Running a hotel in California means following strict labor laws that protect employees. The state has some of the toughest rules in the country, covering wages, overtime, breaks, sick leave, and more. In 2025, new laws will bring changes that hotel owners need to know about, including higher minimum wages, updated worker rights, and stricter penalties for non-compliance.

If a hotel does not follow these laws, it can face expensive fines, lawsuits, and problems with employee satisfaction. For example, California requires meal and rest breaks, and not providing them can lead to extra pay owed to employees. Overtime rules are also strict, and mistakes in scheduling can add unexpected labor costs.

With labor costs already making up a big part of a hotel's expenses, understanding these laws is critical. By following the right policies, hotel owners can stay compliant and avoid unnecessary legal trouble. This guide will explain the most important California employment laws in 2025, breaking them down in a way that's easy to understand. Whether it's wage requirements, break laws, or worker protections, knowing these rules will help hotel owners manage their teams fairly and efficiently.

California has one of the highest minimum wages in the country, and it continues to rise each year. As of January 1, 2025, the state's minimum wage is $16.50 per hour for all employers, regardless of size. However, hotel owners must be aware that many cities and counties have higher local minimum wage requirements, especially in areas with high living costs.

City-Specific Minimum Wages for Hotels
Some cities have set their own minimum wage laws specifically for hotel workers. Here are a few key updates for 2025 -

1. Los Angeles - $22.50 per hour for hotel workers at properties with 60+ rooms (set to increase yearly, reaching $30.00 by 2028).
2. Long Beach - $23.00 per hour for hotel workers at properties with more than 100 rooms.
3. Emeryville - $19.36 per hour, covering all employees, including those in hospitality.

Since local laws override state laws when the minimum wage is higher, hotel owners should check the specific wage requirements in their city to ensure compliance.

Overtime Pay and Wage Violations
In addition to base pay, hotel owners must follow California's strict overtime rules. Employees working over 8 hours in a day or 40 hours in a week must be paid 1.5 times their regular hourly rate. If an employee works more than 12 hours in a single day, they are entitled to double their regular pay.

Failing to pay the correct minimum wage or overtime can lead to serious consequences. Employees can file wage claims with the California Labor Commissioner, and businesses found violating wage laws may be forced to pay back wages, penalties, and even legal fees.

What Hotel Owners Should Do

-Check local wage rates regularly to stay compliant.
-Adjust payroll systems to reflect wage increases.
-Train managers to ensure employees are scheduled properly and paid correctly.

By staying updated on wage laws, hotel owners can avoid costly penalties and maintain a fair work environment for their employees.

California has some of the strictest labor laws when it comes to overtime and work hours, especially in the hospitality industry. Hotel owners must ensure they are following the correct rules to avoid penalties, legal claims, and employee dissatisfaction.

Overtime Pay Rules for Hotel Employees
California law requires that non-exempt employees receive overtime pay under the following conditions -

-1.5 times the regular hourly rate for any hours worked beyond 8 hours in a single workday or over 40 hours in a workweek.
-1.5 times the hourly rate for the first 8 hours of work on the seventh consecutive workday in a workweek.
-Double the regular hourly rate for any hours worked beyond 12 hours in a single workday.
-Double pay for any hours beyond 8 on the seventh consecutive workday in a workweek.

For hotels, where employees often work long or irregular shifts, managing overtime and work hours effectively is essential to controlling labor costs.

Alternative Workweek Schedules
Hotels may implement an alternative workweek schedule (AWS) to allow employees to work shifts longer than 8 hours without triggering overtime. However, this schedule must be formally approved by employees through a voting process and reported to the California Division of Labor Standards Enforcement. AWS options can include four 10-hour workdays instead of five 8-hour days. Without an approved AWS, any work beyond 8 hours per day requires overtime pay.

Preventing Overtime Violations
To stay compliant, hotel owners should -

-Track employee hours carefully using a time-tracking system.
-Ensure managers do not pressure employees to work off the clock.
-Schedule shifts efficiently to reduce unnecessary overtime.
-Educate employees on their rights regarding overtime pay.

By following these guidelines, hotel owners can ensure they are compliant with California's strict labor laws while keeping labor costs under control.

California has strict laws regarding meal and rest breaks, and failing to follow them can result in costly penalties for hotel owners. Since hotel staff often work long shifts in fast-paced environments, it's crucial to ensure all employees get their legally required breaks.

Meal Break Requirements

-Employees who work more than 5 hours in a day must receive a 30-minute unpaid meal break.
-If an employee's total work shift is 10 hours or more, they are entitled to a second 30-minute meal break.
-Meal breaks must be uninterrupted and duty-free - employees cannot be required to remain on call or perform any work during this time.
-If a hotel does not provide a meal break on time, the employee must be compensated with one additional hour of pay at their regular rate for that day.

Rest Break Requirements

-Employees are entitled to a 10-minute paid rest break for every 4 hours worked or a major fraction thereof.
-Breaks should be taken as close to the middle of the shift as possible.
-If a rest break is not provided, employees must receive one extra hour of pay for the violation.

How Employee Scheduling Affects Compliance
Proper employee scheduling is key to ensuring that all workers receive their legally required breaks. Hotels must organize shifts in a way that allows employees to step away from their duties at the appropriate times. Poorly planned scheduling can lead to missed breaks, triggering penalty pay and potential legal claims.

Best Practices for Compliance

-Train managers to enforce break policies and schedule shifts accordingly.
-Use digital timekeeping systems to track breaks and ensure they are taken on time.
-Clearly communicate break policies to employees so they understand their rights.

