The financial strain caused by federal taxes on tips and overtime pay is significant for hardworking Americans.  Recognizing the need for change, bipartisan support has emerged to eliminate these taxes, with backing from Donald Trump, Kamala Harris, and President Joe Biden. This article explores what the “No Tax on Tips and Overtime” policy could mean for employees and employers in the hospitality industry, and how you can join Zaller Law and TipHaus in advocating for federal legislation to be enacted early in Trump’s administration.

1. Bipartisan Support for No Tax on Tips

The “No Tax on Tips” policy has garnered bipartisan support, with both Donald Trump and Kamala Harris advocating for it during their presidential campaigns. Trump emphasized the need to reduce tax burdens on tipped workers, aligning with his broader platform of tax reduction. Similarly, Harris, while running for president, expressed her support for eliminating taxes on tips, aiming to win over service workers, a significant and influential constituency. Additionally, President Joe Biden has also shown support for this idea. White House spokesperson Karine Jean-Pierre confirmed in August 2024 that Biden would sign legislation eliminating taxes on tips for service and hospitality workers if passed by Congress. This bipartisan backing underscores the widespread recognition of the financial challenges faced by tipped workers and the need for this legislation to support them.

2. “No Tax On Tips Act of 2025” Announced by Senators Ted Cruz and Rick Scott

On January 16, 2025, the “No Tax on Tips Act” was introduced by Senators Cruz and Scott.  Under the bill, “cash tips”—comprising cash, credit and debit card charges, and checks—are exempt from federal income tax, allowing taxpayers to claim a full 100% deduction for tipped wages at filing. The revised text incorporates measures to ensure that only employees who traditionally receive tips will benefit from this exemption. However, this bill only addresses tips, and does not mention not eliminating taxes on overtime.

3. Support for Workers

Eliminating taxes on tips and overtime would provide immediate financial relief to workers, fostering greater satisfaction and retention. This also supports the growth of the hospitality industry, which has faced significant challenges in recent years.

4. Support for the Hospitality Industry

Eliminating taxes on tips and overtime would permit restaurants to attract and retain skilled workers by offering competitive earning potential.  In addition, eliminating taxes on tips would enhance employee satisfaction and retention, reducing turnover costs for operators.

5. Take Action: Support the No Tax on Tips and Overtime Petition

This issue was a campaign promise by both Trump and Harris and has bipartisan support – it just needs to be implemented now.  Zaller Law Group has joined efforts with TipHaus to ensure this legislation remains a priority for U.S. Congress and is addressed early in Trumps administration. 

Please join us in continuing to urge U.S. Congress to eliminate federal taxes on tips and overtime pay. Let’s strengthen the financial security of millions of workers, support the growth and recovery of the hospitality industry, and foster economic growth nationwide:

Sign the petition here.

Dear Readers:

Today, I am pausing my usual “Friday’s Five” post to address a pressing issue that has deeply affected our community: the devastating fires in Los Angeles. Over the last couple of days, I could see the flames of the fires looking up towards Pacific Palisades from my office (picture above is from my office overlooking LAX north towards Pacific Palisades), and the impact has been profound. I feel compelled to share how we can come together to support those in need.

Over the past couple of days, we have been actively coordinating food and clothing donations to help those affected by the fires. This effort has been made possible with the incredible support of restaurants and vendors such as Gavina Coffee, Lazy Dog Cafe, The Red Chickz. Shamrock Foods, Sunrise Produce, Marmalade Cafe, Maria’s Italian Kitchen, Wurstkuche, and many others. Their generosity has been overwhelming. In addition, many others have been asking how they can contribute.

The hospitality industry, in particular, has been hit hard. Many restaurants and businesses have burned down, leaving countless individuals without a means to make a living. In light of this, I want to draw attention to Restaurants Care, a non-profit organization I serve on the board of, which is dedicated to providing immediate assistance to these workers through a special relief fund.

Every dollar we contribute can make a significant difference:

  • A line cook can keep food on their table.
  • A server can make rent while they’re out of work.
  • A dishwasher can rebuild after unimaginable loss.

