The 60-second version
- Non-competes for employees generally aren't enforceable here.
- Pay ranges belong in job postings.
- Final paychecks have strict timing rules.
California is one of the best places in the world to build a company, and it has its own employment rules that catch out founders who learned the ropes elsewhere. Here are a few to know before you hire.
Non-compete agreements with employees are generally void in California. Protect your company instead with clear confidentiality and invention assignment agreements, and good security around your trade secrets.
Employers with 15 or more employees must include a pay scale in job postings, and every employee can ask for the pay scale for their own role. Building salary bands early makes this easy.
Classify roles carefully. To be treated as exempt from overtime, most employees must earn at least twice the state minimum wage for full-time work and meet the duties test. Getting this wrong is one of the most common and costly mistakes.
When someone leaves, timing matters. An employee who is let go must generally be paid all final wages on their last day, and penalties for late payment add up quickly. This guide is general information only, so talk to an employment lawyer about your situation.
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General guidance only, not legal, tax or financial advice.