Proposition 65 Exemptions: What Businesses Need to Know
This entry was posted on March 06, 2025
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Proposition 65 is a California law that requires businesses to warn people about exposure to chemicals linked to cancer, birth defects, or reproductive harm. But not every business or product falls under these rules. Some exemptions allow businesses to operate without providing warnings.
If you're wondering whether your business qualifies for an exemption—or how to stay compliant while avoiding unnecessary warnings—this breakdown will help.
Who Is Exempt from Proposition 65?
Not every business has to comply with Proposition 65. Here’s a look at who doesn't have to provide warnings:
1. Small Businesses (Fewer Than 10 Employees)
If your business has fewer than 10 employees, you're in the clear. You don't need to provide warnings or worry about Proposition 65-related lawsuits.
But there’s a catch—if you sell your products through a larger retailer, they might require you to comply anyway. Some big retailers prefer all suppliers to follow the law, even if they're exempt.


2. Government Agencies
If you’re part of a government agency or a public water system, Proposition 65 doesn’t apply. This includes local, state, and federal government operations.
3. Low-Level Exposures
Warnings aren’t needed if the exposure to a listed chemical is below California’s safe harbor levels. These are broken into two categories:
- No Significant Risk Levels (NSRLs): For chemicals that may cause cancer, but at levels too low to increase risk.
- Maximum Allowable Dose Levels (MADLs): For reproductive toxins at levels considered safe for human exposure.
If your product stays below these limits, no warning is required. However, proving this often requires testing and expert analysis.
4. Naturally Occurring Chemicals in Food
Some foods contain trace chemicals naturally, not from human processing. In these cases, a Proposition 65 warning may not be necessary—but businesses must prove the chemical levels are as low as possible.
How Do Businesses Know If They Need to Provide a Warning?
If you're unsure whether Proposition 65 applies to your business, ask these key questions:
- ✔ Do you have 10 or more employees?
- ✔ Are you selling in California?
- ✔ Do your products contain any chemicals on the Proposition 65 list?
- ✔ Is exposure above California’s safe levels?
If you answered yes to any of these, it’s worth reviewing your compliance strategy.


Why Small Businesses Should Still Pay Attention
Even if your business is exempt, retailers, online marketplaces, or industry partners may still require compliance. Some companies won’t stock or ship products unless they meet Proposition 65 labeling rules.
Example: If you sell a product through Amazon or a big-box retailer, they might ask for documentation showing compliance—even if you're under the employee limit.
Steps to Avoid Unnecessary Warnings
If you're unsure whether a warning is needed, take these steps:
- Check California’s Chemical List – Proposition 65 has over 900 chemicals listed. If your product contains any of them, determine the exposure risk.
- Consult an Expert – Legal or environmental specialists can analyze your product and ensure you're making the right call.
- Perform Testing – Lab testing can confirm whether your product stays below safe harbor levels.
- Stay Up to Date – The list of chemicals changes often. Keeping track of updates helps avoid surprise compliance issues.
Need Proposition 65 Labels?
If your business requires Prop 65 labels, we can help. Our custom warning labels are designed to meet California’s legal requirements while maintaining a professional look for your products. We offer durable, high-quality materials, fast turnaround times, and flexible order sizes—so you can stay compliant without hassle.
Check out our Prop 65 labels to get started today. If you have any questions, our team is ready to assist.
FAQs: Proposition 65 Exemptions
Do businesses with fewer than 10 employees need to follow Proposition 65?
No, businesses with fewer than 10 employees are exempt from Proposition 65 warning requirements and enforcement actions. However, if your products are sold through larger retailers or online marketplaces, they may still require compliance as part of their supplier policies. Even if you’re exempt, it’s a good idea to be aware of Proposition 65 regulations to avoid unexpected issues.
What if I sell products online to California?
If your products are accessible to California consumers, you may still need to comply with Proposition 65—even if your business is located outside the state. Online marketplaces like Amazon, Walmart, and eBay may require compliance for products that could be shipped to California. If your product contains any of the listed chemicals, it’s worth evaluating whether a warning label is necessary.
Are out-of-state manufacturers affected by Proposition 65?
Yes. Proposition 65 applies to any product sold in California, regardless of where the manufacturer is located. If your company is based outside the state but distributes products to retailers, wholesalers, or consumers in California, you could be subject to the same labeling requirements as in-state businesses. Conducting an exposure analysis and labeling accordingly can help you avoid potential legal challenges.
What happens if I don’t provide a required warning?
Failing to provide a Proposition 65 warning when required can result in legal action, often from private enforcers, consumer advocacy groups, or law firms specializing in compliance violations. Penalties can be significant, with fines reaching up to $2,500 per violation per day. Many businesses opt to add warnings proactively rather than risk a costly lawsuit. If you're unsure whether a warning is necessary, consulting a compliance expert or legal professional can help.
How do I prove my product is below safe levels?
To demonstrate compliance, businesses typically rely on third-party lab testing and scientific exposure assessments. California’s Office of Environmental Health Hazard Assessment (OEHHA) provides No Significant Risk Levels (NSRLs) and Maximum Allowable Dose Levels (MADLs) for many listed chemicals, which serve as benchmarks. If testing confirms that exposure levels fall below these thresholds, a warning label is not required. Keeping detailed records of test results can also help protect your business in case of enforcement actions.