Successfully operating a business in California requires careful planning. Executives and business owners need to understand the local economy and global economic considerations. They need to monitor the conduct of employees and the performance of their organization within its unique economic niche.
They also need to proactively ensure compliance with all applicable state and federal regulations. Federal rules change constantly, and California lawmakers frequently enact new statutes that affect how businesses operate. Organizations may need support tracking changes to the law to ensure they remain compliant with annual requirements and changing statutes in California.
What obligations do businesses have?
Depending on the outcome of pending federal lawsuits, companies with opaque structures may also need to file a beneficial ownership information (BOI) report with the Financial Crimes Enforcement Network (FinCEN).
Corporations and limited liability companies (LLCs) operating in California may also need to file a Statement of Information with the California Secretary of State. Businesses also need to ensure that they comply with recent changes to state employment statutes. These include rules that allow workers to not attend meetings related to religion or political matters in the workplace.
The minimum hourly wage for workers increased to $16.50 at the start of 2025. The exemption threshold for overtime wages that applies to salaried workers has already increased to $68,640. New rules also expand the leave protections for victims of crime and their family members. Additionally, the state has updated the mandatory poster advising of whistleblower protections that employers must display.
There are many other new rules and annual requirements that may apply to certain types of businesses. There are special requirements for franchise operations, as well as new rules regarding how companies treat independent contractors and food delivery workers.
Tracking compliance with not just current federal and state laws but also statutes can be a full-time job. Many organizations rely on the guidance and support of outside counsel. Partnering with professionals who understand state and federal business regulations can help reduce the risk of non-compliance and help organizations protect themselves against fines and other potential consequences.
