fpSolutions

As an employer, you are expected to know employment laws and you are required to adhere to them. Meaning, what you don’t know, could hurt you! When onboarding new hires in California, it is essential to stay informed and compliant with California's new hire laws to avoid potential costs and legal consequences. Here are eight reasons why non-compliance could potentially cost employers, money.

1. Penalties for Late Reporting: Failing to report new hires within the required timeframe can result in financial penalties.
2. Back Pay and Compensation: If an employer is found to have violated wage and hour laws related to new hires, they may be required to pay back wages and compensation.
3. Workplace Investigations: Non-compliance may trigger investigations by regulatory bodies, leading to additional costs associated with responding to inquiries and addressing any issues uncovered.
4. Unemployment Insurance Costs: Non-compliant and ineffective hiring and onboarding may lead to increased turnover and unemployment insurance costs.
5. Civil Penalties: Violating certain aspects of new hire laws in California may lead to substantial civil penalties.
6. Employee Lawsuits: Employees may file lawsuits against the employer for violations of their rights, resulting in legal costs and potential settlements.
7. Loss of Tax Credits: Failure to comply with new hire reporting requirements may lead to the loss of potential tax credits for the employer.
8. Loss of Government Contracts: Some violations of new hire laws may disqualify employers from obtaining or maintaining government contracts, leading to a loss of business opportunities and revenue.

fpSOLUTIONS' new California New Hire Packet enables California employers to be confident that their hiring and onboarding protocols and processes are lawful, compliant and up to date. Click here to learn more.