Compliance Master Checklist

Salary alone does not determine exempt status - the employee's actual duties must meet the applicable test. Executive: manages enterprise/department, directs 2+ employees, hiring/firing authority. Administrative: office work related to management policies, exercises discretion on significant matters. Professional: work requiring advanced knowledge. Document the specific duties analysis.

California requires DAILY overtime, not just weekly. Over 8 hours/day = 1.5x rate. Over 12 hours/day = 2x rate. Over 40 hours/week = 1.5x rate. 7th consecutive day = 1.5x for first 8 hours, 2x thereafter. Have a clear policy explaining these rules and how overtime should be pre-approved.

Maintain accurate records of hours worked, including start/end times and meal periods. For remote workers, implement a digital timekeeping system that captures daily hours. Train employees on proper time recording and prohibit off-the-clock work. "Suffered or permitted" work is compensable even if not authorized.

Many California cities have minimum wages higher than the state minimum. The applicable rate is determined by where the employee WORKS, not company location. 2025 examples: San Francisco $19.18/hr, Emeryville $19.90/hr, Mountain View $19.20/hr, West Hollywood $19.65/hr. Check annually as local rates change.

Explicitly prohibit non-exempt employees from performing work outside recorded hours. This includes checking emails, responding to Slack, "quick" calls after hours. Train managers not to contact non-exempt employees outside work hours. Implement email delay sending for non-exempt employees if needed.

First meal period can be waived by mutual consent if shift is 6 hours or less. Second meal period can be waived if shift is 12 hours or less AND first meal was taken. Waivers should be in writing. On-duty meal periods are only permitted when nature of work prevents relief and must be agreed in writing with employee's right to revoke.

Train remote non-exempt employees on proper break procedures: how to record meal periods, what constitutes being "relieved of all duties" (no Slack, no email), when to take rest breaks, and how to report missed breaks. Consider implementing break attestation in your timekeeping system.

Document what equipment is provided by employer vs. what employee must provide. Create an equipment agreement listing items, serial numbers, and return requirements. If employees purchase equipment, establish a reimbursement process with reasonable caps and approval workflow.

Establish clear procedures for equipment return upon termination. Provide pre-paid shipping labels. Set reasonable deadlines (e.g., 5 business days). IMPORTANT: You cannot withhold final pay pending equipment return - final pay timing is separate from equipment return (Labor Code Section 201-203).

Employers have a duty to provide a safe workplace, which extends to home offices. Provide written safety guidelines for home office setup and have employees acknowledge receipt. Include basics like proper lighting, electrical safety, clear walkways, and fire safety.

Cal/OSHA's ergonomic standard for repetitive motion injuries applies to home offices. Provide a self-assessment checklist covering workstation setup, chair height, monitor position, and keyboard placement. Consider offering virtual ergonomic assessments or equipment stipends for ergonomic equipment.

Confirm with your workers' comp carrier that coverage extends to employees working from home in California. Establish procedures for remote workers to report work-related injuries. Define what constitutes "in the course of employment" for home-based work.

If employees use personal devices for work (BYOD), have a written policy covering: permitted devices, security requirements (encryption, passwords, MFA), MDM enrollment if required, remote wipe authorization and limitations, separation of personal and work data, and incident reporting procedures.

Implement reasonable security procedures for personal information handled by remote employees. Requirements: VPN usage, MFA, password managers, encrypted communications, secure file sharing, clean desk policy for home offices, and awareness of household members' access to work materials.

If you have 5+ employees in California, the California Family Rights Act (CFRA) applies, providing up to 12 weeks of protected leave for family/medical reasons. This has a lower threshold than federal FMLA (50 employees). Have a written policy and ensure managers understand leave entitlements.

Some California cities have additional sick leave requirements beyond the state minimum. For example, San Francisco, Los Angeles, Oakland, and others may have more generous requirements. Check ordinances based on employee work locations.

Employees have the right to inspect and receive copies of personnel records within 30 days of written request. This includes performance evaluations, disciplinary documents, and other records used to determine qualifications. Have a process for handling these requests.

Maintain payroll records for at least 3 years. This includes time records, wage statements, and records of deductions. For claims-avoidance, many employers retain records for 4+ years given statute of limitations considerations for wage claims.

California employers must display or provide required workplace posters covering minimum wage, discrimination, workers' comp, and other notices. For remote employees, these can be provided electronically via intranet, email, or dedicated web page that is readily accessible.