How to Compliantly Run a “996” Work Culture in California

How to Compliantly Run a “996” Work Culture in California

The “996” work culture — asking employees to work from 9am to 9pm, 6 days a week — has become infamous in tech circles. Harry Stebbings of 20VC recently made some controversial statements about the trend stating "5-day weeks won’t build billion-dollar startups." He went on “In Europe we are fighting against companies being built in Silicon Valley, and speed and the ability to move fast, really determines success, in AI especially.” He added: “When you go to the Valley now, and when you go to China now, they are working seven days a week in the fastest-growing companies. It’s that simple. So, if you want to be a $10 billion company in Europe, competing against them, you can’t do it on a nine-to-five, Monday to Friday.

https://www.cnbc.com/2025/07/08/vc-behind-996-work-culture-debate-defends-7-day-work-weeks-.html

California has some of the most employee-protective labor laws in the United States. If you’re considering a demanding schedule for your team, it’s crucial to understand the legal, financial, and cultural risks involved.

So, can you legally implement a high-intensity schedule in California?

Short answer: Not without serious adjustments.

Here’s what you need to know, the policies you’ll need toe ven attempt something close to 996 without violating the law.

📋 The Big Legal Hurdles

1. Overtime Pay

In California:

  • Any hours worked over 8 in a day or 40 in a week must be paid at 1.5x the regular rate.
  • More than 12 hours in a day, or work on the 7th consecutive day, requires 2x pay.

So a 72-hour work week — as 996 demands — triggers a lot of overtime liability unless employees are properly classified as exempt.

2. Exempt vs. Non-Exempt

Not all salaried employees are exempt from overtime. To legally classify someone as exempt, you must ensure:

  • Their job duties fit specific legal definitions (executive, professional, administrative).
  • Their salary meets California’s minimum (at least $66,560/year in 2024).
  • Misclassification is a costly mistake - with fines, back pay, and potential lawsuits.

3. Meal & Rest Breaks

Non-exempt employees are entitled to:

  • A 30-minute unpaid meal break if working more than 5 hours.
  • A second meal break if working more than 10 hours.
  • A 10-minute paid rest break for every 4 hours worked.

Failure to provide these breaks comes with penalties of one additional hour of pay per violation, per day.

4. Day of Rest

California law entitles employees to one day of rest in seven.
If employees work all 7 days, it must be voluntary, and the employer still carries risk if this becomes the norm.

5. Wage & Hour Recordkeeping

Employers must maintain detailed daily records, including:

  • Start and end times
  • Meal and rest breaks
  • Overtime worked
       
  • Even for exempt employees, tracking work hours helps ensure health & safety compliance.

6.  Health & Safety Obligations

Pushing employees to work excessively can violate California’s health and safety standards (Cal/OSHA), which require employers to provide a safe, non-hazardous work environment — including avoiding overwork-related risks like fatigue.

7.  Mandatory Training

Employers with five or more employees must provide mandatory HR training, specifically harassment prevention training, to all employees. This training must be completed every two years. Supervisors receive two hours of training, while all other employees receive one hour. The training must cover preventing abusive conduct, harassment based on gender identity, gender expression, and sexual orientation. 

✨ Best Practices & Policies

If you want to build a high-output culture while staying compliant, you’ll need to put thoughtful policies in place:

Overtime Policy -clarifies pay and expectations for long hours.
Exempt/Non-Exempt Classification Guide - to avoid misclassification.
Meal & Rest Break Policy - with processes to track and enforce breaks.
Timekeeping Policy - accurate and transparent records.
Day of Rest Policy - clarifies voluntary vs. required work.
Health & Safety Guidelines - to monitor workload and prevent burnout.
Voluntary Extended Work Agreement - if employees willingly work long schedules.

Training - Ensure mandatory training is delivered and completed with written acknowledgement.

🚩 Why It Matters

California is known for its pro-employee laws, and violations are taken seriously by regulators, lawyers, and even juries. Beyond legal exposure, demanding extreme schedules without guardrails can hurt morale, retention, and your employer brand. It just takes one unhappy employee to talk to an employment lawyer and your business could come crashing down without the right protections in place.

🔑 Final Thoughts

High-output cultures can thrive in California but they must respect employees’ rights, pay fairly, and build in the proper safeguards. If you’re considering implementing longer schedules, invest in clear policies, transparent communication, and legal guidance.

It’s possible to drive performance and stay compliant— but 996, as it’s practiced elsewhere, doesn’t translate directly to California.

Reach out to In2America if you want help or advice on getting the balance right of an EVP that drives your business but stays on the right side of California employment law.

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