California Remote Work Laws 2026

GENERAL QUESTIONS

Q1: Does California employment law apply to remote workers?

Generally, yes. According to official sources, California employment laws typically apply based on where work is physically performed and/or the employee’s California residency status. Remote workers performing work in California generally receive the same protections as on-site workers. However, specific application depends on the particular law, employee location, employer location, and other factors. Multi-state remote work situations can be complex. Consult legal counsel for specific situations.

Q2: If I work remotely for a California company but live in another state, which state’s laws apply?

This depends on multiple factors and the specific law in question. Generally:

• Wage and hour laws typically apply based on where work is physically performed
• Workers’ compensation may depend on various factors including work location, residency, and contract terms
• Tax obligations depend on residency and source income rules (see Tax section)
• Some laws may apply based on employer location

Multi-state employment involves complex legal issues. Consult legal counsel and tax professional familiar with both states’ laws for specific situations.

Q3: Can my employer change my work location from office to remote (or vice versa)?

Generally, employment in California is “at-will” unless there is a contract stating otherwise. This typically means employers can change terms and conditions of employment, including work location, subject to:

• Contract terms (if employment contract exists)
• Collective bargaining agreements (if unionized)
• Prohibition on discrimination or retaliation
• Reasonable accommodation obligations for disabilities
• Other legal limitations

However, specific circumstances vary. Changes that constitute adverse employment actions combined with discriminatory or retaliatory motive may be unlawful. Consult legal counsel if you believe a work location change violates your rights.

Q4: Does my California employer have to reimburse my home office expenses?

According to California Labor Code § 2802, employers must generally indemnify employees for necessary expenditures incurred in performing job duties. California courts have held this may include home office expenses when remote work is required or necessary for job performance.

What “may” be reimbursable (depending on circumstances):

• Reasonable portion of internet and phone costs
• Home office equipment if not provided by employer
• Other necessary business expenses

However, if employee chooses to work remotely when employer provides fully equipped office, expenses may not be “necessary.”

Specific reimbursement amounts and what is “necessary” are fact-specific. Employers should develop clear reimbursement policies. Employees should consult employer policies and, if needed, legal counsel.

Q5: Are companies required to allow remote work as a disability accommodation?

Not automatically. Under the California Fair Employment and Housing Act (FEHA), employers must provide reasonable accommodation for known disabilities unless it would cause undue hardship.

Remote work may be a reasonable accommodation when:

• It enables employee to perform essential job functions
• It does not cause undue hardship to employer
• It is determined through interactive process to be appropriate

However, whether remote work is required depends on:

• Essential functions of the position
• Whether on-site presence is required
• Employer’s operational needs
• Results of interactive process
• Other factors

Employers must engage in good-faith interactive process to determine effective accommodation. Neither party can unilaterally demand particular accommodation. Consult California Civil Rights Department or legal counsel for accommodation questions.

CLASSIFICATION QUESTIONS

Q6: How do I know if I’m an employee or independent contractor in California?

This is a complex legal determination with significant consequences. Under California’s ABC Test (from AB 5), there is a legal presumption that you are an employee unless the hiring entity can prove ALL THREE: A) You are free from control and direction B) You perform work outside the hiring entity’s usual business C) You are customarily engaged in an independently established business

Various exemptions exist but are narrow and technical.

Classification affects:

• Wage and hour protections
• Workers’ compensation coverage
• Unemployment insurance
• Tax treatment
• Other rights and benefits

Do NOT make this determination yourself. Consult:

• California Department of Industrial Relations: (833) 526-4636
• Employment attorney
• Tax professional

Misclassification can have serious consequences for both parties.

Q7: Can I be both an employee and independent contractor for the same company?

Generally, this is possible in theory but requires careful analysis. According to California guidance:

• Must meet all ABC test requirements for independent contractor work
• Employee and contractor work must be genuinely separate and distinct
• Very high risk of entire relationship being deemed employment
• Scrutinized carefully by enforcement agencies

This arrangement is risky and should only be established with guidance from legal counsel. Many attempts to create dual relationships may be found to be employee misclassification.

WAGE AND HOUR QUESTIONS

Q8: What is California’s minimum wage for 2025?

