The number one area for all California employers should be the proper classification of their employees. Too often, employers don't know the guidelines for determining if an employee is exempt or non-exempt from overtime provisions.
You've probably seen the headlines - Wells Fargo recently settled for $12.8 million...IBM ponied up $65 million, and many small businesses have written large checks as well - all because they misclassified their employees.
This article is a good attempt and trying to simplify a very complicated issue. Get your labor attorney or HR consultant to review all of your job descriptions to avoid writing that big check.