Employer of Record in California
City minimum wages, daily overtime, same-day final pay: California's rules are strict. We're headquartered here and administer them as the legal employer.
We reply within 24 hours on business days, with a confirmed quote within 3 business days of receiving your details.
California at a glance
The California rules that shape a hire's cost and paperwork. As the legal employer, we apply them for you.
Per hour, all employer sizes, from Jan 1, 2026.
A year (2 × state minimum); city wages don't change it.
UI (3.4% for new employers), plus 0.1% ETT, on the first $7,000 per employee.
For tax year 2025, so 1.8% effective FUTA; the 2026 figure is announced after Nov 10, 2026.
72 hours if the employee quits without notice; up to 30 days' wages as penalty if late.
Employing in California, handled for you.
NNRoad becomes the legal employer and takes on California's employer rules, from EDD registration to city minimum wage and final pay. You hire without a California entity, and your team focuses on the work.
Every California employer duty, handled.
- Payroll tax registrationEDD account for UI, ETT and SDI, set up under NNRoad.
- City wage and sick-leave rulesMinimum wage and paid sick leave applied for the city where the employee works.
- Required noticesIncluding the annual Know Your Rights notice, provided for you.
- Final payFinal wages timed to the exit day, as California requires.
You direct the work and make the pay decisions.
- The role and the goalsDuties, reporting line and performance.
- Day-to-day directionProjects, schedules, tools and team.
- Pay decisionsSalary and bonus, approved before each payroll.
- Early noticeTell us before changing pay, location or ending employment.
Let us handle your California hire.
Tell us the role and start date. We'll reply within 24 hours on business days.
Talk to our team →What is the minimum wage in my employee's city?
Over 40 cities set rates above the $16.90 state minimum. Remote employees follow the rate where they work.
Rates from July 1, 2026. Dashed line: $16.90 state minimum. Sources: city minimum wage ordinances, including San Francisco, Berkeley and Emeryville. Fast-food ($20.00) and some healthcare roles have separate statewide rates.
What does it cost to employ someone in California?
An illustrative estimate. SDI is withheld from the employee, so it isn't an employer cost. California's FUTA credit reduction was 1.2% for 2025; the 2026 figure is announced after November 10.
Where foreign employers usually slip
The areas we administer as the legal employer for every California employee. You keep directing the work and approving pay changes.
Overtime and breaks
Nonexempt employees earn time and a half (1.5×) after 8 hours in a day, after 40 hours in a week, and for the first 8 hours on a seventh consecutive workday. Double time (2×) applies after 12 hours in a day and after 8 hours on that seventh day.
On shifts over 5 hours, a 30-minute meal break must start by the end of the fifth hour; on shifts over 10 hours, a second one must start by the end of the tenth hour. Employees also get a paid 10-minute rest break for every 4 hours worked, or major fraction of 4. Each workday with a missed meal break, or a missed rest break, adds one hour of pay at the regular rate. That is why schedules and timekeeping are set before the offer.
Sources: CA DIR on overtime, meal periods and rest periods
Exempt status
An exempt employee needs a salary of at least $70,304 in 2026 and duties that meet the executive, administrative or professional test. A title alone never qualifies.
Contractors and the ABC test
California presumes a worker is an employee unless the company proves all three parts of the ABC test. Most full-time contractor setups fail it, which is why EOR is often the safer route.
Non-competes and repayment clauses
Non-compete clauses are void in California. For contracts signed from January 1, 2026, AB 692 also bars most "stay-or-pay" terms that make a worker repay costs when employment ends. Confidentiality and IP terms can still protect your business; tell us early what protections the role needs so they can be reviewed.
Source: AB 692, California Legislature
New notices for 2026
Employers must give a stand-alone Workplace Know Your Rights notice every year (first due February 1, 2026) and let employees name an emergency contact, including at hire.
Source: CA Dept. of Industrial Relations
Sick leave and family leave
Paid sick leave is at least 40 hours or 5 days a year, whichever is more, usually accrued at 1 hour per 30 hours worked and usable after 90 days. Some cities require more. Job-protected family leave (CFRA) applies at employers with 5 or more employees: after 12 months and 1,250 hours of work in the past year, employees can take up to 12 workweeks. Paid Family Leave, paid through SDI, replaces part of wages but does not protect the job by itself.
Sources: CA DIR, paid sick leave · CA Civil Rights Department, family leave
Remote-work expenses
Employers reimburse necessary work expenses, such as the work share of a phone or internet bill. We set a reimbursement policy with you during onboarding.
Ending employment
Final wages, including unused vacation at the final rate, are due on the last day when we end employment. We schedule exits so the payment is ready on that day.
Let's get your California
hire started.
Tell us a little about the role, the city and when you'd like them to start. We'll reply within 24 hours on business days, and your quote follows within 3 business days.
Before you hire in California
What is the minimum wage in California in 2026?
$16.90 per hour statewide from January 1, 2026. Many cities set higher rates; from July 1, 2026, San Francisco and Berkeley are $19.61 and Emeryville is $20.34.
What salary does an exempt employee need?
At least $70,304 a year in 2026, plus meeting the duties test. City minimum wages do not change this floor.
When is a final paycheck due?
On the day of termination, or within 72 hours if the employee quits without notice. Late payment can cost up to 30 days of wages.
Do we pay California SDI?
No. SDI, which includes Paid Family Leave, is 1.3% withheld from the employee's wages in 2026. We handle the withholding and filings.
Can our California hire sign a non-compete?
No; non-competes are void in California. Confidentiality and IP terms can still protect your business. Tell us early what the role needs so they can be reviewed.
Can the employee work remotely from anywhere in California?
Yes, once we know the city. The local minimum wage, sick-leave rules and some notices follow the place where the employee works.
How does overtime work in California?
Nonexempt employees earn 1.5× pay after 8 hours in a day, after 40 hours in a week, and for the first 8 hours on a seventh consecutive workday. Double time applies after 12 hours in a day and after 8 hours on that seventh day.
Source: CA Dept. of Industrial Relations
What meal and rest breaks are required in California?
On shifts over 5 hours, a 30-minute meal break must start by the end of the fifth hour of work; on shifts over 10 hours, a second one must start by the end of the tenth hour. A paid 10-minute rest break is due for every 4 hours worked, or major fraction. A missed meal or rest break costs one extra hour of pay for that day.
Sources: CA DIR on meal periods and rest periods