The purchase or sale of a business in California involves intricate legal considerations, particularly regarding the rights of and responsibilities to employees. Both the buyer and seller need to consider employment ramifications.

For Buyers:

As the new employer, the buyer will need to comply with a host of California requirements and disclosures. Employers new to California should pay special attention to regulatory requirements and may wish to consider arbitration agreements, employee handbooks, meal and rest break policies, timekeeping requirements, and other California-specific obligations. If the acquisition involves a reduction in force, additional considerations will be necessary. Finally, the acquirer may inherit existing policies and practices that could subject them to liability.

For Sellers:

Sellers also need to consider their obligations. Sellers of a business with employees should carefully manage the transition to ensure compliance with state requirements. This involves:

  • Providing written notices to employees about the sale and its implications.
  • Ensuring clear communication regarding any termination of employment.
  • Securing express written consent from employees if there is any intention to transfer obligations to the new business owner.

It is essential, whether buying or selling a business with employees, for business owners to consult with experienced employment lawyers. This ensures compliance with employment laws and helps mitigate potential risks. If you have questions about employment obligations during the buying or selling process, consider contacting a Jackson Lewis attorney for advice.

California employers should begin preparing to comply with their annual requirements under the workplace violence prevention law, California’s Labor Code 6401.9 (commonly known as SB 553), including retraining their staff and reviewing their workplace violence prevention plans.

The law has several annual requirements for employers, including:

  • Reviewing their plan at least annually, including for its effectiveness and employee involvement in the plan.
  • Providing effective training at least annually on all the law’s requirements, including the plan itself (which would mean any changes an employer made during the annual review), how to report workplace violence incidents and workplace violence hazards.

SB 553 went into effect on July 1, 2024, including the training requirement. Because California employers had to scramble to create a workplace violence prevention plan and train their employees on it, many employers created their plan and completed their training before SB 553’s July 1, 2024, effective date. That means the annual deadline to review the plan and retrain employees is likely right around the corner.

Don’t be fooled by the law’s provision on “additional training” — this is only training for any “new or previously unrecognized hazard.” All the workplace violence prevention training that employers gave last year must be repeated.

Cal/OSHA is considering a draft regulation on how to implement the law, which it must propose by Dec. 31, 2025. The next few months will tell how far Cal/OSHA intends to go with adopting stringent regulatory requirements, many of which were purposefully left out of the text of the law.

Jackson Lewis attorneys are here to help provide advice and training relating to workplace violence prevention plans.

As an employer in California, it’s necessary to understand and comply with the state’s payday laws.

California law mandates that employers establish regular paydays and notify employees of these dates. A model notice is available on the Labor Commissioner’s website. 

The frequency of paydays depends on the type of work and the agreement between the employer and the employee.

  • Weekly, Biweekly, or Semimonthly: Most employees must be paid at least twice a month. The specific payday must be designated in advance.
  • Monthly: Executive, administrative, and professional employees may be paid once a month.

Employers may change the designated payday, so long as employees are given prior notice, and the new payday complies with the requirements under California law.

Employers must pay employees promptly on the designated payday.

  • Weekly/Biweekly: Wages earned between the 1st and 15th of the month must be paid by the 26th of the same month. Wages earned between the 16th and the end of the month must be paid by the 10th of the following month.
  • Semimonthly: Wages earned in the first half of the month must be paid by the 26th, and wages earned in the second half must be paid by the 10th of the following month.
  • Monthly: Wages must be paid by the 26th of the same month.

If you have questions about Paydays and Pay Periods in California or related issues, contact a Jackson Lewis attorney to discuss.

Current and former employees have the right to inspect their personnel files upon request within a timeframe set by statute. When an employment-related claim arises, these individuals typically request a copy of their personnel file. However, if the employer has not properly maintained these files, it is impossible to recreate them retroactively.

Here’s an overview of personnel files for California employers.

Requirement to Maintain Employee Personnel Files

To comply with California law, employers must retain former employees’ personnel files for a minimum of three years following the individual’s separation from the company.

