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Wage Theft in California: What Every Worker Should Know

Wage theft is a pervasive issue in the labor market, and it has particularly serious impacts on workers in California. Wage theft refers to the illegal withholding of wages or the denial of benefits rightfully owed to an employee. 

Reports and studies have shown that workers in California lose hundreds of millions of dollars annually due to employer theft. These losses can take various forms, including:

  • Unpaid Overtime: Failing to pay employees the overtime rates legally required for work done beyond the standard 40-hour work week or as defined by state laws.
  • Minimum Wage Violations: Paying employees less than the legal minimum wage.
  • Unpaid Work: Expecting employees to work off the clock, either before or after their regular working hours, without compensation.
  • Misclassification of Employees: Wrongly classifying workers as independent contractors to avoid paying minimum wages and overtime or providing benefits that an employee is entitled to.
  • Illegal Deductions: Making unauthorized or illegal deductions from employee paychecks that are not permitted by law or have not been agreed upon by the employee.
  • Withholding Final Paychecks: Not paying employees their last paycheck after they leave a job.
  • Forcing Employees to Work Through Legally Required Breaks: Not providing or not compensating for required meal and rest breaks.

Wage theft can occur in any industry, but it is more prevalent in sectors with vulnerable workers, such as low-wage jobs, gig economy positions, and industries with a high number of immigrant workers. The impacts of this theft are significant, leading to financial hardship for affected workers and an unfair competitive advantage for unscrupulous employers. It’s a serious violation of labor laws and workers’ rights.

Legal Protections in California

California has robust laws to protect workers from wage theft. The state’s labor laws typically offer more protection than federal laws, including higher minimum wage rates and stricter overtime rules. Some of the strongest laws protecting your pay include:

Minimum Wage

As of 2024, California’s minimum wage is $16.00 per hour for all employees, and it’s set to increase annually moving forward. In addition, many municipalities and industries have higher minimums. For example, on April 1, 2024, the minimum wage for fast-food employees will rise to $20 per hour. If your employer fails to pay you the highest applicable minimum wage for time worked, it is committing theft. 

Overtime Pay

California requires overtime pay paid at 1.5 times the regular rate for hours worked over 8 per day or 40 per week and double time for hours worked over 12 per day. While the specific rules for overtime can be tweaked for recognized alternative schedules, failing to pay overtime to nonexempt workers is theft. 

Rest and Meal Breaks

California employers must provide both rest and meal breaks to employees. At least 10 minutes of a paid rest break must be provided for every 4 hours worked. Meanwhile, employers must provide at least one 30-minute unpaid meal break for every shift over 5 hours and a second meal break for shifts over 10 hours. If a worker has any responsibilities during their meal break, they must be paid for that time as well. Withholding appropriate breaks is another form of theft. 

What Can Workers Do?

Despite strong labor laws in California, enforcing these laws and recovering stolen wages can be challenging. The state’s labor enforcement agencies often face resource constraints, and the legal process can be lengthy and complex.

This problem is only made worse by the fact that many cases of wage theft go unreported. Workers may not report violations due to a lack of knowledge about their rights, language barriers, fear of losing their jobs, or fear of retaliation, especially among undocumented workers.

However, you have the right to hold your employer accountable for withholding the wages you’ve rightfully earned. Here’s how you can fight back against wage theft and receive the money you’re owed:

  • Understand Your Rights: The first step is to be informed about your rights as a worker. This includes understanding the minimum wage laws, overtime pay requirements, and other labor standards in your area. Furthermore, if you’re concerned about retaliation from your employer, know that California has laws protecting workers who file complaints or claims against their employers.
  • Keep Records: Maintain accurate records of all hours worked, including overtime, as well as any pay stubs or other relevant documentation. This will be crucial evidence if you need to file a claim.
  • Communicate with Your Employer: Sometimes, apparent theft can be a result of misunderstandings or errors. Discuss your concerns with your employer. Keep a record of these communications.
  • Seek Help: Consult with an employment attorney specializing in labor law. They can provide guidance on your situation and advise on the best course of action.
  • File a Wage Claim: If your employer does not resolve the issue, you can file a wage claim with the California Labor Commission. Your attorney will help you file a claim if necessary. 
  • Consider Legal Action: In some cases, it may be necessary to take legal action against your employer. This can be done individually or as part of a class-action lawsuit if there are multiple employees affected.

Remember, the specific steps and resources available may vary depending on your circumstances and the nature of the wage theft. It’s important to seek advice tailored to your particular situation. An experienced employment 

Experienced Help for Los Angeles and California Wage Theft

Wage theft is a serious issue in California. Workers like you should stay informed, keep meticulous records, and seek assistance if they encounter wage theft. Remember, knowledge is your first line of defense in protecting your hard-earned wages.

If you believe you’re suffering from stolen wages, you can hold your employer accountable with help from the experienced employment law attorneys at the Law Offices of Todd M. Friedman, P.C. Our professional team is available to help you hold your employer accountable for violating your workplace rights. Learn more about how we can help you fight for the pay you’ve earned by scheduling your consultation today. 

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