California Unpaid Wages and Overtime Demand Letters

How to Recover Unpaid Wages, Overtime, and Penalties Under California Labor Law

📩 Received an Unpaid Wages Demand Letter? If you're an employer who received a wage demand, see my guide on How to Respond to Unpaid Wages Demand Letters →

California Wage and Hour Laws: The Strongest Worker Protections in the Nation

California provides some of the most robust wage and hour protections for workers in the United States. If your employer has failed to pay you properly, California law not only entitles you to recover the unpaid wages but also provides for substantial penalties and attorney's fees that make it economically viable to pursue even relatively small claims.

Key Advantage: California's wage laws include automatic penalties (waiting time penalties, meal/rest break premiums) and mandatory attorney's fees for prevailing employees. This means employers face significant exposure for wage violations, creating strong settlement pressure.

Core California wage and hour protections:

Minimum wage: California state minimum wage (currently higher than federal), plus even higher local minimum wages in cities like San Francisco, Los Angeles, and others
Daily overtime: 1.5× regular rate for hours over 8 in a day; 2× regular rate for hours over 12 in a day
Weekly overtime: 1.5× regular rate for hours over 40 in a workweek (in addition to daily overtime)
Seventh-day overtime: 1.5× for first 8 hours on seventh consecutive workday; 2× for hours over 8 on seventh day
Meal and rest breaks: 30-minute meal break for shifts over 5 hours; 10-minute rest break for every 4 hours worked; one hour of pay as premium for each missed break
Waiting time penalties: If employer willfully fails to pay all wages due at termination, employee gets one day of pay as penalty for each day wages remain unpaid (up to 30 days)
Accurate wage statements: Itemized statements required showing hours, rates, deductions, and dates
Private Attorneys General Act (PAGA): Employees can bring representative actions for Labor Code violations and collect penalties

California Minimum Wage and Local Ordinances

California's statewide minimum wage is higher than the federal minimum and increases annually. Additionally, many cities and counties have enacted even higher local minimum wages that apply to employers operating in those jurisdictions.

Jurisdiction	Minimum Wage (2024-2025)	Notes
California Statewide	$16.00/hour (effective 1/1/2024)	Applies to all employers regardless of size. Scheduled to increase annually based on inflation.
San Francisco	$18.07/hour (effective 7/1/2024)	Applies to all work performed in SF. Adjusted annually for inflation.
Los Angeles City	$16.78/hour (effective 7/1/2024)	Applies to work performed within city limits.
Berkeley	$18.07/hour (effective 7/1/2024)	Tied to regional CPI adjustments.
Oakland	$16.50/hour (effective 1/1/2024)	Annual increases based on CPI.
San Diego	$16.85/hour (effective 1/1/2024)	Applies to work performed in city.

Check Your Local Minimum Wage: If you work in California, check both the state minimum wage and any local minimum wage that applies to your work location. Your employer must pay the highest applicable minimum wage. If they're paying less, you have a claim for unpaid wages.

California Overtime Rules: Daily and Weekly

California's overtime laws are among the most pro-worker in the nation. Unlike federal law (which only requires overtime for hours over 40 per week), California requires daily overtime and has special rules for long shifts and seventh-day work.

Daily Overtime (1.5×)

Trigger: More than 8 hours in a workday

Rate: 1.5 times your regular rate of pay

Example: You work 10 hours in a day at $20/hour. You're owed $20/hour for the first 8 hours ($160) plus $30/hour for the 2 overtime hours ($60) = $220 total.

Daily Double Time (2×)

Trigger: More than 12 hours in a workday

Rate: 2 times your regular rate of pay

Example: You work 14 hours at $20/hour. First 8 hours at $20 ($160), next 4 hours at $30 ($120), last 2 hours at $40 ($80) = $360 total.

Weekly Overtime (1.5×)

Trigger: More than 40 hours in a workweek

Rate: 1.5 times regular rate (no pyramiding with daily OT)

Note: You don't get double-paid for hours that already qualify for daily overtime. The weekly overtime captures hours 1-8 each day that exceed 40 in the week.

Seventh-Day Overtime

Trigger: Working 7 consecutive days in a workweek

Rate: 1.5× for first 8 hours on seventh day; 2× for hours over 8 on seventh day

Note: This applies even if you didn't hit 40 hours for the week.

