Attorney fees - If you prevail in court (Labor Code 1194)
Critical: Final Wage Deadlines
California has strict rules for final paychecks:
Fired/Laid Off: All wages due IMMEDIATELY at time of discharge
Quit with 72+ hrs notice: All wages due on your last day
Quit without notice: All wages due within 72 hours
Every day your employer is late triggers waiting time penalties!
Legal Basis
California Labor Code statutes supporting your wage claim
Key California Labor Code Sections
Labor Code 201
If you are discharged (fired, laid off), your employer must pay all wages due immediately at the time of discharge. No exceptions.
Labor Code 202
If you quit with at least 72 hours notice, wages are due on your last day. If you quit without notice, wages are due within 72 hours.
Labor Code 203
If an employer willfully fails to pay wages due upon termination, the employee's wages continue as a penalty for up to 30 days at the same daily rate. This is the "waiting time penalty."
Labor Code 226
Employers must provide accurate, itemized wage statements with each paycheck. Violations can result in penalties of $50 for the first violation and $100 per subsequent violation, up to $4,000.
Labor Code 510
Overtime rules: 1.5x pay for hours over 8/day or 40/week. 2x pay for hours over 12/day or over 8 on the 7th consecutive day worked.
Labor Code 1194
Employees can recover unpaid minimum wages or overtime, plus interest, plus reasonable attorney's fees and costs.
Labor Code 1194.2
Liquidated damages: For minimum wage violations, you can recover an additional amount equal to the unpaid wages plus interest (essentially double damages).
Elements to Prove
Employment relationship - You were an employee (not independent contractor)
Work performed - You actually worked the hours in question
Wages owed - The agreed rate times hours worked
Non-payment - Employer failed to pay when due
California Presumption
Under Labor Code 226(a), if your employer fails to keep accurate time records, courts presume the employee's testimony about hours worked is correct. Keep your own records!
Evidence Checklist
Documents to gather before sending your demand letter
Essential Documents
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Pay stubs - All available pay stubs showing hours worked, pay rate, and deductions
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Employment contract or offer letter - Document showing your agreed pay rate
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Time records - Timesheets, clock-in/out records, or personal time log
✓
Bank statements - Showing expected vs. actual direct deposits
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Written communications - Emails or texts discussing pay issues, promises to pay
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Termination documentation - Resignation letter, termination letter, or last day confirmation
Helpful Supporting Documents
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W-2 or 1099 forms - Tax documents showing reported wages
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Employee handbook - Company pay policies, pay periods, overtime rules
✓
Commission agreements - If claiming unpaid commissions
✓
PTO/vacation policy - Company policy on accrual and payout
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Coworker statements - If others experienced same pay issues
Pro Tip: Keep Your Own Records
If your employer doesn't provide accurate time records, keep a personal log with dates, start/end times, and tasks performed. Under California law, courts will accept your testimony about hours worked when employer records are inadequate or missing.
Calculating Your Damages
How to calculate the full amount you're owed under California law
Components of Your Claim
Category
How to Calculate
Unpaid Wages
Hours worked x hourly rate (or unpaid salary/commissions)
Unpaid Overtime
OT hours x (1.5x or 2x rate as applicable)
Waiting Time Penalty
Daily wage rate x days late (max 30 days)
Interest
10% per year on unpaid amounts (Civil Code 3289)
Liquidated Damages
Equal to unpaid minimum wages (if applicable)
Meal/Rest Break Premiums
1 hour of pay per violation
Waiting Time Penalty Calculator
Daily Rate Formula
If hourly: Hourly rate x hours per day = Daily rate
If salaried: Annual salary / 52 weeks / 5 days = Daily rate
Then: Daily rate x days late (max 30) = Waiting time penalty
Sample Calculation
Example: Final Paycheck 30+ Days Late
Unpaid final wages$2,400.00
Unpaid overtime (10 hrs x $37.50)$375.00
Waiting time penalty ($200/day x 30 days)$6,000.00
Interest (10% annual, 3 months)$69.38
Meal break violations (5 x $25/hr)$125.00
TOTAL DEMAND$8,969.38
The Power of Waiting Time Penalties
For a $25/hour employee working 8-hour days, the maximum waiting time penalty is:
$200/day x 30 days = $6,000
This penalty alone often exceeds the original unpaid wages, which is why employers usually settle quickly once they receive a proper demand letter.
Sample Language
Copy and customize these paragraphs for your demand letter
Opening Paragraph
I am writing to formally demand payment of wages owed to me for work performed during my employment with [COMPANY NAME]. As of [TODAY'S DATE], you have failed to pay me $[AMOUNT] in earned wages, in violation of California Labor Code.
Employment Background
I was employed by [COMPANY NAME] as a [JOB TITLE] from [START DATE] to [END DATE]. My agreed compensation was $[RATE] per [hour/week/month]. My employment ended on [LAST DAY] when I [was terminated / resigned].
Legal Basis - Waiting Time Penalties
Under California Labor Code Section 201, employers must pay all wages due immediately upon discharge. Under Labor Code Section 203, when an employer willfully fails to pay wages due upon termination, the employee's wages continue as a penalty for up to 30 days at the same daily rate. As of today, my wages are [NUMBER] days overdue, entitling me to $[DAILY RATE x DAYS, max 30] in waiting time penalties.
Damages Summary
My damages are calculated as follows:
Unpaid Wages: $[AMOUNT]
Unpaid Overtime: $[AMOUNT]
Waiting Time Penalties: $[AMOUNT]
Interest at 10%: $[AMOUNT]
TOTAL DEMAND: $[TOTAL]
Closing / Consequences
Payment must be received within 14 days of the date of this letter. If I do not receive full payment by this deadline, I will pursue all available legal remedies, including filing a wage claim with the California Labor Commissioner (DLSE), filing a lawsuit in civil court, and seeking recovery of the full amount owed plus penalties, interest, and attorney fees as provided by California Labor Code Sections 1194 and 203.
Next Steps
What to do after sending your demand letter
Expected Timeline
Day 1-3: Employer receives and reviews your letter
Day 3-7: Employer consults with payroll, HR, or attorney
Day 7-14: Response with payment or counteroffer
If They Pay
Make sure the payment includes:
All unpaid base wages
Any unpaid overtime
Waiting time penalties (if applicable)
Interest on all late amounts
Get payment via certified check or direct deposit. Keep records of everything.
If They Don't Pay or Dispute
File with the Labor Commissioner (DLSE)
Free process, no lawyer needed. DLSE investigates and can hold a hearing. Typical timeline: 6-12 months. File online at dir.ca.gov.
Small Claims Court
Fast and inexpensive ($30-75 filing fee). Limit is $12,500 for individuals. No lawyers allowed in court. Great for straightforward wage claims.
Civil Lawsuit (Superior Court)
For larger amounts or complex cases. Can recover attorney fees under Labor Code 1194. Many employment attorneys take wage cases on contingency.
Don't Wait Too Long
The statute of limitations for wage claims is 3 years from when the wages were due. For waiting time penalties, some courts apply shorter limits. Act promptly to preserve your rights.
Need Help With Your Wage Claim?
California employment attorneys often take wage cases on contingency (no fee unless you win) because Labor Code 1194 allows recovery of attorney fees from the employer. For complex cases involving misclassification, meal break violations, or class actions, legal representation can maximize your recovery.