California is home to some of the most complex labor laws in the country—and some of the harshest penalties for violations. For construction and field service companies, where crews are constantly on the move and schedules are unpredictable, keeping up with compliance can feel overwhelming.

Today, roughly 25 new wage and hour lawsuits are filed in California every day on average, and settlements often reach six, seven, or even eight figures.

The good news? With the right time tracking system, you can simplify compliance, protect your business, and avoid costly mistakes.

California’s Compliance Landscape: Why It’s So Risky

Even with reforms to California’s Private Attorneys General Act (PAGA) that went into effect in 2025, employers still face one of the toughest compliance environments in the country. The changes eased some penalties and gave businesses more ways to cure violations, but they didn’t eliminate the risks.

Companies must still navigate strict rules around meal and rest breaks, daily and weekly overtime, and detailed wage statements. These laws are designed to protect employees, but they create serious risks for businesses that don’t have airtight records.

Penalties are especially severe because they apply per employee, per violation, per pay period. A single missed break or error in reporting can snowball into thousands—or even hundreds of thousands—of dollars in liability. For companies already operating on thin margins, one compliance slip can become a financial crisis.

Since 2013, court PAGA awards have cost California employers nearly $10 billion.

PAGA notices filed with California’s Labor & Workforce Development Agency (LWDA) have risen rapidly over the years. For example, from 11 notices in 2006 to 7,780 in 2023.

What’s at Stake for Businesses

The consequences of non-compliance go far beyond fines. Businesses often find themselves paying back wages, legal fees, and settlements, while also dealing with operational disruption and damage to their reputation. Employee trust can erode quickly if workers believe their rights aren’t being respected, and lawsuits can tarnish a company’s image in a competitive industry.

Why Traditional Timekeeping Methods Don’t Cut It

Many contractors still rely on paper timesheets or spreadsheets, but these systems often create more problems than they solve. Paper records are easily lost or filled out incorrectly, and spreadsheets don’t provide the kind of audit trail regulators or courts require. When a dispute arises, vague or incomplete records rarely hold up—and employers are left exposed.

The Compliance Shortcut: Time Tracking Software

Digital and live time tracking changes the game. Instead of relying on guesswork or manual entry, employers can automatically capture accurate records of when employees worked, where they clocked in, and whether required breaks were taken. These records can be pulled instantly in the event of an audit or lawsuit, offering the kind of reliable documentation that protects businesses from costly claims.

For crews in the field, mobile-friendly apps make compliance simple. A quick tap to clock in or attest to a meal break can be the difference between full protection and a six-figure penalty.

California-Specific Features That Matter

Not every time tracking solution is built with California compliance in mind. The most effective systems include built-in break reminders, employee attestations, and automatic overtime calculations that align with the state’s unique rules.

BusyBusy verifies that employees took their required breaks. If they forgot to log one, they can simply add it afterward, ensuring records stay accurate.

 For construction and field service teams, these features aren’t just convenient; they’re essential.

Turning Compliance Into an Advantage

Compliance doesn’t have to be viewed as a burden. With the right technology, it becomes a way to reduce administrative headaches, minimize legal exposure, and build stronger trust with employees. Companies that take compliance seriously not only protect themselves from penalties but also stand out as employers of choice in a competitive market.

Conclusion

California’s labor laws may be strict, but compliance doesn’t have to be complicated. By implementing a modern time tracking solution, construction and field service businesses can avoid costly penalties, simplify payroll, and gain peace of mind.

Don’t wait until an audit or lawsuit exposes gaps in your process. Take the shortcut now.

👉Book a demo to learn more about  BusyBusy’s time tracking solution today and safeguard your business.