According to California Department of Industrial Relations:

• State minimum wage: $16.50/hour (effective January 1, 2025)
• Some cities have higher local minimum wages
• Some sectors have higher minimum wages (e.g., fast food: $20.00/hour; healthcare workers: varies)

When multiple minimum wages apply (state, local, sector-specific), the highest applies.

Remote workers are generally subject to minimum wage based on where work is physically performed. Verify current rates and applicability with California DIR and local jurisdictions.

Q9: Am I entitled to overtime pay as a remote worker in California?

If you are a non-exempt employee, generally yes. California overtime requirements typically apply based on:

• Hours worked in a day (over 8 hours = 1.5x; over 12 hours = 2x)
• Hours worked in a week (over 40 hours = 1.5x)
• 7th consecutive workday

However, this depends on:

• Whether you are classified as exempt or non-exempt
• Specific exemption requirements (salary level, duties)
• Other factors

Exemptions are narrowly construed and have specific requirements for salary level and duties. Do not assume you are exempt based on job title alone.

Consult California Department of Industrial Relations or employment attorney to determine exemption status.

Q10: Do meal and rest break requirements apply to remote workers?

Generally, yes. According to California law, meal and rest break requirements apply to non-exempt employees regardless of work location.

Meal breaks: Generally required after 5 hours of work (30 minutes, unpaid if relieved of all duty)

Rest breaks: Generally required for every 4 hours worked (10 minutes, paid)

Specific requirements depend on:

• Hours worked
• Industry (some variations exist)
• Exemption status

Remote workers should take required breaks. Employers should have policies ensuring remote workers can take breaks without interruption.

If employer fails to provide required breaks, premium pay of one hour may be owed.

Consult California DIR or employment attorney for specific situations.

Q11: How should I track my hours as a remote worker?

Employees should track all hours worked accurately. Employers must keep accurate time records.

For remote workers, consider:

• Using employer-provided time tracking system
• Recording start/end times daily
• Noting meal and rest breaks
• Recording all work time including emails, calls, meetings
• Keeping personal backup records

Employers are responsible for tracking time. However, employees should maintain own records for protection.

If employer does not provide time tracking system, raise concern and keep personal records. Consult employment attorney if employer fails to pay for all hours worked.

LEAVE AND BENEFITS QUESTIONS

Q12: Am I entitled to paid sick leave in California?

Under California’s paid sick leave law (effective 2015, expanded 2024), most employees are generally eligible if:

• Work in California for at least 30 days within a year
• Complete 90-day waiting period before using leave

Generally entitled to:

• Minimum 40 hours (5 days) per year
• Can accrue at 1 hour per 30 hours worked, or employer may front-load

May use for:

• Own or family member’s health care
• Preventive care
• Victim of domestic violence, sexual assault, or stalking purposes
• Other specified purposes

Remote workers generally have same rights as on-site workers.

Some cities have more generous requirements. Check local ordinances.

Consult California DIR for details: https://www.dir.ca.gov/dlse/paid_sick_leave.htm

Q13: Does workers’ compensation cover injuries in my home office?

Maybe. This is highly fact-specific and requires official determination by California Division of Workers’ Compensation.

General principle: Workers’ compensation covers injuries “arising out of and in the course of employment.”

For home office injuries, factors that may be relevant include:

• Whether engaged in work duties when injured
• Whether injury occurred in designated work area
• Whether during work hours
• Whether authorized by employer
• Other specific circumstances

However, every claim is unique. Coverage is not automatic.

If injured while working from home:

1. Report to employer immediately
2. Seek medical attention if needed
3. File DWC-1 claim form
4. Consult Division of Workers’ Compensation: (800) 736-7401
5. Consider consulting workers’ compensation attorney

Do not assume coverage or non-coverage without official determination.

Q14: Am I eligible for California Paid Family Leave if I work remotely?

Generally, if you pay into State Disability Insurance (SDI) through payroll deductions, you may be eligible for Paid Family Leave benefits to:

• Bond with new child
• Care for seriously ill family member
• Assist with military family member deployment

Eligibility generally requires:

• Payment into SDI program
• Earnings in base period
• Taking time off work for qualifying reason

Work location (remote vs. on-site) generally does not affect eligibility.

