California Employment Laws for Employers
Reviewed Sep 27, 2026 12 of 13 rules verified against official sources How we verify
Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use
Final pay and unused vacation
Final paycheck
If you fire someone, when is the last paycheck due?ImmediatelyVerified Sep 27, 2026 · 2 official pages from the same agency
When an employer discharges an employee, all earned and unpaid wages are due immediately at the time of discharge. (California Labor Code § 201(a))
“(a) If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately.”
leginfo.legislature.ca.gov · dir.ca.gov
Put it in writing with the termination letter template for California.
If an employee quits, when is the last paycheck due?Depends on the caseVerified Sep 27, 2026 · 2 official pages from the same agency
With 72 hours notice: An employee without a written contract for a definite period who gives at least 72 hours notice of quitting must be paid all wages at the time of quitting. (California Labor Code § 202(a))
“(a) If an employee not having a written contract for a definite period quits his or her employment, his or her wages shall become due and payable not later than 72 hours thereafter, unless the employee has given 72 hours previous notice of his or her intention to quit, in which case the employee is entitled to his or her wages at the time of quitting.”
“An employee without a written employment contract for a definite period of time who gives at least 72 hours prior notice of his or her intention to quit, and quits on the day given in the notice, must be paid all of his or her wages, including accrued vacation, at the time of quitting. Labor Code Section 202”
leginfo.legislature.ca.gov · dir.ca.gov · verified Sep 27, 2026 · 2 official pages from the same agency
Without 72 hours notice: An employee without a written contract for a definite period who quits without giving 72 hours notice must be paid all wages within 72 hours of quitting. (California Labor Code § 202(a))
Same official text as quoted above (see the quote; California Labor Code § 202(a) · leginfo.legislature.ca.gov).
“An employee without a written employment contract for a definite period of time who quits without giving 72 hours prior notice must be paid all of his or her wages, including accrued vacation, within 72 hours of quitting.”
leginfo.legislature.ca.gov · dir.ca.gov · verified Sep 27, 2026 · 2 official pages from the same agency
Unused vacation (PTO) at separation
Do you have to pay out unused vacation when someone leaves?Yes, alwaysVerified Sep 24, 2026 · 2 official pages from the same agency
In California earned vacation is wages. When employment ends for any reason, all earned and unused vacation must be paid at the final rate of pay (unless a collective bargaining agreement provides otherwise), and a policy cannot make vested vacation forfeit at termination. (Cal. Labor Code § 227.3)
“Unless otherwise provided by a collective-bargaining agreement, whenever a contract of employment or employer policy provides for paid vacations, and an employee is terminated without having taken off his vested vacation time, all vested vacation shall be paid to him as wages at his final rate in accordance with such contract of employment or employer policy respecting eligibility or time served; provided, however, that an employment contract or employer policy shall not provide for forfeiture of vested vacation time upon termination.”
“Under California law, unless otherwise stipulated by a collective bargaining agreement, whenever the employment relationship ends, for any reason whatsoever, and the employee has not used all of his or her earned and accrued vacation, the employer must pay the employee at his or her final rate of pay for all of his or her earned and accrued and unused vacation days.”
Wages, paydays and breaks
Minimum wage
What is the minimum wage?$16.90 per hourVerified Sep 27, 2026 · 2 official sources
California minimum wage is $16.90 per hour for all employers (effective January 1, 2026); higher industry-specific or local minimums may apply. (California minimum wage (U.S. DOL WHD State Minimum Wage Laws table))
“California Basic Minimum Rate (per hour): $16.90”
“Effective January 1, 2026, the minimum wage is $16.90 per hour for all employers, not otherwise covered by a higher minimum wage specific to an industry or a locality.”
Paydays
How often do you have to pay?At least 2 a monthVerified Sep 27, 2026 · 2 official sources
Most wages must be paid at least twice during each calendar month on days designated in advance as regular paydays (with some exceptions). (U.S. DOL WHD State Payday Requirements, footnote 10)
“In California, wages, with some exceptions, must be paid at least twice during each calendar month on the days designated in advance as regular paydays.”
“All wages, other than those mentioned in Section 201, 201.3, 202, 204.1, or 204.2, earned by any person in any employment are due and payable twice during each calendar month, on days designated in advance by the employer as the regular paydays.”
