Identifying Wage And Hour Violations In California

Wage and hour violations are a significant issue in California, with approximately 25 new lawsuits being filed each day. This alarming trend represents a staggering 500% increase in such legal actions over recent years, resulting in many businesses facing substantial penalties and the need for settlement agreements.

Employees in California are protected by some of the strongest wage and hour laws in the country. The California Labor Code and Wage Orders issued by the Industrial Welfare Commission (IWC) ensure that workers receive fair pay, overtime compensation, meal and rest breaks, and protection against wage theft. Unfortunately, many employers fail to comply with these laws, leaving employees underpaid or working in unlawful conditions.

Wage and hour violations can take many forms, from unpaid overtime and misclassification of employees to denied meal breaks and wage theft. Under California Labor Code Section 1194, et seq., employees have the right to recover unpaid wages, including interest and attorney’s fees, when an employer violates wage laws. Employees who recognize unlawful pay practices can take action to recover their lost wages and hold employers accountable.

Common Wage And Hour Violations In California

Failure To Pay Minimum Wage

California has a higher minimum wage than federal law requires. Under California Labor Code Section 1182.12, employers must pay at least the state-mandated minimum wage, which increases annually. Some cities, such as Los Angeles and San Francisco, have even higher local minimum wages.

Unpaid Overtime

Employees in California are entitled to overtime pay if they work more than:

8 hours in a single workday.
40 hours in a workweek.
6 consecutive days in a workweek.

Under California Labor Code Section 510, employees must receive 1.5 times their regular pay for overtime hours and double pay for any hours worked over 12 hours in a single day.

Misclassification Of Employees

Employers often misclassify workers as independent contractors to avoid paying wages, benefits, and overtime. Under California’s ABC Test (Labor Code Section 2775), a worker is only an independent contractor if:

They are free from the control and direction of the employer.
They perform work outside the usual course of the employer’s business.
They have an independently established business.

If a worker fails any part of this test, they must be classified as an employee and receive proper wages and benefits.

Meal And Rest Break Violations

Under California Labor Code Section 512, employees who work more than 5 hours in a shift must receive a 30-minute unpaid meal break. Employees working more than 10 hours must receive a second meal break.

Employees are also entitled to a paid 10-minute rest break for every 4 hours worked, or major fraction thereof. Employers who deny breaks or require employees to work through their breaks must compensate employees with additional pay.

Failure To Provide Accurate Wage Statements

California Labor Code Section 226 outlines specific requirements for wage statements (pay stubs) that employers must provide to employees. Here’s a bullet-point list of the key requirements:

Labor Code Section 226 Requirements

- Pay Stub Requirements: Employers must provide an itemized wage statement (pay stub) either semi-monthly or at the time of wage payment.
- Mandatory Information on Wage Statements:
  - Gross wages earned
  - Total hours worked (for non-exempt employees)
  - Number of piece-rate units earned and applicable rate (if paid on a piece-rate basis)
  - All deductions (must be itemized, except those legally required)
  - Net wages earned
  - Pay period dates (start and end dates of the pay period)
  - Employee’s name and the last four digits of their Social Security number (or employee ID number)
  - Employer’s legal name and address
  - All applicable hourly rates and the number of hours worked at each rate
- Electronic Wage Statements: Permissible only if employees have access to print and retain a copy.
- Copies of Wage Statements: Employers must keep copies of wage statements for at least three years.
- Access to Pay Records: Employees have the right to request copies of their wage statements, and employers must provide them within 21 days.
- Penalties for Non-Compliance:
  - $50 per initial violation, and $100 for subsequent violations, up to $4,000 per employee
  - Employees can recover actual damages or statutory penalties
  - Employers may face civil penalties of $250 per employee for initial violations and $1,000 per employee for subsequent violations under PAGA (Private Attorneys General Act)
- Right to Sue: Employees can file a lawsuit for damages and penalties if wage statements are inaccurate, incomplete, or missing.
- Additional Rules for Piece-Rate Employees:
Separate wage statement requirements apply, including total hours worked, applicable piece rates, and rest/recovery period pay

In summary, California law requires employers to provide detailed pay stubs under Labor Code Section 226. Key points to remember are that pay statements must include:

Gross wages earned.
Total hours worked.
Hourly rates and deductions.
Employer and employee information.

Failure to provide accurate wage statements can result in penalties and legal claims.

