2025 Edition Cal-Peculiarities How California Employment Law is Different
©2025 Seyfarth Shaw LLP www.seyfarth.com 2025 Cal-Peculiarities | i About Our Graphics Yes, we know that California is a contiguous part of the North American continent. But seventeenth-century mapmakers saw it otherwise. When they outlined the western contours of our region, they extended the Gulf of California far north, to make California appear as a yam-shaped island in the Pacific Ocean. If such maps are now historical curiosities, they still reflect a persistent view that California is a world apart. Carey McWilliams explored this theme in his 1946 classic, SOUTHERN CALIFORNIA: AN ISLAND ON THE LAND. He argued that Southern California is, metaphorically, an island in profound cultural ways. Much the same is true of California writ large when it comes to labor and employment law. So while early maps were cartographically incorrect, their symbolism remains powerful. Any picture of California as an island apart remains vivid in 2025. In today’s fraught political climate, California’s attitude toward the business community often is at odds with those of federal legislators, regulators, and judges, who frequently stand in stark contrast to California’s extraordinary solicitude toward the interests of labor unions, enforcement agencies, and the plaintiffs’ bar. During the foreseeable future, California will continue its traditional role of providing progressive examples for similarly inclined states to follow, likely providing opportunities for clashes with various arms of the federal government . Perhaps nowhere has the peculiarity of California law been more prominent than it is in the area of labor and employment law. Federal labor law hit high tide in the 1930s, leaving us with the National Labor Relations Act and the Fair Labor Standards Act. The federal high tide returned in the 1960s—leaving us with the Equal Pay Act, Title VII, and the Age Discrimination in Employment Act—and returned yet again in the 1990s, leaving us with the Americans with Disabilities Act and the Family and Medical Leave Act. In the Golden State, meanwhile, the waves of labor and employment regulation have, especially during this century, risen ever higher, even while federal efforts occasionally ebbed. And California’s ever-rising tide has left us with the extraordinary law described in this book. This book highlights differences between federal and California law in key areas of interest to private employers that operate both in California and in the rest of America. In virtually every case, the California version favors workers, labor unions, government agencies, plaintiffs, and the lawyers who represent them—typically at the expense of the business community.
ii | 2025 Cal-Peculiarities ©2025 Seyfarth Shaw LLP www.seyfarth.com Authors’ Note At annual intervals throughout this century, we’ve cataloged how California law deviates from prevailing American labor and employment law. The result—this steadily growing volume—summarizes the legislative, judicial, and regulatory developments that have made California a uniquely challenging environment for private employers. (We do not address special challenges facing public employers or government contractors.) We highlight these California peculiarities to help corporate counsel and human resources professionals avoid legal pitfalls, without treating what is provided here as the final word (a point emphasized in the disclaimer that follows). This 2025 edition contains contributions from many Seyfarth lawyers—all members or friends of our California Workplace Solutions Group: Michael Afar, Mahsa Aliaskari, Heriberto Alvarez, Ashley Arnett, Brian Ashe, John Ayers-Mann, Nicole Baarts, Michele Beilke, Todd Bernhardt, Candace Bertoldi, Holger Besch, Bailey Bifoss, Jonathan Brophy, Bob Buch, Debbie Caplan, Nancy Chawla, Peter Choi, Andrew Cohen, Kelly Cohen, Mel Cole, Chris Crosman, Justin Curley, Catherine Dacre, Pamela Devata, Giselle Vinas Dhallin, Brad Doucette, Michelle DuCharme, Phillip Ebsworth, Shiva Emrani, Angelina Evans, Katie Farr, Cathy Feldman, Sage Fishelman, Lindsay Fitch, Barri Friedland, Kerry Friedrichs, Reiko Furuta, Nick Geannacopulos, Gina Gi, Brian Gillis, Julia Gordon, Ari Hersher, Laura Heyne, Eric Hill, Cristen Hintze, Timothy Hix, Charlotte Hodde, Heather Horn, Dana Howells, Francesca Hunter, Justin Jackson, David Jacobson, Hanna Jolkovsky, David Kim, Seong Kim, Kelly Koelker, Jessica Koenig, Yana Komsitsky, Michael Kopp, Natalie Kreeger, Kristina Launey, Paul Leaf, Elizabeth Levy, Leo Li, Sierra Chin Liu, Eric Lloyd, Brian Long, Aaron Lubeley, Elizabeth MacGregor, Laura Maechtlen, Scott Mallery, Mary Manesis, Jonathan Martin, Mandana Massoumi, Eric May, Amanda Mazin, Kathleen McConnell, Ryan McCoy, Andrew McNaught, Jon Meer, Chelsea Hoffman, Jesse Miller, Kamran Mirrafati, Richard Mojica, Ilana Morady, , Mackenzie Mullin, Emily Nahan, Yoon-Woo Nam, Jeffrey Nordlander, Jennifer Nunez, Lori O’Hara, Scott Page, Andrew Paley, Romtin Parvaresh, Beth Pelliconi, Sofya Perelshteyn, Dana Peterson, Sean Piers, Niles Pierson, Jamie Pollaci, Jill Porcaro, Tom Posey, Clara Rademacher, Janine Raduechel, Miguel Ramirez, Juan Rehl-Garcia, Jamie Rich, Josh Rodine, Christian Rowley, Timothy Rusche, Galen Sallomi, Jeanine Scalero, Lauren Schwartz, Laura Shelby, Kimberly Shen, Michael Sigall, Shardé Skahan, Kathleen Cahill-Slaught, James Sobolov, Emily Stamler, Ashley Stein, Eric Steinert, Sean Strauss, Justin Stucki, Eric Suits, Diana Tabacopoulos, Ryan Tikker, Tiffany Tran, Parnian Vafaeenia, Pamela Vartabedian, Andrea Vizzo, Ryan Tzeng, Pam Vartabedian, Nick Waddles, Ping Wang, Elisabeth Watson, Geoffrey Westbrook, Daniel Whang, Jeff Wortman, Steven Wong, Lilah Wylde, and Ann Marie Zaletel. We especially note the formidable contributions of Dana Howells, Elizabeth Levy, and Catherine Feldman, which included imposing some order on the chaos that is California’s bewildering welter of local sick pay laws. To keep up with the latest peculiarities of California employment law, please subscribe to Seyfarth’s awardwinning California Peculiarities Employment Law Blog: www.calpeculiarities.com/subscribe. Important Disclaimer We’ve been representative, not exhaustive, in cataloging California peculiarities. This book is general commentary, not legal advice. We disclaim liability as to anything done or omitted in reliance on this publication. Readers should refrain from acting on any discussion without obtaining specific advice applying current law to particular circumstances. (From A Declaration of Principles adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations.) Legal Notice Copyright © 2025. All rights reserved. Apart from fair use for private study or research permitted under copyright, no part of this publication may be reproduced or transmitted without written permission of Seyfarth Shaw LLP.