Meal breaks
Do adult employees get a meal break?30 minutesVerified Sep 27, 2026 · 2 official sources
Second meal period: An employee working more than 10 hours per day must get a second meal period of at least 30 minutes; it may be waived by mutual consent if total hours are no more than 12 and the first meal period was not waived. (California Labor Code section 512 (U.S. DOL WHD meal period table))
“An employer may not employ an employee for a work period of more than 10 hours per day without providing the employee with a second meal period of not less than 30 minutes, except that if the total hours worked is no more than 12 hours, the second meal period may be waived by mutual consent of the employer and employee only if the first meal period was not waived.”
“An employer shall not employ an employee for a work period of more than 10 hours per day without providing the employee with a second meal period of not less than 30 minutes, except that if the total hours worked is no more than 12 hours, the second meal period may be waived by mutual consent of the employer and the employee only if the first meal period was not waived.”
dol.gov · leginfo.legislature.ca.gov · verified Sep 27, 2026 · 2 official sources
General rule: An employee working more than 5 hours per day must get a meal period of at least 30 minutes (½ hour); it may be waived by mutual consent if the workday is no more than 6 hours. (California Labor Code section 512 and IWC Orders (U.S. DOL WHD meal period table))
“½ hour, if work is for more than 5 hours per day, except when workday will be completed in 6 hours or less and there is mutual employer/employee consent to waive meal period.”
“An employer shall not employ an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes, except that if the total work period per day of the employee is no more than six hours, the meal period may be waived by mutual consent of both the employer and employee.”
dol.gov · leginfo.legislature.ca.gov · verified Sep 27, 2026 · 2 official sources
Rest breaks
Do adult employees get paid rest breaks?10 min per 4 hoursVerified Sep 27, 2026 · 2 official sources
Paid 10-minute rest period for each 4 hours worked or major fraction thereof, in the middle of each work period as practicable; not required when total daily work time is less than 3 and ½ hours. (California Industrial Welfare Commission Orders (U.S. DOL WHD rest period table))
“California Paid 10-minute rest period for each 4 hours worked or major fraction thereof; as practicable, in middle of each work period. Not required for employees whose total daily work time is less than 3 and ½ hours.”
“Employers of California employees covered by the rest period provisions of the Industrial Welfare Commission Wage Orders must authorize and permit a net 10-minute paid rest period for every four hours worked or major fraction thereof.”
Paid sick leave
Do you have to give paid sick leave?Yes, statewideVerified Sep 24, 2026 · 2 official pages from the same agency
Accrual: California paid sick leave: under an accrual plan employees earn at least one hour of paid sick leave for every 30 hours worked (employers may use another regular accrual schedule or front-load instead). (Cal. Labor Code § 246)
“(b) (1) An employee shall accrue paid sick days at the rate of not less than one hour per every 30 hours worked, beginning at the commencement of employment or the operative date of this article, whichever is later, subject to”
“In general terms (and subject to some exceptions), employees under an accrual plan must earn at least one hour of paid sick leave for each 30 hours of work (the 1:30 schedule).”
leginfo.legislature.ca.gov · dir.ca.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Accrued balance cap: Employers may cap an employee's total accrued paid sick leave at 80 hours or 10 days (whichever is more). (Cal. Labor Code § 246)
“(j) An employer has no obligation under this section to allow an employee’s total accrual of paid sick leave to exceed 80 hours or 10 days, provided that an employee’s rights to accrue and use paid sick leave are not limited other than as allowed under this section.”
“Yes, but an employer may limit or cap the overall amount of sick leave an employee may accrue to 10 days or 80 hours, whichever is more.”
leginfo.legislature.ca.gov · dir.ca.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Annual cap: Employers may limit an employee's use of paid sick leave to 40 hours or five days per year (whichever is more), the minimum they must allow since January 1, 2024. (Cal. Labor Code § 246)
“However, an employer may limit an employee’s use of accrued paid sick days to 40 hours or five days in each year of employment, calendar year, or 12-month period.”
“Starting on January 1, 2024, an employer must allow an employee to use at least five days or 40 hours, whichever is more (refer to DLSE Opinion Letter 2015.08.07).”
leginfo.legislature.ca.gov · dir.ca.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Effective date: The current minimum of 40 hours or five days of paid sick leave per year applies from January 1, 2024. (Cal. Labor Code § 246)
“(4) Forty hours or five days in each year of employment, calendar year, or 12-month period beginning January 1, 2024.”