Documents Employee is Entitled to Review

According to the California Labor Code, employers are required to provide employees with copies of any documents that they signed as part of obtaining or maintaining employment. Typical contents of personnel files include:

  • Recruiting and screening documents (such as applications, resumes, and educational transcripts)
  • Job descriptions
  • Handbook and policy acknowledgments
  • Employment agreements (if applicable)

Additional records used to determine qualifications for promotion, extra compensation, or disciplinary action should also be included. These could encompass:

  • Notices of commendation, warnings, or discipline
  • Notices of layoff, leaves of absence, and vacation
  • Education and training notices and records
  • Performance reviews
  • Attendance records
  • Payroll authorization forms
  • Termination notices and documentation

Medical information should never be stored within the personnel file. Under California regulations, such information must be kept separately to protect the employee’s confidentiality. Medical details may include records associated with workers’ compensation claims or documentation provided during the interactive process for medical leave or accommodation requests.

Documents an Employee Cannot Review

Under California law, employees do not have the right to review certain records, including:

  • Records related to the investigation of a possible criminal offense
  • Letters of reference
  • Ratings, reports, or records obtained from the employee’s previous employer, prepared by identifiable examination committee members, or obtained in connection with a promotional examination.

Exceptions

If an employee or former employee files a lawsuit that relates to a personnel matter against his or her employer or former employer, the right of the employee, former employee, or his or her representative to inspect or copy personnel records under this section ceases during the pendency of the lawsuit in the court with original jurisdiction. A lawsuit “relates to a personnel matter” if a current or former employee’s personnel records are relevant to the lawsuit.

Failure to Comply with Request to Inspect Personnel Records

Once an employer receives a written request from a current or former employee or a representative, the employer must provide a copy of the personnel records within 30 calendar days from the date the employer received the request, unless the current or former employee, or his or her representative, and the employer agree in writing to a date beyond 30 calendar days to produce a copy of the records, as long as the agreed-upon date does not exceed 35 calendar days from the employer’s receipt of the written request. Failure to comply within the time prescribed may allow the employee or the Labor Commissioner to recover a penalty of $750.00 from the employer. A current or former employee may also bring an action for injunctive relief to obtain compliance.

While maintaining organized personnel files will not protect an employer from all legal claims, ensuring the appropriate documents are retained for the correct amount of time per California law will facilitate litigation processes for both the employer and their attorney.

Requests for personnel files are often a precursor to a demand letter or lawsuit. Therefore, reviewing a proposed production with an attorney may facilitate early evaluation and strategic considerations.

For further inquiries about employee personnel files or related record-keeping issues, contact a Jackson Lewis attorney for assistance.

On February 11, 2025, Governor Gavin Newsom issued an executive order to support childcare providers impacted by the recent wildfires in Los Angeles. This order ensures that those affected are aware of their eligibility for Disaster Unemployment Assistance (DUA) and receive the necessary support to apply.

In addition to supporting individual workers, the EDD offers several disaster-related services to employers affected by emergencies. These services are designed to provide financial relief and support business continuity during challenging times.

Employers directly impacted by a disaster can request up to a two-month extension to file their state payroll reports and deposit payroll taxes without penalty or interest.

The EDD collaborates with Local Assistance Centers and Disaster Recovery Centers established by the California Governor’s Office of Emergency Services (Cal OES) or federal authorities to provide comprehensive support to affected businesses.

Employers can also access information about Disability Insurance (DI) and Paid Family Leave (PFL) benefits for their eligible workers, ensuring that employees who are unable to work due to disaster-related reasons receive the necessary financial support.

If you have questions about employment-related issues pertaining to local emergencies, contact a Jackson Lewis attorney to discuss.

As of February 3, 2025, most of Cal/OSHA’s COVID-19 Prevention Non-Emergency Standards have officially come to an end. This marks a significant shift for California employers who have been navigating these regulations and their predecessor emergency temporary standards for the past four years.  

Despite the expiration of most obligations under this standard, employers are required to comply with certain recordkeeping requirements under Title 8, Subsection 3205(j) until February 3, 2026.  As a practical matter, what does this require?  There is some ambiguity in how the regulation is drafted. 

To set the stage: While the Non-Emergency Standards were in effect, employers were required to keep detailed records of all COVID-19 cases, including the employee’s name, contact information, occupation, workplace location, last day at the workplace, and the date of the positive COVID-19 test or diagnosis. 

Going forward, the requirement that employers comply with recordkeeping requirements through February 3, 2026, could be interpreted in either of two ways:

First, the simplest reading is:

  • With respect to COVID-19 cases that occurred up to February 3, 2025, employers must maintain these detailed records for two years or until February 3, 2026, whichever date comes first.

