Small Business Exemption (10-Employee Threshold)

Proposition 65 applies only to businesses with 10 or more employees (Health & Safety Code §25249.11). Businesses with fewer than 10 employees are exempt from Proposition 65 warning requirements and the discharge prohibition. The number of employees is counted at the time of the alleged violation. For businesses near the 10-employee threshold, headcount includes full-time and part-time employees. Note: the small business exemption applies to the warning and discharge requirements but does not exempt small businesses from other California chemical regulations. Also, even exempt small businesses may face liability if their products are later resold by a covered business without compliant warnings.

California Health & Safety Code §25249.11 (10-employee exemption).

Small businesses at or below the 10-employee threshold should periodically reassess whether they have crossed the threshold, as growth can trigger Proposition 65 obligations. Additionally, even a small business that is itself exempt may be required to provide chemical information to their business customers (distributors, retailers) who do have Proposition 65 obligations and need supplier information to comply. Proactive chemical content disclosure is therefore advisable even for small businesses selling to larger covered businesses.