California labor law, encoded as policies you can deploy.
Every wage, hour, break, and leave rule a California employer must follow — from § 510's daily 8-hour overtime trigger to SB 616 paid sick leave, Ferra-compliant break premiums, and 40+ local minimum wages — built into Teambridge as a working policy with the right enforcement level applied automatically.
Last updated: April 29, 202623 policies coveredReviewed against DIR & DLSE 2026 guidance
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SB 616 Paid Sick Leave Accrual
Accrues 1 hr per 30 worked, caps annual usage at 40 hrs (80 hr accrual). Layers SF/LA/SD ordinances where more generous.
Show balance on every paystub
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Daily Overtime — 8-Hour Trigger
Applies California's daily OT: 1.5× past 8 hours, 2× past 12. Anti-pyramiding compares against weekly 40-hr trigger.
Surface OT cost at schedulingAuto-tag hour 9+ as OT
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Local Minimum Wage Routing
Auto-applies the right rate from 40+ CA jurisdictions. Parcel-level resolution; per-segment tracking for multi-stop work.
Block save below local minimum
Compliance, on autopilot.
Every California rule below runs as a live policy in Teambridge. A 9.5-hour shift isn't illegal — you just owe daily overtime, and Teambridge calculates it. A San Francisco shift below local minimum wage is illegal — Teambridge stops it at save. Each rule gets the right severity, applied automatically.
Optimize
Silently routes around the issue.
Flag
Surfaces a note. Action proceeds.
Avoid
Warns and discourages. Allows override.
Critical
Strong warning. Requires acknowledgment.
Block
Hard stop. Cannot proceed.
SofterHarder
Your California Policy Library
Day one in Teambridge, with California pre-configured
This is what your Policy Builder looks like the moment you turn on California coverage. Every policy here is editable — change severity, scope by location or role, or extend with your own client-specific rules.
on a card means the policy surfaces in the worker app. Cards without it run silently in the background.
23 California policies, configured by default. Add your own — by client, role, or site — at any time.
01Minimum wage
California's statewide minimum wage is $16.90/hour as of January 1, 2026 — adjusted annually under Labor Code § 1182.12. Unlike federal law and most other states, California prohibits tip credits: tipped workers earn the full minimum wage in cash, with tips entirely on top. Two industries have higher minimums: fast food at $20/hour (AB 1228, chains 60+ restaurants nationally) and healthcare at $18.63-$24/hour by facility tier (SB 525, increases each July through 2033).
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No Tip Credit Enforcement
Enforces California's prohibition on tip credits. Tipped workers earn full minimum wage in cash. Tips track structurally separately from wages on every timesheet and pay stub.
Block tipped role below full minimumTag tips separately from wages
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Why Block, not Flag
California Labor Code § 351 makes tip credits flat-out illegal — there's no scenario where paying a tipped worker below minimum and counting tips toward the shortfall is legal. Block fits the rule. A Flag would be miscalibrated; this isn't a "needs review" situation, it's a hard floor.
California has the most fragmented local minimum wage landscape in the U.S. — over 40 cities and counties set their own rates above the state floor. As of January 2026: West Hollywood $20.25, Pasadena $18.04, Los Angeles City $17.87, Santa Monica / unincorporated LA County $17.81, plus 35+ Bay Area and other jurisdictions in the $17-$19 range. Some cities update on July 1, not January 1 — and hotel-worker premiums are layered on top in LA and Long Beach (Long Beach hotel: $25.00).
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Local Minimum Wage Routing
Resolves shift address to parcel-level jurisdiction. Per-segment tracking for multi-stop work. Hotel/industry overlays automatic.
Block save below applicable local minimumTag shift with controlling rate
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Why parcel-level, not zip-code
ZIP codes don't map cleanly to California city boundaries. A San Francisco zip can include unincorporated parcels with different wage rules. Parcel-level resolution is the only way to be reliably correct in mixed-jurisdiction service work.
California has the strictest overtime rules in the U.S. Under Labor Code § 510, non-exempt workers earn 1.5× past 8 hours per workday, 2× past 12 hours per workday, 1.5× past 40 hours per workweek, and on a 7th consecutive workday: 1.5× for hours 1-8, 2× past 8. The anti-pyramiding rule means daily and weekly calculations don't stack — the calculation producing the higher premium controls.
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Daily Overtime — 8-Hour Trigger
Calculates 1.5× past 8 hours and 2× past 12 hours per workday. Schedule preview surfaces OT cost projection. Anti-pyramiding comparison runs at every payroll close.