This cause is incredibly close to my heart, and I believe that together, we can make a substantial impact. Whether it’s $10 or $100, every donation will go directly to helping those in need. Let’s come together and make a difference. Click here to donate.

Thank you for joining me in supporting the people who care for all of us through their work.

Warm regards,

Anthony Zaller

The beginning of 2025 presents an ideal opportunity for companies to perform a California employment law audit. This proactive step ensures your policies align with current regulations, your managers receive proper training, your company retains required records for the appropriate duration, and will greatly reduce potential PAGA penalties under the 2024 PAGA reform. To help guide your audit, we’ve outlined five key areas to review, along with suggested questions for each topic. If you need assistance, don’t hesitate to reach out—our team regularly conducts audits for clients as a preventive measure.

1. Hiring Practices

 2. Records

  • Are employee files maintained confidentially and for at least four years?
  • Are employee time records maintained for at least four years?
  • Are employee schedules maintained for at least four years?
  • Do the managers have set forms for the following:
    • Employee discipline and write-ups
    • Documenting employee tardiness
  • How is the employee documentation provided to Human Resources or the appropriate manager?
  • Who is involved in reviewing disability accommodation requests?
  • How are employee absences documented?

3. Ensuring PAGA Compliance Through Reasonable Efforts and Addressing Wage and Hour Practices

  • PAGA audit to show reasonable efforts to comply with the Labor Code at cap penalties:
  • Conduct periodic payroll audits
  • Establish compliant policies and handbook policies
  • Train supervisors on Labor Code compliance
  • Take appropriate corrective action with supervisors who violate company policy
  • Read more about the reasonable steps employers should be taking to cap PAGA penalties in our prior article here: https://www.californiaemploymentlawreport.com/2024/07/key-action-items-for-california-employers-under-the-new-paga-reform-law/
  • Does the company have its workweeks and paydays established?
  • Are paydays within the applicable time limits after the pay period as required under the law?
  • Are employees provided with compliant itemized wage statements?
  • Are employees provided with a writing setting out their accrued paid sick leave each pay period? Has the amount of accrued paid sick leave reported to employees been updated to comply with California’s increased requirements in 2024?
  • Are employees properly classified as exempt or nonexempt?
  • Are any workers classified as independent contractors, and if so, could they be considered employees under AB 5?
  • Are nonexempt employees properly compensated for all overtime worked?
  • Is off-the-clock work prohibited?
    • Policy in place?
    • Are managers trained how to recognize off-the-clock work and what disciplinary actions to take if finding employees working off-the-clock?
  • Does the company’s time keeping system round employee’s time?
    • If so, is the rounding policy compliant with the law? Employers should note that meal breaks cannot be rounded pursuant to Donohue v. AMN Services, and whether California employers may use time rounding at all is currently being reviewed by the California Supreme Court. Employers are cautioned about using time rounding given these cases.
  • Are meal and rest period policies set out in handbook and employees routinely reminded of policies?
    • (See additional PAGA audit items above)
    • Does the company pay “premium pay” for missed meal and rest breaks? If so, how is this documented on the employee pay stub? Does the company have a clear definition of what is considered a missed break and document why the employee missed the break?
    • Do employees record meal breaks?
    • Are managers trained on how to administer breaks and what actions to take if employees miss meal or rest breaks?
    • Are employees provided attestations to document the reason if the employee missed, took a short, or a late meal break? (See Donohue v. AMN Services)
  • If employer provides vacation, is the policy properly documented, tracked, and is unused vacation paid out with the employee’s final paycheck?
  • Are all deductions from the employee’s paycheck legally permitted?
  • Are employees reimbursed for all business expenses, such as uniforms, work equipment, mileage for work, and for expenses incurred for working from home (such as internet, cell phones, etc.)?

 4. End of Employment Issues

  • Are employees leaving the company provided their final wages, including payment for all accrued and unused vacation time?
  • Are final paychecks provided to employees within the required deadlines?
  • Does the employer deduct any items from an employee’s final paycheck?
    • If so, are the deductions legally permitted? (Use caution, very few deductions are permitted under California law.)