Note: Paid Family Leave provides wage replacement but NOT job protection. Job protection may come from CFRA or other laws if applicable.

For eligibility and filing: California EDD at (877) 238-4373 or https://edd.ca.gov/en/disability/paid-family-leave/

Q15: Can I take CFRA leave while working remotely?

If you are eligible for California Family Rights Act leave (work for covered employer, meet service requirements), you may take CFRA leave for qualifying reasons regardless of whether you work remotely or on-site.

CFRA provides:

• Up to 12 weeks job-protected leave
• For qualifying reasons (own serious health condition, care for family member, baby bonding, military exigency)

However, what “taking leave” means for remote worker may require discussion with employer. Typically means complete cessation of work duties.

Consult California Civil Rights Department or employment attorney for CFRA questions.

DISCRIMINATION AND HARASSMENT QUESTIONS

Q16: Are remote workers protected from discrimination and harassment?

Yes. California Fair Employment and Housing Act (FEHA) protections apply to remote workers in the same manner as on-site workers.

Protected from discrimination and harassment based on:

• Race, color, ancestry, national origin
• Religion
• Sex, gender, gender identity, gender expression
• Sexual orientation
• Age (40+)
• Disability (physical and mental)
• Medical condition
• Genetic information
• Marital status
• Military/veteran status

Harassment can occur in remote work through:

• Video conferences
• Email and messaging
• Virtual meetings
• Other digital communications

Report harassment or discrimination to:

• Employer (follow company procedures)
• California Civil Rights Department: (800) 884-1684
• Employment attorney

Q17: Can my employer use AI tools to screen my job application?

California regulations effective October 1, 2025 clarify that use of Automated Decision Systems (including AI) must comply with anti-discrimination laws.

Employers using AI/ADS must:

• Ensure tools do not discriminate based on protected characteristics
• Conduct anti-bias testing
• Maintain records for 4 years
• Provide reasonable accommodation when needed

If you believe AI screening tool discriminated against you:

• File complaint with California Civil Rights Department
• Consult employment attorney

This is a new area with evolving guidance. Stay informed through California Civil Rights Department.

TAX QUESTIONS

⚠️ NOT TAX ADVICE: Consult tax professional for all tax questions.

Q18: If I’m a California resident working remotely for an out-of-state company, do I owe California taxes?

Generally, yes. According to California tax law, California residents are typically taxed on all income from all sources (worldwide income) regardless of:

• Where income is earned
• Where employer is located
• Where work is performed

However, every tax situation is unique. Residency determinations can be complex.

Consult:

• California Franchise Tax Board: (800) 852-5711
• Tax professional (CPA, enrolled agent, tax attorney)

Q19: If I live in Nevada and work remotely for a California company, do I owe California taxes?

For W-2 employees: Generally, no, if all work is physically performed in Nevada.

According to general California tax principles:

• Nonresidents generally taxed only on California-source income
• For W-2 employees, income generally sourced where work physically performed
• Work performed entirely in Nevada generally not California-source

However:

• Equity compensation may have different sourcing rules
• Tax withholding may still occur (can be recovered on return)
• Your home state (Nevada) may have filing requirements

For independent contractors: Different rules may apply (see Q20).

This is not tax advice. Consult tax professional for your specific situation.

Q20: As an independent contractor working from another state for California clients, do I owe California taxes?

This is complex and subject to debate.

According to California Franchise Tax Board position (after Bindley case 2019):

• Income of nonresident sole proprietor providing services to California client may be California-source income
• Even if all services performed outside California
• Based on economic nexus theory

This differs from W-2 employee treatment and has been controversial.

This is extremely complex. Independent contractors with California clients should immediately consult tax professional familiar with:

• California nonresident taxation
• Multi-state tax issues
• Recent developments in this area

Do not make assumptions. Seek professional guidance.

Q21: What tax forms do I need as a remote worker?

This depends on your classification and tax situation.

As an employee:

• Form W-4 (federal withholding)
• California Form DE 4 (California withholding)
• Receive W-2 from employer annually
• May need to file returns in multiple states

As an independent contractor:

• Form W-9 (provide to hiring entity)
• Receive Form 1099-NEC if paid $600+
• Responsible for own estimated taxes
• File Schedule C with tax return

This is not tax advice. Consult tax professional to determine required forms and filing obligations.