©2025 Seyfarth Shaw LLP www.seyfarth.com 2025 Cal-Peculiarities | iii Table of Contents Page About Our Graphics ................................................................................................................. i Glossary ................................................................................................................................... x Introduction.............................................................................................................................. 1 Preface to the 2025 Edition................................................................................................... 13 1. California Employment Law Agencies......................................................................... 17 1.1 The Civil Rights Department (CRD), Enforcing the Fair Employment and Housing Act (FEHA)................................................................................................................................................ 18 1.2 The Labor and Workforce Development Agency (LWDA) ................................................................. 18 1.3 Department of Industrial Relations (DIR) ........................................................................................... 19 1.4 Industrial Welfare Commission (IWC) ................................................................................................ 19 1.5 The Labor Commissioner—the Division of Labor Standards Enforcement (DLSE) .......................... 20 1.6 Employment Development Department (EDD) .................................................................................. 23 1.7 Unemployment Insurance Appeals Board (UIAB).............................................................................. 24 1.8 Division of Workers’ Compensation (DWC) ....................................................................................... 24 1.9 Workers’ Compensation Appeals Board (WCAB) .............................................................................. 24 1.10 Division of Occupational Safety and Health (DOSH) ......................................................................... 24 2. Leave and Accommodation Statutes........................................................................... 29 2.1 Pregnancy Disability Leave ................................................................................................................ 29 2.2 Lactation Accommodation .................................................................................................................. 30 2.3 Family Care and Medical Leave ......................................................................................................... 31 2.4 Paid Family Leave Benefits ................................................................................................................ 34 2.5 Accommodation of Addicts and Individuals Who Cannot Read......................................................... 35 2.6 Time Off for Court Appearances (Jury Duty, Witness Leave, etc.) .................................................... 35 2.7 Qualifying Act of Violence Leave and Accommodation...................................................................... 35 2.8 Time Off for Good Deeds and Related Training................................................................................. 37 2.9 Voting Leave....................................................................................................................................... 37 2.10 Child-Related Activities Leave............................................................................................................ 37 2.11 Kin Care Leave ................................................................................................................................... 38 2.12 Military Leave ..................................................................................................................................... 39 2.13 Military Spousal and Partner Leave ................................................................................................... 40 2.14 Paid Sick Leave.................................................................................................................................. 40 2.15 Paid Leave for Organ or Bone Marrow Donation ............................................................................... 47 2.16 Bereavement Leave ........................................................................................................................... 47
iv | 2025 Cal-Peculiarities ©2025 Seyfarth Shaw LLP www.seyfarth.com 3. Employee Privacy—Protected Activities..................................................................... 55 3.1 Off-Duty, Off-Premises Lawful Conduct—Including Marijuana Use................................................... 55 3.2 Disclosure of Wages........................................................................................................................... 56 3.3 Disclosure of Working Conditions ...................................................................................................... 56 3.4 Right to Designate Counsel................................................................................................................ 57 3.5 Employee Whistleblowing .................................................................................................................. 57 3.6 Refusal to Undergo Medical Treatment or Exam ............................................................................... 59 3.7 Changing Personal Information .......................................................................................................... 59 4. Employee Privacy—Protection From Intrusions ........................................................ 63 4.1 Drug Testing ....................................................................................................................................... 63 4.2 Questions about Certain Arrests and Convictions ............................................................................. 64 4.3 Polygraph Tests.................................................................................................................................. 67 4.4 HIV Testing ......................................................................................................................................... 