“Starting on January 1, 2024, employers must generally provide 5 days or 40 hours of paid sick leave to their employees in California.”
leginfo.legislature.ca.gov · dir.ca.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Employee eligibility: Employees who work in California for the same employer for 30 or more days within a year are entitled to paid sick leave (including part-time, per diem and temporary employees). (Cal. Labor Code § 246)
“(a) (1) An employee who, on or after July 1, 2015, works in California for the same employer for 30 or more days within a year from the commencement of employment is entitled to paid sick days as specified in this section.”
“All employees who work at least 30 days for the same employer within a year in California, including part-time, per diem, in-home supportive services (IHSS) providers, and temporary employees, are covered by this law with some narrow exceptions.”
leginfo.legislature.ca.gov · dir.ca.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Note: Some California cities and counties have their own paid sick leave ordinances. Employers there must comply with both and give the more generous benefit; state law wins on a few listed topics, such as pay timing. (Cal. Labor Code § 245 et seq.; CA Labor Commissioner Paid Sick Leave FAQ)
Ending employment
At-will employment
Yes. California follows at-will employment, with these exceptions (Order, No. 4:13-cv-02835-DMR (N.D. Cal. July 18, 2014), quoting Guz v. Bechtel Nat. Inc., 24 Cal. 4th 317 (2000)):
- Public policy: Recognized (Order, No. 4:13-cv-02835-DMR (N.D. Cal. July 18, 2014), citing Tameny v. Atl. Richfield Co., 27 Cal.3d 167 (1980))
- Implied contract: Recognized (Order, No. 3:19-cv-04397 (N.D. Cal.), citing Guz v. Bechtel Nat. Inc., 24 Cal. 4th 317, 336 (2000))
- Good faith and fair dealing: Recognized, limited (Order, No. 4:13-cv-02835-DMR (N.D. Cal. July 18, 2014), quoting Guz v. Bechtel Nat. Inc., 24 Cal. 4th 317 (2000))
Public policy exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official pages from the same agency
California recognizes a tort claim for wrongful termination in violation of public policy (Tameny v. Atlantic Richfield Co.), an exception to the at-will rule of the Labor Code. (Order, No. 4:13-cv-02835-DMR (N.D. Cal. July 18, 2014), citing Tameny v. Atl. Richfield Co., 27 Cal.3d 167 (1980); Order, No. 5:15-cv-05457 (N.D. Cal.), quoting Freund v. Nycomed Amersham, 347 F.3d 752, 758 (9th Cir. 2003), on Tameny v. Atlantic Richfield Co., 610 P.2d 1330 (Cal. 1980))
“exception to the employment at-will doctrine is recognized where the employee’s termination was”
“recognizing a tort cause of action for wrongful terminations that violate public policy.”
Implied contract exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official pages from the same agency
California's statutory at-will presumption can be overcome by an agreement, express or implied in fact, that the employee will be fired only for good cause; courts look at the totality of circumstances, including personnel policies, length of service, employer assurances and industry practice (Foley; Guz v. Bechtel). (Order, No. 3:19-cv-04397 (N.D. Cal.), citing Guz v. Bechtel Nat. Inc., 24 Cal. 4th 317, 336 (2000); Order, No. 2:15-cv-01922-KJM-CKD (E.D. Cal. Sept. 19, 2017), quoting Guz, 24 Cal. 4th at 336-37, and Foley v. Interactive Data Corp., 47 Cal.3d 654 (1988))
“be implied in fact, arising from the parties’ conduct evidencing their actual mutual intent to create”
“personnel policies or practices of the employer, the employee’s longevity of service, actions or”
Good faith and fair dealing exception: recognized?Recognized, limitedVerified Sep 27, 2026 · 2 official sources
In California the implied covenant of good faith and fair dealing prevents bad-faith conduct that frustrates the contract’s actual benefits; it might be violated if firing an at-will employee was a mere pretext to cheat the worker out of another contract benefit to which the employee was clearly entitled, such as compensation already earned (Guz v. Bechtel). (Order, No. 4:13-cv-02835-DMR (N.D. Cal. July 18, 2014), quoting Guz v. Bechtel Nat. Inc., 24 Cal. 4th 317 (2000); Judicial Council of California, Invitation to Comment CACI19-03 (civil jury instructions, Sources and Authority of proposed CACI 2423), quoting Guz v. Bechtel National, Inc., 24 Cal.4th 317, 353, fn. 18 (2000))
“[T]he covenant prevents a party from acting in bad faith to frustrate the contract’s actual benefits. Thus, for example, the covenant might be violated if termination of an at-will employee was a mere pretext to cheat the worker out of another contract benefit to which the employee was clearly entitled, such as compensation already earned.”