5. Anti-harassment, discrimination and retaliation

  • Are supervisors provided with sexual harassment training every two years? (If employer has 5 or more employees, supervisors are legally required to have a two-hour harassment prevention training that complies with California law.)
  • Are there steps in place to provide nonsupervisory employees with 1-hour sexual harassment prevention training and once every 2 years thereafter? (Required for employers with 5 or more employees.)
  • Are supervisors and managers discussing the company’s open-door policy to employees at routine meetings with employees? Is this being documented?

2024 brought a host of challenges for California employers, with significant legal changes and new compliance requirements reshaping the workplace. Employers faced hurdles such as adapting to updated employment laws, implementing workplace violence prevention plans by July 1, 2024, and managing the $20 per hour minimum wage for fast food workers effective April 1, 2024. While the PAGA reform enacted in June 2024 provided much-needed relief from the deluge of PAGA litigation, proactive measures are still required for employers to fully benefit from these changes.

This week’s Friday’s Five showcases the dedicated efforts of our team at Zaller Law Group (ZLG) throughout 2024 to equip California employers with the knowledge and resources they need to navigate these complexities successfully.

1. 58 Blog Posts

The California Employment Law Report continued to be a cornerstone resource for providing timely updates on California employment law. Our blog consistently addresses critical legal developments, ensuring employers have the insights they need to navigate this complex landscape. If you haven’t yet subscribed, stay ahead of legal updates by subscribing here: California Employment Law Report Subscription.

2. Over 15 Webinars Conducted

In 2024, we hosted a variety of webinars, both independently and in collaboration with partner organizations. These sessions provided invaluable education on California’s ever-evolving employment law landscape. Looking ahead to 2025, we’re preparing an expanded lineup of webinars and in-person seminars to support California employers. If you’d like to receive updates on upcoming events, feel free to reach out via email.

3. 63 YouTube Videos

Our video content on YouTube saw over 130,000 views this year, with our subscriber count climbing to more than 2,883. In 2025, we’re excited to announce a major rebranding of our channel to The Legal Lineup. This evolution reflects our broader focus on both employment law and business legal topics, offering actionable insights for California employers and business leaders. Subscribe now to stay informed: The Legal Lineup YouTube Channel.

4. Most Viewed LinkedIn Post

Our most engaging LinkedIn post in 2024 addressed a critical issue:
“Employees who quit without 72 hours’ notice must receive all wages, including accrued vacation, within 72 hours of leaving.”

Under California law, delays in final wage payments can result in steep “waiting time penalties” under Labor Code section 203. Employers must act swiftly to avoid these costly penalties. Connect with me on LinkedIn for more timely updates: Anthony Zaller on LinkedIn.

5. Over 10 Employees at Zaller Law Group

The achievements listed above reflect the dedication of our talented attorneys and staff at Zaller Law Group. Balancing these accomplishments alongside our litigation work, we remain committed to defending and advising employers throughout California.

As we step into 2025, we remain steadfast in our mission to empower California employers with the tools and knowledge needed to thrive in an increasingly complex legal environment. Wishing you all a successful and prosperous New Year!

This Friday’s Five is a break from the normal legal update – I’m asking you a few questions.  I started this post in 2022, and wanted to continue with the questions. Hopefully the questions will help you reflect on 2024, what you are most grateful for, and what you are looking forward to in 2025.  I cannot claim credit for many of these questions, as many of them have been asked during various meetings I attended leading up to the holidays.

What is the thing you are most grateful for in 2024?

I’m grateful to work with the team of lawyers and support staff at Zaller Law Group. I’m proud to be able to work with these lawyers, and am humbled that these skilled and some of the best employment attorneys in California. The support staff at the Firm is also amazing, and they are the ones that enable this small group of attorneys to perform at such a high level. I’m also grateful to be a partner in the Prosper Forum, and to be able to work with this great team. 2024 marked the second Prosper Forum, and we are excited to launch another conference in 2025 – the Prosper Accelerate.