67 4.5 Genetic Testing .................................................................................................................................. 67 4.6 Tape Recording and Videotaping....................................................................................................... 68 4.7 Medical Records ................................................................................................................................. 68 4.8 Social Security Numbers and Other Personal Information................................................................. 69 4.9 Security of Personal Information ........................................................................................................ 70 4.10 Personnel Records ............................................................................................................................. 70 4.11 Background Checks ........................................................................................................................... 71 4.12 Psychological Tests............................................................................................................................ 74 4.13 Fingerprinting...................................................................................................................................... 74 4.14 Photographing .................................................................................................................................... 74 4.15 Subcutaneous Identification Devices ................................................................................................. 74 4.16 Email Usage ....................................................................................................................................... 75 4.17 California Consumer Privacy Act of 2018 (as amended by the California Privacy Rights Act of 2020) .............................................................................................................................................. 75 5. Litigation Issues ............................................................................................................ 83 5.1 Special Rules for California Jury Trial ................................................................................................ 83 5.2 California’s Hostility to Arbitration of Employment Disputes .............................................................. 84 5.3 Hostility to Employer-Mandated Forum Selection and Choice of Law ............................................... 99 5.4 Public Policy Claims for Wrongful Employment Actions .................................................................. 100 5.5 Claims for Breach of Contract of Continued Employment................................................................ 104 5.6 Claims for Breach of Implied Covenant of Good Faith and Fair Dealing ......................................... 105 5.7 Limited Effectiveness of Common Defenses and Procedural Devices ............................................ 105 5.8 Defamation Claims ........................................................................................................................... 111 5.9 Misrepresentation Claims ................................................................................................................. 112 5.10 Employer Liability for Employee Torts.............................................................................................. 113 5.11 Employment Discrimination Litigation .............................................................................................. 114 5.12 Anti-Employer Rules Regarding Attorney Fees and Costs .............................................................. 116 5.13 Unfair Competition Claims................................................................................................................ 118 5.14 The Wage and Hour Class Action Explosion ................................................................................... 118 5.15 PAGA Civil Penalty Claims for Labor Code Violations..................................................................... 122 5.16 “The Life Unlitigated is Not Worth Living”......................................................................................... 131 5.17 Special Protections for Unauthorized Workers ................................................................................ 133 5.18 Employer’s Attorney-Client Privilege ................................................................................................ 135
©2025 Seyfarth Shaw LLP www.seyfarth.com 2025 Cal-Peculiarities | v 5.19 Limits to Protection for Attorney Work Product ................................................................................ 136 5.20 Employer’s Obligation to Withhold Taxes Due on Damages Judgment .......................................... 136 5.21 Can Employees Seeking Unpaid Wages Bring Tort Claims? .......................................................... 137 6. Employment Discrimination Legislation and Litigation........................................... 161 6.1 Comparing California Antidiscrimination Law with Federal Statutes................................................ 161 6.2 Additional Protected Bases .............................................................................................................. 163 6.3 Special Rules for Disability Discrimination ....................................................................................... 164 6.4 Special Rules for Age Discrimination ............................................................................................... 169 6.5 Special Rules for Discriminatory Workplace Harassment................................................................ 170 6.6 Special Rules Relating to National Origin ........................................................................................ 178 6.7 Equal Pay ......................................................................................................................................... 180 6.8 Pant Suits ......................................................................................................................................... 183 6.9 Special Rules for Gender, Gender Identity, and Gender Expression .............................................. 184 6.10 Special Rules for Religious Accommodation ................................................................................... 