California is known for having strict business laws that can be confusing. It’s easy for businesses to make mistakes and end up in legal trouble. In this blog post, we’ll talk about common California law mistakes that can cause problems for businesses and how to avoid them.

  1. Not Following Pay and Break Rules

California has strict rules about pay, overtime, and breaks. Many businesses make mistakes here, leading to costly lawsuits and fines. To avoid this, businesses should learn about California’s pay and break rules and make sure they’re following them.

  1. Mislabeling Workers

California’s AB5 law makes it harder for businesses to call workers independent contractors. If businesses get this wrong, they can face big penalties and have to pay workers more. To avoid mislabeling workers, businesses should check that their workers are classified correctly under the “ABC test” in the law.

  1. Forgetting Permits and Licenses

California businesses need various permits and licenses to operate legally. Some businesses forget to get these, which can result in fines or being shut down. To avoid this, businesses should research what permits and licenses they need and make sure they have them.

  1. Not Handling Taxes Correctly

California businesses need to handle sales taxes, payroll taxes, and other taxes correctly. If they don’t, they can face penalties and interest. To avoid tax problems, businesses should learn about their tax obligations and make sure they’re doing things right.

  1. Ignoring Environmental Regulations

California has strict environmental regulations that businesses must follow. If businesses ignore these rules, they can face fines, lawsuits, and damage to their reputation. To avoid environmental problems, businesses should learn about the regulations that apply to them and make sure they’re following them.


California businesses can avoid legal trouble by staying informed about the laws that apply to them, asking for help when needed, and making sure they’re doing things correctly. It’s better to spend a little time and effort upfront than to face expensive problems later on.

Sanjay Sabarwal focuses his practice in the areas of Employment Law, Family Law and Personal Injury Law and provides outstanding service and expertise for your legal right to win cases with personalized attention and insightful counsel. Mr. Sabarwal has been the Co-Owner and House Counsel for Ziba Beauty, member of the American Bar Association, Los Angeles Bar Association, South Asian Bar Association and Orange County Bar Association. He also serves on the Advisory Board for Youth Business Alliance, which connects entrepreneurs to speak at underserved schools in Los Angeles County. He is also a board member for the Artesia Chamber of Commerce. Contact Sanjay at or (562) 250-4471.

Watch our YouTube Channel to stay updated on the latest laws here.

Follow us: | LinkedIn | Facebook | Twitter | Instagram | YouTube |