Regular Rate Calculation: Your "regular rate" includes your hourly wage plus any nondiscretionary bonuses, shift differentials, and commissions, divided by total hours worked. Many employers incorrectly calculate overtime by using only the base hourly rate, which underpays overtime premiums.

Meal and Rest Break Requirements and Premiums

California Labor Code §§ 226.7 and 512 require employers to provide meal and rest breaks. If the employer fails to provide these breaks, the employee is entitled to one additional hour of pay at their regular rate for each day a break was missed.

Meal break requirements:

First meal break: 30 minutes, uninterrupted and duty-free, for shifts over 5 hours
Second meal break: 30 minutes for shifts over 10 hours
Timing: First meal break must start before the end of the 5th hour; second must start before the end of the 10th hour
Waiver: Employee can waive first meal break if shift is 6 hours or less; can waive second if shift is 12 hours or less and first was not waived

Rest break requirements:

Frequency: 10-minute rest break for every 4 hours worked (or major fraction thereof)
Paid: Rest breaks must be paid (employer cannot require clocking out)
Timing: Should be in the middle of each work period to the extent practicable

Premium for missed breaks:

If your employer:

Doesn't provide a meal or rest break
Provides a break that's too short
Requires you to work through your break or remain on-call
Doesn't allow a break to start on time

You are entitled to one hour of pay at your regular rate for that day. This is in addition to the wages you were already paid for working through the break.

Example Calculation: You work 5 days per week at $25/hour. Your employer never provides meal breaks. You are owed an additional 5 hours of pay per week ($125/week) for missed meal breaks. Over a year, this is $6,500 in meal break premiums alone. These penalties add up quickly and create significant settlement pressure on employers.

Waiting Time Penalties: Labor Code § 203

If you were terminated (fired or quit) and your employer did not pay all wages due at the time of separation, California Labor Code § 203 imposes a penalty of one day's wages for each day the wages remain unpaid, up to a maximum of 30 days.

When waiting time penalties apply:

Termination: Employee was fired—wages must be paid immediately
Resignation with notice: Employee gave at least 72 hours notice—wages must be paid on last day of work
Resignation without notice: Wages must be paid within 72 hours of resignation
"Willful" failure to pay: Employer intentionally or knowingly failed to pay all wages due (not just an innocent mistake)

What counts as "wages due":

Unpaid regular wages for hours worked
Unpaid overtime
Accrued vacation time (California treats vacation as earned wages that must be paid out at termination)
Unpaid commissions for work performed before termination
Unpaid bonuses that were already earned

Massive Penalty Example: You were paid $25/hour and worked 8-hour days. You were fired and employer didn't pay your final paycheck for 30 days. Your daily wage is $200 (8 hours × $25). Waiting time penalty: $200/day × 30 days = $6,000 penalty. This is IN ADDITION to the unpaid wages themselves. Employers fear waiting time penalties because they can quickly exceed the underlying wage claim.

How to trigger waiting time penalties:

Document the date and manner of your termination
Calculate all wages that should have been paid (including unused vacation)
If employer doesn't pay within the statutory deadline, waiting time penalties begin accruing automatically
Penalties continue until paid, up to 30 days maximum

Wage Statement Requirements: Labor Code § 226

California employers must provide itemized wage statements (pay stubs) showing specific information. Failure to provide accurate wage statements triggers penalties of $50 for the first violation and $100 for each subsequent violation, up to $4,000 per employee.

Required information on wage statements:

Gross wages earned
Total hours worked (for non-exempt employees)
Number of piece-rate units earned and applicable rates (if applicable)
All deductions (must be itemized)
Net wages earned
Inclusive dates of the pay period
Employee's name and last four digits of SSN or employee ID
Name and address of employer
All applicable hourly rates and corresponding hours worked at each rate

Common Wage Statement Violations: Employers frequently fail to show all hours worked, don't break out regular vs overtime hours, don't show meal/rest break premiums, or don't itemize deductions. Each pay period with a deficient wage statement can trigger the statutory penalty. If you've been underpaid and your wage statements are also deficient, the penalties significantly increase your leverage.

How to Calculate What Your Employer Owes You

Before sending a demand letter, you need to calculate how much your employer owes you. This requires gathering your records, reconstructing your hours worked, and applying California's wage and overtime rules. The more precise your calculation, the more credible your demand will be.

