United States – California

Employment

There is no official form of employment contract – it can be orally or written.

Payroll

Salaries are generally paid bi-weekly, but can vary according to occupation

HR & Labor

Working Hours: Full time employment is considered 40 hours per week. Employees should be compensated 150% of their regular wages if they have worked more than 8 hours and less than 12 hours per day. If they worked more than 12 hours, they must be paid 200% of their regular wages.
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Minimum Working Age: Employees can be 14 years of age to be employed in the state of CA, however they required to get a work permit and the employers must also have a permit to employ up until 17 years old.

Immigration

In order to work legally in the United States of America, an employee must be a citizen of the US, have a permanent resident status (Green Card), H-1B visa or L-1 visa.

2018 Updates

Raised from $840 per week, and $43,680 per year to $880 per week and $45,760 per year.

It is no longer permissible to to consider a candidates salary history or criminal history when recruiting and hiring new employees.

With the new Paid Parental Leave Act (AB 908) paid family leave and temporary disability increased from 55 to 60 percent of employees salary.

Minimum Wage

Minimum wage is $10.50 per hour.

Pension Fund

The government contributes 68.63% of the employee’s wages.

The employee contributes 31.37% of the regular wages. Maximum contributions are $18,000.

Severance Payments

The severance payment includes all the wages up until the day of termination and unused vacation days.

Advance Notice

Advance notice is 2 weeks.

Termination Procedure

If an employee is discharged, he/she must be paid fully on the last day of employment including for the unused vacation days. If an employee quits, he/she will be paid on the scheduled payday.

Vacation Days

Number of vacation days are agreed by the employer and employee at the time of beginning of the employment.

Sick Days

No official laws on number of sick days, however each employer must provide its employees with a sick leave.

Public Holidays

There are 7 paid public holidays per year.

Expat Benefits

There are no official expat benefits. However different companies can offer special benefits for the expats working for them. Benefits differ from one company to another.

Additional Employee Withholdings

Federal:
1. Medicare - 1.45%
2. Social Security - 6.2%
3. Unemployment Tax - 6.0% and maximum taxable earnings are $7,000

State:
1. Unemployment Insurance- 3.4% with maximum taxable earnings of $7,000
2. Disability insurance - 0%

Federal:
1. Medicare - 1.45% (additional 0.9% contribution for employees earning less than $200,000)
2. Social Security - 6.2% with salary ceiling of $118,500
3. Unemployment Tax - 0%
State:
1. Unemployment Insurance- Voluntary contributions are not permitted.
2. Disability insurance - 0.9% with maximum withholding of $960.68 and maximum taxable earnings of $106,742.

Social Security

As of 2011, after the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2010, the Social Security tax rate is 4.2 percent of an employee's wages.
In addition, there is a limit to the amount of wages that are subject to Social Security taxes. In 2016, the taxable wage base is be $118,500

VAT / State Sales Tax

The state tax is 7.5%.