What is your favorite thing to do over the holidays? 

I enjoy going somewhere with snow with my family.  We spend some time skiing and have a lot of down time to hang out.  Usually we get snowed in, and it is nice to spend the time with family with no outside obligations.  However, again this year, there is not much snow, but it is nice being in an area without distractions so that I can spend time with my family without having everyone preoccupied with gifts and other obligations.

If you were to have a famous singer visit your house for a concert during the holidays, who would you like? 

This was a question asked during a board meeting – the responses were awesome.  For me, my favorite singer is still Walker Hayes.  I really enjoyed seeing him in concert, and think Walker would be a great musician to have over for a holiday party.  My favorite song of his?  Probably “Country Stuff.”

What is your favorite food during the holidays?

I’ve had some great tamales given to me from a restaurant client, and I look forward to them every year.  However, my best friend/roommate from college and his mom make a cookie plate with a variety of cookies, and these are by far my favorite (if I can fend off my family members from eating them before I can have a couple).

What is the coldest place you’ve ever traveled to during the holidays?

In 2022 while I was in Montana for the holidays, it reached -22 degrees Fahrenheit. This was the coldest weather I’ve ever been in.

I hope these questions help you review what is important to you and reflect, even if it is only for a minute.  I hope you are staying warm and wishing you the best over the holidays and have a Merry Christmas.

As 2024 comes to a close, California employers are reminded of their obligations under SB 476, which took effect on January 1, 2024. This law requires employers to shoulder the costs of obtaining food handler cards and compensate employees for their time spent on training and testing. Now, nearly a year into its implementation, it’s crucial for employers to ensure ongoing compliance with these requirements.

Here are five key aspects of SB 476 that California employers should keep in mind:

1. Employers Must Pay for Food Handler Card Costs and Training Time

Under SB 476, employers must:

  • Cover the cost of the training course and examination required to obtain a food handler card.
  • Compensate employees for the time spent in training and testing.
  • Ensure employees are relieved of other work duties while participating in these activities.

This obligation has been in effect for nearly a year, and employers should review their payroll and reimbursement processes to ensure compliance.

2. Employment Cannot Be Conditioned on Possessing a Food Handler Card

SB 476 prohibits employers from requiring job applicants or employees to already have a food handler card as a condition of employment. Employers must avoid:

  • Making possession of a food handler card a prerequisite in job postings.
  • Refusing to hire or retain employees solely because they have not yet obtained the card.

Employers should ensure that hiring practices, job descriptions, and onboarding materials reflect this requirement. Train managers involved in hiring to avoid inadvertent violations.

3. Timing Requirements for Food Handler Cards Are Unchanged

While SB 476 introduced new employer obligations, it did not alter the timeline for employees to obtain and maintain food handler cards:

  • Employees must acquire a food handler card within 30 days of hire.
  • Cards remain valid for three years from issuance and transfer with the employee to new employers during this period.

Employers should monitor compliance to ensure employees meet these deadlines, avoiding potential penalties.

4. Training and Examination Standards Remain Consistent

The law maintains existing standards for food handler training and testing, which include:

  • Specific course content as outlined in Section 113947.2.
  • A minimum of 40 questions on the exam, requiring a passing score of 70% or higher.
  • Training options via in-person or online courses with security measures to prevent fraud.

Employers should verify that the courses they sponsor meet these requirements to ensure compliance.

5. Recordkeeping Obligations Are Unchanged

SB 476 did not modify employers’ documentation requirements. Employers must maintain records proving that each food handler employed has a valid card and provide these records to local enforcement officers upon request.

Exemptions from Food Handler Card Requirements

It’s also important to remember the exemptions to the food handler card requirement, which include employees at:

  • Public and private school cafeterias.
  • Certified farmer’s markets and grocery stores.
  • Healthcare facilities and elderly nutrition programs.
  • Facilities with collective bargaining agreements or in-house food safety training programs that meet specific criteria.