Surface OT cost at schedulingAuto-tag hour 9+ as OTAcknowledge past 12 hrs/day
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Why Avoid (not Block) at hour 9
Daily overtime past 8 isn't illegal — it just costs more. Managers may legitimately schedule longer shifts. Avoid surfaces the cost projection at decision time without preventing legitimate operations. Block would be miscalibrated.
California break law has been shaped by three California Supreme Court rulings. Brinker (2012): employers must provide compliant breaks but need not ensure they're taken. Ferra (2021): the missed-break premium must use the regular rate of pay — including bonuses, commissions, shift differentials — not just base hourly. Naranjo (2022): premium pay is wages, with all the wage-statement and waiting-time consequences that implies. First meal break must begin before the end of hour 5; second meal before end of hour 10; rest breaks of 10 paid minutes per 4 hours worked or major fraction.
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First Meal Break Compliance
Tracks the 5-hour deadline per worker. Soft alert at 4:30. Critical at 4:55. One-tap clock-out for meal in worker app. Premium calculated at Ferra-compliant regular rate if missed.
Soft alert at 4:30Critical at 4:55
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Why Critical, not Block at 4:55
Workers can legitimately delay a break by a few minutes for ops reasons. The Critical alert forces an explicit decision rather than blocking the timesheet — and if the break ends up missed, the premium accrues automatically. The decision and the premium both live in the audit log.
SB 616 (effective January 1, 2024) doubled California's paid sick leave from 24 to 40 hours per year. Workers accrue 1 hour per 30 worked, beginning day 1; use is allowed starting day 90. Annual use cap 40 hours; total accrual cap 80 hours. Frontload alternative: 40 hours at the start of each year (no accrual or carryover required). Six California cities — San Francisco, Los Angeles, San Diego, Oakland, Berkeley, Emeryville — have local PSL ordinances that may be more generous, with the higher rule applying per provision.
Active Worker app
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Paid Sick Leave Accrual
Accrues 1 hr per 30 worked. 40-hr annual use cap, 80-hr accrual cap. Eligibility gate at day 90. Local SF / LA / SD / Oakland / Berkeley / Emeryville rules layer on automatically.
Block use before 90 daysShow balance on every paystub
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Why Block, not Flag, on day-90 use
Pre-eligibility use isn't a soft constraint — it's a structural rule of the statute. Block prevents accidental misapplication. The HR override path exists for cases where the employer chooses to advance leave, with the override logged.
California has no statewide Fair Workweek law, but six jurisdictions have their own: Los Angeles (retail 300+), unincorporated LA County (retail 300+, eff. July 2025), San Francisco (formula retail 40+ locations), Berkeley (10+ employees, eff. Jan 2024), Emeryville (retail/food 56+), San Jose (36+ employees). Common requirements: 14-day advance schedules, predictability pay for changes, minimum rest between shifts (typically 10-11 hours), right of first refusal for hours offered to existing part-time staff.
Block schedule with insufficient noticeClopening requires written consent
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Why six different rules, not one
Each ordinance has its own employer-size threshold, industry coverage, predictability-pay structure, and rest-window length. A retail manager working in LA County, the City of LA, and unincorporated LA County operates under three different rules. Per-shift routing is the only honest answer.
California has the strictest final-paycheck timing in the U.S. Under Labor Code §§ 201-203, an involuntary termination triggers immediate payment — same day. A resignation requires payment within 72 hours, or on the last day if 72+ hours notice was given. Late payment triggers a waiting-time penalty up to 30 days of wages. Vacation cannot be forfeited (Suastez v. Plastic Dress-Up): all accrued unused vacation pays out at the worker's final regular rate. Missed-break premiums (treated as wages per Naranjo) and unpaid OT must also be included.
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Final Paycheck Timing
Tracks termination type (involuntary vs. resignation) and notice given. Calculates total final pay (wages + vacation + premiums + commissions). 24-hour Critical alert before deadline.
Block payroll close without terminated worker24-hour deadline alert
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Why Block on payroll close
California's "immediate" requirement on involuntary termination doesn't accommodate "we'll catch it on the next payroll." Block on the close prevents the most common waiting-time penalty trigger — terminated workers being lumped into the next regular run. The deadline is the deadline.