Gather Your Records First: Collect all pay stubs, time cards, schedules, text messages, emails about hours worked, and any records you kept personally. You'll need these to prove your hours and calculate what you're owed. California Labor Code § 1198.5 gives you the right to inspect and copy your personnel file and payroll records—use this right if you don't have complete records.

Step-by-step calculation process:

Determine Your Employment Status: Are you non-exempt (entitled to overtime) or exempt (not entitled to overtime)? Many employees are misclassified as exempt when they don't meet the legal requirements.
Calculate Your Regular Rate: This is your hourly rate plus any nondiscretionary bonuses, commissions, and shift differentials, divided by total hours. This is the base for calculating overtime premiums.
Reconstruct Your Hours: For each pay period in question, determine: (a) total hours worked each day, (b) whether you received meal/rest breaks, (c) total hours for the week.
Calculate Unpaid Overtime: Apply California's daily OT rules (over 8 hours = 1.5×; over 12 hours = 2×), weekly OT rules (over 40 = 1.5×), and seventh-day rules.
Calculate Meal/Rest Break Premiums: One hour of pay for each day a meal or rest break was missed or noncompliant.
Calculate Waiting Time Penalties: If you were terminated and wages weren't paid timely, calculate daily wage × days unpaid (max 30).

Exempt vs Non-Exempt: Are You Actually Owed Overtime?

Many California employers misclassify employees as "exempt" from overtime to avoid paying time-and-a-half. Just because you're paid a salary or have a "manager" title doesn't mean you're exempt. California has strict requirements for exemptions.

Requirements for exempt status in California:

Exemption Type	Duties Test	Salary Threshold (2024)
Executive Exemption	Manages enterprise or department; supervises 2+ employees; has authority to hire/fire or make recommendations given particular weight	$66,560/year ($5,546.67/month) for employers with 26+ employees
Administrative Exemption	Performs office/non-manual work directly related to management/business operations; exercises discretion and independent judgment on significant matters	$66,560/year ($5,546.67/month) for employers with 26+ employees
Professional Exemption	Work requiring advanced knowledge in a field of science or learning; customarily acquired by prolonged specialized instruction (lawyers, doctors, engineers, etc.)	$66,560/year ($5,546.67/month) for employers with 26+ employees
Computer Professional	Systems analyst, programmer, software engineer duties; creates or modifies computer systems/programs	$112,065.20/year ($9,338.77/month) OR $53.80/hour (if paid hourly)

Key Point: ALL THREE requirements must be met: (1) duties test, (2) salary basis (not hourly), and (3) minimum salary threshold. If any one fails, you're non-exempt and entitled to overtime. Common misclassification: giving someone a "manager" title and paying them $50,000/year, but they spend most of their time doing the same work as hourly employees. This does not meet the duties test, so they're entitled to overtime.

Red flags that you're misclassified:

You have a manager title but don't actually supervise anyone or have hiring/firing authority
You're paid a salary but it's below the legal threshold
Your actual job duties are the same as hourly workers (retail sales, customer service, manual labor)
You don't exercise discretion or independent judgment—you follow specific procedures or scripts
Your "salary" gets reduced if you miss time (true salary can't be docked for partial-day absences)

Calculating Your Regular Rate for Overtime

Your overtime rate is based on your "regular rate," which is NOT necessarily your base hourly rate. California law requires including certain forms of compensation in the regular rate calculation, which increases your overtime premium.

What gets included in regular rate:

Base hourly wage: Your stated hourly rate
Nondiscretionary bonuses: Production bonuses, attendance bonuses, sales commissions based on formula
Shift differentials: Extra pay for night shift, weekend shift, etc.
Piece-rate or commission: If paid per unit or commission, this must be factored into regular rate

What does NOT get included:

Discretionary bonuses (employer decides amount and criteria)
Gifts and special occasion bonuses
Reimbursement for expenses
Premium pay for hours outside regular schedule (if employer designates specific premiums as excludable)

Regular Rate Calculation Example

Scenario: You work 50 hours in a week at $20/hour base rate. You also earned a $200 production bonus that week.