Review the full list of exemptions to determine whether your employees are covered by this requirement.

Steps Employers Should Take to Ensure Compliance

With nearly a year of SB 476 in effect, employers should take the following steps to stay compliant:

  1. Audit reimbursement and payroll practices to confirm training costs and wages for training time are covered.
  2. Update hiring materials and train managers to avoid conditioning employment on food handler card possession.
  3. Monitor employee compliance with the timeline for obtaining and maintaining valid cards.
  4. Confirm that training providers meet regulatory standards.
  5. Maintain accurate records to provide to enforcement officers if requested.

By reviewing policies and procedures now, employers can ensure they remain compliant and avoid potential penalties.

As we approach 2025, California employers must gear up for a series of significant legal and financial adjustments. These changes range from minimum wage hikes to increased salary thresholds for exempt employees, and they impact various industries across the state. Staying ahead of these updates is crucial to ensure compliance and maintain smooth operations. Here are the top five increases California employers must prepare for in 2025.

1. California’s Minimum Wage Increases

Effective January 1, 2025, California’s minimum wage will increase to $16.50 per hour. While Proposition 32, which proposed raising the minimum wage to $18 per hour, was rejected by voters, employers must still comply with higher rates set by local ordinances. Cities like San Francisco and counties such as Los Angeles often have their own minimum wage requirements, and businesses must adhere to the highest applicable rate.

For more context, read the Los Angeles Times’ analysis on Proposition 32.

2. Increased Minimum Pay for Exempt Employees

California law requires exempt employees to meet both a salary basis test and a duties test. With the state’s minimum wage increasing in 2025, the minimum salary threshold for exempt employees will also rise. Starting January 1, 2025, the annual minimum salary to qualify for the white-collar exemption (executive, administrative, and professional) will increase to $68,640 (or $5,720 per month), up from $66,560 in 2024.

Employers must ensure compliance with these thresholds to avoid misclassification issues. For additional details on exempt employee classifications, see our previous article.

3. Fast Food Worker Minimum Wage Updates

Fast food workers in California saw a significant wage increase to $20 per hour starting April 1, 2024, under AB 1228. This law applies to national fast-food chains with more than 60 establishments nationwide. Beginning January 1, 2025, the Fast Food Council may further increase this rate based on economic indicators such as the U.S. Consumer Price Index.

Employers covered by AB 1228 should stay alert for announcements regarding the 2025 rate and be prepared to implement any necessary changes by January 1.

4. Adjusted Salary Thresholds for Computer Professionals

Certain computer software employees are exempt from overtime requirements under Labor Code section 515.5, provided they meet specific salary thresholds. For 2025, the Department of Industrial Relations has adjusted these thresholds as follows:

  • Minimum hourly rate: $56.97 (up from $55.58 in 2024)
  • Minimum monthly salary: $9,888.13 (up from $9,646.96 in 2024)
  • Minimum annual salary: $118,657.43 (up from $115,763.35 in 2024)

Employers in the tech sector must review compensation plans to ensure compliance with these updated rates.

5. Updated IRS Mileage Rates

The IRS annually adjusts its standard mileage rates, which impact how employers reimburse employees for business-related travel. For 2024, the rates were:

  • 67 cents per mile for business use
  • 21 cents per mile for medical or moving purposes (for qualified active-duty Armed Forces members)
  • 14 cents per mile for charitable purposes (unchanged)

The IRS is expected to announce the 2025 mileage rates in mid-December 2024. Employers should monitor these updates to ensure accurate reimbursement practices. For further details on mileage reimbursement obligations, see our previous article.

As the holiday season approaches, it’s a great time for employers to revisit their responsibilities when it comes to accommodating holiday leave requests and ensuring proper pay practices. Last week, we discussed important vacation considerations for employers during the holiday season. This week, we are sharing five key reminders about holiday-related policies for California employers:

1. Time Off for Holidays Is Not Mandated in California

California employers are not required to grant employees time off for holidays, except when it involves religious accommodations (discussed below). The California Division of Labor Standards Enforcement (DLSE) clarifies:

“Hours worked on holidays, Saturdays, and Sundays are treated like hours worked on any other day of the week. California law does not require employers to provide paid holidays, close their business on holidays, or give employees time off for specific holidays.”

