Santa Cruz Employer Alert: Top 5 Employment Law Risks You Can’t Afford to Ignore

Employers in Santa Cruz are subject to an increasing list of employment laws related to workplace discrimination, harassment, retaliation, wrongful termination, and wage and hour compliance. Deal with these exposures proactively through the services of an experienced employment defense attorney to protect your business and its reputation. ​

1.Discrimination & Harassment Claims

In Santa Cruz, employers must comply with federal and state laws that specifically forbid workplace discrimination and harassment based on a multiple of protected classes (e.g., race, sex, age, religion).  As a result, companies are required to react quickly to employee complaints. Failing to promptly and impartially investigate and remediate problems can give rise to agency claims, lawsuits, and huge jury verdicts and attorneys’ fee awards against your business.

• Implement strong anti‑discrimination and anti‑harassment policies, clear reporting mechanisms and frequent supervisor training. ​

• View every employee complaint as a trigger for a prompt, thorough, impartial and well-documented workplace investigation.  

2. Wage & Hour Claims

California’s wage and hour laws are complex and often confusing.  Unfortunately, unintentional payroll mistakes, employee misclassification, missed meal and rest breaks, and failure to pay overtime can give rise to costly claims for unpaid wages, penalties, and attorney fees.  

• Review policies for overtime, lunch & rest breaks, salaried vs. hourly pay, and use of independent contractors to minimize employer liability in California. ​

• Immediately remedy wage and hour violations and pay any associated penalties to the employee.

• Consult with an employment defense attorney or employer defense lawyer about revising pay practices, and defending wage claims or DLSE enforcement actions. ​

3. Wrongful Termination & Retaliation Claims

Even the most justified firing can give rise to a wrongful termination or retaliation claim against an employer if the decision is not adequately documented or the decision maker did not follow company policy.  Moreover, a poorly timed termination that occurs too soon after an employee has engaged in protected activity can result in a retaliation action.

• It is crucial to have written, objective performance expectations and records of counseling, warnings and the basis for separation. ​

• Before you terminate someone who just complained or protected leave, speak to a wrongful termination defense lawyer. ​

• Leverage standardized termination checklists and review by HR or a local employment defense attorney to minimize the risk of retaliation. ​

4. Workplace Investigations & Violence Prevention

California law calls for prompt and fair investigations of harassment, discrimination, safety complaints and workplace violence reports.  An inadequate or biased investigation can form the basis of liability against an employer, as well as be used as evidence in a future trial or arbitration.

• Adopt written procedures for internal investigations in the workplace, and include who conducts them, how evidence is gathered and findings are recorded. ​

• Establish and continue enforce a Workplace Violence Prevention Plan (WVPP) in places that do require it, with confidential reporting mechanisms and anti-retaliation protections. ​

• Retain a good employment defense lawyer near me to conduct or supervise sensitive investigations. ​

5. Rapidly Changing California Compliance Requirements

California employment law is constantly changing and evolving, creating new obligations that Santa Cruz-area businesses must keep up with.  Out-of-date employee handbooks, policies, procedures, and employment contracts may lead to liability and lawsuits. 

• Require periodic (including at least annual) compliance reviews of handbooks, employment agreements, and key policies by a Santa Cruz employment law firm. ​

Santa Cruz based local employment law attorneys like Brereton, Mohamed, & Korte LLP offer day-to-day compliance counseling, as well as employer defense attorney services and representation in court when litigation does occur.

FAQs

1: What are the top risks for discrimination and harassment claims in Santa Cruz?

Employers must quickly  investigate and respond to complaints under California law to avoid lawsuits and damages. Strong policies, reporting mechanisms, and supervisor training help mitigate these risks.  Most importantly, employers need to remember to maintain proper documentation at all times.

2: How does 2026 Senate Bill 294 “Workplace Know Your Rights Act” affect employers?

SB 294 requires all California employers to provide written notice of Employee Rights  to all existing employees by February 1, 2026, and to all new employees upon hire.  These rights include the right to workers’ compensation benefits, the right to notice of inspection by immigration agencies, right to protection against unfair immigration-related practices against a person exercising protected rights, the right to organize a union or engage in concerted activity in the workplace, and constitutional rights when interacting with law enforcement at the workplace.  The notice must also contain a description of new legal developments regarding laws enforced by the Labor and Workforce Development Agency, and a list of enforcement agencies that may enforce the underlying rights in the notice. Note: SB 294 is in addition to other existing notice requirements, which you must continue to provide.  

3: What steps can an employer take to prevent wrongful termination lawsuits?

Document, document, document!  Maintain up-to-date job descriptions, written performance records, counseling, and warnings before terminations, especially after complaints or leaves. Use standardized checklists and consult an employment law attorney to avoid retaliation claims.

4: What is required for workplace investigations into employee complaints?

California employers should adopt, implement and follow specific procedures for employee complaints. California’s Fair Employment and Housing Act (FEHA), Labor Code, and workplace-safety laws require employers to take reasonable, prompt, thorough, and unbiased steps to investigate workplace complaints such as retaliation, harassment, and/or retaliation.  Only qualified persons – either internal staff with your business, or a licensed California attorney – may conduct workplace investigations in California.  Brereton, Mohamed, & Korte LLP attorneys can guide you every step of the way as you conduct your own internal investigation, or conduct outside workplace investigations for sensitive matters.  

5: How can employers stay compliant with rapidly changing California employment laws?

Employers should conduct annual reviews of employment handbooks, policies, and procedures, updating for laws like AB 692 which prohibits repayment of fees, penalties, or costs by an employee or contractor in most instances when an employment relationship terminates. Local firms like Brereton, Mohamed, & Korte LLP provide employment law compliance counseling to keep you up-to-date with California law.