Hiring Remote Workers in California: A Compliance Checklist

California Law Follows the Employee

When you hire someone who works remotely from California, California employment law applies - even if your company is headquartered in Germany, Delaware, or anywhere else. This includes wage and hour rules, meal and rest break requirements, expense reimbursement, and anti-discrimination protections.

Required Steps Before Day One

Register with the California Employment Development Department (EDD) for payroll taxes. Obtain workers compensation insurance that covers California. Determine the employee location - their city minimum wage, sick leave, and local ordinances apply. Provide all required notices including the Wage Theft Prevention Act notice, paid sick leave notice, and rights under CalOSHA.

Expense Reimbursement

Under California Labor Code Section 2802, employers must reimburse employees for all necessary business expenses. For remote workers, this typically includes a portion of internet costs, phone bills, and home office equipment. Many employers provide a monthly stipend of $50-150 to cover these costs.

Meal and Rest Breaks Still Apply

Even for remote workers, California requires a 30-minute unpaid meal break for shifts over 5 hours and a second meal break for shifts over 10 hours. Employees are also entitled to a paid 10-minute rest break for every 4 hours worked. Employers should establish clear policies and timekeeping practices to ensure compliance.

The Employment Contract Matters

Your employment contract should specify that California law governs the employment relationship, the employee work location (for determining local ordinances), at-will status (California is an at-will state), and all compensation details including salary, bonus structure, and equity. HireStates can generate a fully compliant employment contract tailored to the specific California city where your employee lives.