Cal-Peculiarities: How California Employment Law is Different - 2026 Edition

About Our Graphics III
Table of Contents IV
Glossary XII
Introduction 1
Preface to the 2026 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 Paid Sick Leave 35
2.6 Accommodation of Addicts and Individuals Who Cannot Read 42
2.7 Time Off for Court Appearances (Jury Duty, Witness Leave, etc.) 42
2.8 Qualifying Act of Violence Leave and Accommodation 43
2.9 Time Off for Good Deeds and Related Training 45
2.10 Voting Leave 45
2.11 Child-Related Activities Leave 45
2.12 Kin Care Leave 46
2.13 Military Leave 47
2.14 Military Spousal and Partner Leave 47
2.15 Paid Leave for Organ or Bone Marrow Donation 48
2.16 Bereavement Leave 48
3. Employee Privacy—Protected Activities 56
3.1 Off-Duty, Off-Premises Lawful Conduct—Including Marijuana Use 56
3.2 Disclosure of Wages 57
3.3 Disclosure of Working Conditions 57
3.4 Right to Designate Counsel 58
3.5 Employee Whistleblowing 58
3.6 Refusal to Undergo Medical Treatment or Exam 60
3.7 Changing Personal Information 61
4. Employee Privacy—Protection From Intrusions 65
4.1 Drug Testing 65
4.2 Inquiries About and Consideration of Arrests and Convictions 66
4.3 Polygraph Tests 70
4.6 HIV Testing 70
4.7 Genetic Testing 70
4.8 Audio and Video Recording; Transcription 71
4.9 Medical Records 71
4.10 Social Security Numbers and Other Personal Information 72
4.11 Security of Personal Information 73
4.12 Personnel Records 73
4.13 Background Checks 74
4.14 Psychological Tests 76
4.15 Fingerprinting 77
4.16 Photographing 77
4.17 Subcutaneous Identification Devices 77
4.18 Email Usage 77
4.19 California Consumer Privacy Act of 2018 (as amended by the California Privacy Rights Act of 2020) 78
5. Litigation Issues 87
5.1 Special Rules for California Jury Trial 87
5.2 California’s Hostility to Arbitration of Employment Disputes 88
5.3 Hostility to Employer-Mandated Forum Selection and Choice of Law 103
5.4 Public Policy Claims for Wrongful Employment Actions 104
5.5 Claims for Breach of Contract of Continued Employment 108
5.6 Claims for Breach of Implied Covenant of Good Faith and Fair Dealing 109
5.7 Limited Effectiveness of Common Defenses and Procedural Devices 110
5.8 Defamation Claims 115
5.9 Misrepresentation Claims 117
5.10 Employer Liability for Employee Torts 118
5.11 Employment Discrimination Litigation 119
5.12 Anti-Employer Rules Regarding Attorney Fees and Costs 120
5.13 Unfair Competition Claims 122
5.14 The Wage and Hour Class Action Explosion 123
5.15 PAGA Civil Penalty Claims for Labor Code Violations 126
5.16 “The Life Unlitigated is Not Worth Living” 137
5.17 Special Protections for Unauthorized Workers 139
5.18 Employer’s Attorney-Client Privilege 142
5.19 Limits to Protection for Attorney Work Product 142
5.20 Employer’s Obligation to Withhold Taxes Due on Damages Judgment 142
5.21 Can Employees Seeking Unpaid Wages Bring Tort Claims? 143
6. Employment Discrimination Legislation and Litigation 167
6.1 Comparing California Antidiscrimination Law with Federal Statutes 167
6.2 Additional Protected Bases 169
6.3 Special Rules for Disability Discrimination 171
6.4 Special Rules for Age Discrimination 175
6.5 Special Rules for Discriminatory Workplace Harassment 176
6.6 Special Rules Relating to National Origin 184
6.7 Equal Pay 186
6.8 Pant Suits 190