PRIVACY AND MONITORING QUESTIONS

Q22: Can my employer monitor my work computer and communications?

Generally, employers have broad rights to monitor employer-provided devices and systems used for work.

However:

• Must generally provide notice of monitoring
• Should limit monitoring to business purposes
• Privacy expectations may be higher in home environment
• Some restrictions on monitoring personal activities

Best practices:

• Review employer privacy and monitoring policies
• Use work devices only for work purposes
• Maintain separate personal devices
• Be aware of what is monitored

If you have concerns about excessive or inappropriate monitoring, consult:

• HR department
• Employment attorney
• California Privacy Protection Agency (for privacy law questions)

Q23: Can my employer require video to be on during meetings?

This is an evolving area without clear legal guidance.

Considerations:

• Employer business needs and policies
• Employee privacy in home environment
• Disability accommodation (if video requirement creates barrier)
• Household privacy concerns

Employers should:

• Have clear, reasonable policies
• Consider legitimate privacy concerns
• Provide accommodations when needed

Employees should:

• Understand employer policies
• Communicate concerns professionally
• Request accommodation if needed

If you believe video requirement violates your rights (e.g., disability discrimination), consult employment attorney or California Civil Rights Department.

WORKPLACE SAFETY QUESTIONS

Q24: Is my employer responsible for safety in my home office?

California’s general duty clause requires employers to provide safe employment. However, application to home offices is complex because:

• Employer control over home environment is limited
• Cal/OSHA has not issued comprehensive home office standards
• Responsibility is shared between employer and employee

Employers may:

• Provide ergonomic guidelines
• Offer equipment or reimbursement
• Provide safety training
• Conduct virtual safety assessments

Employees should:

• Set up safe workspace
• Follow employer safety guidelines
• Report hazards or injuries
• Maintain equipment properly

For workplace safety questions: Cal/OSHA at (833) 579-0927

Q25: What should I do if I’m injured while working from home?

1. Seek medical attention if needed immediately
2. Report to employer as soon as possible (preferably immediately)
3. Document what happened, when, where, what you were doing
4. Request DWC-1 claim form from employer
5. File workers’ compensation claim if injury is work-related
6. Consult Division of Workers’ Compensation: (800) 736-7401
7. Consider consulting workers’ compensation attorney

Do not assume injury is or is not covered. Report and file claim to preserve rights.

Every workers’ compensation claim requires individual determination based on specific facts.

COMPLIANCE QUESTIONS FOR EMPLOYERS

Q26: Do I need to register in California if I hire one remote worker there?

Generally, yes. According to California law:

Payroll Tax Registration: Generally required when hiring California employees

• Register with California EDD for payroll tax withholding
• Obtain employer account number
• Comply with withholding and reporting requirements

Workers’ Compensation: Generally required with first employee

Income Tax: May create nexus for corporate/business tax purposes

Local Requirements: May need business licenses in certain cities

This is complex and should be handled with assistance from:

• Tax professional
• Legal counsel
• California EDD: (888) 745-3886
• Business formation advisor

Q27: What records must I keep for remote employees?

California law requires extensive recordkeeping for employees:

Time and payroll records (minimum 3 years):

• Time worked each day
• Hours worked
• Meal and rest periods
• Pay rates and wages paid
• Deductions

Paid sick leave records (minimum 3 years):

• Accrual, use, and available balance

Personnel records:

• Employment applications
• Performance evaluations
• Disciplinary records
• Termination records

AI/ADS records (minimum 4 years if using automated systems):

• Selection criteria
• Data and outputs
• Audit findings

Tax records:

• As required by IRS and California FTB/EDD

Consult legal counsel and HR professional for comprehensive recordkeeping compliance.

Q28: Can I pay remote workers in different states different wages?

Pay differences must comply with anti-discrimination laws and cannot be based on protected characteristics.

