California wage and hour laws are among the most detailed and employee-friendly in the United States. They establish strong baseline protections for all workers while also recognizing the unique realities of specific industries. To balance both, California’s Industrial Welfare Commission (IWC) has issued 17 different Wage Orders, each tailored to a sector or occupation.

For employers, this creates a dual challenge: staying compliant with the general rules that apply to everyone while also navigating industry-specific exceptions. Below is an overview of the primary standards and some of the key special rules that apply across different sectors.

Core Wage and Hour Rules for All Employers

California’s wage and hour laws establish a robust framework of protections for workers, requiring employers to navigate a complex set of baseline requirements. These rules, enforced through the Labor Code and Industrial Welfare Commission (IWC) Wage Orders, apply to all employers, regardless of industry, unless specific exceptions are noted.

At the heart of these protections is the state’s minimum wage, which, as of January 1, 2025, is set at $16.50 per hour for all employers, per the California Department of Industrial Relations (DIR). Unlike previous years, this rate no longer varies by employer size, as the distinction for employers with 26 or more employees ended in 2024. However, many cities impose higher local minimum wages—for example, San Francisco requires $18.67 per hour, and Los Angeles mandates $17.27 per hour. Employers like a small café in San Francisco must check local ordinances on the DIR website (dir.ca.gov) or city resources to ensure compliance, as failing to pay the correct rate can trigger costly claims.

Overtime rules are equally critical. Non-exempt employees earn 1.5 times their regular rate of pay for hours worked beyond 8 in a day or 40 in a workweek, and double time for hours exceeding 12 in a day or 8 on the seventh consecutive day in a workweek, per Labor Code § 510. For employees on alternative workweek schedules, such as a 4-day, 10-hour shift common in manufacturing, overtime applies after the scheduled daily hours (e.g., 10 hours). Unionized workers with collective bargaining agreements may be exempt from certain overtime provisions, so employers must review applicable contracts. For instance, a warehouse worker in Fresno working 10 hours daily on a standard schedule would earn overtime after 8 hours, and if they work a seventh consecutive day, double time kicks in after 8 hours, ensuring fair compensation for extended work.

Meal and rest break requirements further underscore California’s employee-friendly approach. Non-exempt employees working over 5 hours are entitled to a 30-minute unpaid meal break, which must begin before the 5th hour, and a second meal break for shifts exceeding 10 hours, starting before the 10th hour. Additionally, employees receive 10-minute paid rest breaks for every 4 hours worked or major fraction thereof (e.g., two breaks for an 8-hour shift), ideally taken in the middle of each period when feasible. If the Fresno warehouse employer fails to provide these breaks, they owe the worker 1 hour’s pay at the regular rate per violation, per Labor Code § 226.7, which can quickly accumulate in penalties.

Accurate wage statements are non-negotiable, requiring details like hours worked, hourly rates, gross and net wages, and deductions, per Labor Code § 226. Employers must also maintain payroll records for at least 3 years, with 4 years recommended for PAGA claims due to their extended statute of limitations. Finally, California’s strict ABC test under Labor Code § 2775 governs worker classification, ensuring workers are treated as employees unless they meet specific independent contractor criteria. Misclassification, such as treating a delivery driver as a contractor when they perform core business tasks, can lead to significant liability, including back wages and penalties.

Industry-Specific Rules and Exceptions

California recognizes that industries like trucking, agriculture, healthcare, and entertainment operate under unique conditions, necessitating tailored wage and hour rules. These exceptions, often outlined in the IWC Wage Orders or specific legislation, balance worker protections with operational realities, but violations can trigger significant penalties, including under the Private Attorneys General Act (PAGA), with penalties of $100 per employee per pay period for initial violations and $200 for subsequent or willful violations, per Labor Code § 2699.

Transportation and Trucking

In the transportation sector, interstate truck drivers may be exempt from California’s meal and rest break rules due to federal regulations under the Federal Motor Carrier Safety Administration. However, employers like a logistics company in Sacramento must ensure drivers earn at least the state minimum wage ($16.50/hour in 2025) for all hours worked, including waiting or non-driving time, even if paid by mileage or load. Failure to account for these hours in the regular rate of pay can lead to PAGA claims, especially if systemic across a fleet.

Agriculture

Agricultural workers, such as those picking fruit in the Central Valley, now receive standard overtime protections, a significant change since January 1, 2022. Under Labor Code § 860, farmworkers earn 1.5 times their regular rate after 8 hours in a day or 40 in a week, and double time after 12 hours in a day or 8 on the seventh consecutive day, aligning with non-agricultural rules. Employers must also provide additional rest and recovery breaks during extreme heat, ensuring access to shade, cool water, and at least 5 minutes of rest when needed, per Cal/OSHA regulations. A vineyard neglecting these heat protections risks not only penalties but also employee health and morale.

Entertainment, Media, and Technology

The entertainment industry, governed by Wage Order 12, often operates under union contracts that supersede standard overtime rules. For example, a film production assistant in Hollywood working under a union agreement may have different overtime thresholds, while child actors face strict hour limits and require work permits to protect their education. Similarly, computer software professionals under Wage Order 4 are exempt from overtime if they earn at least $108,680.99 annually ($52.25/hour) in 2025 and primarily perform intellectual or creative work, such as coding or systems analysis, per Labor Code § 515.5. A tech startup in Silicon Valley must verify these criteria to avoid misclassification claims.