184 6.11 Special Rules for Retaliation ............................................................................................................ 186 6.12 Special Rules for No-nepotism Policies ........................................................................................... 188 6.13 Difficulty in Obtaining Defendant’s Attorney Fees and Even Costs ................................................. 188 6.14 No Meaningful Duty to Exhaust Administrative Remedies............................................................... 189 6.15 Use of the Unfair Competition Law to Sue for Discrimination .......................................................... 190 6.16 Disregard of Federal Evidentiary Doctrines ..................................................................................... 190 7. Wage and Hour Laws .................................................................................................. 205 7.1 Requirements Imposed by IWC Wage Orders ................................................................................. 206 7.2 Minimum Wages ............................................................................................................................... 209 7.3 Pay For Hours Worked ..................................................................................................................... 212 7.4 Computing Wages Owed ................................................................................................................. 217 7.5 Wage Payment Rules....................................................................................................................... 221 7.6 “White Collar” Exemptions from Wage Requirements ..................................................................... 224 7.7 Other Exemptions ............................................................................................................................. 228 7.8 Meal Periods..................................................................................................................................... 233 7.9 Rest and Recovery Breaks............................................................................................................... 237 7.10 The “One Additional Hour of Pay” .................................................................................................... 241 7.11 Suitable Seats and Comfortable Temperatures ............................................................................... 243 7.12 Restrictions on Having Employees Pay for Costs of Business ........................................................ 246 7.13 Indemnification of Employee Expenses ........................................................................................... 248 7.14 Payment by Piece-Rate.................................................................................................................... 251 7.15 Payment of Commissions................................................................................................................. 252 7.16 Bonuses............................................................................................................................................ 254 7.17 Hazard Pay ....................................................................................................................................... 257 7.18 Tips ................................................................................................................................................... 258 7.19 Vacation Pay .................................................................................................................................... 259 7.20 Personal Liability for Wage and Hour Violations .............................................................................. 263 7.21 Broadened Definition of Employer?.................................................................................................. 265 7.22 Restrictions on Scheduling and Work Quotas.................................................................................. 268 7.23 Worker Retention and Staffing Requirements.................................................................................. 270 7.24 How Does California Law Affect Multi-State Employees?................................................................ 275 7.25 Civil Penalties ................................................................................................................................... 277
vi | 2025 Cal-Peculiarities ©2025 Seyfarth Shaw LLP www.seyfarth.com 7.26 Criminal Penalties............................................................................................................................. 304 8. Employee Benefits ...................................................................................................... 329 8.1 Domestic Partners ............................................................................................................................ 329 8.2 Required Coverage .......................................................................................................................... 330 8.3 Cal-COBRA ...................................................................................................................................... 332 8.4 Mandatory Employer-Funded Health Care ...................................................................................... 332 8.5 Explanation Of Benefits .................................................................................................................... 334 8.6 CalSavers Retirement Savings Program.......................................................................................... 335 8.7 Large Group Health Insurance ......................................................................................................... 336 8.8 Reproductive Health Rights.............................................................................................................. 336 8.9 Commuter Benefits........................................................................................................................... 336 9. Special Posting, Distribution, and Notice Requirements......................................... 341 9.1 Posting Requirements ...................................................................................................................... 341 9.2 Distribution Requirements ................................................................................................................ 344 10. Employee Access to Personnel Records .................................................................. 