California Wage And Hour Dispute Frequently Asked Questions

What Should I Do If My Employer Refuses To Pay Me Overtime?

You have the right to file a claim with the California Division of Labor Standards Enforcement (DLSE) to recover unpaid wages. You may also be able to pursue a lawsuit against your employer for violations of California’s overtime laws.

Can My Employer Force Me To Work Through My Meal And Rest Breaks?

Unfortunately, for most employees, the answer is yes. However, under California Labor Code Section 512, employers must provide uninterrupted meal and rest breaks. If your employer denies these breaks, you are entitled to an additional hour of pay for each missed break.

What If My Employer Incorrectly Classifies Me As An Independent Contractor?

If you believe you have been misclassified, you may be able to file a claim under California Labor Code Section 2775. Misclassified employees may be entitled to unpaid wages, benefits, and penalties.

Under California Labor Code Section 2775, which is part of AB 5, an employee who has been misclassified as an independent contractor is entitled to several rights and remedies. Here’s what they may recover:

Entitlements for Misclassified Employees under Labor Code 2775

Unpaid Wages
- The difference between what they were paid as an independent contractor and what they should have received as an employee under minimum wage and overtime laws.
Overtime Compensation
- If the employee worked more than 8 hours in a day or 40 hours in a week, they are entitled to overtime pay (1.5x or 2x their regular rate, as applicable).
Reimbursement of Business Expenses (Labor Code § 2802)
- Employers must reimburse workers for job-related expenses, including:
  - Mileage and travel expenses
  - Work equipment (phones, computers, tools, etc.)
  - Uniforms or required materials
Meal and Rest Break Violations (Labor Code §§ 226.7 & 512)
- If denied proper meal and rest breaks, the employee is owed one additional hour of pay per violation.
Paid Sick Leave (Labor Code § 246)
- Employees must receive accrued paid sick leave, which is not available to independent contractors.
Workers’ Compensation Coverage (Labor Code § 3700)
- The employer must provide workers’ compensation benefits for injuries suffered on the job.
Unemployment Insurance (UI) Benefits (Unemployment Insurance Code § 1251)
- If terminated, the worker can apply for unemployment benefits, which independent contractors typically do not receive.
Paid Family Leave & State Disability Insurance (SDI)
- Misclassified employees may be entitled to state disability benefits and paid family leave.
Retirement & Health Benefits
- If the employer offers 401(k), pension plans, or health insurance, a reclassified employee may be entitled to retroactive contributions.
Civil Penalties & Liquidated Damages
- Penalties up to $25,000 per violation for willful misclassification (Labor Code § 226.8)
- Liquidated damages equal to unpaid wages for minimum wage violations

Attorney’s Fees & Court Costs

Employees who sue can recover attorney’s fees and legal expenses if they win the case.

How Do I Prove My Employer Committed Wage Theft?

Keep copies of your pay stubs, timesheets, emails, and any records that show your employer failed to pay you correctly. You may be able to:

File a claim with the California Labor Commissioner’s Office to recover lost wages.
File a wage and hour lawsuit
Seek a class action lawsuit if multiple employees are affected

Report violations to the Employment Development Department (EDD) or IRS

Can I Be Fired For Filing A Wage Claim?

Retaliation for filing a wage claim is illegal under California Labor Code Section 98.6. If your employer fires or retaliates against you, you may have a wrongful termination claim.

What Are The Penalties For Employers Who Violate Wage And Hour Laws?

Employers who fail to pay minimum wage, overtime, or deny rest breaks may face penalties under California Labor Code Sections 1194 and 226. Employees can recover back pay, penalties, and attorney’s fees.

Can I File A Lawsuit If I Was Not Given Accurate Wage Statements?

Probably. Under Labor Code Section 226, employees who receive inaccurate or incomplete pay stubs may be entitled to claim penalties.

