Being an employer creates lots of legal obligations!  Here are some tips to make sure you are complying with the major ones and to reduce liability exposure (note that many of these are California-specific):

• Have an up-to-date job description for each employee
• Have each new employee complete the I-9 form and provide the required documentation on the first day of employment – the Form I-9 is revised periodically and it is the employer’s responsibility to use the most recent form for new hires
• Carefully consider whether your new employee is “exempt” or “non-exempt” from the Fair Labor Standards Act overtime rules – most employees are non-exempt, but if an employee’s duties include things like supervision of others and exercise of discretion and judgment, he or she may be exempt
• Make sure non-exempt employees take their legally mandated meal and rest breaks and have them document this on their timesheets
• Have an employee handbook to clearly communicate company policies regarding holidays, vacation, privacy, etc.
• Be aware of the strict limitations in California on “non-compete” agreements – make sure any agreements you have your employees sign are legally enforceable
• If you have 50 or more employees, be aware of your obligations under the Family and Medical Leave Act
• If you have 50 or more employees, be aware that California mandates annual sexual harassment training for supervisors
• Understand that when an employee leaves, he or she must be compensated immediately for accrued vacation time
• Have a system in place to ensure the privacy of employment records

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