Incorrect calculation (what employer might do):

40 hours at $20 = $800
10 OT hours at $30 (1.5 × $20) = $300
Plus $200 bonus = $1,300 total

Correct calculation:

Regular rate = ($1,000 base + $200 bonus) / 50 hours = $24/hour
First 40 hours at $24 = $960
10 OT hours at $36 (1.5 × $24) = $360
Total owed: $1,320
Underpayment: $20

This may seem small, but multiply by 52 weeks and add waiting time penalties, and it becomes significant.

Reconstructing Your Hours: Common Off-the-Clock Work

Many California employers require or permit employees to work off-the-clock—before clocking in, after clocking out, through meal breaks, or from home. All time that the employer "suffered or permitted" you to work must be compensated, even if you weren't explicitly told to clock in.

Common types of unpaid off-the-clock work:

Type of Work	Is It Compensable?	How to Document
Pre-shift work	YES - Setting up equipment, booting computers, putting on required uniforms, safety checks	Note arrival time vs clock-in time; describe tasks performed before clocking in
Post-shift work	YES - Closing procedures, cleaning, securing premises, completing paperwork	Note clock-out time vs actual departure; describe tasks after clocking out
Working through meal breaks	YES - If you worked through break or were interrupted/on-call, you're entitled to pay for the time PLUS one hour premium for missed break	Note days when you ate at your desk, answered calls/emails during break, or were interrupted by manager
Off-site work	YES - Answering work emails/calls from home, preparing reports at home, attending off-site meetings	Check sent emails, call logs, text messages showing after-hours work
Travel time	MAYBE - Travel from home to work is not compensable; travel between job sites during the day IS compensable	Note any required travel to multiple locations, off-site meetings, or errands for employer during work hours
Mandatory meetings/training	YES - If employer requires attendance, it's compensable time even if outside normal schedule	Calendar invites, meeting notices, training attendance records
Auto-deducted meal breaks	YES (if you worked) - If time system automatically deducts 30 min for meal but you worked through it, you're owed that time plus premium	Compare time records to actual practice; note pattern of working through "breaks"

Employer Defenses: Employers often claim they "didn't know" you were working off the clock or that such work wasn't "authorized." In California, this is not a defense. If the employer knew or should have known you were working (which includes turning a blind eye to obvious off-the-clock work), they must pay you. Document your hours contemporaneously and save any evidence that management knew about the extra work.

Sample Wage Calculation Worksheet

Use this format to organize your wage claim. Create a table like this for each pay period where you were underpaid:

Example: One Week's Underpayment

Pay Period: March 3-9, 2024

Employee: Jane Doe, Shift Manager

Base Rate: $22/hour

Hours Worked (Actual vs Paid):

Date	Hours Worked	Hours Paid	Meal Break Provided?
Mon 3/3	9 hours	8 hours	No
Tue 3/4	10 hours	8 hours	No
Wed 3/5	9 hours	8 hours	No
Thu 3/6	10 hours	8 hours	No
Fri 3/7	9 hours	8 hours	No
TOTAL	47 hours	40 hours	0/5 provided

What You're Owed:

Unpaid regular hours: 7 hours × $22 = $154
Unpaid daily overtime: 7 hours × $11 (half-time premium) = $77
Meal break premiums: 5 days × $22 = $110
Total owed for this week: $341

Multiply this by the number of weeks you worked under these conditions to get your total claim.

Building Your California Wage Demand Letter

A California wage and overtime demand letter should be detailed, well-organized, and grounded in specific Labor Code sections. Your goal is to show the employer (and their attorney/HR) that you have a strong, well-documented claim and that fighting it will cost them more in penalties and attorney's fees than settling.

Core structure of your demand letter:

Opening and Identification: Your name, position, dates of employment, and a clear statement that you are demanding payment of unpaid wages under California Labor Code.
Employment Details: Job title, duties, pay structure (hourly/salary), actual pay rate, and whether you were classified as exempt or non-exempt.
Legal Violations: Cite specific Labor Code sections violated (unpaid OT, missed breaks, minimum wage, waiting time, etc.). Explain briefly why each violation applies to your situation.
Detailed Calculation: Provide a clear breakdown of what you're owed: unpaid wages, overtime premiums, meal/rest break premiums, waiting time penalties. Use tables or spreadsheets.
Total Demand: State the total amount owed, plus a statement that you reserve the right to seek additional penalties, interest, and attorney's fees if litigation is necessary.
Deadline and Next Steps: Give the employer 15-30 days to respond and pay. State that if they don't respond, you will file a DLSE claim or lawsuit (or both).

