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California’s Workplace Know Your Rights Act (SB 294) has been in effect since January 1, but there’s one more milestone in the rollout most employers don’t know about. Tomorrow, July 1, the California Labor Commissioner is required to publish two educational videos — one for employees and one for employers — covering the rights and obligations under the law. Both will be posted at www.dir.ca.gov/dlse.
Employers are not required to distribute or screen these videos. The statute gives employers the option to share a link to or show the employee-facing video in addition to the mandatory written notice. That said, the employer-facing video is essentially a free compliance training from the state, and, once it’s live, it’s a practical resource that may be worth incorporating into manager training, onboarding, and your annual HR refreshers.
The July 1st date is a good prompt to confirm your organization has actually completed all three employer-side obligations:
• Did you distribute the standalone written notice to all current employees by February 1? The model notice is available in eleven languages at dir.ca.gov/dlse/Know-Your-Rights-Notice.
• Did you give all existing employees the opportunity to designate an emergency contact by March 30, and is that process built into new hire onboarding?
• Are you retaining records of compliance, including date and method of delivery, for at least three years?
years?
Penalties for non-compliance run up to $500 per employee for notice violations, and up to $10,000 per employee for emergency contact notification failures. Keep an eye out for the Labor Commissioner’s new videos. If your SB 294 compliance stalled after February, now is the time to close the gaps before a Labor Commission inquiry does it for you.
The Hedge | Brutal Honesty Over Hype Since 2008
The Hedge’s June series covered two seemingly separate topic areas — California business law and HOA governance — that intersect more often than most people realize. For California entrepreneurs who own their workspace, live in HOA communities, hold investment properties in HOA developments, or are building businesses that serve the HOA industry, the two bodies of law interact regularly and consequentially.
California’s AB5 and the remote work normalization created a large and growing population of California entrepreneurs and independent contractors who operate their businesses from HOA-governed homes. For this population, HOA restrictions on home-based businesses — CC&R provisions prohibiting commercial activity, signage, client visits, or employee parking — create a direct conflict between their business operations and their HOA obligations. Understanding which home-based business restrictions are enforceable (most are) versus which cross the line into unreasonably restricting lawful activity (some do) is practical knowledge for every entrepreneur who works from home.
California entrepreneurs who invest in real estate — a common wealth-building strategy for business owners who have generated capital — frequently encounter HOA restrictions that affect their investment strategy. Rental caps limit the ability to treat HOA properties as pure income investments. Short-term rental restrictions limit Airbnb strategies. Architectural restrictions limit renovation strategies. Reserve fund underfunding creates unexpected special assessment costs. The HOA compliance framework is not just residential — it’s a direct constraint on investment returns.
California imposes costs and constraints on entrepreneurs and property owners that no other state matches. The $800 franchise tax, PAGA, AB5, the CCPA, and 518 regulatory agencies are the business side. Davis-Stirling, assessment liens, HOA election requirements, and the reserve study mandate are the property side. Both sides reflect the same fundamental California policy orientation: comprehensive regulation with strong private enforcement rights and significant compliance costs. The entrepreneur who understands both sides — and makes deliberate decisions about where to operate, what to own, and how to structure their affairs within this framework — builds more durable wealth than one who encounters these systems as surprises. That’s the purpose of The Hedge. See you in July.
The Hedge has been cutting through financial and business noise since 2008. Brutal honesty over hype — always.
The Hedge | Brutal Honesty Over Hype Since 2008
June covered thirty topics across California business law and HOA governance — the broadest single month in The Hedge’s 2026 series. This closing post organizes the full month’s content for reference and connects the threads that ran through both topic areas.
Business climate update and regulatory calendar. PAGA reform — what SB 92 and AB 2288 actually changed. AB5 three years in — the 2026 contractor classification landscape. California LLC vs. S-corporation — the tax crossover analysis. Workers’ compensation costs — EMod, prevention, and cost management. California minimum wage trajectory — planning for 2026 and beyond. California employment law termination risks — documentation and the pre-termination checklist. Non-compete prohibition — SB 699 and its implications. CCPA/CPRA — coverage thresholds and enforcement landscape. Paid sick leave — the 2024 amendment to 5 days. Delaware corporation — who needs it and who doesn’t. Nevada vs. California for service businesses — the specific cost comparison. Phantom stock and equity compensation — the California tax framework. California franchise model — reading what Item 19 and Item 20 actually show. Commercial lease traps — personal guarantees, CAM caps, and the current market. Capital raising — Regulation D and California blue sky requirements. Business succession planning — the documents that can’t wait. Business sale structure — asset vs. stock, QSBS, and California’s non-conformity. SB 9 lot splitting — opportunities and HOA complications. The CTA beneficial ownership filing requirement. Mid-year compliance checklist.
Davis-Stirling overview. Assessment liens and pre-lien procedure. Special assessments and the 5% rule. Board authority and its limits. Reserve funds and percent funded. Rules enforcement due process. Meeting rights and notice requirements. Document access rights. Election procedures and secret ballot requirements. Architectural review — approval timelines and appeal rights. Solar and EV charging rights. Short-term rental restrictions. Disability accommodations. Pet restrictions and the assistance animal exception. Noise and nuisance enforcement. Manager relationships and delegable authority. Foreclosure restrictions and procedural defenses. Landscaping and tree disputes. Insurance — master policy gaps and individual coverage needs. Water conservation and drought-tolerant landscaping rights. Annual disclosure requirements. Board recall procedures. HOA litigation costs and settlement strategy. Rental restrictions and fair housing limits. Condominium vs. planned development differences.
The Hedge has been cutting through financial and business noise since 2008. Brutal honesty over hype — always.