California imposes numerous responsibilities on businesses, particularly in their capacity as employers. These include requirements regarding the payment of wages and the maintenance of employment records. Employers are also prohibited from various types of discrimination under state and federal laws, including discrimination on the basis of race. A putative class action pending in a California federal court alleges race discrimination and various wage and hour violations against a designer clothing retailer. Sampino v. Versace USA, Inc., No. 3:16-cv-07198, am. complaint (N.D. Cal., Apr. 19, 2017).
In addition to general requirements that employers pay their workers for the full amount of compensation that they have earned, California sets numerous additional standards. For example, employers must maintain records of their employees, including payroll records showing the number of hours worked and the wages paid. Cal. Lab. Code § 1174. They must also provide itemized statements to their employees with each paycheck. Id. at § 226. A failure to meet these requirements may result in civil fines and liability to aggrieved employees.
California law prohibits employers from discriminating against employees and job applicants on the basis of race and multiple other factors. Cal. Gov’t Code § 12940(a). It further prohibits an employer, or anyone acting on an employer’s behalf, from “aid[ing], abet[ting], incit[ing], compel[ling], or coerc[ing]” any unlawful acts of discrimination. Id. at § 12940(i). Retaliating against an employee for complaining about prohibited conduct, either internally or to state regulators, also violates state law. Id. at § 12940(h).