In 2025, my firm is seeing a noticeable uptick in enforcement actions by the California Employment Development Department (EDD), particularly around the classification of workers as independent contractors. While it’s purely speculative, this rise in audits and assessments could be partially driven by the state’s ongoing budget shortfalls, as California seeks to recover unpaid payroll
Employers in California should periodically review their employee documentation and record retention policies to ensure compliance with state laws. Below are five critical areas to audit as of 2025:
1. Are Employee Time Records Maintained for at Least Four Years?
California law requires employers to track hourly employees’ start and stop times, meal periods, and total
In light of the Trump administration’s heightened focus on immigration enforcement, our law firm has been inundated with inquiries from employers seeking guidance on I-9 compliance. The complexities surrounding employment verification have become a pressing concern for many businesses, prompting us to address these issues head-on. Recently, we hosted two webinars that attracted over 500
California’s fast-food industry is once again at a crossroads. Following the April 1, 2024, minimum wage increase to $20 per hour (as previously covered here), fast-food operators have struggled with higher labor costs, price increases, job losses, and store closures. Now, the Fast Food Council is considering another increase to $20.70 per hour, with
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
It is critical for California employers to properly calculate the regular rate of pay for an employee in order to pay the appropriate overtime pay and for premium pay for missed meal and rest breaks. Here are five issues employers must be aware of regarding calculating an employee’s regular rate of pay:
1. Employers must
With immigration enforcement becoming a pressing issue in workplaces across the United States, it is critical for employers to understand their rights and obligations when confronted with an ICE (Immigration and Customs Enforcement) raid or audit. In recent years, ICE has ramped up its enforcement actions, including unannounced raids and formal I-9 audits, targeting employers
California employers in the hospitality industry must navigate complex tipping laws to ensure compliance and avoid costly mistakes. In this video, I break down five key issues every employer should understand when it comes to tips, including who legally owns a tip, the rules around employer-mandated tip pooling policies, and whether tips impact overtime calculations
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
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