Legitimate reasons for pay differences may include:

• Local cost of living
• Local market rates
• Different job duties or requirements
• Seniority or experience
• Performance

However:

• Must comply with minimum wage in location where work performed
• Cannot discriminate based on protected characteristics
• California Equal Pay Act requires equal pay for substantially similar work

Document legitimate business reasons for pay differences. Consult:

• Employment attorney
• HR professional
• Compensation consultant

TERMINATION AND RESIGNATION QUESTIONS

Q29: If I’m a remote worker, how much notice must my employer give before terminating me?

California is an “at-will” employment state. Generally:

• No notice required (unless contract states otherwise)
• Employer can terminate at any time for any lawful reason or no reason
• Exceptions: Cannot terminate for unlawful reason (discrimination, retaliation, violation of public policy)

However:

• Employment contract may require notice
• Collective bargaining agreement may require notice
• Certain laws may require notice (e.g., plant closures under WARN Act)

Final paycheck timing:

• Terminated: Due immediately
• Resigned with 72+ hours notice: Due on last day
• Resigned without notice: Due within 72 hours

Remote workers should verify how final paycheck will be delivered.

Q30: Can I be fired for refusing to return to office from remote work?

Generally, yes, unless:

• You have employment contract guaranteeing remote work
• Change violates disability accommodation obligations
• Refusal is based on legally protected reason
• Termination is discriminatory or retaliatory

California is at-will employment state. Employers can generally change work location requirements.

However, if you have disability requiring remote work accommodation, request formal accommodation through interactive process.

If you believe termination is unlawful, consult employment attorney immediately.

SPECIFIC SCENARIO QUESTIONS

Q31: Can my employer reduce my pay if I move to a state with lower cost of living?

Generally, yes, subject to:

• Contract terms (if employment contract exists)
• Cannot reduce below minimum wage where work performed
• Cannot be discriminatory or retaliatory
• Must provide notice in some circumstances

Employers should:

• Have clear policy on geographic pay differences
• Document legitimate business reasons
• Provide notice of pay changes
• Ensure compliance with minimum wage laws

Employees should:

• Review employment agreement
• Understand company policies
• Negotiate if possible
• Consult employment attorney if concerned about unlawful motivation

Q32: What happens to my benefits if I move to another state while remaining employed?

This varies by benefit type:

Health Insurance: May depend on plan network; verify coverage in new location

Retirement Plans: Generally portable

State Benefits:

• Paid Family Leave: May lose eligibility if stop paying into California SDI
• Unemployment Insurance: Generally covered by state where work performed
• Workers’ Compensation: Complex multi-state rules apply

Leave Entitlements: May change based on new state’s laws

Before relocating:

• Notify employer in advance
• Review all benefit terms
• Consult HR about impact on benefits
• Verify tax and legal implications
• Consider legal and tax consultation

Q33: Can I work remotely from California temporarily while on vacation?

This may create legal and tax complications:

For Employee:

• Work performed in California may be California-source income
• May create tax filing obligation
• May affect residency determination if extended

For Employer:

• May create California tax nexus
• May trigger California employment law obligations
• May create workers’ compensation issues

Best practice:

• Have clear policy on working while traveling
• Consider prohibiting or limiting work from states where no employees
• Consult legal and tax counsel before allowing

This is not permission to work while vacationing in California. Consult professionals.

Q34: Do I need a written remote work agreement?

Not legally required in most cases, but highly recommended.

Benefits of written agreement:

• Clarifies work location and schedule
• Addresses equipment and reimbursement
• Establishes performance expectations
• Covers security and confidentiality
• Addresses termination of remote arrangement
• Documents acknowledgment of policies

Should be developed with legal counsel to ensure:

• Complies with applicable laws
• Does not create unintended contractual rights
• Addresses foreseeable issues
• Protects both parties

Q35: Can I be classified as exempt if I work remotely?

Remote work status does not determine exempt vs. non-exempt classification.

Exemption depends on:

• Salary level (must meet minimum threshold)
• Salary basis (paid predetermined amount regardless of hours)
• Duties (must meet duties test for exemption category)

Work location is not a factor in exemption determination.

Same exemption requirements apply to remote and on-site workers.

Consult California DIR or employment attorney for classification questions. Misclassification can result in significant liability.

ADDITIONAL CALIFORNIA-SPECIFIC QUESTIONS

Q36: What is PAGA and how does it affect remote workers?