6.9 Special Rules for Gender, Gender Identity, and Gender Expression 190
6.10 Special Rules for Religious Accommodation 191
6.11 Special Rules for Retaliation 192
6.12 Special Rules for No-nepotism Policies 194
6.13 Difficulty in Obtaining Defendant’s Attorney Fees and Even Costs 195
6.14 No Meaningful Duty to Exhaust Administrative Remedies 196
6.15 Use of the Unfair Competition Law to Sue for Discrimination 196
6.16 Disregard of Federal Evidentiary Doctrines 197
7. Wage and Hour Laws 211
7.1 Requirements Imposed by IWC Wage Orders 212
7.2 Minimum Wages 215
7.3 Pay For Hours Worked 218
7.4 Computing Wages Owed 223
7.5 Wage Payment Rules 227
7.6 “White Collar” Exemptions from Wage Requirements 230
7.7 Other Exemptions 234
7.8 Meal Periods 239
7.9 Rest and Recovery Breaks 244
7.10 The “One Additional Hour of Pay” 247
7.11 Suitable Seats and Comfortable Temperatures 249
7.12 Restrictions on Having Employees Pay for Costs of Business 252
7.13 Indemnification of Employee Expenses 254
7.14 Payment by Piece-Rate 257
7.15 Payment of Commissions 259
7.16 Bonuses 260
7.17 Hazard Pay 264
7.18 Tips 265
7.19 Vacation Pay 266
7.20 Personal Liability for Wage and Hour Violations 269
7.21 Broadened Definition of Employer? 272
7.22 Restrictions on Scheduling and Work Quotas 275
7.23 Worker Retention and Staffing Requirements 277
7.24 How Does California Law Affect Multi-State Employees? 282
7.25 Civil Penalties 284
7.26 Criminal Penalties 311
8. Employee Benefits 337
8.1 Domestic Partners 337
8.2 Required Coverage 338
8.3 Cal-COBRA 339
8.4 Mandatory Employer-Funded Health Care 340
8.5 Explanation Of Benefits 343
8.6 CalSavers Retirement Savings Program 343
8.7 Large Group Health Insurance 344
8.8 Reproductive Health Rights 344
8.9 Commuter Benefits 345
8.10 Los Angeles Hotel Worker Health Benefits Requirements 346
9. Special Posting, Distribution, and Notice Requirements 353
9.1 Posting Requirements 353
9.2 Distribution Requirements 356
10. Employee Access to Personnel Records 361
10.1 Personnel Records 361
10.2 Signed Employee Instruments 361
10.3 Shopping Investigator’s Report 362
10.4 Payroll Records 362
11. Employer Retention of Records 365
12. Covenants Not to Compete 367
12.1 General Prohibition 367
12.2 Implications for Wrongful Termination 370
12.3 “No Rehire” Clauses 371
12.4 Permissible Contractual Restrictions 372
12.5 Protection of Trade Secrets 374
12.6 Preventing Data Theft with the Computer Fraud and Abuse Act? 375
12.7 California Penal Code Section 502: An Alternative to the CFAA 376
13. Procedural Quirks Regarding Termination of Employment and Post-Termination 381
13.1 Cal-WARN Act 381
13.2 Required Content of Notices 383
13.3 Final Pay Checks 384
13.4 Separation Agreements 385
13.5 Worker Retention Laws 387
14. Health and Safety Law 391
14.1 Injury and Illness Prevention Program 391
14.2 “Be a Manager, Go to Jail” Act 391
14.3 Proposition 65 391
14.4 Cal/OSHA Hazard Communication Standards 392
14.5 Anti-Retaliation Provisions 392
14.6 Tobacco Smoking 392
14.7 Drug-free Workplace 392
14.8 Repetitive Motion Injuries (RMIs) 393
14.9 “Hands off that Smartphone!” 393
14.10 UCL Actions for Cal/OSHA Violations 393
14.11 Injury and Illness Recordkeeping and Reporting 394
14.12 Single-User Restrooms 394
14.13 Workplace Violence Requirements for Health Care Providers 394
14.14 Electronic Submission of Cal/OSHA Forms 395