Tone: Be professional but firm. You're not asking for a favor—you're demanding wages that are legally owed. Avoid emotional language or personal attacks. Stick to facts, numbers, and legal citations. This signals that you understand your rights and are prepared to enforce them.

Essential Elements to Include

Your demand letter must include specific information to be effective. Missing key details will weaken your claim and invite the employer to dispute your calculations.

Your full name and contact information
Employer's legal name and address (send to registered agent or HR department)
Your job title and employment dates (start date, end date if terminated)
Your pay rate and pay frequency (hourly/salary, weekly/biweekly)
Specific pay periods or dates where underpayment occurred
Nature of violations with Labor Code citations (e.g., "Employer violated Labor Code § 510 by failing to pay daily overtime for hours over 8 per day")
Calculation of damages (show your math in a clear table)
Supporting documentation (attach pay stubs, time records, schedules, emails)
Statement of good faith (you attempted to resolve this directly or you're providing notice before filing with DLSE/court)
Deadline for response (typically 15-30 days)
Warning of additional exposure (mention PAGA, attorney's fees, additional penalties if litigation ensues)

Documentation is Critical: Attach copies of pay stubs, time records, schedules, and any correspondence showing your hours or pay issues. The more documentation you provide upfront, the harder it is for the employer to dispute your claim. If you don't have all records, state that you've requested them under Labor Code § 1198.5 and will supplement once received.

Sample Demand Letter Language

Sample Opening Paragraphs

[Your Name]
[Your Address]
[Your Phone]
[Your Email]

[Date]

[Employer Name]
[HR Director or Owner Name]
[Employer Address]

Re: Demand for Payment of Unpaid Wages and Penalties Under California Labor Code

Dear [HR Director/Owner]:

I am writing to demand immediate payment of unpaid wages, overtime premiums, meal and rest break premiums, and statutory penalties owed to me as a result of violations of the California Labor Code during my employment with [Employer Name]. I was employed as a [Job Title] from [Start Date] to [End Date/Present], and was paid [$ per hour/salary amount] during this period.

Despite working [X] hours per week, including regular hours in excess of 8 per day and 40 per week, I was not paid overtime as required by California Labor Code § 510. Additionally, I was not provided compliant meal and rest breaks as required by Labor Code §§ 226.7 and 512, and I did not receive the required one-hour premium for each day these breaks were denied. [If applicable: I was terminated on [date] and did not receive my final paycheck until [date], triggering waiting time penalties under Labor Code § 203.]

This letter constitutes formal demand for payment of all wages and penalties owed to me under California law. Failure to pay within [15/30] days will result in my filing a claim with the California Division of Labor Standards Enforcement (DLSE) and/or filing a civil lawsuit seeking not only the unpaid wages and statutory penalties described below, but also attorney's fees and costs as authorized by California Labor Code § 1194 and § 218.5.

Sample Calculation Section

CALCULATION OF WAGES AND PENALTIES OWED

1. Unpaid Overtime (Labor Code § 510)

During my employment, I regularly worked in excess of 8 hours per day and 40 hours per week, but was paid only my regular rate for all hours worked. Based on my time records and reconstructed hours (attached as Exhibit A), I am owed the following daily and weekly overtime premiums:

Pay Period 1/1/23 - 1/15/23: 15 hours OT @ $11/hour (half-time) = $165
Pay Period 1/16/23 - 1/31/23: 18 hours OT @ $11/hour = $198
[Continue for all relevant pay periods]
Total Unpaid Overtime: $8,450

2. Meal and Rest Break Premiums (Labor Code §§ 226.7, 512)

I was not provided compliant 30-minute meal breaks or 10-minute rest breaks during my employment. I am entitled to one hour of pay at my regular rate for each day a meal or rest break was not provided:

Missed meal breaks: 120 workdays × $22/hour = $2,640
Missed rest breaks: 120 workdays × $22/hour = $2,640
Total Meal/Rest Break Premiums: $5,280

