California remote work laws are, for the most part, California employment laws applied to a home office. Employees working remotely in California are entitled to the same wage-and-hour protections, meal and rest breaks, overtime, expense reimbursement and paid sick leave as on-site employees. What changes is the practical side: tracking time you can’t see, reimbursing home-office costs and protecting data outside the office.
Remote and hybrid work is routine for startups, but many handbooks were written for an office the company no longer uses. Here is what California employers need to get right.
Wage and Hour Rules Still Apply at Home
Non-exempt remote employees must be paid for all hours worked, including time spent logging in, answering messages after hours and joining early or late calls. California’s overtime rules are stricter than federal law:
- Time and a half for hours over 8 in a workday or 40 in a workweek, and for the first 8 hours on the seventh consecutive workday;
- Double time for hours over 12 in a workday and over 8 on the seventh consecutive workday.
Flexible schedules are popular with remote teams, but long days can trigger daily overtime unless a valid alternative workweek schedule is in place. Exempt status requires meeting both a duties test and California’s minimum salary, which is tied to the state minimum wage and changes each year. If you rely on remote contractors rather than employees, confirm they are properly classified under California’s AB 5.
Meal and Rest Breaks: Waivers Are Limited
Remote non-exempt employees are entitled to the same breaks as on-site workers:
- Meal breaks: an unpaid, duty-free 30-minute meal period starting no later than the end of the fifth hour of work, and a second no later than the end of the tenth hour.
- Rest breaks: a paid, duty-free 10-minute rest period for every four hours worked, or major fraction of four hours.
Only meal breaks can be waived, and only in narrow situations. The first meal break may be waived by mutual consent if the workday is no more than six hours. The second may be waived if the workday is no more than 12 hours and the first meal break was not waived. Rest breaks work differently: employers must authorize and permit them and relieve employees of all duties, including being on call, and a blanket rest-break waiver will not satisfy that obligation. When a required break isn’t provided, the employer generally owes one additional hour of pay at the employee’s regular rate of compensation for each workday a violation occurs.
For remote teams, the biggest risk is a culture of constant availability on chat and email. Tell employees in writing that they are off duty during breaks, and have them record meal periods in your timekeeping system.
Reimbursing Home-Office Expenses
Labor Code §2802 requires employers to reimburse employees for necessary expenses incurred as a direct consequence of their job duties. For remote employees, that can include a reasonable share of home internet and cell phone costs, required equipment and supplies. In Cochran v. Schwan’s Home Service (2014), a California appellate court held that an employer must reimburse a reasonable percentage of a personal cell phone bill used for required work calls, even if the employee’s plan cost nothing extra.
Employers have some flexibility in how they reimburse. Under the California Supreme Court’s decision in Gattuso v. Harte-Hanks Shoppers (2007), an employer may track actual expenses or pay a lump sum, as long as the amount fully covers the employee’s actual necessary expenses. A monthly stipend works well for remote teams if it is reasonable and employees can request more when their real costs exceed it.
Paid Sick Leave, Wage Statements and Records
- Paid sick leave: Since January 1, 2024 (SB 616), employers must provide at least 40 hours or five days of paid sick leave per year, whichever is greater, and accrual caps increased. Some cities impose additional requirements.
- Wage statements: Remote employees must receive itemized wage statements that comply with Labor Code §226. Electronic statements are common, but employees must be able to access and print them.
- Records: Employers must keep accurate time and payroll records for non-exempt employees wherever they work.
Safety, Workers’ Compensation and SB 553
Injuries that arise out of and in the course of employment are generally covered by workers’ compensation even when they happen at home. Provide basic ergonomic guidance and a clear way to report injuries.
California’s workplace violence prevention law (SB 553), effective July 1, 2024, requires most employers to adopt a written workplace violence prevention plan and train employees. The law generally does not apply to employees teleworking from a location of their choice that is not under the employer’s control. Hybrid companies with any office space in California are usually still covered for that location.
Data Security and Employee Privacy
Remote work moves sensitive data onto home networks and personal devices. Since January 1, 2023, the California Consumer Privacy Act, as amended by the CPRA, has applied fully to employee and applicant personal information held by businesses that meet its thresholds. That means privacy notices, access and deletion rights and reasonable security. Remote work policies should address device security, multi-factor authentication and any monitoring the company performs. See our overview of California’s privacy laws.
Out-of-State Remote Workers
Which state’s law applies usually depends on where the employee actually works, not where the company is headquartered. A California company with an employee who lives and works full time in another state is generally subject to that state’s wage-and-hour, payroll tax, registration and leave rules for that employee. Conversely, an out-of-state employer with employees working in California generally must follow California law for that work, and California courts have applied California overtime rules to non-residents who work full days or weeks in the state.
Two more California rules matter for remote teams:
- Labor Code §925 generally prohibits requiring an employee who primarily lives and works in California to agree, as a condition of employment, to litigate outside California or give up California law, unless the employee was individually represented by counsel in negotiating the agreement.
- Pay transparency (SB 1162): Employers with 15 or more employees must include a pay scale in job postings. State guidance indicates this covers remote roles that could be filled by someone in California.
Frequently Asked Questions
Do California employers have to pay for remote employees’ home internet?
Often, at least in part. Under Labor Code §2802, if an employee needs home internet to do the job, the employer generally must reimburse a reasonable share of the cost, even if the employee would have had the service anyway. Many employers use a reasonable monthly stipend.
Can remote employees waive their rest breaks?
Not through a blanket waiver. Employers must authorize and permit rest breaks and relieve employees of all duties during them. Only meal breaks can be waived, and only when the workday is short enough to qualify.
Does California law apply to employees who work remotely from another state?
Generally, the law of the state where the employee performs the work governs most wage-and-hour issues. A California company with an employee working entirely in another state usually must follow that state’s rules, including its payroll tax and leave requirements.
Do remote employees need to be covered by a workplace violence prevention plan?
California’s SB 553 generally does not cover employees teleworking from a location of their choice that the employer does not control. Companies that maintain any physical workplace in California usually still need a plan for that location.
The Takeaway
For California employees, remote work changes the logistics of compliance, not the rules. Track time, protect breaks, reimburse real costs, keep records, secure data and confirm which state’s laws apply to each employee. A short written remote work policy that addresses each of these issues prevents most problems.
How Sutter Law Can Help
Sutter Law helps startups and growing companies build remote and hybrid work policies, review pay and classification practices and respond to wage claims. Learn more about our employment law and compliance and privacy compliance services, or contact us for a free consultation.
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.