Under California Labor Code Section 226, an employee can recover several monetary penalties if they sue their employer for providing incomplete or inaccurate wage statements. Here’s a breakdown of the potential financial recovery:

Monetary Penalties for Violations of Labor Code 226

Statutory Damages (Labor Code § 226(e))
- $50 for the initial violation
- $100 for each subsequent violation
- Up to a maximum of $4,000 per employee
Actual Damages
- If the employee suffers injury due to the employer’s failure to provide accurate wage statements, they can recover actual damages (e.g., financial losses due to incorrect pay calculations).
Waiting Time Penalties (Labor Code § 203) (if applicable)
- If an employer fails to pay all wages due upon termination, the employee may recover:
  - A full day’s wages for each day the wages are late, up to a maximum of 30 days.
Interest on Unpaid Wages
- 10% annual interest on unpaid wages, calculated from the date the wages were due.
Civil Penalties Under the Private Attorneys General Act (PAGA) (Labor Code § 2699)
- $250 per employee for an initial violation
- $1,000 per employee for each subsequent violation
- Split as follows:
  - 75% goes to the State of California
  - 25% goes to the affected employees
Reimbursement of Attorney’s Fees & Court Costs (Labor Code § 226(e))
- If the employee wins the lawsuit, the employer must cover the employee’s attorney fees and litigation costs.

Example of Potential Recovery for an Employee

If an employer repeatedly issues inaccurate wage statements over three years (e.g., missing hourly rates, overtime miscalculations), an affected employee could claim:

Statutory penalties: Up to $4,000
Waiting time penalties (if applicable): Up to 30 days of wages
Unpaid wages and overtime (varies)
PAGA penalties (if a class action or representative lawsuit is filed)
Attorney’s fees (which could be tens of thousands of dollars)

How Long Do I Have To File A Wage And Hour Claim In California?

Employees generally have three years from the date of the violation to file a claim for unpaid wages under California Labor Code Section 203. Other Labor Code sections may have significantly shorter statutes of limitation.

What If My Employer Makes Me Work Off The Clock?

Employers in California cannot require employees to work off the clock without pay. Under California Labor Code Section 1194, any work performed must be compensated at the employee’s regular or overtime rate. If your employer forces you to work before or after your shift without pay, you may be entitled to back wages and penalties.

Are Tipped Employees Entitled To The Full Minimum Wage In California?

Yes. Unlike federal law, California Labor Code Section 351 requires that all employees, including those who earn tips, receive the full state minimum wage. Employers cannot use tips to offset wages or pay a lower hourly rate. If your employer withholds your tips or fails to pay minimum wage, you may have a legal claim.

Key Points Under California Law (Labor Code § 351)

Employers must pay tipped employees at least the full state minimum wage per hour—tips cannot count toward meeting this wage requirement.
Employers cannot deduct or use tips to offset wages (unlike federal law, which allows tip credits in some states).
Employers cannot require employees to share tips with managers or owners—only with other employees who provide direct service (e.g., servers, bussers, bartenders).
Minimum wage as of 2024:
- $16.00 per hour statewide (some cities/counties have higher rates).
- Employers cannot pay less than this, even if employees receive substantial tips.

What If an Employer Violates This Law?

Employees may be able to recover:
- Unpaid wages (difference between what they were paid and the correct minimum wage).
- Liquidated damages (equal to the amount of unpaid wages).
- Interest on unpaid wages.
- Attorney’s fees and court costs.
- Penalties under California labor laws, including under Labor Code § 226.

Comparison to Federal Law

The Fair Labor Standards Act (FLSA) allows a “tip credit”, meaning employers can pay as little as $2.13 per hour as long as tips bring earnings up to the federal minimum wage.
California law does NOT allow tip credits, ensuring employees receive the full minimum wage before tips.

If you suspect an employer is violating this law, you may be able to file a wage claim with the California Labor Commissioner’s Office or sue for unpaid wages.

Can My Employer Deduct Money From My Paycheck For Mistakes Or Damages?

No. Under California Labor Code Section 2802, employers cannot make deductions from an employee’s wages for cash shortages, breakage, or business losses unless the employee acted dishonestly or willfully caused damage. If your employer has illegally deducted money from your paycheck, you may be able to recover those wages through a legal claim

Call Our California Wage And Hour Violation Attorney For A Free Consultation

If you believe your employer has violated wage and hour laws, you may be entitled to compensation for unpaid wages, penalties, and damages. At Law Office of Joseph Richards, P.C., we fight for employees who have been denied their lawful pay and workplace rights.

Contact our California wage and hour dispute attorney at Law Office of Joseph Richards, P.C. today by calling (888) 883-6588 to schedule a consultation. I represent workers throughout California, helping them recover lost wages and hold employers accountable.

Identifying Wage And Hour Violations In California