California Labor Laws: Rules For Businesses With Five Employees

California has a multitude of laws that apply to businesses with five or more employees. These laws cover a range of topics, including leave, workplace safety, and anti-discrimination. For instance, the California Family Rights Act (CFRA) entitles employees to take up to 12 weeks of unpaid leave to care for a family member or themselves in the event of a serious health condition. This law was expanded in 2020 to include businesses with five or more employees, previously covering only those with 50 or more.

Additionally, California's laws against workplace discrimination and harassment also apply to businesses with five or more employees. This includes protection from discrimination based on race, sex, gender identity, military/veteran status, and more. Furthermore, employers with five or more employees are required to provide sexual harassment training to both supervisory and non-supervisory staff.

Other laws that apply to businesses with five or more employees in California include the requirement to provide paid sick leave, protection from wrongful termination, and the obligation to maintain a safe workspace.

Employers must provide family and medical leave

In California, the California Family Rights Act (CFRA) applies to employers with five or more employees. The CFRA is the state version of the federal Family and Medical Leave Act (FMLA).

Under the CFRA, employers with five or more workers must provide eligible employees with up to 12 weeks of unpaid, job-protected leave over a 12-month period for certain qualifying reasons. These reasons include:

• An employee's own serious health condition (excluding pregnancy- or childbirth-related disability)
• An employee's need to care for a child, parent, spouse (including a registered domestic partner), grandparent, grandchild, or sibling with a serious health condition
• An employee's wish to bond with a new child within 12 months of birth, adoption, or foster care placement
• "Qualifying exigency" military leave, for reasons including short-notice deployment, military events and related activities, and spending time with a covered military member on short-term leave

Employees are eligible for CFRA leave if they have worked for the company for at least 12 months and have worked at least 1,250 hours during the previous year.

While the leave remains unpaid, employers must maintain and pay for the employees' group health plan for the duration of the leave. Employers must also reinstate employees in the same or comparable job positions upon their return from leave.

Employees are protected from workplace discrimination

Employees in California are protected from workplace discrimination by both state and federal laws. The Civil Rights Department (CRD) enforces state laws that make it illegal to discriminate against a job applicant or employee because of a protected characteristic.

Protected Characteristics

Protected characteristics in California include:

• Ancestry
• National origin
• Disability (mental and physical)
• Sex (including pregnancy, childbirth, breastfeeding or related medical conditions)
• Gender identity and expression
• Military or veteran status
• Race (including hair texture and style)
• Colour
• Religious creed (including religious dress and grooming practices)
• Denial of Family and Medical Care Leave Act (FMLA) leave
• Marital status
• Medical condition (cancer and genetic characteristics)
• Genetic information
• National origin
• Gender
• Gender identity
• Gender expression
• Sexual orientation
• Any other characteristic protected by state, federal or local law

Theories of Employment Discrimination

There are two main types of employment discrimination: disparate treatment discrimination and disparate impact discrimination. Disparate treatment discrimination occurs when an employer takes an employee's protected status into account when taking an adverse employment action, such as termination or layoff. Disparate impact discrimination occurs when an employer adopts a policy or practice that seems neutral and nondiscriminatory on its surface but has a disproportionately negative effect on members of a protected class.

Remedies for Employment Discrimination

Remedies for employment discrimination in California include:

• Cease-and-desist orders
• Expert witness fees
• Reasonable attorney's fees and costs
• Emotional distress damages
• Back pay (past lost earnings)
• Front pay (future lost earnings)
• Hiring/reinstatement
• Out-of-pocket expenses
• Reasonable accommodation(s)

Employees are protected from sexual harassment

California employees are protected from sexual harassment by both state and federal laws. Sexual harassment in the workplace is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964 and California's Fair Employment and Housing Act (FEHA). California law defines sexual harassment as any behaviour or action of a sexual nature that creates a hostile, intimidating, or offensive work environment based on an employee's sex. This includes unwelcome sexual advances, requests for sexual favours, and other verbal, visual, or physical conduct of a sexual nature.

The FEHA prohibits harassment based on a protected category, such as sex or gender, against employees, applicants, unpaid interns or volunteers, and contractors. This applies to all workplaces, even those with fewer than five employees. Employers with five or more employees are required to provide sexual harassment prevention training to all supervisory and non-supervisory employees.

If you are experiencing sexual harassment in the workplace, you have options for recourse. First, if your company has a sexual harassment policy, read it and take action accordingly. Put complaints in writing, keep records of each incident, and inform your employer about the harassment as outlined in the policy. If your employer fails to address the issue, you can file a complaint with the California Department of Fair Employment and Housing (DFEH) or the Equal Employment Opportunity Commission (EEOC). You may also be able to file a civil lawsuit against your employer and seek monetary damages for your losses, including emotional distress, back pay, and changes to company policies.

It is important to note that California law also prohibits retaliation against employees who report sexual harassment. This means that if you complain about sexual harassment and your employer retaliates, their behaviour becomes more egregious under the law. Additionally, employers are considered strictly liable for sexual harassment by a supervisor or the employer themselves, even if they were unaware of the harassment.

Employers must provide sick leave

In California, employers must provide paid sick leave to their employees. Full-time employees in California are entitled to 3 full workdays (24 hours) of paid sick leave each year. This is in addition to any other leave an employee may be eligible for under the Fair Employment and Housing Act (FEHA), California Family Rights Act (CFRA), or their employer's leave policies.

On September 17, 2020, Governor Gavin Newsom signed SB1383 into law, which expanded the applicability of family and medical leave entitlements to employees under the California Family Rights Act (CFRA). Under this new law, California employers with five or more employees must allow eligible employees to take up to 12 weeks of unpaid, protected leave during any 12-month period to bond with a new child or to care for themselves or a family member due to a serious health condition.

The new law also expands the definition of "family members" to include grandparents, grandchildren, and siblings, mirroring several of California's other leave laws (e.g. Paid Sick Leave, Paid Family Leave, etc.). This change took effect on January 1, 2021.

In addition to the above, California law requires employees to earn paid sick leave at a rate of at least one hour for every 30 hours worked. Full-time employees must receive at least 40 hours of paid sick leave per year. Most employers, however, have more generous sick leave provisions.

Employees are protected from wrongful termination

Employees in California are protected from wrongful termination by state and federal laws. Wrongful termination occurs when an employee is fired for an illegal reason or when the termination violates state or federal laws.

In California, it is illegal for employers to terminate an employee based on their protected characteristics, such as race, sex, disability, gender identity, military/veteran status, and national origin. Additionally, employers cannot fire employees for exercising their legal rights, such as filing a workers' compensation claim, reporting a workplace injury, or taking family or medical leave.

California also prohibits retaliation against employees for reporting sexual harassment, complaining about wage and hour violations, or engaging in whistleblower activities. Employees who believe they have been wrongfully terminated may have legal grounds to pursue a lawsuit against their former employer and seek financial recovery.

It is important to note that California operates under the "at-will" employment principle, which means that either the employer or the employee can end the work relationship at any time, for any reason, without a specific contract. However, there are still legal protections in place to safeguard employees from wrongful termination.

To pursue a wrongful termination claim, employees must demonstrate that their termination violated California labor laws or public policy. This can include discrimination, breach of contract, retaliation, or violation of specific statutes and policies.

California employees have the right to take action and seek legal recourse if they believe their rights have been violated. They can document any unlawful actions, gather evidence, and consult with an employment lawyer to discuss their specific situation and options for restitution.

Frequently asked questions