discrimination policies and conduct training sessions on harassment prevention, ensuring compliance with local, state, and federal laws.

3. Worker classification

Misclassifying workers as independent contractors instead of employees is a common mistake made by businesses, especially in California. Under California law, Assembly Bill 5 (AB 5) sets strict guidelines for classifying independent contractors, enforcing the “ABC test.” This three-part test requires companies to prove three factors: (1)  that the worker is free from company control, (2) that the worker performs work outside the usual course of the company’s business, and is engaged in an independently established trade or occupation. Determining appropriate classification is complicated and can result in significant legal and financial consequences.

• Solution: To ensure compliance with AB 5, an employment law attorney can guide your business in properly categorizing employees and independent contractors, ensuring adherence to California’s strict legal standards. 

4. Employee benefits and leave policies

Employers are required to offer certain benefits in California such as paid sick leave, family and medical leave, and mandated health insurance for employers with 50 or more employees, due to California’s laws and regulations. To remain compliant, your business must adhere to the Healthy Workplace, Healthy Families Act and the California Family Rights Act (CFRA) and Affordable Care Act. These laws ensure that employees receive the necessary time off for personal or family-related health issues, making compliance essential to avoid costly legal repercussions and foster a supportive workplace.

• Solution: An employment law attorney can safeguard your business from potential legal disputes by reviewing and updating your employee handbooks, ensuring they are fully compliant with all state-mandated benefits. 

5. COVID-19 workplace regulations

The COVID-19 pandemic has resulted in the introduction of new rules and regulations for occupational safety. San Jose companies are required to comply with the California Division of Occupational Safety and Health (Cal/OSHA) regulations to protect employees from COVID-19 and other workplace hazards. Failure to comply can result in severe consequences, including fines or even business closures. 

• Solution: Legal experts can help your company stay compliant by ensuring the implementation of all necessary COVID-19 protocols to protect employees and meet the latest legal requirements.

Safeguard your business: Partner with the reputed employment law attorneys at Strategy Law LLP 

California’s employment laws are constantly evolving, making it essential for businesses to stay up to date with new legislation to avoid costly lawsuits. A skilled employment law attorney at Strategy Law LLP offers proactive legal counsel, comprehensive compliance audits, and conflict resolution services to help your business navigate these complex regulations. By partnering with our experienced and proven legal team, your business can reduce the risk of legal issues and focus on growing your company.

Take an important step towards protecting your business from expensive legal complications. Contact a knowledgeable employment law attorney at Strategy Law LLP today to ensure full compliance with California’s intricate employment laws.

This blog is written as of October 2024.  Recommendations and legal requirements are changing rapidly, so please continue to review our legal updates or review postings on relevant government websites. 

All blogs on this site are for educational purposes only, do not constitute legal advice or opinion, and should not be applied to your situation, or any specific situation, without consultation with counsel. Strategy Law, LLP does not provide any legal advice concerning any matter discussed in a blog except upon formal engagement including, without limitation, execution of Strategy Law, LLP’s formal legal services agreement, and with respect to specific factual situations.  No blog constitutes a guaranty, warranty, or prediction regarding the result of any legal matter discussed in the blog or any representation.

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