California has the most complex employment law in the United States. From AB5 worker classification to daily overtime rules, WorkGenius becomes your legal employer — keeping you fully compliant while you focus on your business.
Assembly Bill 5 (AB5), effective January 2020, dramatically changed how California determines whether a worker is an employee or an independent contractor. It codified the "ABC test" — and getting it wrong can cost you more than the workers' wages in penalties.
Get AB5-Compliant TodayCalifornia-specific employment law is a full-time job. We take it off your plate entirely.
AI-powered assessment against California's ABC test before every engagement. Misclassification risk eliminated from day one.
Daily overtime calculations, city-specific minimum wages, meal and rest break compliance, and accurate SDI withholding.
All job postings include compliant salary ranges. Pay scale disclosures handled for offers and existing employees.
CFRA leave, California SDI, Paid Family Leave, and ACA-compliant health coverage — all enrolled and administered.
Employment agreements reflecting CA law: no non-competes, IP assignment clauses, offer letter requirements, and proper at-will language.
Immediate final paycheck on termination day, COBRA administration, and compliant separation documentation per California Labor Code.
Most EOR providers use manual checklists. WorkGenius runs California's complex employment rules directly in the platform — automatically, on every payroll cycle.
Beyond AB5, California layers multiple additional employment requirements on top of federal law.
Since 2023, California employers with 15+ employees must include pay ranges in all job postings and provide salary ranges to employees on request.
The California Family Rights Act applies to companies with just 5 employees — compared to the federal FMLA threshold of 50. Employees get 12 weeks of job-protected leave for qualifying reasons.
California State Disability Insurance (SDI) and Paid Family Leave (PFL) are mandatory wage contributions. As of 2024, there's no wage ceiling — all wages are subject to SDI withholding.
California's WARN Act is stricter than federal — it applies to employers with 75+ employees (vs. 100 federal) and requires 60 days notice for mass layoffs or plant closures.
From first conversation to fully compliant employment — typically within days.
Workers, roles, locations, and start dates. We tailor the setup to your needs.
Our AI runs every worker through California's ABC test. We prepare compliant contracts and payroll setup.
Onboarded with California-compliant contracts, benefits enrolled, payroll running from day one.
Payroll runs with daily OT. Taxes filed. Compliance monitored. One weekly invoice.
Yes. If the worker performs services in California — even remotely — California's AB5 applies regardless of where your company is headquartered. This catches many out-of-state companies off guard. WorkGenius handles AB5 compliance for all California-based workers, wherever your company is located.
If a worker fails California's ABC test, they must be classified as a W-2 employee. That means you're responsible for back payroll taxes, workers' compensation, and potentially missed benefits — retroactively. WorkGenius assesses every worker before engagement begins and, if reclassification is needed, manages the transition compliantly.
Federal overtime kicks in after 40 hours per week. California requires overtime pay (1.5×) after just 8 hours in a single day, and double time (2×) after 12 hours in a day or for the 7th consecutive day in a workweek. This catches many employers off guard when managing hourly or project-based workers. WorkGenius calculates California overtime automatically on every payroll run.
Yes — California Labor Code Section 201 requires employers to pay all wages owed to an involuntarily terminated employee immediately upon termination. Failure to do so triggers waiting time penalties of one day's pay for each day the payment is late, up to 30 days. WorkGenius handles same-day final pay processing.
No. Non-compete agreements are unenforceable in California under Business & Professions Code Section 16600 — even if the contract is governed by another state's law. This applies to non-solicitation clauses for customers in many cases too. WorkGenius drafts California-compliant employment agreements that protect your legitimate business interests without relying on non-competes.
The California Family Rights Act (CFRA) provides 12 weeks of job-protected leave for qualifying reasons including the birth of a child, a serious health condition, or to care for a family member. Unlike federal FMLA which only applies to employers with 50+ employees, CFRA applies to any employer with 5 or more employees. WorkGenius manages CFRA leave tracking, documentation, and return-to-work processes.
WorkGenius handles AB5 classification, California payroll, benefits, and every other compliance requirement so you don't have to. Get started today.
No commitment required. Free consultation included.