349 10.1 Personnel Records ........................................................................................................................... 349 10.2 Signed Employee Instruments ......................................................................................................... 349 10.3 Shopping Investigator’s Report ........................................................................................................ 350 10.4 Payroll Records ................................................................................................................................ 350 11. Employer Retention of Records ................................................................................. 352 12. Covenants Not to Compete ........................................................................................ 355 12.1 General Prohibition........................................................................................................................... 355 12.2 Implications for Wrongful Termination.............................................................................................. 358 12.3 “No Rehire” Clauses ......................................................................................................................... 359 12.4 Permissible Contractual Restrictions................................................................................................ 360 12.5 Protection of Trade Secrets.............................................................................................................. 361 12.6 Preventing Data Theft with the Computer Fraud and Abuse Act? ................................................... 363 12.7 California Penal Code Section 502: An Alternative to the CFAA ..................................................... 363 13. Procedural Quirks Regarding Termination of Employment and PostTermination .................................................................................................................. 369 13.1 Cal-WARN Act .................................................................................................................................. 369 13.2 Notices Required .............................................................................................................................. 371 13.3 Final Pay Checks.............................................................................................................................. 372 13.4 Separation Agreements.................................................................................................................... 373 13.5 Worker Retention Laws .................................................................................................................... 375 14. Health and Safety Law ................................................................................................ 379 14.1 Injury and Illness Prevention Program ............................................................................................. 379 14.2 “Be a Manager, Go to Jail” Act ......................................................................................................... 379 14.3 Proposition 65................................................................................................................................... 379
©2025 Seyfarth Shaw LLP www.seyfarth.com 2025 Cal-Peculiarities | vii 14.4 Cal/OSHA Hazard Communication Standards................................................................................. 379 14.5 Anti-Retaliation Provisions ............................................................................................................... 380 14.6 Tobacco Smoking............................................................................................................................. 380 14.7 Drug-free Workplace ........................................................................................................................ 380 14.8 Repetitive Motion Injuries (RMIs) ..................................................................................................... 380 14.9 “Hands off that Smartphone!” ........................................................................................................... 380 14.10 UCL Actions for Cal/OSHA Violations .............................................................................................. 381 14.11 Injury and Illness Recordkeeping and Reporting ............................................................................. 381 14.12 Single-User Restrooms .................................................................................................................... 382 14.13 Workplace Violence Requirements for Health Care Providers ........................................................ 382 14.14 Electronic Submission of Cal/OSHA Forms ..................................................................................... 382 14.15 Valley Fever Training—”There’s Fungus Among Us!” ..................................................................... 382 14.16 Wildfire Smoke Protection ................................................................................................................ 383 14.17 Protection From Covid-19 ................................................................................................................ 383 14.18 Beefed Up Enforcement ................................................................................................................... 383 14.19 Workplace Violence Prevention Plan Requirements in 2024........................................................... 384 14.20 Changing Standard For Protection From Indoor Heat-Related Illness and Injury ........................... 385 15. Unemployment Compensation................................................................................... 387 15.1 Conditions for Eligibility .................................................................................................................... 387 15.2 Ineligibility and Disqualification......................................................................................................... 387 15.3 The Claims Process ......................................................................................................................... 388 16. Employer Reporting, Disclosure Requirements ....................................................... 391 16.1 New Hires ......................................................................................................................................... 