The California HR Compliance Checklist Every Small Business Needs in 2025

California has some of the strictest employment laws in the country, and even the most well-intentioned small business owners accidentally fall out of compliance.

Here’s your simple, must-have checklist:

✔ Employee Handbook

Must include:

• Rest/meal breaks

• Overtime

• Leave policies (CFRA, PDL, PSL)

• Harassment prevention

• At-will statement

✔ Required Trainings

• Harassment training (every 2 years) for businesses with 5+ employees

• Safety training

• Industry-specific training

✔ Proper Pay Practices

• Accurate timekeeping

• Correct overtime rates

• Split-shift rules

• Tip pooling (if applicable)

• Regular rate of pay compliance

✔ Documents Every New Hire Must Complete

• I-9

• Offer letter

• Wage Theft Notice

• Acknowledgments

✔ Sick Leave Requirements

California now requires 5 days/40 hours minimum.

✔ Termination Requirements

• Final pay immediately upon termination

• PTO payout if your policy requires it

Most businesses I work with don’t know they’re out of compliance until something goes wrong. An HR audit prevents that.

✨ If you want me to review your compliance quietly and thoroughly, I offer an 8-hour audit package.