The Differences Between Federal and California Labor Laws

Most employers recognize that that there are both federal and state laws that regulate how business is conducted. What many do not realize is how these state and federal approaches may vary. Employers in the state need to recognize that California labor law differs from federal guidelines in many areas of employment legislation.

Which Law to Follow?

Generally speaking, whichever law (federal or state) provides greater protection to the individual employee will take precedent. Other times, state law dramatically broadens the base of employees that qualify for protection.

Employer Responsibility

There is a significant difference in attitude between the federal approach and the state approach regarding the extent to which an employer is responsible to comply with the law. The federal government, through various Supreme Court cases strongly ENCOURAGE employers to train and educate their employees regarding the laws of harassment and discrimination. Punitive damages may be reduced or eliminated in circumstances where businesses were able to provide “proactive” evidence of intent to comply and provide a safe and harassment free environment. However, this training is not mandatory.

In contrast, California (along with Maine and Connecticut), REQUIRES private sector employers to provide unlawful harassment training to all managers of businesses with 50 or more employees. California takes the law a step further by requiring this training to be provided again every two years with very specific rules regarding documentation and tracking.

Discrimination Protections

Perhaps one of the most striking differences can be found in the area of discrimination protections. The California Fair Employment and Housing Act, otherwise known as FEHA, is the primary California law that prohibits employment discrimination against employees. Through the federal laws, such as the Civil Rights Act, Title VII and additional amendments and laws (ADEA, ADA, USERRA, Civil Rights Act of 1991 for example) all employees nationally are protected from discrimination based on race, color, religion, gender (sex) and national origin/ancestry, age, medical conditions, mental and physical disabilities, military service, marital status, pregnancy and related medical conditions.

California also has addressed these issues through FEHA which protects from discrimination by all businesses supporting the federal protected categories. FEHA adds sexual orientation and transgenderism as additional protected categories.
Defined by the number of employees

In order for an employer to be covered by the federal laws, they must have 15 or more employees. For ADEA, the employer has to have 20 or more employees. What that means is that an employer with 14 or fewer employees would be not be subjected to these federal laws.

In contrast, FEHA states that harassment applies to all employers in the state regardless of the number of employees. In addition, FEHA states that all employers in California with 5 or more employees must comply with the gender discrimination laws including sexual harassment, gender harassment and harassment based on pregnancy and associated medical conditions.

A Recent California FEHA Lawsuit

The complexity of FEHA is underscored by a recent judgment issued by the California Court of in a recent case, where an employee was diagnosed with bi-polar disorder, but did not disclose this to her employer. After acting aggressively and violently against fellow employees she was let go, and subsequently sued the court for unlawful discrimination. Following an extended trial and appeal, the Court of Appeals ruled in favor of the employer, stating that despite her disability, her threats of violence and unacceptable behavior violated company policy.

In summary, it is critical for employers to recognize their employment obligations, and potential liabilities, under both labor laws in California and the federal government. It is highly recommended to engage the services of an employment law professional in your state of operations to provide the proper guidance and direction in all areas of employment compliance.