If you're updating handbooks or pay engines, these are the changes that triggered policy updates in Teambridge for 2026:
State minimum wage increased to $16.90/hr (from $16.50, a 2.49% CPI adjustment under Labor Code § 1182.12)
Exempt salary threshold increased to $70,304/yr ($1,352/week) — 2× state minimum × 2,080 hours
Computer software professional threshold increased to $58.85/hr or $122,573.13/yr
Fast food minimum remains $20/hr under AB 1228; healthcare tiered minimums increased July 2025 and will again July 2026
Local minimum wages updated across 40+ jurisdictions; West Hollywood hits $20.25, Pasadena $18.04, Los Angeles $17.87 (general), Long Beach hotel workers $25.00
LA County Fair Workweek took effect July 1, 2025 — retail employers with 300+ employees in unincorporated areas now under predictive scheduling rules
SB 616 sick leave expansions — 2026 broadens qualifying reasons to include attendance at certain criminal proceedings (continuing the SB 1105 / AB 2499 expansion trend)
PAGA reform (AB 2288 / SB 92, 2024) remains in effect: civil penalty $100/employee/pay period default, $200 for willful or repeat — and a stronger employer "cure" pathway for first-time violations
Frequently asked questions
What is the minimum wage in California in 2026?
California's statewide minimum wage is $16.90/hour effective January 1, 2026 (a 2.49% CPI adjustment under Labor Code § 1182.12). The rate applies to all employers regardless of size. California prohibits tip credits. Local jurisdictions are higher: West Hollywood $20.25, Los Angeles $17.87, Pasadena $18.04, San Francisco-area cities $18-$19. Fast food workers earn at least $20/hour (AB 1228); covered healthcare workers $18.63-$24/hour by facility tier (SB 525). Employers must always pay the highest applicable rate.
Does California have daily overtime?
Yes. Under Cal. Labor Code § 510, non-exempt employees earn 1.5× their regular rate after 8 hours in a workday and 2× (double time) after 12 hours. Workers also earn 1.5× after 40 hours per workweek and 2× after 8 hours on a 7th consecutive workday. The anti-pyramiding rule means whichever calculation produces the higher premium controls — daily and weekly OT do not stack.
What meal and rest breaks are required in California?
First meal break: 30 minutes, duty-free, must begin before the end of hour 5 (Labor Code § 512). Second meal break: 30 minutes before end of hour 10 for shifts over 10 hours. Rest breaks: 10 paid minutes per 4 hours worked or major fraction (IWC Wage Orders). Missing any break triggers a 1-hour premium at the regular rate (Ferra v. Loews) which counts as wages (Naranjo v. Spectrum Security). Maximum 1 meal premium and 1 rest premium per day, both can stack.
How much paid sick leave do California employees earn?
Under SB 616 (effective January 1, 2024), California requires 40 hours (5 days) of paid sick leave per year. Workers accrue 1 hour per 30 worked, starting day 1; use is allowed starting day 90. Annual use cap 40 hours; total accrual cap 80 hours. Frontload alternative: 40 hours at the start of each year. San Francisco, Los Angeles, San Diego, Oakland, Berkeley, and Emeryville have local ordinances that may be more generous — the higher rule applies per provision.
When must California employers issue a final paycheck?
Immediately on involuntary termination — same day. Within 72 hours on resignation without notice; on the last day worked if 72+ hours notice given. The final paycheck must include all earned wages: regular pay, unpaid OT, accrued unused vacation, unpaid break premiums (per Naranjo), commissions, bonuses. Late payment triggers a waiting-time penalty up to 30 days of wages under Labor Code § 203.
Does California have predictive scheduling laws?
No statewide law, but six jurisdictions have local Fair Workweek ordinances: Los Angeles (retail 300+ employees globally), unincorporated LA County (retail 300+, effective July 2025), San Francisco (formula retail 40+ locations), Berkeley (10+ employees, effective January 2024), Emeryville (retail/food 56+ employees), and San Jose (36+ employees). Common requirements: 14-day advance schedules, predictability pay for changes, 10-11 hours minimum rest between shifts, and right of first refusal for available hours.
What's the difference between Critical and Block in Policy Builder?
Block is a hard stop — no override, no exception. Use it for things that are flat-out illegal (paying below local minimum, classifying someone as exempt below the salary threshold, applying a tip credit, using-it-or-losing-it vacation policies). Critical is a strong warning that requires explicit acknowledgment but allows the action to proceed — use it for things that are operationally normal but compliance-sensitive (a 13-hour shift that triggers double time, scheduling a clopening within the FWW rest window, or a final paycheck workflow approaching its deadline).