There are a bunch of businesses in California right? There's about four million give or take a few hundred thousand. Eighty percent of those are considered small business, 1 employee to about 20 employees. So, how is California going to enforce mandatory audits against your business? They don't have to. The state of California has designed SB-1383 so it forces the jurisdictions to enforce the law.

Let's say a jurisdiction auditor shows up at your business. While checking the trash at an employees desk, they find a potato chip in the trash can. Hopefully, he's a nice guy and you won't get fined $50 to $500 for a single potato chip. Problem is, if he lets you slide and California State administrators find out, that jurisdiction is going to get fined $10,000 per day retroactively so if they don't get caught for 30 days, that three hundred thousand dollars.