Unpaid Wages in California And The Law

Introduction

California has some of the strongest labor laws in the United States, ensuring that workers are paid fairly and on time. Despite these protections, wage theft—when employers fail to pay employees what they are owed—is a common issue. Understanding your rights and the steps to recover unpaid wages is crucial for any worker experiencing this problem.

This guide provides a comprehensive overview of unpaid wages in California, including the laws that protect workers, common examples of wage violations, and the steps you can take to recover your earnings.

What Are Unpaid Wages?

Unpaid wages refer to any earnings owed to an employee that the employer has failed to pay. This can include:

Regular wages
Overtime pay
Commissions
Bonuses
Final paychecks after termination
Reimbursement for work-related expenses

Unpaid wages can occur intentionally or due to employer oversight. In either case, California law entitles employees to recover the full amount owed.

California Employment Law > Unpaid Wages

Common Examples of Unpaid Wages

Failure to Pay Overtime
- Not paying time-and-a-half for hours worked over eight in a day or 40 in a week.
- Failing to pay double time for hours worked over 12 in a day.
Misclassification of Employees
- Classifying workers as independent contractors or salaried employees to avoid paying overtime or benefits.
Final Paycheck Delays
- Not providing a final paycheck immediately upon termination or within 72 hours of resignation without notice.
Deductions Without Authorization
- Deducting wages for uniforms, equipment, or cash register shortages without the employee’s written consent.
Meal and Rest Break Violations
- Failing to provide required breaks or not compensating employees when breaks are missed.
Unpaid Commissions or Bonuses
- Withholding agreed-upon commissions or bonuses.

Steps to Recover Unpaid Wages

1. Review Your Records

Gather evidence to support your claim, such as:

Pay stubs
Timecards or schedules
Employment contracts or agreements
Emails or written communications with your employer

2. Calculate the Amount Owed

Determine how much your employer owes you by:

Reviewing your hourly rate or salary.
Calculating overtime or missed meal and rest break penalties.
Including unpaid commissions, bonuses, or reimbursements.

3. Report the Issue Internally

Raise the issue with your employer or HR department. Provide documentation to support your claim and request immediate payment. Use written communication to create a record of your complaint.

4. File a Claim with the California Labor Commissioner

If the issue is not resolved internally, file a wage claim with the California Division of Labor Standards Enforcement (DLSE):

Online Filing: Submit your claim through the Labor Commissioner’s website.
Required Documentation: Include evidence of unpaid wages, such as pay stubs or time records.
Investigation Process: The DLSE will review your claim, potentially holding a hearing to resolve the issue.

5. Consult an Employment Lawyer

If your claim is complex or involves significant unpaid wages, consult an experienced employment attorney. A lawyer can:

Advise you on the strength of your case.
Represent you in negotiations or legal proceedings.
File a lawsuit if necessary.

Remedies for Unpaid Wages

If your claim is successful, you may be entitled to:

Back Wages
- The full amount of unpaid wages owed to you.
Interest and Penalties
- Interest on unpaid wages and penalties for Labor Code violations.
Waiting Time Penalties
- Up to 30 days of additional wages if your employer willfully failed to provide your final paycheck.
Attorney’s Fees and Costs
- Reimbursement for legal expenses if you hire an attorney.
Reinstatement
- In cases of retaliation, reinstatement to your previous position.

Preventing Wage Theft in California

Employees can take proactive steps to avoid wage theft:

Keep Accurate Records: Track your hours worked, breaks taken, and wages received.
Understand Your Rights: Familiarize yourself with California labor laws and your employer’s obligations.
Address Issues Promptly: Report wage discrepancies to your employer or the Labor Commissioner as soon as possible.

Conclusion

Unpaid wages are a serious issue that can affect employees’ financial stability and well-being. California’s labor laws provide strong protections to ensure workers receive the wages they’re entitled to. If you believe your employer has failed to pay you fairly, understanding your rights and taking the appropriate steps can help you recover what you’re owed. For complex cases, seeking advice from a qualified employment attorney can make a significant difference in achieving a favorable outcome.

Notable Wage Theft Settlements and Verdicts in California

California has witnessed several significant settlements and verdicts addressing wage theft, underscoring the state’s commitment to protecting workers’ rights.

Notable cases include:

1. Adat Shalom Board and Care Inc. Settlement (2023): The California Labor Commissioner’s Office reached a $5.5 million settlement with Adat Shalom Board and Care Inc. to compensate 148 caregivers for unpaid wages and other labor violations. The first payment of $2 million was distributed to affected employees.

2. Wingstop Franchise Settlement (2024): The California Labor Commissioner’s Office secured a $1.7 million settlement for 550 workers employed by a Wingstop franchise in Bakersfield. The settlement addressed allegations that the owner created separate corporate entities to circumvent labor laws, resulting in wage theft.

3. Poultry Businesses Settlement (2023): A $1.47 million settlement was reached with three client employers and their owner over wage theft citations affecting more than 300 workers in Los Angeles-area poultry processing facilities. The violations included underpayment and failure to provide proper working conditions.

4. Garment Industry Settlement (2024): The U.S. Department of Labor recovered over $1 million in back wages and damages for 165 garment workers in Los Angeles after finding that a contractor denied them overtime wages and attempted to conceal the wage theft. This represents one of the largest settlements for California garment workers to date.

5. Cheesecake Factory Settlement (2023): California settled a major wage theft case with The Cheesecake Factory, resulting in a substantial financial recovery intended for affected workers. However, challenges have arisen in distributing the funds to all eligible employees, highlighting the complexities in addressing wage theft cases.

These cases highlight the ongoing efforts in California to combat wage theft and ensure fair compensation for workers across various industries.