391 16.2 Retention of Independent Contractors ............................................................................................. 392 16.3 Itemized Wage Statements .............................................................................................................. 392 16.4 Executive Compensation.................................................................................................................. 398 16.5 Filing Job Applications...................................................................................................................... 398 16.6 EITC Information .............................................................................................................................. 398 17. Workers’ Compensation ............................................................................................. 403 17.1 Jurisdiction........................................................................................................................................ 403 17.2 Disability Discrimination ................................................................................................................... 403 17.3 Privacy Implications.......................................................................................................................... 403 17.4 Workers’ Compensation Preemption................................................................................................ 403 17.5 Compensation Implications .............................................................................................................. 404 17.6 Good Faith Personnel Actions.......................................................................................................... 404 17.7 Temporary Labor .............................................................................................................................. 404 17.8 Coverage of Employees Only........................................................................................................... 404 17.9 Discrimination Against Injured Workers—Labor Code § 132a......................................................... 405 17.10 Covid-19 ........................................................................................................................................... 405 18. Rights of Organized Labor ......................................................................................... 407 18.1 Agricultural Workers ......................................................................................................................... 407 18.2 Anti-Injunction Laws Regarding Mass Picketing .............................................................................. 408 18.3 Regulating Advertising for Strike-Breakers ...................................................................................... 409
viii | 2025 Cal-Peculiarities ©2025 Seyfarth Shaw LLP www.seyfarth.com 18.4 Gag Orders for State Government Contractors ............................................................................... 409 18.5 Right to Leaflet in Private Shopping Malls ....................................................................................... 409 18.6 Access to Private Employee Information.......................................................................................... 410 18.7 Collective Bargaining Agreement Waiver Issues ............................................................................. 410 19. Independent Contractors ............................................................................................ 413 19.1 The Plaintiff’s Preference for Employee Status................................................................................ 413 19.2 Presumptions of Employment in Various Contexts .......................................................................... 414 19.3 Inversion of Common Law Standards in Standard Jury Instruction ................................................. 415 19.4 Absence of Statutory Protection as to Newspaper Carriers............................................................. 416 19.5 California’s Judicial, Legislative, and Voter-Driven Evolution of Independent Contracting.............. 416 19.6 California’s “ABC Test” ..................................................................................................................... 417 19.7 The Codification and Extension of Dynamex in AB 5....................................................................... 418 19.8 Professional Cheerleaders Must Be Employees .............................................................................. 421 19.9 Special Reporting Requirements...................................................................................................... 421 19.10 Administrative Enforcement ............................................................................................................. 422 19.11 Special Penalties for Willful Misclassification ................................................................................... 422 19.12 Dealing with Certain Labor Contractors ........................................................................................... 422 20. Miscellaneous Statutory Provisions .......................................................................... 427 20.1 Agreement to Illegal Terms of Employment ..................................................................................... 427 20.2 Choice of Non-California Law or Non-California Forum in Employment Contracts ......................... 427 20.3 Forced Patronage............................................................................................................................. 428 20.4 Restrictions on Employer Rights to Employee Inventions................................................................ 428 20.5 Child Labor ....................................................................................................................................... 428 20.6 Human Trafficking ............................................................................................................................ 429 20.7 Garnishments ................................................................................................................................... 429 20.8 Diverse Representation on Corporate Boards of Directors.............................................................. 430 20.9 Pay For College Athletes.................................................................................................................. 431 21. Some Provisions Favoring California Employers..................................................... 