California Labor Laws by Headcount

If you're an employer in California, your headcount is a legal switch. Your company crosses a threshold and new laws apply automatically, no notices are sent. Most startup or small employers find out once they've received a claim or a lawsuit.

What kicks in at each headcount

1+ employees

  • Must register for CalSavers (or offer a qualifying retirement plan)

  • Workplace Violence Prevention Plan required for most locations

5+ employees

  • CFRA leave (12 weeks, job-protected) + Pregnancy Disability Leave

  • Harassment prevention training required

  • FEHA discrimination/harassment protections apply

  • Fair Chance Act (background check/ban-the-box rules) applies

15+ employees

  • Pay transparency required: salary ranges must be included in job postings

25+ employees

  • Job-protected leave for crime victims and their family members (domestic violence, stalking, etc.)

50+ employees

  • Federal FMLA stacks on top of CFRA

  • ACA employer mandate (federal) applies

75+ employees

  • California WARN Act applies: 60 days' notice required before qualifying layoffs of 50+ employees

100+ employees

  • Annual pay data reporting to the state Civil Rights Department (due every May)

As of September 2026: thresholds and requirements are subject to change; always confirm current figures before acting.

Why this sneaks up on founders

You're tracking headcount for runway. Nobody's tracking it for compliance because at 20-80 employees, there's usually no dedicated HR/People Ops person yet. It's a founder or ops administrator juggling five other priorities.

The risk: thresholds get crossed quietly and nobody notices until there's a claim or a lawsuit.

The 3 most common mistakes

→ "We're too small for that." The rules that applied at 10 people don't apply at 30 and several of the most consequential ones (CFRA, harassment training, background check rules) kick in as early as 5 employees.

→ No one owns it. Compliance isn't on anyone's job description, so it falls through.

→ Fixing it after the fact. Retroactive cleanup: backfilling training, correcting a job posting, rebuilding a leave policy is messier and riskier than building it in early.

Official Sources

CA Civil Rights Department — CFRA, harassment training, pay transparency, pay data reporting

CA Dept. of Industrial Relations / Cal-OSHA — Workplace Violence Prevention Plan, wage & hour law

CalSavers — retirement program registration

CA EDD — WARN Act filings, payroll & reporting

U.S. DOL – FMLA — federal leave overlay at 50+

IRS – ACA Employer Mandate — federal health coverage requirements at 50+ FTE

Should you handle this yourself or call in help?

Under 5 employees → the state sites above are enough for now, though CalSavers and WVPP already apply.

Approaching 25-50 → this is where state and federal law start overlapping (CFRA + FMLA, pay transparency + hiring practices). Worth a professional review before you cross the line, not after.

Past 75-100 → you're carrying reporting and notice obligations. This isn't a solo-research situation anymore.

Curious whether working with our team makes sense for where you're at? 

Request a discovery call and we'll talk through your situation and figure out if it's a good fit.

Disclaimer

The information provided in this post is for general educational purposes only and does not constitute legal or tax advice. Readers should explicitly consult a licensed employment attorney or certified tax professional for guidance on their specific situation before taking any employment-related action.

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