As an employer in California, understanding the non-negotiable rights granted to employees by state law is essential. California’s employment regulations are among the nation’s most detailed and comprehensive. Below are five key employment rights that employers must respect, as they cannot be waived by any agreement:
- Minimum Wage
Labor Code Section 1194 ensures that employees have a right to minimum wage and overtime, which cannot be overridden by an agreement to work for less. This provision enables employees to pursue a private legal action if these rights are violated. - Overtime
California law mandates that nonexempt employees receive one and one-half times their regular pay for hours exceeding eight per day or 40 per week and double their wages for more than 12 hours in a single day. In Gentry v. Superior Court, the California Supreme Court affirmed that these overtime rights are non-waivable, solidifying public policy to pay overtime for extended hours. - Expense Reimbursement
Under Labor Code Section 2802, employers must reimburse employees for necessary expenses incurred in their job duties. Section 2804 clarifies that employees cannot waive this reimbursement right, making any attempt to have an employee waive this right null and void. - Right to Receive Undisputed Wages
Labor Code Section 206.5 prohibits agreements that would waive an employee’s right to receive wages that are undisputed. Furthermore, employers cannot require employees to falsely report hours worked as a condition of payment. - Right to Participate in Private Attorneys General Act (PAGA) Representative Actions
Initially, California law prohibited employers from including PAGA waivers in arbitration agreements, as determined in Iskanian v. CLS Transportation. However, the U.S. Supreme Court’s decision in Viking River Cruises, Inc. v. Moriana allowed for PAGA waivers in arbitration agreements, leaving open the issue to be decided by the California Supreme Court. The California Supreme Court took this issue up in Adolph v. Uber Technologies, Inc., and held that even when an employee enters into an arbitration agreement requiring the employee to arbitrate only their individual claims, the employee still has a right to continue to pursue remedies under PAGA, if they are able to win on their individual claims in arbitration.
Understanding and adhering to these unwaivable employee rights is critical to maintaining compliance and fostering a positive work environment in California.