Healthcare

In healthcare, hospitals and clinics under Wage Order 5 can adopt alternative workweek schedules, such as 12-hour shifts for nurses, without triggering daily overtime if approved by a 2/3 majority in a secret-ballot election. Certain employees, like a nurse in a Los Angeles hospital, may waive one meal break in writing for shifts up to 12 hours, but a second meal break for shifts over 10 hours cannot be waived. These rules ensure flexibility while protecting workers, but non-compliance can lead to PAGA claims for missed breaks or unpaid overtime.

Domestic and Household Workers

Domestic workers, like live-in caregivers, follow unique rules under Wage Order 15, earning overtime after 9 hours in a day or 45 in a week, with guaranteed days off.

Construction, Public Works, Garment Industry

Construction workers on public works projects must receive prevailing wages, often exceeding standard minimums, while garment workers under Wage Order 13 are guaranteed minimum wage even for piece-rate work, with no deductions for defective products.

Additional Groups

Public sector workers, teachers, professional athletes, seasonal amusement park employees, and even sheepherders have special provisions. In many cases, collective bargaining agreements (CBAs) or federal laws preempt state rules.

These tailored rules reflect California’s commitment to fair pay across diverse sectors, but employers must stay vigilant to avoid PAGA-driven liability for systemic violations.

The Role of Wage Orders in California

California’s Industrial Welfare Commission (IWC) has crafted 17 distinct Wage Orders to regulate wages, hours, breaks, working conditions, and recordkeeping for specific industries and occupations. These orders, available on the DIR website (dir.ca.gov/dlse), provide detailed rules that often diverge from the general Labor Code, making it critical for employers to identify the correct order for their workforce. For example, a business operating both a farm and a packing facility in the Central Valley must comply with Wage Order 14 for agricultural workers and Wage Order 13 for processing operations, each with unique overtime and break requirements. Misapplying these orders—say, using Wage Order 1 for manufacturing when Wage Order 14 applies—can lead to compliance failures and penalties.

To determine the applicable Wage Order, employers should review their primary business activities and employee roles against the DIR’s Wage Order summaries. For instance, Wage Order 1 governs manufacturing, Wage Order 12 covers broadcasting and motion pictures, and Wage Order 5 applies to healthcare. Businesses spanning multiple sectors, like a restaurant with catering services, may need to consult multiple orders (e.g., Wage Order 5 for food service and Wage Order 9 for transportation). When in doubt, consulting the DIR’s resources or an employment attorney ensures clarity, as Wage Orders are the backbone of California’s tailored approach to wage and hour compliance.

Why So Many Rules?

California’s approach reflects its intent to balance strong worker protections with the operational needs of diverse industries. A trucking company, a farm, a hospital, and a movie studio all have dramatically different work conditions. Rather than apply a blanket standard, the state has chosen to tailor wage and hour laws through Wage Orders and industry-specific legislation.

What Employers Should Do

Compliance with California’s wage and hour laws requires proactive effort, especially given the complexity of general and industry-specific rules. For a retail chain in Oakland, staying compliant means not only meeting state standards but also navigating local minimum wage ordinances and industry-specific Wage Orders. To avoid lawsuits, penalties, and PAGA claims, employers should take the following steps:

1. Identify the Applicable Wage Order: Review employee roles and business activities on the DIR website (dir.ca.gov/dlse) to determine the correct IWC Wage Order, such as Wage Order 5 for healthcare or Wage Order 14 for agriculture.
2. Monitor Minimum Wage Requirements: Ensure compliance with the state’s $16.50/hour minimum wage (2025) and check local ordinances for higher rates, like Oakland’s $17.94/hour.
3. Implement Compliant Pay and Break Practices: Verify overtime, meal, and rest break policies align with Labor Code and Wage Order requirements, using payroll software to track hours and breaks accurately.
4. Stay Updated on Legislative Changes: Monitor recent developments, such as the 2024 PAGA reforms (AB 2288, SB 92), which allow employers to cure certain violations to reduce penalties, via DIR updates or legal counsel.
5. Consult Compliance Experts: Work with employment attorneys or HR specialists to navigate complex rules, especially for industries like trucking or entertainment with unique exceptions.
6. Train Staff Regularly: Provide wage and hour training to managers and HR teams to recognize compliance risks and document good-faith efforts, which can mitigate PAGA penalties.

By prioritizing these steps, employers can reduce liability and foster fair workplaces that align with California’s stringent standards.

Simplify Compliance with Wage & Hour Training

At Cal Comply, we provide California employers with clear, practical wage and hour training tailored to the state’s unique requirements. Our training, designed by employment litigators, helps managers and HR professionals:

• Understand both general and industry-specific wage and hour rules
• Apply the correct Wage Orders to their workforce
• Avoid costly compliance mistakes and PAGA claims

👉 Learn more about Cal Comply’s Wage & Hour Training

Note: This post is for informational purposes only and does not constitute legal advice. California’s wage and hour laws are complex and vary by industry and locality. Consult an experienced employment attorney for guidance tailored to your business. Cal Comply is a paid training provider mentioned for illustrative purposes; other compliance resources are available.