Hiring Your First Employee in California? Don’t Miss These 5 Steps

Each plays a role in protecting your business and supporting your people. At SinglePoint, we created our HR QuickStart Packet to walk you through each step.

DOWNLOAD YOUR FREE SMALL BUSINESS HR QUICKSTART PACKET.

Before You Hire in California, Here's What You Need to Know:

Workers’ Comp Comes First—Every Time

California requires workers’ comp insurance to be active before your employee’s first day. This applies even if they’re just training or shadowing. The state doesn’t give much leeway here, and the penalties—fines, stop-work orders, personal liability—can add up quickly.

It usually takes a few days to establish coverage, so the earlier you start, the better. We recommend starting at least a week in advance.

If this part seems confusing, we’re happy to help. SinglePoint often handles it, especially for new employers getting set up for the first time.

Be Prepared for Daily Overtime Rules

Overtime in California works a little differently. Employees earn time-and-a-half after eight hours daily, not just after 40 hours weekly. If someone works long shifts or multiple days in a row, the rules get even more complicated.

Many timekeeping systems aren’t programmed to comply with complex California rules. If your setup doesn’t catch those differences, it’s easy to underpay by mistake. That’s where a good checklist helps (and SinglePoint's QuickStart Packet includes one).

The I-9 Has a Short Deadline—Don’t Miss It

Employers use Form I-9 to verify that each new hire is authorized to work in the United States legally. Federal law requires that both the employee and employer complete the form within three business days of the employee’s start date — there’s no grace period.

Workers' Classification Matters

Figuring out whether someone is an employee or a contractor isn’t always obvious. California uses the ABC Test: unless a role clearly meets all three parts, that person is likely considered an employee under state law.

This is one of the more common areas where small businesses run into trouble—not out of bad intent, but because the rules are strict.

Misclassification can lead to back pay, penalties, and legal issues. SinglePoint's QuickStart guide explains how the test works, and our team can step in if you’re unsure how to apply it to your specific roles.

Labor Posters Are Required—Even for Remote Teams

California law says employees must have access to certain labor notices—things like minimum wage info, paid sick leave, anti-discrimination rights, and safety rules. These need to be visible in your workplace or, for remote employees, sent directly to them.

It’s an easy detail to miss, especially when hiring your first team member. The QuickStart Packet includes an updated list of required posters, along with links to download what you need—no digging through government sites required.

Start on the Right Foot

Each of these five tasks contributes to creating a smooth, compliant onboarding process. They set clear expectations, keep records in order, and ensure your business is protected if questions arise. Most importantly, you don’t have to do it alone.

Whether you use the guide to manage things in-house or ask SinglePoint for help, the goal is to help you feel confident that your team is set up correctly from day one.

Ready to Get Set Up?

The California HR QuickStart Packet was designed to simplify this process. It provides a checklist, templates, and answers without the usual legal jargon.