California

Global Coverage > United States > California

Employment in California

Updated on: February 24, 2025

Currency

USD

Employer Taxes

Federal, Social Security, Medicare, Unemployment, Workers' Compensation, ETT, SDI

Payroll Frequency

Semi-monthly; weekly or biweekly for certain occupations.

Language

English

Date Format

MM/DD/YYYY

California By The Numbers

39.5 million

Population

3.6 trillion

GDP

National Holidays

State Information

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Weekly Working Hours

Time and a half for hours over 8 in a day or 40 in a week; double time after 12 hours in a day or 8 hours on the 7th consecutive day.

National Holidays

New Year’s Day – January 1
Martin Luther King Jr. Day – Third Monday in January
Presidents’ Day (Washington’s Birthday) – Third Monday in February
Memorial Day – Last Monday in May
Independence Day – July 4
Labor Day – First Monday in September
Columbus Day (or Indigenous Peoples’ Day in some areas) – Second Monday in October
Veterans Day – November 11
Thanksgiving Day – Fourth Thursday in November
Christmas Day – December 25

Leave

Paid sick leave: 1 hour per 30 hours worked, up to 40 hours/year; Family Rights Act provides 12 weeks unpaid leave.

Employment Contracts

No state specific requirements. Federal law does not mandate written employment contracts, but specific conditions and exceptions may apply

Types of Employment

Employees (including Temporary and Part Time workers) and Independent Contractors.

Employment Costs

FUTA: 6% on wages up to $7,000 annually;
Social Security: 6.20% on wages up to $168,000
Medicare Tax: 1.45% on wages Unemployment: 1.5% to 6.2%
Workers’ compensation Employment Training Tax (ETT) State Disability Insurance (SDI)

IC Class Factors

The modified ABC Test – where A = Absence of Control (see the Common Law Test),

B = Business of the customer/client – the services have to be performed outside the ordinary course of business of the customer

C = Customarily engaged – does the worker have a business established providing these same services to others.

There are some exceptions to this test.

Labor Leasing

No labor leasing license is required.

Minimum Wage Requirements

$16.50 per hour, for all employers. Several city and county specific regulations require higher hourly rates. The minimum wage for fast food workers is now $20.00 per hour.

Medical Benefits

Follows federal ACA requirements; stricter state mandates, including requirements for minimum essential coverage. Employer mandate for 100+ employees. Penalties for non-compliance, individual mandate exists.

Probationary Periods

No specific state regulations; employer discretion, but subject to general employment laws and protections.

Termination Notice

At-will employment; no notice required, but WARN Act applies for mass layoffs (60 days’ notice).

Severance

Generally no mandatory severance pay, but required in certain cases (e.g., mass layoffs under WARN Act). Based on length of service; specifics depend on employer policies or collective bargaining agreements.

Pre-hire Checks

Ban-the-box; no inquiry about arrests not leading to conviction. Prohibition of drug testing without specific policies and restriction on denying employment due to recreational, off-site cannabis use.

Download PDF

First name*

Last name*

Email*

Legal Disclaimer
The information provided on this website is for general informational purposes only and is subject to change without notice. The content on this website is not intended to be a substitute for professional legal advice, diagnosis, or treatment. While we strive to keep the information up to date and accurate, People 2.0 makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

Employee Cost Calculator

Lorem ipsum dolor sit amet consectetur adipiscing eli mattis sit phasellus mollis sit aliquam sit nullam.

Need Help Hiring in California?
Connect with Our Experts.