14.15 Valley Fever Training—”There’s Fungus Among Us!” 395
14.16 Wildfire Smoke Protection 395
14.17 Protection From Covid-19 395
14.18 Beefed Up Enforcement 396
14.19 Workplace Violence Prevention Plan Requirements in 2024 397
14.20 Changing Standard For Protection From Indoor Heat-Related Illness and Injury 397
15. Unemployment Compensation 401
15.1 Conditions for Eligibility 401
15.2 Ineligibility and Disqualification 401
15.3 The Claims Process 402
16. Employer Reporting, Disclosure Requirements 405
16.1 New Hires 405
16.2 Retention of Independent Contractors 406
16.3 Itemized Wage Statements 406
16.4 Executive Compensation 412
16.5 Filing Job Applications 412
16.6 EITC Information 412
17. Workers’ Compensation 417
17.1 Jurisdiction 417
17.2 Disability Discrimination 417
17.3 Privacy Implications 417
17.4 Workers’ Compensation Preemption 417
17.5 Compensation Implications 418
17.6 Good Faith Personnel Actions 418
17.7 Temporary Labor 418
17.8 Coverage of Employees Only 418
17.9 Discrimination Against Injured Workers—Labor Code § 132a 419
17.10 Covid-19 419
18. Rights of Organized Labor 421
18.1 Agricultural Workers 421
18.2 Anti-Injunction Laws Regarding Mass Picketing 422
18.3 Attempts to Regulate the Private-Sector 423
18.4 Regulating Advertising for Strike-Breakers 424
18.5 Gag Orders for State Government Contractors 424
18.6 Right to Leaflet in Private Shopping Malls 424
18.7 Access to Private Employee Information 425
18.8 Collective Bargaining Agreement Waiver Issues 425
19. Independent Contractors 429
19.1 The Plaintiff’s Preference for Employee Status 429
19.2 Presumptions of Employment in Various Contexts 430
19.3 Inversion of Common Law Standards in Standard Jury Instruction 431
19.4 Absence of Statutory Protection as to Newspaper Carriers 432
19.5 California’s Judicial, Legislative, and Voter-Driven Evolution of Independent Contracting 432
19.6 California’s “ABC Test” 433
19.7 The Codification and Extension of Dynamex in AB 5 434
19.8 Professional Cheerleaders Must Be Employees 437
19.9 Special Reporting Requirements 437
19.10 Administrative Enforcement 438
19.11 Special Penalties for Willful Misclassification 438
19.12 Dealing with Certain Labor Contractors 438
20. Miscellaneous Statutory Provisions 443
20.1 Agreement to Illegal Terms of Employment 443
20.2 Choice of Non-California Law or Non-California Forum in Employment Contracts 443
20.3 Forced Patronage 444
20.4 Restrictions on Employer Rights to Employee Inventions 444
20.5 Child Labor 444
20.6 Human Trafficking 445
20.7 Garnishments 445
20.8 Diverse Representation on Corporate Boards of Directors 446
20.9 Pay For College Athletes 447
21. Some Provisions Favoring California Employers 451
21.1 Claims for Unlawful Tape Recording 451
21.2 Workplace Harassment Orders 451
21.3 Anti-SLAPP Motions 451
21.4 Special Proof Required to Impose Punitive Damages 452
21.5 Relatively Short Limitations Period 453
21.6 Contractually Authorized Judicial Review of Arbitration Awards 453
21.7 Use of E-Verify 453
21.8 Non-Signatories Can Enforce Arbitration Agreements 453
21.9 Employers Doing Business Within Federal Enclaves 455
21.10 Sometimes a Quit Is Just a Quit 455
21.11 Half Hour Deductions for Tardiness? 456
Conclusion 457
Index of Terms 459
Index of Statutory and Wage Order Provisions 465

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