In 2019, the State of California introduced a state-managed program that allows employees who work for companies that do not have a retirement savings plan to make contributions through payroll deductions towards their retirement. Since 2019, the state has gradually required larger employers over time to register with CalSavers. This year, employers with fewer than 5 employees must register with CalSavers no later than December 31, 2025. For employers that have a 401k or other qualified plan in place, they still must notify CalSavers through its website that they have such a plan in place.

For employers who don’t have a 401k or similar plan, upon registration with CalSavers, deductions will be taken out of employee’s paychecks unless they opt out. There is no cost for employers to register or for the employee deductions, which will occur automatically each pay period. Registering with CalSavers is a quick and simple process. Here is a link to the CalSavers website: https://www.calsavers.com/  

Penalties for failing to register are $250 per employee for the first instance of noncompliance and $500 for subsequent violations. 

If you have any questions about the requirements for registering with Cal savers, please contact our employment attorney scottliner@[email protected].

Have questions about CalSavers or your compliance requirements?
Contact Chase Law Group for help today

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310-545-7700

_{Please note that this article is for informational purposes only and should not be considered legal advice and does constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business and its practices.}