California’s Private Attorneys General Act (PAGA) allows employees to sue employers for Labor Code violations on behalf of themselves and other employees, with penalties payable to State of California and employees.

Key points:

• Applies to wage and hour violations, meal/rest break violations, wage statement violations, and other Labor Code violations
• Remote workers can bring PAGA claims
• Penalties can be substantial
• Cannot be waived by arbitration agreement (in most circumstances)

For Employers: Ensure strict wage and hour compliance, provide required notices, maintain accurate records. Consult employment attorney for PAGA risk assessment.

For Employees: If you believe employer is violating wage and hour laws affecting you and other employees, consult employment attorney about potential PAGA claim.

Q37: Does the California Consumer Privacy Act apply to employee data?

Limited application to employment context. CCPA/CPRA primarily applies to consumer data.

However:

• Some employee privacy rights exist under CPRA
• Other California laws provide employee privacy protections
• Regulations continue to evolve

Employers should:

• Implement appropriate data security
• Provide privacy notices
• Limit data collection to necessary information
• Consult privacy counsel

Employees with privacy concerns should consult:

• California Privacy Protection Agency
• Privacy attorney

Q38: Can my employer require me to sign a non-compete agreement?

Generally, NO. California Business and Professions Code § 16600 generally voids non-compete agreements except in very limited circumstances:

• Sale of business
• Dissolution of partnership
• Dissociation of partner

This is a strong California public policy.

However:

• Non-solicitation and confidentiality agreements may be enforceable (if reasonable)
• Trade secret protections exist

If employer requires non-compete: Consult attorney. It is likely unenforceable in California.

Q39: What is AB 2257 and how does it affect my classification?

AB 2257 (2020) expanded exemptions to AB 5’s ABC test for certain occupations and industries.

However:

• Exemptions are narrow and technical
• Many require satisfaction of multiple conditions beyond just being in exempt occupation
• Does not eliminate ABC test, just provides alternative tests for certain workers

Common exempt categories (with conditions):

• Certain professional services
• Licensed professionals
• Certain creative professionals
• Business-to-business arrangements (with specific requirements)

Do not assume exemption applies without thorough analysis. Consult:

• California DIR: https://www.dir.ca.gov/dlse/faq_independentcontractor.htm
• Employment attorney

Q40: Are there restrictions on when my employer can contact me outside work hours?

California does not currently have a general “right to disconnect” law (unlike some jurisdictions).

However:

• All time spent working (including responding to emails/calls) must be paid
• Excessive after-hours work expectations may create wage and hour issues
• Retaliation for not responding outside work hours may be unlawful in some circumstances

Best practices:

• Clear expectations about after-hours availability
• Compensation for all time worked
• Reasonable work-life boundaries

If employer requires significant off-hours work without pay, consult:

• California Labor Commissioner
• Employment attorney

Q41-Q50: Quick Reference Questions

Q41: Where can I file a wage claim? California Labor Commissioner: https://www.dir.ca.gov/dlse/ or 1-833-LCO-INFO

Q42: Where can I file a discrimination complaint? California Civil Rights Department: (800) 884-1684 or https://calcivilrights.ca.gov/

Q43: Where can I file a workers’ compensation claim? Through employer or directly with Division of Workers’ Compensation: (800) 736-7401

Q44: How do I report a workplace safety issue? Cal/OSHA: (833) 579-0927 or https://www.dir.ca.gov/dosh/

Q45: Where can I get tax forms? IRS: https://www.irs.gov ; California FTB: https://www.ftb.ca.gov ; California EDD: https://www.edd.ca.gov

Q46: How do I find an employment attorney? State Bar of California Lawyer Referral: (866) 442-2529

Q47: How do I find a tax professional? California Society of CPAs: https://www.calcpa.org or National Association of Enrolled Agents: https://www.naea.org

Q48: Does California have reciprocal tax agreements with other states? Generally, NO. California does not have broad reciprocal tax agreements.

Q49: Can I waive my meal breaks? Under limited circumstances if shift is 6 hours or less. Cannot waive both meal breaks if working more than 10 hours unless specific conditions met.

Q50: What is the statute of limitations for wage claims in California? Generally 3 years for most wage and hour violations (4 years for written contract violations, 1 year for certain penalties). File promptly to preserve rights.