433 21.1 Claims for Unlawful Tape Recording................................................................................................ 433 21.2 Workplace Harassment Orders ........................................................................................................ 433 21.3 Anti-SLAPP Motions ......................................................................................................................... 433 21.4 Special Proof Required to Impose Punitive Damages ..................................................................... 434 21.5 Relatively Short Limitations Period................................................................................................... 435 21.6 Contractually Authorized Judicial Review of Arbitration Awards...................................................... 435 21.7 Use of E-Verify ................................................................................................................................. 435 21.8 Non-Signatories Can Enforce Arbitration Agreements..................................................................... 435 21.9 Employers Doing Business Within Federal Enclaves ..................................................................... 437 21.10 Sometimes a Quit Is Just a Quit ....................................................................................................... 437 21.11 Half Hour Deductions for Tardiness? ............................................................................................... 437
©2025 Seyfarth Shaw LLP www.seyfarth.com 2025 Cal-Peculiarities | ix Conclusion ........................................................................................................................... 438 Index of Terms ..................................................................................................................... 441 Index of Statutory and Wage Order Provisions ................................................................ 447
x | 2025 Cal-Peculiarities ©2025 Seyfarth Shaw LLP www.seyfarth.com Glossary We sometimes use the following shorthand references without specially defining them. Term Definition Section Number(s) ADA Americans with Disabilities Act 6.3 ADEA Age Discrimination in Employment Act 6.4 ALRA California Agricultural Labor Relations Act 18.1 ALRB California Agricultural Labor Relations Board 18.1 AWS Alternative Workweek Schedule 7.7 Berman hearing Wage claim hearing before Labor Commissioner 1.5, 5.2 CalGINA California Genetic Discrimination Act 4.2, 6.2 CA-SPSL California Supplemental Paid Sick Leave 2.14.2 CCPA California Consumer Privacy Act 4.17 CBA Collective bargaining agreement 2.14, 5.2, 5.7, 7.7, 7.8, 7.19 CCRAA California Consumer Credit Reporting Agencies Act 4.11 CFRA California Family Rights Act 2.3 COBRA Consolidated Omnibus Budget Reconciliation Act 8.3 DFEH California Department of Fair Employment and Housing 1.1 DIR California Department of Industrial Relations 1.3 DLSE California Division of Labor Standards Enforcement 1.5 DOL U.S. Department of Labor 2.12, 7.6 DOSH California Division of Occupational Safety and Health 1.10 DWC California Division of Workers’ Compensation 1.8 EDD California Employment Development Department 1.6 ERISA Employee Retirement Income Security Act 2.11, 7.19, 8.4, 17.8 FAAAA Federal Aviation Administration Authorization Act of 1994 7.9.9, 19.7 FAA Federal Arbitration Act 5.2 FCRA Fair Credit Reporting Act 4.11 FEHA California Fair Employment and Housing Act 1.1 FEHC (old) California Fair Employment and Housing Commission 1.1
©2025 Seyfarth Shaw LLP www.seyfarth.com 2025 Cal-Peculiarities | xi Term Definition Section Number(s) FEHC (new) California Fair Employment and Housing Council 1.1 FFCRA Families First Coronavirus Response Act 2.16 FLSA Fair Labor Standards Act 5.14, 7.1 FMCSA Federal Motor Carrier Safety Administration 7.8.7 FMLA Family and Medical Leave Act 2.3 FTDI California Family Temporary Disabilities Insurance 2.4 HIPP Health Insurance Premium Program 8.3, 9.2.4, 13.2.3 ICRAA California Investigative Consumer Reporting Agencies Act 4.11.2 IRCA Immigration Reform and Control Act of 1986 5.17 IWC California Industrial Welfare Commission 1.4, 7.1 Labor Commissioner Head of DLSE, enforcer of the Labor Code 1.5 LWDA California Labor and Workforce Development Agency 1.2, 5.15 MMPI Minnesota Multiphasic Personality Inventory 4.12 Ninth Circuit U.S. Court of Appeals for the Ninth Circuit, covering California Various NLRA National Labor Relations Act 18.1 NPLA New Parent Leave Act 2.3 ODA Order, Decision, or Award of Labor Commission 1.5 PAGA California Labor Code Private Attorneys General Act of 2004 5.15 PDLL Pregnancy Disability Leave Law 2.1 PFL Paid Family Leave 1.6 PSL Paid Sick Leave 2.14 PTO Paid Time Off 7.19 RMIs Repetitive Motion Injuries 14.8 SDI State Disability Insurance 1.6 Section 1981 42 U.S.C. § 1981 6 SSN Social Security Number 4.8 UCL Unfair Competition Law 5.13, 6.15 UIAB Unemployment Appeals Board 1.7, 15.3
xii | 2025 Cal-Peculiarities ©2025 Seyfarth Shaw LLP www.seyfarth.com Term Definition Section Number(s) USERRA Uniformed Services Employment and Reemployment Rights Act 2.12, 13.4.3 WARN Worker Adjustment and Retraining Notification 13.1 WCAB California Workers’ Compensation Appeals Board 1.9
©2025 Seyfarth Shaw LLP www.seyfarth.com 2025 Cal-Peculiarities | 1 Introduction When employers across America face a labor or employment law issue on the Left Coast, a phrase they often hear is, “California is different.” For better or worse, California is different. California is also important, as the nation’s most populous state, the world’s fifth-largest economy, and a notorious trend-setter in employment law. Several sources have influenced California’s continuing expansion of employee rights (and employer obligations). The chief source has been the extensive legislation codified in the California Labor and Government Codes. In more recent years, counties and cities have gotten into the act in a big way, particularly with respect to issues of minimum wage, sick pay, hazard pay, and scheduling. Also significant have been expansive judicial decisions. These decisions have come not only from California state courts but from federal judges applying California law. Most of these federal judges are within the Ninth Circuit of the U.S. Court of Appeals—the circuit that historically has been the most friendly to the interests of plaintiffs (and the circuit most often reversed by the U.S. Supreme Court). A final important source are the interpretations issued by California administrative