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Small Business & Property Ownership · Running a business

Hiring workers: the basics

California2 min readLast reviewed September 30, 2026Find free help

In this guide

  • California employers register with the EDD and carry workers’ compensation insurance for employees.
  • Employees are covered by state wage, break, and paid sick leave rules.
  • California presumes workers are employees unless the ABC test is met.

Registration and insurance

  • EDD registration: employers generally register with the Employment Development Department within 15 days after paying more than $100 in wages in a quarter.
  • Workers’ compensation: California requires employers with even one employee to carry workers’ compensation insurance or be approved to self-insure.
  • New hire reporting: employers report new employees to the EDD.

Pay and workplace rules

Employees are covered by the state minimum wage, overtime, meal and rest break, final pay, and wage statement rules described in the Work & Employment guides. California also requires paid sick leave, currently at least 40 hours or 5 days per year, and workplace posters.

Employee or contractor

How a worker is classified affects taxes, insurance, and wage rules. See Employee or independent contractor?

Official sources for this guide

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