Before An Employee Starts

Summary

English (Rev. 1/2011)

Text

STATE OF CALIFORNIA           Gavin Newsom, Governor  
DEPARTMENT OF INDUSTRIAL RELATIONS 
DIVISION OF LABOR STANDARDS ENFORCEMENT 
BEFORE THE FIRST EMPLOYEE STARTS WORK 
All California employers must meet the following requirements before an employee begins work: 
A CALIFORNIA EMPLOYER IDENTIFICATION NUMBER 
An employer who becomes subject to the employment tax laws, is required to register with the Employment 
Development Department (EDD) to obtain an identification number, which is the state equivalent of the federal 
identification number. 
(Unemployment Insurance Code § 1086)  This number can be obtained by filing a DE-1 
Registration Form with the EDD. Once an employer receives the identification number it will also receive 
information concerning all state required employment taxes and reporting requirements.  (Unemployment Insurance 
Code § 1089) 
Additional information can be obtained by writing to the Employment Development Department, Box 
826880, Sacramento, California 94280-0001 or by contacting the local Employment Tax District Office listed in the 
State Government section of the white pages of the telephone directory under Employment Development 
Department or through their website at 
www.edd.ca.gov. For information concerning the federal identification 
number contact the Internal Revenue Service at www.irs.gov or check the white pages of the telephone directory 
under Federal Government. 
WORKERS’ COMPENSATION INSURANCE COVERAGE 
All employers are required to have workers’ compensation insurance or receive state approval to self-insure 
the required benefits. There are significant criminal and 
civil penalties for employers that do not have workers’ 
compensation insurance or that are not authorized to be self-insured.  (Labor Code § 3700, et seq.) A large number 
of insurance companies offer plans for these benefits. In addition, the State Compensation Insurance Fund makes 
available such benefits to all employers. 
REQUIRED REGISTRATION, CERTIFICATION OR LICENSING FOR CERTAIN INDUSTRIES 
Certain businesses must be registered, certified or licensed prior to operating the business.  While there are 
several state agencies that license or register businesses, the Division of Labor Standards Enforcement provides 
licensing or registration for the following types of businesses: 
¾ Farm Labor Contractors 
¾ Garment Manufacturers 
¾ Talent Agents 
¾ Employers of Industrial Homeworkers 
¾ Sheltered Workshops 
¾ Studio Teachers 
¾ Car washes 
DLSE-2005-B-1 (rev. 1/2011)

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  STATE OF CALIFORNIA Gavin Newsom, Governor DEPARTMENT OF INDUSTRIAL RELATIONS DIVISION OF LABOR STANDARDS ENFORCEMENT BEFORE THE FIRST EMPLOYEE STARTS WORK All California employers must meet the following requirements before an employee begins work: A CALIFORNIA EMPLOYER IDENTIFICATION NUMBER An employ…

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  DLSE-2005-B-1 (rev. 1/2011)