agencies empowered to enforce various employment laws. This volume assumes extensive knowledge of federal labor and employment law in the private sector. Our principal focus is on the peculiar aspects of California law that can bewilder even the most sophisticated private employers who are used to doing business elsewhere. Highlighted immediately below are some important areas of California labor and employment law. We do not cover California law in fine detail, but rather simply aim to raise consciousness (a California term) about certain legal issues. (Elsewhere herein is a full-form disclaimer.) The reader with particular subjects in mind can consult the Table of Contents and Glossary (at the front of this volume) and the comprehensive Index of Terms and the Index of Statutory Provisions (at the back). So what’s so peculiar about California labor and employment law? Let us count the ways: Leaves California, going far beyond federal leave law, creates a right to unpaid leave for up to four months (or 17.33 weeks) for pregnancy-related disabilities, in addition to any available family leave and any related disability leave (see § 2.1), imposes family-leave obligations not only on larger employers (those with at least 50 employees), but also on smaller employers (those with at least five employees), defines “family” very broadly, and has no geographical limitations or any carve-outs for key employees (see § 2.3), enables employees to claim state-paid family leave benefits, for up to eight weeks (see § 2.4),
2 | 2025 Cal-Peculiarities ©2025 Seyfarth Shaw LLP www.seyfarth.com allows employees who are victims, or whose covered family members are victims, of domestic violence, sexual assault, stalking, or other violent crimes to take time off to attend to issues in court or for medical and safety related needs for themselves or qualifying family members (see §§ 2.6, 2.7), permits employees who accrue paid sick leave to use up to one-half their annual entitlement for “kin care” (see § 2.10), treats paid time off as the equivalent of sick leave (for purposes of “kin care”), if the paid time off can be used for any purpose (see § 2.10), creates a right to unpaid leave of up to ten days for employees married to military personnel who themselves are on leave from a military conflict (see § 2.12), entitles employees to accrue up to 40 hours or five days of annual paid sick leave, which can accumulate up to 80 hours or 10 days (see § 2.14), and creates a right to paid leave for organ or bone marrow donation (see § 2.15). creates a right to unpaid bereavement leave for the death of covered family members and for reproductive loss events (see § 2.16) Employee Privacy—Protected Activities and Confidential Information The California Constitution uniquely creates a right to privacy that governs private as well as public employers. The California Consumer Privacy Act of 2018 (CCPA) (as amended by the California Privacy Rights Act (CPRA)) imposes significant compliance obligations with respect to California resident employees and others, including a requirement to notice and disclose practices relating to personal information and a requirement to facilitate the exercise of certain rights of control employees have over the use of their personal information. California also has statutes that prohibit employer intrusions into, or interference with, various forms of employee personal conduct. Specifically, California forbids employers from discriminating against employees or applicants for lawful off-premises, off-duty conduct (see § 3.1), entitles employees to designate attorneys to negotiate on their behalf with employers regarding conditions of employment (see § 3.4), forbids employers to inquire about certain marijuana-related convictions, or about participation in pre- or post-trial diversion programs, or about convictions that have been judicially dismissed or ordered sealed (see § 4.2), forbids unconsented tape-recording of confidential communications (see § 4.6), forbids audio and videotaping of restrooms, locker rooms, and changing rooms (see § 4.6), entitles employees to workplace privacy against intrusions by their employer (see § 4.6),
©2025 Seyfarth Shaw LLP www.seyfarth.com 2025 Cal-Peculiarities | 3 forbids employers to request or require employees or job applicants to disclose personal social media usernames or passwords (see § 4.8), forbids use of credit background checks for most positions (see § 4.11), and requires employers to disclose to employees the categories of personal information the company has collected and the purposes for which the categories of personal information will be used (see § 4.17). Agreements with Applicants, Employees, Former Employees California forbids, requires, or regulates various agreements that employers enter into with job applicants, current employees, and former employees. California forbids employers from requiring any applicant or employee to take a polygraph as a condition of employment (see § 4.3), renders unenforceable any settlement agreement provision that prevents the disclosure of facts related to a sexual harassment or retaliation claim, with limited exceptions (see § 6.5.13), renders unenforceable any contractual provision that waives a right to testify about the criminal or sexually harassing conduct of the other contracting party (or that party’s agent) (see § 6.5.13), forbids employers from imposing, as a condition of employment or the receipt of a raise or bonus, the release of any FEHA claim (except in a negotiated settlement of a filed claim) (see § 6.5.13), requires written agreements to memorialize an employee’s entitlement to commissions (see § 7.15), forbids employers from imposing, as a condition of employment, any agreement the employer knows to be unlawful (see § 7.25), forbids releases of wage claims as to wages undisputedly due but not paid (see § 7.25), forbids various covenants not to compete (see § 12), forbids settlement agreements—with employees who have filed a legal claim—from including no-rehire clauses (see § 12), forbids any agreement to have a dispute settled in a non-California forum under non-California law (see § 20.2), forbids agreements that condition employment-related benefits on any waiver of FEHA or Labor Code rights (except post-dispute settlement agreements and negotiated severance agreements) (see § 20.2), and regulates the formation and terms of mandatory arbitration agreements in ways that are constitutionally suspect in light of the Federal Arbitration Act (see immediately below).
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