Your employer may owe you unpaid wages if your paycheck does not include every hour worked, the correct pay rate, overtime, earned commissions, required break compensation, or other employment-related payments. Warning signs include missing hours, unexplained deductions, unpaid work before or after a shift, an incorrect pay stub, or a late final paycheck.
California defines wages broadly as amounts earned for labor, whether compensation is calculated by time, task, piece rate, commission, or another method. Unpaid compensation can therefore involve more than a missing hourly paycheck.
Common forms of California wage theft include:
The California Labor Commissioner identifies each of these issues as a possible form of wage theft.
Compare each pay stub with your work schedule, personal time records and bank deposit. Check:
California wage statements generally must show gross wages, total hours for covered employees, deductions, net wages, pay-period dates and the applicable hourly rates. Missing or inaccurate information can reveal a larger payroll problem.
Employees may be owed wages for job duties performed before clocking in, after clocking out or during unpaid time. Examples include opening a workplace, completing closing duties, responding to work messages, preparing equipment, finishing paperwork or working through an automatically deducted meal period.
California requires payment for unauthorized overtime when an employer knew or should have known that the work was being performed, although an employer may separately enforce a lawful policy requiring advance approval.
Most nonexempt California employees must receive overtime after eight hours in a workday or 40 hours in a workweek. Double-time rules may apply after 12 hours in a workday, although exemptions and industry-specific rules can change the calculation.
Being paid a salary does not automatically make an employee exempt from overtime. The worker must meet the requirements of a valid exemption.
The overtime rate may also be too low if the employer excluded nondiscretionary bonuses, commissions, shift differentials or certain other compensation from the employee’s regular rate of pay. California’s overtime guidance states that the regular rate can include salary, piece-rate earnings and commissions.
Earned commissions are wages. Review your written commission plan, sales records and previous payments to determine whether the employer changed the formula, delayed payment or withheld commissions after a sale was completed.
California also identifies denied meal and rest breaks as potential wage violations. Depending on the applicable law and wage order, additional compensation may be owed when required breaks were not properly provided.
Required business costs can create another pay gap. Labor Code section 2802 generally requires employers to reimburse necessary expenditures incurred while performing job duties. Examples may include required mileage, phone use, equipment or supplies.
Review deductions for uniforms, damaged equipment, cash shortages, training expenses or other employer costs. Not every deduction is lawful simply because it appears on the pay stub or the employee signed a general payroll form.
Unauthorized deductions are among the wage-theft examples identified by the Labor Commissioner.
California employers generally must establish regular paydays and pay wages within the applicable payroll deadlines.
Final-pay rules depend on whether an employee was fired, resigned with advance notice or quit without notice. The related guide What Happens If Your Final Paycheck Is Late? should explain those deadlines and possible waiting-time penalties in detail.
Keep lawful copies of:
The Labor Commissioner recommends that employees track their hours and retain their pay stubs. Employers are responsible for accurate time records, but an employee’s own records can help explain the claim.
California workers may file a wage claim with the Labor Commissioner online, by email, by mail or in person. The agency may schedule a settlement conference and, if the dispute remains unresolved, a hearing.
Filing periods depend on the violation. The Labor Commissioner currently lists:
Different claims and court actions may follow different rules, so employees should not assume one deadline applies to every wage dispute.
California Labor Code section 1194 also permits qualifying employees to recover unpaid minimum wages or overtime, interest, reasonable attorney’s fees and costs through a civil action.
An unpaid wages lawyer for California workers can review the hours worked, pay rates, deductions, commissions and available payroll evidence. The Ghol Firm is an employment law firm in Beverly Hills serving California employees from its office at 9100 Wilshire Boulevard.
California Law prohibits employers from retaliating because an employee made a bona fide written or oral complaint that they were owed unpaid wages. Retaliation may include termination, demotion, reduced hours, threats or disciplinary action.
You may be owed unpaid wages when your pay records do not match the hours you worked, your agreed compensation or California wage requirements. Off-the-clock work, unpaid overtime, missing commissions, break violations, illegal deductions, unreimbursed expenses and late wages can all create recoverable pay gaps.
Compare your records pay period by pay period, preserve relevant evidence and act promptly because filing deadlines vary by claim.
Yes. Salary does not automatically eliminate overtime rights. A salaried employee may be owed overtime if they do not satisfy a valid exemption.
Incorrect employer records do not necessarily prevent a claim. Personal calendars, schedules, messages, pay stubs and witness information may help establish the hours worked.
Earned commissions generally qualify as wages. Whether a commission was earned depends on the agreement and the conditions attached to payment.
Yes. Former employees may pursue unpaid wages and other compensation owed by a previous employer.
The deadline depends on the claim. Many minimum-wage, overtime, break, deduction and reimbursement claims filed with the Labor Commissioner have a three-year filing period, while other claims may have shorter or longer periods.
If you reported illegal conduct and were fired, demoted, written up, suspended, or pressured to resign, contact The Ghol Firm for a free consultation. No fees unless we win.
