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In Iloff v. LaPaille (Aug. 2025), the California Supreme Court clarified two key issues. First, liquidated (double) damages for minimum wage violations are not automatic: employers may avoid them only by showing a documented, reasonable effort to comply with wage laws. Mere ignorance is insufficient. Second, employees cannot sue directly under the Healthy Workplaces, Healthy Families Act, but may pursue claims through the Labor Commissioner, the Unfair Competition Law, or PAGA. For employers, the message is clear—classify carefully, document compliance efforts, and preserve records to demonstrate good faith if wage or paid leave disputes arise. |
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On August 4, 2025, the California Court of Appeal, in Hirdman v. Charter Communications, held that outside salespeople qualify as “exempt” under the Labor Code, meaning employers may calculate their paid sick leave at the same rate used for vacation or paid time off. The court rejected the Labor Commissioner’s narrower view that only executive, administrative, and professional employees were “exempt,” emphasizing that “exempt” is a statutory term of art covering all overtime-exempt categories. This published decision provides employers a clearer, more practical method of determining sick-leave pay rates for overtime-exempt employees, reducing compliance uncertainty under California’s paid sick leave law. |
Governor Newsom signed Senate Bill (SB) 648, closing a longstanding enforcement gap in California’s wage and hour law. While the Labor Code already prohibits employers from taking or withholding employee tips, the Labor Commissioner previously lacked authority to issue citations for violations.
Effective January 1, 2026, SB 648 authorizes the Commissioner to investigate complaints of tip theft and pursue civil penalties or legal actions directly against offending employers. This new enforcement tool underscores California’s continued focus on wage integrity and creates additional liability exposure for restaurants, hospitality employers, and any business where gratuities are part of compensation.
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Recognizing more frequent heat exposure threatens employee health, the California Occupational Safety and Heath Administration (Cal/OSHA) issued an Advisory on August 5th, spotlighting mandated worker protections both indoors and outdoors. Outdoor Regulations require employers to provide fresh water, shade when temperatures hit 80°F, and permit cool-down rest breaks on request. Once temperatures reach 95°F, Cal/OSHA imposes stricter rules for agriculture, construction, landscaping, oil and gas, and transport of heavy or agricultural materials. In high heat, employers must also monitor workers for signs of heat illness and maintain effective communication. California’s indoor heat rule applies when temperatures reach 82 °F, unless exposure is brief (15 minutes or less). Employers must provide cool-down areas kept below 82 °F, water, training, emergency procedures, acclimatization for new or returning staff, and a written plan. At 87°(or 82° when facing radiant heat or wearing restrictive clothing), extra steps apply, including monitoring and controls. Missed cool-downs require premium pay. Employers should verify plans, train supervisors, audit hot spots like kitchens and warehouses, document acclimatization, and use an 82°F checklist to reduce enforcement risk. |
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Two new laws effective January 1, 2025, reshaped small-employer leave duties. Assembly Bill (AB) 2499 expanded protected leave when an employee or family member is the victim of certain crimes. Denying or retaliating against such leave is treated as unlawful under the Fair Employment and Housing Act (FEHA), creating discrimination liability. AB 2123 ends the long-standing rule that employees must exhaust vacation before accessing Paid Family Leave (PFL) benefits. Employers must now allow PFL to run independently. Both laws require immediate policy updates and manager training. Even unintentional violations pose risk, especially for small employers with limited HR support or inconsistent leave records. Why highlight this now? Small employers often notice new laws only after guidance or enforcement, hence this August reminder. |
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California is rapidly moving to regulate workplace use of AI and surveillance tools. Pending bills would require written notice before deploying monitoring technology, ban invasive systems like facial or emotion recognition, and prohibit surveillance in private spaces such as bathrooms and break rooms. Employers may also need to maintain and disclose an inventory of automated tools to the Department of Industrial Relations (DIR). The proposed “No Robo Bosses Act,” Senate Bill (SB) 7 mandates human oversight of automated hiring, firing, or promotion decisions. Finally, new Civil Rights Council regulations, effective October 1, 2025, require bias testing, record keeping, and anti-discrimination safeguards. |
Effective July 1, 2025, California’s statewide minimum wage increases to $16.50 per hour, with some cities like San Francisco and West Hollywood exceeding $19.
Employers must apply the highest applicable rate based on work location, update pay stubs and Labor Code section 2810.5 notices, and ensure compliance across all worksites. Wage violations can lead to penalties, PAGA claims, or class actions—especially for multi-location employers.
Learn MoreCalifornia requires nonexempt employees receive a 30-minute unpaid, duty-free, meal break by the end of the 5th hour of work.
However, the Labor Code permits an employee to take an on-duty meal break, but only when the nature of the work prevents relief from duty and there’s a written agreement between employer and employee. This agreement must state the employee can revoke it at any time. The meal period must be at least 30 minutes and is considered paid time.
If an employee revokes their on-duty meal break agreement, they may not be given an on-duty meal break until a new agreement is signed by both the employer and employee.
Learn MoreCalifornia law requires a 30-minute unpaid, duty-free meal break after five hours, and a second after ten hours. The first break can be waived if the shift is six hours or less; the second only if the shift is 12 hours or less and the first was not waived. Waivers must be mutual, voluntary, and written. Violations trigger premium pay.
Summary:
| Many California employers are unfamiliar with Bus. & Prof. Code Sec. 16600, which bans any agreement that would prohibit another from competing in the same field. However, there are three narrow statutory exceptions where noncompete terms may be enforceable:
(1) Sale of Business (§ 16601): A seller of a business may agree not to compete with the buyer within a reasonable geographic area, so long as the seller receives value and transfers goodwill. (2) Dissolution of Partnership (§ 16602): Partners leaving or dissolving a partnership may agree not to compete in a specific area. (3) Dissolution of LLC (§ 16602.5): Similar rules apply when members withdraw from or dissolve an LLC. Outside these exceptions, even narrowly tailored noncompetes are unenforceable, and employers should instead rely on trade secret and confidentiality protections |
As summer vacation approaches, California employers hiring minors must navigate specific legal requirements. Under Education Code Section 49110, et seq., a valid work permit is required. Both minors and employers complete a “Statement of Intent,” and the minor’s school issues a “Permit to Employ and Work.” Emancipated minors may apply independently but remain subject to child labor laws.
Work hours vary by age. Under California Labor Code Section 1391, 14–15-year-olds may work limited hours during school weeks; 16–17-year-olds may work more. Certain hazardous jobs—like operating heavy machinery or working with toxic substances—are off-limits.
Employers should review these rules carefully to stay compliant and provide a safe work environment for youth employees.
Learn More| Effective July 1, 2025, the Los Angeles County Fair Workweek Ordinance applies to retail businesses with over 300 global employees, including those hired through staffing firms or franchisees.
It covers employees working at least two hours per week in unincorporated county areas. Employers must give a good-faith schedule estimate, publish schedules 14 days in advance, and pay predictability pay for late changes. “Clopening” shifts (less than 10 hours apart) require written consent and premium pay. Employers also cannot require employees to find shift coverage. This mirrors a similar ordinance governing LA city employers. |
