California Labor Code: The Penalties Employers Face for Wage Violations
California employers face a harsh and complex structure of laws and regulations when it comes to paying their employees, particularly industries that provide around-the-clock services. Should employers violate these rules, the California Labor Commissioner can issue citations and order the payment of back wages. This citation indicates a breach of labor laws related to employee compensation. The Labor Commissioner may also impose civil penalties. These penalties are incurred for each underpaid employee and are applicable for each pay period affected by the underpayment. As a result, if an employee experiences underpayment over multiple pay periods, the fines can considerably accumulate, highlighting the severity of the violation. This guide will examine these penalties in greater detail and emphasize other legal actions that may result from wage violations.
Penalties for Wage and Hour Violations
California Labor Code Section 558 imposes penalties on employers who violate wage and hour laws. The first violation results in a civil penalty of $50 per employee, per pay period, while each subsequent violation increases the penalty to $100 per employee, per pay period. These penalties are separate from back wages, which can sometimes far exceed the civil penalty amounts. Back wages represent the unpaid earnings owed due to the employer’s failure to adhere to wage and hour regulations. As a result, employers not only incur financial penalties under the California Labor Code but also must reimburse affected employees for their unpaid wages.
Penalty Assessments
In California, penalties for wage and hour violations can differ significantly depending on the specific nature and severity of each violation. The Labor Commissioner’s Office is responsible for assessing these penalties, which can arise from several issues. Common violations include minimum wage or overtime violations,wages, in which employees are not compensated for all hours worked, as well as failure to provide mandated meal and rest breaks.
Civil Lawsuits
Employees who believe their rights regarding pay and working hours have been infringed are not required to pursue their claim by way of the Labor Commissioner – they may also file an independent civil lawsuit in their local Superior Court. These suits may not only claim unpaid wages but also seek additional penalties against the employer, as well as attorney’s fees. If the violations are characterized as willful or intentional, employees may even pursue punitive damages intended to penalize the employer and discourage such misconduct in the future. This possibility of substantial financial liability highlights the critical need for employers to comply with labor laws and ensure their payroll practices are lawful to safeguard against legal consequences.
Class Action Lawsuits
Under certain circumstances, a single employee may serve as a representative plaintiff for a group, or class, of similarly situated employees, and thereby file a class action lawsuit against their employer. Like Labor Commissioner claims and individual civil lawsuits, class action cases often stem from issues like unpaid overtime, incorrectly classifying employees as exempt from overtime pay, or not providing required breaks. Class action lawsuits can significantly increase the financial and reputational risks for employers, as they may need to compensate not just the individuals involved but also a broader group of affected employees. This could lead to considerable back pay, penalties, and mounting legal fees. Moreover, the media coverage of such lawsuits can damage the employer’s reputation and impact employee morale, further affecting business operations.
Contact Gould, Hahn, & Reinhardt Today
In California, employers face a difficult environment marked by intricate laws and regulations. These are enforced by multiple state and federal entities, including the U.S. Department of Labor (DOL) and the California Department of Industrial Relations (DIR). Fortunately, the experienced employment law law attorneys at Gould, Hahn, & Reinhardt have extensive knowledge of these regulations and are prepared to assist you with wage claims or other employment-related concerns.
If you need more information about wage violations or would like to discuss your case with an experienced labor attorney, contact Gould, Hahn, & Reinhardt today to speak with our team.