California employment compliance begins before the first employee is hired.
Before making its first hire, a small business should:
- Register with the California Employment Development Department (EDD)
- Obtain workers’ compensation insurance
- Establish compliant payroll practices, including wage statement requirements
- Adopt written workplace policies and an employee handbook tailored to California law
- Implement required workplace postings
- Understand minimum wage, overtime, and exemption requirements
California employment laws are complex and frequently updated. Early compliance planning reduces the risk of costly mistakes, wage claims, and agency enforcement actions.
For small businesses, preventative legal guidance at the outset is significantly less expensive than defending a wage and hour claim later.
