California New Hire Paperwork Checklist (2026)

Most small business owners are good at what they do. The paperwork that comes with hiring someone is a different story.

California has more required new hire forms than almost any other state. When you bring on your next employee, you are legally required to provide at least 10 separate forms and notices on or before their first day of work. Miss one, and penalties start at $24 per violation. Some violations go much higher.

And as of 2026, California added a new one to the list.

This is the complete checklist. Print it, put it in a folder, and pull it out every time you hire someone.

The Two Federal Forms (Both Required)

Form I-9: Employment Eligibility Verification

Every employer in the United States must complete an I-9 for each new hire. The employee fills out Section 1 on their first day. You have three business days after the start date to review their identity and work authorization documents and complete Section 2.

Keep the completed I-9 in a separate file from the rest of the personnel record. Federal law requires you to retain it for at least three years from the hire date, or one year after termination, whichever is later.

We have a full guide to I-9 compliance for small businesses if you want to go deeper. ICE audits have increased significantly in 2025 and 2026, so it is worth getting this one right.

Form W-4: Employee's Withholding Certificate

The W-4 tells you how much federal income tax to withhold from each paycheck. The employee completes it on Day 1. You keep it on file for at least four years.

If an employee does not give you a W-4, withhold at the single filing status with no adjustments. That is the legal default, not a choice you make.

California-Specific Forms and Notices (Day One)

This is where most small businesses get tripped up. California requires you to hand employees a specific set of notices on or before their first day of work. Not within the first week. Day one.

California Form DE 4: Employee's Withholding Allowance Certificate

The DE 4 is the state equivalent of the W-4. It tells you how much California income tax to withhold. Some employees reference their federal W-4 for this, but California employees are supposed to complete a DE 4 separately.

If an employee does not submit a DE 4, you are required to withhold at the highest rate for their pay period. Most employees do not want that outcome. Have the form ready on Day 1 and ask them to fill it out.

Notice to Employee (Labor Code Section 2810.5)

This is one of the most important forms in California employment. It must include:

• The employee's pay rate and how it is calculated (hourly, salary, commission, piece rate)
• When the employee will be paid and how often
• The employer's legal name, address, and main phone number
• The name and address of your workers' compensation insurance carrier

If any of this information changes later, including a pay rate increase, you must give the employee an updated notice within seven days of the change. The California Labor Commissioner publishes the current template at dir.ca.gov. Download it and use it every time.

Workers' Compensation Notice

You must notify every new employee of their workers' compensation rights before they start working. The notice explains that they are covered if injured on the job and describes how to report a workplace injury.

If you designate a specific medical provider for initial injury treatment, you are required to disclose that provider in this notice. Your workers' compensation carrier typically provides a template you can fill out and use.

Paid Family Leave (PFL) Pamphlet

California's Employment Development Department publishes a pamphlet on Paid Family Leave, which covers time off to bond with a new child or care for a seriously ill family member. You are required to give it to every new hire.

This is not a cost to your business. It is funded through employee paycheck deductions and administered by the state. Download the current pamphlet from the EDD website rather than printing an old version you have lying around.

State Disability Insurance (SDI) Pamphlet

Same situation as PFL. The EDD publishes a separate SDI pamphlet explaining California's short-term disability program. Hand it to every new hire on Day 1 and keep a note in their file that you did so.

Healthy Workplaces, Healthy Families Act Notice

California requires you to notify employees of their sick leave rights under the Healthy Workplaces, Healthy Families Act. If you have not reviewed your sick leave policy recently, read the California paid sick leave guide first to make sure your policy is actually compliant before you hand out a notice about it.

ACA Marketplace Notice

Federal law requires most employers to give new employees a written notice about the Health Insurance Marketplace when they are hired. The notice explains that employees may be able to purchase coverage through Covered California.

This applies even if you do not offer health insurance. The Department of Labor has a model notice on their website. Customize the top section with your business name and contact information and add it to your packet.

The SB 294 "Know Your Rights" Notice: New in 2026

This is the newest addition to California's new hire requirements. As of February 1, 2026, Senate Bill 294 (the Workplace Know Your Rights Act) requires employers to give every new hire a separate, standalone written notice at the time of hire.

