Golden State Startups and Hiring Guide: Part I
California is known for its startup companies and developing businesses, especially in the tech industry. Startups and new companies understandably focus energy on growing the business and developing business plans and strategies for accomplishing core business goals. Issues concerning human resources and compliance with employment laws, however, may often be overlooked. Employers’ failure to address these issues can lead to substantial financial and operational risks associated with employment-related litigation and penalties for failing to comply with employment-related federal, state, and local laws. California startups and growing businesses should be particularly thorough in planning and implementing employment practices and human resources programs, as California has numerous state and local employment-related compliance laws.
“Hiring And Onboarding Employment Law Issues Facing California Startups & Growing Businesses” (PDF 57 KB) provides an overview of California employment laws and best practices for startups and growing businesses. Part I of this two-part series focuses on the hiring process and applicable California employment laws, including issues related to employment applications and interviews, background checks, offer letters, and mandatory arbitration agreements. California startups and developing businesses who invest in human resources and compliant employment practices may avoid costly litigation, liability for large jury awards, negative publicity, and business disruption.