Free HR Audit for California Employers (2025 Edition)

What is a California HR Audit (and Why It Matters)

California has some of the most complex and fast-changing employment laws in the country. From state-mandated minimum wage increases to mandatory training requirements and worker classification standards, it’s easy for even well-intentioned businesses to fall out of compliance.

A California HR audit is a structured review of your HR policies, documentation, and procedures. Its purpose is to identify where your business may fall short of state or local employment regulations, while providing actionable recommendations to stay compliant and avoid costly penalties.

In 2025, it’s more critical than ever for employers to stay up to date with California’s evolving labor landscape. Key updates include:

• Minimum Wage Increases
  The statewide minimum wage is $16.50/hour, but many jurisdictions set higher local rates. For example:
  
  • Los Angeles: $17.28/hour (July 1, 2025)
    
  • West Hollywood: Up to $19.08/hour for hotel workers
    
  • San Francisco: $18.67/hour
    
• Worker Classification (AB5)
  California’s AB5 law and the ABC test limit who qualifies as an independent contractor. Misclassifying workers can trigger back wages, tax liabilities, and lawsuits.
  
• Leave Law Updates
  State law requires a minimum of 5 days (40 hours) of paid sick leave annually. Cities like San Francisco, Oakland, and Berkeley impose stricter standards.
  
• Training Requirements
  Harassment prevention training is mandatory for businesses with 5+ employees. New DEI training expectations and industry-specific mandates (e.g., healthcare, hospitality) are also emerging.
  
• Posting Requirements
  Employers must display state and local labor law posters, many of which vary by city.

For small and midsize businesses without dedicated HR teams, these overlapping regulations can quickly become overwhelming. That’s where our free HR audit comes in.

What the Free California HR Audit Covers

Our California HR compliance tool evaluates your business across six key areas:

• Wage & Hour Practices
  Ensures compliance with state and local minimum wages, including industry-specific rates like the $20/hour requirement for fast food workers as of April 1, 2025.
  
• Worker Classification
  Evaluates how your use of contractors and freelancers aligns with the ABC test under California Labor Code Section 2775.
  
• Leave & Benefits
  Reviews your sick leave, paid family leave, and city-specific time-off policies to ensure full compliance.
  
• Required Trainings
  Checks whether required employee training—including sexual harassment prevention, DEI, and safety trainings—is up to date.
  
• Labor Law Posters & Notices
  Verifies whether all required federal, state, and local postings (e.g., San Diego Earned Sick Leave Notice) are visible and current.
  
• New Hire Documentation
  Confirms that your onboarding process includes California-specific forms like the Wage Theft Prevention Notice, EDD pamphlets, and more.

How the Free HR Audit Tool Works

Our audit tool is built for busy employers:

• Quick Assessment: Answer a brief set of questions in just 5-10 minutes.
• Compliance Score: Receive a score that reflects how your HR practices align with common California compliance expectations.
• Tailored Insights: Get actionable guidance to help address potential gaps.
• Downloadable Report: Generate a personalized summary you can review internally or share with a vetter HR consultant in our network.

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Who Should Use the California HR Audit Tool?

This free tool was created for:

• Small Businesses (1–250 employees): Especially those without in-house HR support.
• Startups: New businesses hiring employees for the first time.
• Entrepreneurs: Owners managing HR responsibilities themselves.

Whether you operate in Los Angeles, San Francisco, San Jose, Sacramento, or anywhere else in the state, our tool adjusts for local wage and leave ordinances where applicable.

Start Your Free HR Compliance Audit for California

Understanding California’s HR regulations doesn’t have to be overwhelming. Our Free HR Audit Tool provides a quick and easy way to assess where you stand and identify opportunities to improve before problems arise.

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Helpful California Employer Resources

• California Department of Industrial Relations (DIR)
  
• DLSE Minimum Wage by Locality
  
• California Labor Commissioner’s Office
  
• EDD Employer Resources

Disclaimer: This tool is for informational and educational purposes only and does not constitute legal advice. For guidance specific to your situation, consult a qualified HR or legal professional.