2. No Obligation for Paid Holidays or Extra Pay for Holiday Work

California employers are not obligated to pay employees for holidays they do not work or to provide additional wages for working on a holiday. While employers can voluntarily implement a “holiday pay” policy, it’s important to clearly outline such terms in the company’s handbook or policies.

Although California lawmakers have proposed bills like the “Double Pay on the Holiday Act of 2016,” which sought to require double pay for certain holiday work (e.g., Thanksgiving), no such legislation has been enacted. Employers should remain informed about potential legislative changes.

3. Religious Accommodations for Holiday Observances Are Required

Employers must provide reasonable accommodations for employees unable to work on specific holidays due to religious observances. Accommodations are evaluated on a case-by-case basis, taking into account the nature of the business and the employee’s request.

For businesses that require employees to work during recognized holidays, such as restaurants, it’s important to communicate these expectations in the employee handbook or other policies.

4. Holiday Pay Benefits Do Not Accrue

If an employer offers paid holidays, they are not required to allow employees to accrue this benefit. For example, if an employee leaves the company before a holiday occurs, the employer does not have to pay for the unused holiday. To avoid misunderstandings, policies should clearly state that holiday pay is contingent on being employed during the holiday. Employers often add conditions, such as requiring employees to work the days immediately before and after a holiday to qualify for holiday pay.

5. Payroll Processing Can Be Delayed for Certain Holidays

If a holiday falls on a scheduled payday and the employer’s office is closed, wages may be processed on the next business day. The DLSE outlines these requirements, and employers should familiarize themselves with the holidays listed in the California Government Code Section 6700, including:

  • New Year’s Day (January 1)
  • Martin Luther King Jr. Day (Third Monday in January)
  • Memorial Day (Last Monday in May)
  • Independence Day (July 4)
  • Veterans Day (November 11)
  • Christmas Day (December 25)

Other holidays, such as Admission Day (September 9) and Native American Day (Fourth Friday in September), are also recognized. Employers should ensure their payroll policies align with these requirements.

Wishing you a happy and successful holiday season! By staying proactive and informed, employers can ensure smooth operations and maintain compliance during this festive time of year.

As employees begin planning for winter vacations and time off to celebrate, it’s a good opportunity for California employers to review the state’s unique rules regarding vacation policies. To help navigate these complexities, this Friday’s Five highlights five critical vacation policy issues that can create challenges for California employers during the holidays:

1. “Use-it-or-lose-it” policies are prohibited.

Under California law, vacation time is treated as earned wages and accrues as employees work. This means employees cannot lose accrued vacation once it’s earned. Policies requiring employees to forfeit unused vacation time at the end of the year or before the holidays are not permitted. Employers must ensure their policies reflect this rule to avoid liability.

2. Reasonable caps on vacation accrual are allowed.

Although “use-it-or-lose-it” policies are illegal, employers may set reasonable caps on vacation accrual. A cap limits how much vacation time an employee can accrue.

The DLSE explains that once the cap is reached, additional vacation does not accrue until the employee uses some of their accrued time. However, the cap must be reasonable and not designed to deny employees their earned benefits. For example, a cap equivalent to 1.75 times an annual accrual has been considered reasonable by the DLSE in the past, but employers must consult counsel when setting a vacation cap. 

3. Accrued vacation must be paid out when employment ends.

With many employers and employees reevaluating roles during the new year, it’s important to remember that any unused, accrued vacation must be paid out as part of an employee’s final paycheck. California law treats vacation as earned wages, and it must be included in final pay under Labor Code Sections 201 and 227.3. Employers should ensure final paychecks are accurate and issued on time to avoid penalties.