Same official text as quoted above (see the quote; Judicial Council of California, Invitation to Comment CACI19-03 (civil jury instructions, Sources and Authority of proposed CACI 2423), quoting Guz v. Bechtel National, Inc., 24 Cal.4th 317, 353, fn. 18 (2000) · courts.ca.gov).
Separation notice
Do you have to give a separation notice when someone leaves?Yes: DE 2320Verified Sep 24, 2026 · 2 official pages from the same agency
California employers must give the EDD pamphlet 'For Your Benefit: California's Programs for the Unemployed' (DE 2320) when they discharge, lay off, or place an employee on a leave of absence, together with immediate written notice of the discharge, layoff, leave of absence or change in employment status (Notice to Employee as to Change in Relationship). Email delivery is allowed only if the employee opts in. (EDD California Employer's Guide (DE 44))
“For Your Benefit: California’s Programs for the Unemployed (DE 2320) – Provides information on UI, DI, PFL, and Workforce Services benefits available to the employee and must be given when an employer discharges, lays off, or places an employee on a leave of absence.”
“You must give each employee the following when needed: For Your Benefit: California’s Programs for the Unemployed (DE 2320) (PDF): Information on UI, DI, PFL, and job service benefits.”
Pending verification. Not verified for California yet, so no answer is shown. Each link opens the official source to check.
California and its neighbors
| State | Final pay after firing | Final pay after quitting | Minimum wage | Paid sick leave |
|---|---|---|---|---|
| California | Immediately | Depends on the case | $16.90 per hour | Yes, statewide |
| Oregon | Next business day | Depends on the case | $14.55 to $16.80 per hour (depends on the case) | Yes, statewide |
| Nevada | Immediately | Next payday or 7 days, whichever is sooner | $12.00 per hour | Pending verification. Official source (dhs.nv.gov). |
| Arizona | 7 working days or the end of the next pay period, whichever is sooner | Next regular payday | $15.15 per hour | Yes, statewide |
Verified rules only; open a state for its sources.
What an employee costs in California
Every employer pays Social Security 6.2% (Publication 15), Medicare 1.45% (Topic 751) and FUTA (Topic 759). California adds its unemployment insurance tax:
| California payroll tax, 2026 | Amount |
|---|---|
| Taxable wage base per employee | $7,000 |
| Rates for experience-rated employers | 1.50% to 6.20% |
| New-employer rate | 3.40% |
| FUTA credit reduction | 1.2% for 2025; possible 5.3% for 2026 |
| Estimated employer taxes on a $40,000 salary | $3,340 (8.3%) |
Of the $3,340, $238 is California unemployment insurance tax (3.40% on the first $7,000 of wages) and $3,102 is federal tax.
The estimate counts FUTA at 0.6% of the first $7,000 ($42 per employee), which assumes the full FUTA credit (Topic 759). If the possible 5.3% credit reduction for 2026 applies to California, FUTA rises by $371 per employee. Credit reductions: U.S. DOL.
Estimate for a new employer and a full year; check with your payroll provider. Sources: U.S. DOL, State UI Laws, July 2026, page 1; U.S. DOL, FUTA credit reductions.
Federal wage enforcement in California
In FY2021 to FY2025, the federal Wage and Hour Division concluded 3,434 cases in California (n = 3,434), 2,545 with violations, finding $76,062,623 in back wages owed to 42,773 employees and assessing $12,002,259 in civil money penalties (DOL enforcement data). Overtime back wages were part of 41.3% of the violation cases. OSHA opened 35,098 inspections in the same years (OSHA data). Enforcement data is not a violation rate: it shows where federal investigators looked. Wage violations by industry.
California runs its own OSHA-approved State Plan that covers private employers, so workplace safety rules for most private workplaces in California are enforced by the state program rather than by federal OSHA (OSHA: State Plans).
By industry in California
| Industry | WHD cases | Back wages | Violation cases with minimum-wage back wages | Most-cited safety standard |
|---|---|---|---|---|
| Restaurants and food service | 546 | $8,703,561 | 11.6% | Cal/OSHA: written injury and illness prevention program (Cal. Code Regs. Title 8 section 3203) |
| Retail | 247 | $3,608,928 | 18.8% | Cal/OSHA: written injury and illness prevention program (Cal. Code Regs. Title 8 section 3203) |
| Construction | 357 | $9,001,767 | 12.4% | Cal/OSHA: written injury and illness prevention program for construction (Cal. Code Regs. Title 8 section 1509) |
| Health care (incl. home care) | 451 | $13,455,177 | 12.9% | Cal/OSHA: aerosol transmissible diseases in health care (Cal. Code Regs. Title 8 section 5199) |
| Home health and home care (subset of health care) | 55 | $2,756,470 | 17.9% | Cal/OSHA: COVID-19 prevention, a temporary rule now expired (Cal. Code Regs. Title 8 section 3205) |
| Child care | 0 | $0 | n/a | Cal/OSHA: reporting serious injuries and deaths (Cal. Code Regs. Title 8 section 342) |
Federal fiscal years 2021 to 2025; WHD enforcement data. Industries overlap (home health is part of health care). California detail and method.
