If you’re a business owner planning to relocate or expand into California, it’s important to understand that the state has some of the strongest worker protection laws in the country. One of the latest updates employers need to be aware of is a new requirement announced by the California Labor Commissioner’s Office (LCO).
The LCO is reminding employers about a new state law called the Workplace Know Your Rights Act, which requires businesses to annually provide workers with clear and accessible information about their workplace rights.
For new California employers, this law is not optional — and failing to comply could lead to costly penalties, complaints, or legal trouble.
Here’s what business owners need to know.
What Is the Workplace Know Your Rights Act?
The Workplace Know Your Rights Act is a California law designed to ensure that employees are properly informed of their legal rights in the workplace.
California lawmakers passed this law because many workers—especially immigrants, first-time employees, and low-wage workers—may not fully understand their rights related to:
wages and overtime
meal and rest breaks
workplace safety
discrimination and harassment protections
retaliation protections
paid sick leave
workers’ compensation
The goal is simple: employers must educate workers, not keep them in the dark.
What Employers Are Now Required to Do
Under this new law, employers must annually provide workers with clear information about their workplace rights.
That means if you own a business in California, you must ensure your employees receive updated rights information every year.
This requirement is meant to be ongoing—not just at hiring.
Why California Is Taking This Seriously
California has long been a leader in labor enforcement. The state aggressively investigates wage theft, misclassification, and workplace violations.
By requiring employers to provide workers with rights information annually, California is also making it easier for employees to recognize violations early.
For business owners moving from another state, this can feel like a big shift. In many parts of the country, employers are not required to provide regular legal rights notices beyond basic posters.
In California, compliance is a much higher priority—and enforcement agencies have broad authority.
What Counts as “Clear Information”?
The law emphasizes that workplace rights information must be clear and understandable.
That means employers should avoid:
vague policies
confusing legal language
incomplete handouts
burying information in long employee manuals no one reads
Instead, businesses should provide rights information in a way that employees can actually understand.
This is especially important in workplaces with multilingual staff. Many California employers are expected to provide materials in languages employees commonly speak.
Who Must Comply?
The requirement applies broadly to California employers, including:
small businesses
corporations
startups
restaurants and hospitality companies
contractors
retail businesses
manufacturing companies
service-based businesses
If you have employees working in California, this law likely applies to you.
Even if your company headquarters are out of state, if you employ workers within California, you are expected to follow California labor laws.
Why This Matters for Business Owners Moving to California
When relocating to California, many business owners focus on licensing, taxes, permits, and commercial leases. But labor compliance is just as important.
Failing to follow workplace rules can lead to:
employee complaints
Labor Commissioner investigations
fines and penalties
lawsuits
reputational damage
expensive backpay settlements
Providing annual rights information is now one more requirement businesses must build into their HR process.
Best Practices for Staying Compliant
If you're moving your business to California, here are smart steps you should take right away:
1. Create an Annual Rights Notice System
Set a yearly date to distribute workplace rights information to all employees.
2. Keep Documentation
Keep proof that the notice was distributed, such as:
signed acknowledgment forms
email receipts
onboarding portal confirmations
If your business is ever audited, documentation will be critical.
3. Update Employee Handbooks
Make sure your employee handbook reflects California laws, which may differ from your home state.
4. Train Managers and Supervisors
Even if your paperwork is correct, managers must know how to follow wage laws, break requirements, and anti-retaliation rules.
5. Consider HR or Legal Support
Many new California employers choose to consult an HR professional or labor attorney to avoid costly compliance mistakes.
California Employers Should Expect Increased Enforcement
The Labor Commissioner’s Office has made it clear that California intends to enforce workplace rights laws aggressively.
With the LCO actively reminding employers about this new law, it’s a sign that enforcement efforts may increase.
For business owners, the best approach is proactive compliance—before problems arise.
Final Thoughts
California can be a great place to do business, but it comes with strict employment regulations. The Workplace Know Your Rights Act is a major reminder that employers must take workplace compliance seriously.
If you're moving your business to California, make sure you build an annual process to provide employees with clear information about their rights. It’s not just good practice—it’s now required by law.