Alternatively, a more conservative reading of the regulation leads to the following:

  • Employers must continue to record and track COVID-19 cases that occur through February 3, 2026.  Records of COVID-19 cases must be kept for two years.  For example, records of a COVID-19 case in January 2026 would need to be maintained through January 2028.

The second interpretation raises additional questions.  For instance, why would employers need to record and track COVID-19 cases when all of the related requirements from the Non-Emergency Regulations have expired (such as notifying employees, providing testing, etc.)? 

Absent further guidance on this point, the answer is unclear.  Cal/OSHA could be expecting employers to keep track of COVID-19 trends and respond to safety concerns through California’s Injury and Illness Prevention Program (IIPP) requirement.

To that point, even though the specific COVID-19 prevention regulations have ended, employers must still adhere to general workplace safety requirements:

  • Employers are required to maintain a safe and healthful workplace as mandated by Labor Code section 6400.
  • Employers must continue to implement and maintain an effective IIPP as required by Title 8, California Code of Regulations, sections 1509 (Construction) and 3203 (General Industry).
  • If COVID-19 is identified as a workplace hazard, employers must evaluate and correct any unsafe conditions, work practices, or procedures associated with it.

While the end of Cal/OSHA’s COVID-19 Prevention Non-Emergency Standards signifies a return to pre-pandemic regulatory conditions, employers must remain vigilant in maintaining workplace safety and complying with ongoing recordkeeping requirements.

If you have questions about the end of COVID-19 Standards or related issues, contact a Jackson Lewis attorney to discuss.

California’s pay data reporting requirements were established under Senate Bill (SB) 973, signed into law in 2020. The law mandates that private employers with 100 or more employees, including those hired through labor contractors, must annually report pay and demographic data to the California Civil Rights Department (CRD).

In 2022, Senate Bill (SB) 1162 expanded these requirements to include workers hired through labor contractors.

Under California’s law, employers must submit their pay data reports annually, with the deadline for the 2025 reporting year set for May 14, 2025. The report must include:

  • Employee demographic information: race, ethnicity, and sex.
  • Pay data: categorized by job category and pay band.
  • Hours worked: for each employee within the reporting year.

Compliance with these reporting requirements is not only a legal obligation but also a step toward promoting fair pay practices. By analyzing and reporting pay data, employers can identify and address potential pay disparities, ensuring equal pay for equal work.

The Civil Rights Department (CRD)’s pay data reporting portal is now open for submitting 2024 reporting. The CRD has published a handbook for employers that provides instructions for submitting and certifying annual reports, in addition to the Frequently Asked Questions page.

The CRD also cautions that Excel templates and CSV examples have been updated so employers should not use prior years’ versions as they will be rejected.

If employers have questions about California’s pay data reporting contact a Jackson Lewis attorney to discuss.

In an era where consumers are increasingly concerned about ethical sourcing and labor practices, the California Transparency in Supply Chains Act (CTSCA) stands as a significant piece of legislation.

Enacted in 2010, the CTSCA aims to combat human trafficking and slavery in global supply chains, promoting greater transparency and accountability among businesses operating in California.

The CTSCA requires large retailers and manufacturers doing business in California to disclose their efforts to eradicate slavery and human trafficking from their direct supply chains. Specifically, the Act applies to companies with annual worldwide gross receipts exceeding $100 million.

These businesses must provide detailed information on their websites about their supply chain practices, including:

  1. Verification: The extent to which the company engages in the verification of product supply chains to evaluate and address risks of human trafficking and slavery.
  2. Audits: Whether the company conducts audits of suppliers to evaluate supplier compliance with company standards for trafficking and slavery in supply chains.
  3. Certification: The requirement for direct suppliers to certify that materials incorporated into the product comply with the laws regarding slavery and human trafficking of the country or countries in which they are doing business.
  4. Internal Accountability: The maintenance of internal accountability standards and procedures for employees or contractors failing to meet company standards regarding slavery and trafficking.
  5. Training: Describe the provided training on human trafficking and slavery, particularly with respect to mitigating risks within the supply chains of products.

To assist with compliance, the state has published a Resource Guide and Frequently Asked Questions.

