Employer Bulletin September 2023

This Bulletin is part of an ongoing series by Kraeber Law Office to provide helpful hints about developments in the law that could be relevant to your business.


  1. Non-Compete Agreements and Provisions

Non-Competes - except in very narrow instances (such as the sale of a business) - are illegal in California. The work-around is a tightly crafted prohibition on a former employee's use of confidential, trade secret or proprietary information.

  1. California Privacy Rights Act of 2020 (Prop. 24)

Although the courts have delayed enforcement of this new law until March 2024, employers should continue moving forward with implementing priority areas such as providing employees and applicants with notice at the time of collection of information and making a policy available to employees and applicants that addresses all CPRA content requirements.

  1. Loans to Employees

Not a good idea. While written authorization for loan repayments from payroll checks can in some circumstances be legal, employers CANNOT deduct the balance owed from the final paycheck. Final paychecks are heavily regulated and an employer's failure to follow the rules can result in hefty penalties (including waiting time penalties of 30 times the employee's daily earnings).

  1. Vacation Policy

A "use it or lose it" vacation policy is not permitted in California. If the employee has accrued vacation, it is a form of wages and cannot be taken away; it's either used or paid out at the end of employment. However, caps on accruals are legal and most certainly should be utilized.

Contact us with any questions or concerns. We’re here to help.

Related Posts
  • Employer Bulletin May 2024 Read More
  • Employer Bulletin April 2024 Read More
  • Employer Bulletin March 2024 Read More