Changes coming in 2027
- Exempt salary, from Jan 1, 2027: $72,384/year (now $70,304/year). Confirmed by the agency (dir.ca.gov).
- Minimum wage, from Jan 1, 2027: $17.40/hour (now $16.90/hour). Confirmed by the agency (dir.ca.gov).
- Minimum wage, from Jul 1, 2027: $19.95/hour (now $19.28/hour). Scheduled in law (dir.ca.gov).
- Minimum wage, from Jul 1, 2027: $25.00/hour (now $22.00/hour). Scheduled in law (dir.ca.gov).
- Minimum wage (Los Angeles, CA), from Jul 1, 2027: $25.50/hour + $6.00/hour health benefit (now $25.00/hour + $4.25/hour health benefit). Scheduled in law (wagesla.lacity.gov).
Changelog
- Sep 24, 2026: first verified, 17 rules.
- Sep 28, 2026: verified: at-will exceptions (good faith covenant), now backed by two independent official sources. (govinfo.gov)
Questions about California employment laws
What is the minimum wage in California?
California minimum wage is $16.90 per hour for all employers (effective January 1, 2026); higher industry-specific or local minimums may apply. (California minimum wage (U.S. DOL WHD State Minimum Wage Laws table))
Is California an at-will state?
Yes. California follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 3, and 3 are recognized in California (Order, No. 4:13-cv-02835-DMR (N.D. Cal. July 18, 2014), quoting Guz v. Bechtel Nat. Inc., 24 Cal. 4th 317 (2000)).
When is the final paycheck due after firing someone in California?
When an employer discharges an employee, all earned and unpaid wages are due immediately at the time of discharge. (California Labor Code § 201(a))
Sources (23)
- California minimum wage (U.S. DOL WHD State Minimum Wage Laws table)
- California DIR/DLSE Minimum Wage FAQ
- U.S. DOL WHD State Payday Requirements, footnote 10
- California Labor Code section 204(a)
- California Labor Code section 512 (U.S. DOL WHD meal period table)
- California Labor Code section 512(a)
- California Industrial Welfare Commission Orders (U.S. DOL WHD rest period table)
- California DIR/DLSE Rest Periods FAQ
- California Labor Code § 201(a)
- California Labor Commissioner (DLSE), Paydays, Pay Periods, and the Final Payment of Wages FAQ
- California Labor Code § 202(a)
- Cal. Labor Code § 227.3
- California DLSE, Vacation FAQ
- Cal. Labor Code § 246
- California Labor Commissioner (DLSE), Paid Sick Leave FAQ
- Order, No. 4:13-cv-02835-DMR (N.D. Cal. July 18, 2014), quoting Guz v. Bechtel Nat. Inc., 24 Cal. 4th 317 (2000)
- Judicial Council of California, Invitation to Comment CACI19-03 (civil jury instructions, Sources and Authority of proposed CACI 2423), quoting Guz v. Bechtel National, Inc., 24 Cal.4th 317, 353, fn. 18 (2000)
- Order, No. 3:19-cv-04397 (N.D. Cal.), citing Guz v. Bechtel Nat. Inc., 24 Cal. 4th 317, 336 (2000)
- Order, No. 2:15-cv-01922-KJM-CKD (E.D. Cal. Sept. 19, 2017), quoting Guz, 24 Cal. 4th at 336-37, and Foley v. Interactive Data Corp., 47 Cal.3d 654 (1988)
- Order, No. 5:15-cv-05457 (N.D. Cal.), quoting Freund v. Nycomed Amersham, 347 F.3d 752, 758 (9th Cir. 2003), on Tameny v. Atlantic Richfield Co., 610 P.2d 1330 (Cal. 1980)
- EDD California Employer's Guide (DE 44)
- EDD, Required Notices and Pamphlets
- U.S. Department of Labor: State labor offices
Checked Sep 27, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Report an error