California and federal employment laws require companies of any size to follow certain rules and regulations. Many of the labor laws are designed to protect employee rights. The employment laws don't have to be a negative influence in your business decisions. However, the biggest thing you can do as a business owner is to ensure your supervisors understand what they can and cannot do. I highly recommend that every company has a well-written Employee Handbook because it's helpful in letting both supervisors and employees understand what labor laws affect your company and how they are to be handled. If your Employee Handbook includes the information I recommend for my clients and if the Handbook procedures and processes are followed, you will be complying with employment laws and going a long way toward protecting your company.