The SB 294 notice must cover four topics:

• Workers' compensation rights and how to report a workplace injury
• Protections against discrimination based on immigration status
• Rights under the National Labor Relations Act, including the right to organize and join a union
• Constitutional rights in the workplace

The California Labor Commissioner published the official model notice at dir.ca.gov. Use that template directly. Do not try to write your own version of this one.

On February 1, 2026, employers were also required to distribute this notice to all existing employees. Employers must then distribute it to all employees on an annual basis going forward. If you missed the initial distribution to your current team, send it now.

Within Three Business Days: Finishing the I-9

After Day 1, the clock is running on I-9 Section 2. You have three business days from the employee's first day of work to examine their identity and authorization documents in person and complete your portion of the form.

Acceptable documents are listed on the I-9 itself. Common combinations include a driver's license plus Social Security card, or a U.S. passport alone. You must examine the physical originals. Copies do not satisfy the requirement.

If the employee presents an employment authorization document with an expiration date, you will need to re-verify their status before it expires. Set a reminder before you file the form.

Within 20 Calendar Days: EDD New Employee Reporting

California requires you to report every new hire to the Employment Development Department within 20 calendar days of their first day of work.

You do this by filing Form DE 34 with the EDD. You can file online through the EDD e-Services for Business portal, by fax, or by mail.

What the form requires:

• Employee name, address, and Social Security number
• Employee's first day of work
• Your Federal Employer Identification Number and California employer account number

The penalty for not filing: $24 per employee. If the state finds evidence of a deliberate arrangement between you and the employee to avoid reporting, the penalty jumps to $490. The state uses this data to track child support orders and flag unemployment fraud.

The EDD's New Employee Registry page has the current form and filing instructions.

The Complete 2026 Checklist

Day One:

• Form I-9, Section 1 (employee completes with you present)
• Form W-4 (federal tax withholding)
• Form DE 4 (California state tax withholding)
• Notice to Employee (Labor Code 2810.5)
• Workers' Compensation Notice
• Paid Family Leave Pamphlet (from EDD)
• State Disability Insurance Pamphlet (from EDD)
• SB 294 Know Your Rights Notice (required as of 2026)
• Healthy Workplaces, Healthy Families Act Notice (sick leave)
• ACA Marketplace Notice

Within 3 Business Days of Start Date:

• I-9 Section 2 (document review and verification)

Within 20 Calendar Days of Start Date:

• Form DE 34 filed with EDD (New Employee Registry)

How to Stay Organized

Put everything in a physical new hire packet. Print one complete set of required notices and have the employee sign a one-page acknowledgment that they received and reviewed the packet. File the signed receipt page with their personnel records. You want a paper trail if anything ever comes up later.

Update your packet every January. California adds new employment requirements regularly. The SB 294 notice did not exist in 2025. Something else may be required in 2027. Set a calendar reminder at the start of each year to check for changes.

If your team is primarily Spanish-speaking, it is worth having Spanish-language versions of the notices available. Several of the required forms, including the I-9 and the SB 294 notice, are available in Spanish through the agencies that publish them.

If you plan to run a background check, do it before the first day, not after. The authorization and disclosure paperwork for background checks is separate from everything on this list, and California has specific rules about timing and consent. The guide to background checks for California small businesses covers what you need.

What Happens If You Skip Something

Probably nothing, most of the time. But if an employee ever files a wage claim, a complaint with the Labor Commissioner, or a lawsuit, missing required notices becomes part of the story. Attorneys in California routinely check for these deficiencies because violations can increase exposure under the Private Attorneys General Act (PAGA).

The I-9 carries the most serious immediate risk. If a federal audit finds missing or improperly completed I-9 forms, civil fines start at $272 per violation. The current enforcement environment makes this more relevant than it has been in years.

Take 30 minutes to get the packet right. It is a small investment that protects you in several directions at once.

This Is the End of the Process, Not the Beginning

The paperwork checklist assumes you already found and chose someone. That is the harder part.

If you are still working through the front end of hiring, start with the complete guide to hiring employees for your small business. Once you have a signed offer letter and a confirmed start date, pull this checklist out.

Tools like My Friendly Staff help with the early stages by handling applicant phone screening automatically, so you spend your time with candidates worth meeting rather than chasing down voicemails. The paperwork comes at the end of that process, after you have made your decision.

Once the forms are signed and filed, check out the guide to onboarding a new employee for what happens next. The forms get them legal. The onboarding gets them good.