4. Final wages cannot include deductions for unaccrued vacation.

Some employees may take vacation time during the holidays before fully earning it. While this is often treated like an advance, California law prohibits employers from deducting any “negative balance” from an employee’s final paycheck. Self-help remedies, such as recovering these unaccrued amounts directly from wages, are not allowed.

5. “Cliff vesting” vacation policies are problematic.

Employers may establish probationary or waiting periods during which employees do not accrue vacation time. However, policies granting a lump sum of vacation only after reaching a specific milestone—like a one-year anniversary—can create legal risks.

The DLSE views such “cliff vesting” as an attempt to avoid paying pro rata vacation if an employee separates before the milestone date. Instead, employers are encouraged to set a waiting period during which no vacation is accrued (e.g., the first six months) rather than using lump-sum grants tied to specific dates.

California law governing vacation policies is stricter than federal laws and those of other states. Employers who understand these rules can better manage holiday schedules, support employees during the winter break, and avoid potential legal pitfalls. By planning ahead, the holiday season can be a stress-free time for both employers and their teams.

When interviewing potential employees, California employers must navigate a complex landscape to ensure their practices are compliant and effective. Here are five essential practices to consider:

1. Understand Prohibited Questions to Avoid Discrimination

California law restricts employers from asking certain questions during interviews that could be seen as discriminatory. Employers must refrain from asking about an applicant’s marital status, children, plans for having children, religion, age, national origin, other protected characteristics, as well as pay history. Even seemingly harmless questions that could be interpreted as discriminatory should be avoided, as they may lead to potential claims. To prevent any missteps, employers should thoughtfully plan and review all interview questions in advance.

2. Prepare Effective Questions to Evaluate Candidates’ Thinking

Crafting questions that encourage applicants to think critically can reveal their problem-solving abilities and how they approach challenges. Some effective questions include:

  • “Tell me something that’s true that almost nobody agrees with you on.” (Peter Thiel)
  • “On a scale of one to 10, how weird are you?” (Tony Hsieh)

These types of questions not only test creativity but also provide insights into the applicant’s personality and how they handle unexpected queries.

3. Implement “Try Outs” Instead of Traditional Interviews

In a concept championed by Seth Godin, traditional interviews can be replaced with practical, hands-on “try out” sessions. This approach involves putting the candidate into real-life scenarios where they collaborate with potential team members or demonstrate their skills in action. For example, if hiring for a copywriting role, have the candidate create content and go through an editing process to see how they respond to feedback.

However, California employers must take caution to ensure these “try out” periods comply with wage and hour laws. The Division of Labor Standards Enforcement (DLSE) states that these sessions should be:

  • Focused on skill testing, not training.
  • Non-productive for the employer (i.e., the work isn’t sold or used for profit).
  • Limited in duration based on the complexity of the task.

The goal is to gain insight into the candidate’s abilities and compatibility without crossing into unpaid labor that may violate compensation laws.

4. Conduct Thorough Reference Checks

Following up with an applicant’s provided references can be a useful tool in the hiring process. This step helps verify the candidate’s work history and performance. However, I’ve changed my opinion on reference checks recently, as any applicant will not list anyone who may not provide a positive reverence for them. Therefore, employers should also considering searching publicly available information online, and this could provide a broader view of the applicant’s background. It is essential, however, to approach online searches carefully and ensure compliance with privacy laws and non-discrimination practices.

5. Exercise Caution with Background Checks

Background checks are a common part of the hiring process, but employers must proceed with caution due to strict regulations. Under both federal and California laws, including the Fair Credit Reporting Act (FCRA), the Investigative Consumer Reporting Agencies Act (ICRAA), and the Consumer Credit Reporting Agencies Act (CCRA) , employers have detailed obligations they must follow. Failure to comply with these rules can lead to significant legal exposure, as demonstrated in previous lawsuits involving improper background reporting.

Employers should familiarize themselves with these complex regulations or seek legal counsel to ensure they comply when conducting background checks. For more in-depth guidance, you can refer to the comprehensive article on navigating employment background checks in California here.

By following these practices, California employers can navigate the interview process effectively while maintaining legal compliance and fostering a positive candidate experience.