As a business owner in California, you wear many hats—manager, strategist, and sometimes even janitor. But when it comes to managing employees, the Golden State’s complex employment laws can turn what seems like a simple task into a legal minefield. While small businesses often handle human resources tasks in-house, there comes a point when hiring a dedicated HR professional isn’t just a luxury—it’s a necessity. Here’s a guide to help you decide when it’s time to bring an HR expert on board.

1. Your Employee Count Hits 50 (or Approaches It)

In California, the magic number for many employment law thresholds is 50 employees. Once you reach this size, you’re subject to laws like the federal Family and Medical Leave Act (FMLA) (remember, the California counterpart, the California Family Rights Act (CFRA), applies to employers with five or more employees) which require you to provide eligible employees with up to 12 weeks of unpaid, job-protected leave. Managing compliance—tracking eligibility, handling requests, and ensuring proper documentation—can quickly overwhelm a business owner or untrained staff.

Even before you hit 50 employees, California imposes rules that smaller businesses must follow, such as the CFRA and mandatory sexual harassment prevention training for employers with five or more employees (including temporary or seasonal workers). An HR professional can streamline compliance and reduce your risk of costly mistakes.

2. You’re Struggling to Keep Up with California’s Employment Laws

California is notorious for its employee-friendly regulations, which are constantly evolving. From the Fair Employment and Housing Act (FEHA) protecting against discrimination to the ever-changing minimum wage laws (currently $16.50 per hour statewide as of 2025, with higher rates in many cities and counties), staying compliant is a full-time job. Add in paid sick leave mandates, meal and rest break requirements, and the intricacies of overtime rules, and it’s easy to see why DIY HR might not cut it anymore.

An HR professional brings expertise in navigating these laws, ensuring your policies—like employee handbooks, payroll practices, and termination procedures—meet legal standards. They can also keep you updated on new legislation, such as recent expansions to paid family leave or changes in independent contractor classifications under AB 5.

3. Employee Issues Are Eating Up Your Time

Are you spending more time resolving workplace disputes, drafting job descriptions, or figuring out how to handle a worker’s accommodation request than running your business? As your workforce grows, so do HR demands. Issues like complaints about harassment, requests for disability accommodations under the Americans with Disabilities Act (ADA) and FEHA, or even basic onboarding tasks can become overwhelming.

An HR professional takes these responsibilities off your plate. They can mediate conflicts, ensure accommodations are handled legally, and create efficient systems for hiring, training, and performance reviews—freeing you to focus on growth.

4. You’ve Had a Close Call (or a Lawsuit)

California employees have a low bar for filing claims with the Department of Fair Employment and Housing (DFEH) or the Labor Commissioner’s Office. A missed paycheck, an improperly classified exempt employee, or a failure to provide lactation breaks can snowball into fines, penalties, or litigation. If you’ve already faced a wage-and-hour violation, a discrimination complaint, or even a warning from a disgruntled worker, it’s a sign your HR processes need professional attention.

An HR expert can audit your practices, spot vulnerabilities, and implement safeguards—like proper record-keeping for hours worked or training supervisors on anti-discrimination policies—to prevent future headaches.

5. You’re Planning to Scale


Growth is exciting, but it amplifies HR complexity. Expanding your team, opening new locations, or hiring remote workers across California (or beyond) introduces challenges like multi-jurisdictional compliance, benefits administration, and consistent company culture. An HR professional can design scalable systems, from recruiting strategies to benefits packages.

What If You’re Not Ready for a Full-Time HR Hire?

For smaller businesses—say, those with 10 to 20 employees—hiring a full-time HR professional might feel premature. In that case, consider alternatives:

  • HR Consultant: Bring in an expert on a project basis to update policies or train staff.
  • Outsourced HR Services: Many firms offer affordable packages tailored to California businesses.
  • Of course – my favorite: Legal Counsel: Pairing with an employment attorney can bridge the gap until you’re ready for an in-house hire.

The Bottom Line

There’s no one-size-fits-all answer to when you need an HR professional, but a good rule of thumb is this: If employee management is distracting you from your core business, exposing you to legal risks, or becoming too complex to handle alone, it’s time to invest in HR expertise. In California’s regulatory landscape, a skilled HR professional isn’t just a support role—they’re a strategic partner in protecting your business and fostering a thriving workplace.