New California Laws Business Owners Should Know About

Things don’t move too quickly up in Sacramento, but there are a few things California business owners should be aware of.

Sacramento town hall

Here is the rundown:

Minimum wage

In 2016, California’s minimum wage rose to $10, from legislation that was passed over two years ago. It’s important for remember that exempt employees must earn at least twice the state minimum wage.

Fair Pay Act

This law is to help protect against discrimination in the workplace and requires employers to show that pay differences for similar jobs must be the result of a “bona fide factor other than sex,” like seniority and education.

School leave

Employees are not provided unpaid time off to find a school or childcare provider.  Senate Bill 579 provides employees up to eight hours per month and up to 40 total hours in a calendar year to enroll a child in school or childcare, or address a school-related emergency. The law only applies to companies with 25 or more employees.

Leeway on pay-stub errors

Employers are not given 33 days to correct a minor violation on a pay stub (like a name misspelling) before an employee is legally allowed to sue. Before Assembly Bill 1506, employees could file representative action against an employer for any labor code violation.

Wage theft

This law gives the California Labor Commissioner the right to go after the property of employers found guilty of withholding wages from their employees. Senate Bill 588 authorizes the Labor Commissioner to file a lien against an employer’s property if the business owner declines to purchase a $50,000 wage bond after he or she is found guilty of wage theft.


Franchisees now have a little more protection, in that corporate chains can no longer fire franchisees unless they substantially breach their contract. Check out Assembly Bill 524 for more details.

Whether you are starting a new business or have been a business owner for years. Reach out to Politi Insurance via email or by phone (818-709-8442) and we can get you a free quote.

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