How Does an Employee Recover Unpaid Wages in California?

In California, employees are entitled to recover unpaid wages if they have not been fully compensated for their labor. However, because California boasts some of the nation’s strongest wage and hour laws, employers must understand their employees’ rights regarding unpaid wages.

Unpaid Wages in California: What Does It Mean?

Unpaid wages occur when an employer does not pay an employee the total amount required by California’s wage laws. This can include various types of wage violations, such as:

• Minimum Wage Violations: When employees are paid less than the state-mandated minimum wage, which is subject to change annually. 
• Overtime Wage Violations: Employers must pay employees one and a half times their regular rate for any hours worked beyond eight (8) hours per day or forty (40) hours per week. 
• Off-the-Clock Work: This occurs when employees perform work-related tasks outside of their official working hours without receiving compensation. 
• Misclassification of Employment Status: Some employers may incorrectly classify employees as independent contractors to avoid paying required wages, benefits, or overtime. This practice can significantly impact an employee’s earnings and entitlements. 
• Withholding Final Paychecks: When an employee resigns or is terminated, employers are obligated to issue a final paycheck promptly. Delays or failures to provide this payment can lead to unpaid wage claims. 
• Failure to Compensate for Meal/ Rest Breaks: Employees need to receive certain breaks during their shifts. If employers do not provide paid meal periods, off-duty rest breaks, or compensate employees for missed breaks, this can result in unpaid wages. 

The California Labor Code explicitly outlines what constitutes fair compensation, including stipulations for minimum wage, overtime, and required breaks. When employers violate these laws, employees can pursue legal remedies, including filing a complaint with the California Labor Commissioner or seeking damages through the court system with the assistance of a private attorney. 

How Do Employees Recover Unpaid Wages in California?

In California, employees may file a wage claim with the California Labor Commissioner’s Office to recover unpaid wages, also known as the Division of Labor Standards Enforcement (DLSE). The employee must submit a claim form, then the Labor Commissioner’s Office will investigate the matter. The DLSE will reach out to both the employee and the employer to gather additional information and facilitate a resolution – either through settlement or through a hearing. This process may involve a settlement conference, where both parties can discuss the situation and negotiate an agreement. If a settlement cannot be reached, the matter may proceed to a formal hearing. After the investigation or hearing, if it is determined that the employer owes the employees unpaid wages, the Labor Commissioner can issue an order requiring the employer to pay the owed amount. Appealing such decisions is extremely difficult, therefore employers should contact an experienced attorney immediately if they receive notice of a DLSE wage claim. 

Employees also have the option of pursuing their wage claim through the court system with the assistance of a private attorney. Such attorneys will often send a letter requesting copies of employment records and/or an initial, informal settlement demand. Employers who receive such correspondence should immediately contact an attorney to discuss their options. 

Contact Gould, Hahn, & Reinhardt To Learn More About Your Legal Options When Taking on an Unpaid Wage Complaint 

At Gould, Hahn, and Reinhardt, we recognize the distinct challenges of workforce management and are ready to support employers with their legal matters.  If you believe you may be facing an unpaid wage complaint in California, contact Gould, Hahn, & Reinhardt today to speak with an experienced California employment law lawyer about the legal options you have.