To ensure compliance employers should first, undertake thorough verification processes to identify and address any risks related to human trafficking and slavery in their supply chains. Second, conduct regular audits of suppliers to ensure adherence to company standards. Third, require direct suppliers to certify the legality of their practices concerning human trafficking and slavery. Fourth, establish and maintain robust internal accountability standards for employees and contractors. Lastly, provide comprehensive staff training, focusing on identifying and mitigating risks of human trafficking and slavery in supply chains. By implementing these action items, businesses can not only comply with the CTSCA but also contribute to the global fight against human trafficking and slavery.

This is not the only state or federal law that requires such disclosures. California passed a law last year to require website disclosures when employers conduct social compliance audits. And there are numerous others from the California Consumer Privacy Law to HIPAA, that businesses need to be aware of.

If you have questions about compliance with the CTSCA or related issues contact a Jackson Lewis attorney to discuss.

The Domestic Worker Bill of Rights (California Assembly Bill 241 and Senate Bill 1015), enacted in 2013, is a California law that grants overtime pay rights to personal attendants who were not previously entitled to overtime pay under California law. Personal attendants covered by this law are entitled to overtime pay at 1.5 times their regular rate of pay for any hours worked in excess of nine hours in a day or 45 hours in a week.

Which Employers Are Covered?

The Domestic Worker Bill of Rights defines a “domestic work employer” as any person, including corporate officers and executives, who directly or through an agent (such as temp services or staffing agencies) employs or controls the wages, hours, and working conditions of domestic workers. However, certain employers are excluded from this law. Excluded employers include domestic worker registry or referral agencies that satisfy specific requirements under the Civil Code and Unemployment Insurance Code.

Who is Considered a Domestic Worker?

Under the law, a domestic worker is defined as someone who provides services related to the care of people in the home or maintains private households or their premises. This includes nannies, childcare providers, caregivers, personal attendants, housekeepers, cooks, and other household workers.

Who is a Personal Attendant?

A personal attendant is someone employed by a private household or any third-party employer recognized in the healthcare industry to work in a private household. The duties of a personal attendant include supervising, feeding, and dressing a child or person who needs assistance due to advanced age, physical disability, or mental deficiency. If a domestic worker spends more than 20 percent of their time performing work other than supervising, feeding, and dressing a child or person who needs supervision, they are not considered a personal attendant.

Overtime Protections for Personal Attendants

Personal attendants are entitled to overtime pay for any hours worked over nine hours per day or over 45 hours per week. However, there are certain exclusions. For example, family members (parents, grandparents, spouses, siblings, or children of the employer), individuals under the age of 18 employed as babysitters, and casual babysitters – those who babysit on an irregular or intermittent basis – are not covered by this law.

If you have any questions about the Domestic Worker Bill of Rights or any other employment laws, please contact a Jackson Lewis attorney to discuss.

In light of the ongoing and devastating fires in Los Angeles County, Cal/OSHA released new guidance to ensure the safety and health of workers involved in fire damage cleanup.

Of note, Cal/OSHA’s standards may apply to some household domestic service workers. Historically, domestic service workers have not been subject to Cal/OSHA’s standards while cooking, cleaning, and providing childcare for a family. Cal/OSHA reminded employers that household domestic service workers are governed by Cal/OSHA’s standard if the workers are engaged in fire cleanup work, such as removing ash and debris and cleaning fire-damaged structures. As such, it is important for those employers who have employees performing post-fire cleaning to take note of the Cal/OSHA guidance.

As a reminder and unrelated to this recent guidance, effective July 1, 2025, Cal/OSHA will gain control over workplace safety for some household domestic services.

Key Points to Note:

  1. Employers are required to identify and evaluate potential hazards in fire-damaged areas. This includes assessing risks such as unstable structures, hazardous materials, and environmental dangers like ash and soot.
  2. Proper training and instruction must be provided to employees before they begin cleanup work. This training should cover the specific hazards they may encounter and the safety measures they need to take.
  3. Employers must ensure that workers have access to and use appropriate PPE. This includes NIOSH-certified respirators, gloves, eye protection, and other necessary gear to protect against inhalation of harmful substances and physical injuries.
  4. Cal/OSHA emphasizes the importance of adhering to existing health and safety standards. This includes regulations on heat illness prevention, confined space entry, and handling of hazardous materials.
  5. Employers must establish and communicate clear emergency procedures. This includes protocols for evacuations, first aid, and reporting unsafe conditions.

If you have questions about Cal/OSHA compliance for fire damage cleanup or related issues, contact a Jackson Lewis attorney to discuss.