By following these guidelines, hotel owners can ensure compliance with California's strict meal and rest break laws while keeping their workforce satisfied and productive.

One of the most important legal considerations for hotel owners in California is correctly classifying workers as either employees or independent contractors. Misclassification can result in serious financial penalties, back wages, and legal disputes. California's AB5 law, which went into effect in 2020, continues to shape how businesses define their workers, making it difficult for hotels to use independent contractors for regular job roles.

Understanding the ABC Test
Under AB5, California uses the ABC Test to determine whether a worker is an independent contractor or an employee. A worker is only considered an independent contractor if all three of these conditions are met -

-(A) The worker is free from the control and direction of the hiring business in terms of work performance.
-(B) The worker performs work outside the usual course of the company's business.
-(C) The worker is customarily engaged in an independently established trade or occupation.

For hotels, this means that housekeepers, front desk clerks, and kitchen staff cannot legally be classified as independent contractors since they perform essential hotel functions. However, specialists like freelance photographers, website designers, or independent consultants may still qualify as contractors.

Penalties for Misclassification
If a hotel wrongly classifies an employee as an independent contractor, it may face -

-Fines ranging from $5,000 to $25,000 per violation.
-Back pay for lost wages, overtime, and benefits.
-Liability for unpaid payroll taxes and workers' compensation insurance.

What Hotel Owners Should Do

-Review worker classifications regularly to ensure compliance.
-Avoid using contractors for roles that are central to hotel operations.
-Consult a labor attorney if you are uncertain about classification rules.

By properly classifying workers, hotel owners can avoid legal risks and financial penalties while ensuring fair treatment of employees.

California law requires employers, including hotels, to provide paid sick leave and allow eligible employees to take family leave when necessary. These laws help employees take time off for personal or family health issues while ensuring job security. Hotel owners must understand and implement these policies correctly to stay compliant.

Paid Sick Leave Requirements

-All employees who work at least 30 days in a year for the same employer are entitled to paid sick leave.
-Employees must accrue at least one hour of sick leave for every 30 hours worked.
-Employers may cap sick leave use at 24 hours (3 days) per year, but some cities require more.
-Some local ordinances, like those in Los Angeles, San Francisco, and Oakland, mandate higher sick leave accruals.

Sick leave can be used for the employee's illness, a family member's illness, or medical appointments. Employers cannot retaliate against employees for using their sick leave.

California Family Rights Act (CFRA) Leave
The California Family Rights Act (CFRA) provides up to 12 weeks of unpaid, job-protected leave per year for eligible employees. This leave applies to -

-The birth or adoption of a child.
-Caring for a seriously ill family member.
-The employee's own serious medical condition.

To qualify, an employee must have worked at least 1,250 hours in the past 12 months. Unlike sick leave, CFRA is unpaid, but employees may use accrued sick leave or vacation days.

How Hotel Owners Can Stay Compliant

-Clearly outline sick leave and family leave policies in employee handbooks.
-Track sick leave accrual and usage to ensure compliance with state and local laws.
-Train managers on employees' rights to avoid unintentional violations.

By following these guidelines, hotel owners can avoid legal penalties and create a supportive work environment for their staff.

California has some of the strongest anti-discrimination and harassment laws in the country. These laws protect employees from unfair treatment based on personal characteristics and require businesses, including hotels, to create a safe and inclusive workplace. Hotel owners must be aware of their responsibilities under these laws to prevent costly lawsuits and maintain a positive work environment.

Protected Characteristics Under California Law
Employers in California cannot discriminate based on -

-Race, ethnicity, or national origin
-Gender, sexual orientation, or gender identity
-Age (40 and older)
-Disability or medical conditions
-Religion or creed
-Marital status, pregnancy, or family status

In 2025, a new California law expands protection by making it illegal to discriminate against an employee based on two or more combined characteristics (e.g., gender and race). This strengthens protections for employees facing multiple types of discrimination.

Sexual Harassment Prevention and Training
Hotel owners are required to provide sexual harassment prevention training -

-Non-supervisory employees must complete one hour of training every two years.
-Supervisors and managers must complete two hours of training every two years.

This training must cover how to recognize and report harassment, employee rights, and employer responsibilities. Hotels should document all training sessions to prove compliance in case of legal claims.

How Hotel Owners Can Prevent Discrimination and Harassment

-Create clear anti-discrimination and harassment policies and distribute them to employees.
-Provide required training and ensure all employees complete it.
-Encourage open communication so employees feel safe reporting incidents.
Investigate complaints promptly and take corrective action when necessary.

By implementing these policies, hotel owners can protect employees, avoid legal issues, and foster a fair workplace in compliance with California law.

California has strong labor laws protecting employee rights, especially regarding unionization and collective bargaining. Hotel workers often seek union representation to negotiate wages, benefits, and working conditions. Hotel owners must understand their employees' rights to unionize and how new laws impact employer-employee relations.

A key update in 2025 is California's ban on mandatory captive audience meetings. This means hotel owners cannot require employees to attend meetings where the company expresses opinions about unionization or political issues. Employers who violate this law may face legal action from the state.

Right of Recall for Laid-Off Hotel Workers
California's Right of Recall law requires hotels to rehire employees laid off due to economic downturns or business closures before hiring new workers. This law applies to -

-Employees with at least six months of prior service.
-Positions that are similar to their previous roles.

How Hotel Owners Can Stay Compliant

-Avoid interfering with union activities or discouraging employees from organizing.
-Ensure laid-off workers are given priority for rehire under the recall law.
-Train managers on employee rights to prevent legal violations.

By respecting these laws, hotel owners can avoid penalties and maintain a fair workplace.