3. Waiting Time Penalties (Labor Code § 203)

[If applicable] I was terminated on [date] and my final paycheck (which should have included all unpaid wages and accrued vacation) was not provided until [date], a delay of [X] days. My daily rate of pay is $[amount] (8 hours × $22/hour = $176). Under Labor Code § 203, I am entitled to a penalty of one day's wages for each day payment was delayed, up to 30 days:

Waiting time penalty: $176/day × 30 days = $5,280
Total Waiting Time Penalty: $5,280

4. Wage Statement Penalties (Labor Code § 226)

The wage statements provided to me during my employment failed to accurately show hours worked, overtime hours, and meal/rest break premiums as required by Labor Code § 226. Under § 226(e), I am entitled to $50 for the initial violation and $100 for each subsequent violation, up to $4,000 maximum.

Wage Statement Penalties: $4,000

TOTAL AMOUNT OWED: $23,010

This amount does not include interest, attorney's fees, or costs, which I reserve the right to seek if litigation becomes necessary.

Mentioning PAGA and Attorney's Fees

One of your strongest pieces of leverage in a California wage claim is the potential for PAGA penalties and mandatory attorney's fees. Including these warnings in your demand letter significantly increases settlement pressure.

Sample Language for PAGA and Attorney's Fees:

Potential for Additional Penalties and Attorney's Fees

I reserve the right to pursue additional civil penalties under California's Private Attorneys General Act (PAGA), Labor Code § 2698 et seq. PAGA allows employees to bring representative actions on behalf of themselves and other similarly aggrieved employees, seeking penalties of $100 per employee per pay period for initial violations and $200 per employee per pay period for subsequent violations. Based on the systematic nature of the wage and hour violations described above and the number of employees at [Employer Name], PAGA exposure could be substantial.

Additionally, California Labor Code §§ 1194 and 218.5 provide for mandatory attorney's fees and costs for employees who prevail in wage and hour actions. This means that if I am forced to hire an attorney and file suit, [Employer Name] will be liable not only for the unpaid wages and penalties described above, but also for my attorney's fees and litigation costs, which can easily exceed the underlying wage claim.

I am providing this demand letter as an opportunity to resolve this matter quickly and avoid the substantial expense of litigation and PAGA exposure. I strongly encourage [Employer Name] to treat this matter seriously and respond promptly.

Why This Works: Employers and their counsel know that California wage and hour litigation is expensive and that PAGA penalties can be devastating. By explicitly mentioning these risks, you signal that you understand your rights and are prepared to escalate if necessary. This creates pressure to settle even relatively small individual claims to avoid larger collective exposure.

Where to Send Your Demand Letter

Sending your demand letter to the right person at the right address is critical. If you send it to the wrong place or the wrong person, the employer may claim they never received it or use the delay to their advantage.

Who to send to (in order of preference):

HR Director or HR Department: If your employer has an HR department, send your demand to the HR Director by name (if known) or to "Human Resources Director" at the company's principal place of business.
Owner or Principal Officer: If it's a small business without HR, send to the owner, president, or managing member. You can usually find this information on the Secretary of State's business entity database.
Registered Agent: Every California business must have a registered agent for service of process. Send a copy to the registered agent (you can find this on the California Secretary of State website) in addition to HR or the owner.
Payroll Company (CC): If you know your employer uses an outside payroll provider (ADP, Paychex, etc.), consider CC'ing the payroll company. They sometimes have influence over the employer and may encourage settlement to avoid being dragged into litigation.

How to Send: Send your demand letter via certified mail, return receipt requested AND via email (if you have an email address for HR/owner). The certified mail provides proof of delivery, and the email creates an immediate record. Save the tracking number and delivery confirmation. If the employer later claims they never received your letter, you have proof.

What to Include with Your Demand Letter

Your demand letter should be accompanied by supporting documentation that proves your hours and your calculations. The more evidence you provide upfront, the harder it is for the employer to dispute your claim.

Documents to attach as exhibits:

Exhibit A: Time records or reconstructed hours (spreadsheet showing dates, hours worked, hours paid)
Exhibit B: Pay stubs for the relevant period
Exhibit C: Work schedules (if you have them)
Exhibit D: Emails, texts, or other communications showing hours worked or instructions to work off the clock
Exhibit E: Offer letter or employment agreement showing your pay rate
Exhibit F: Job description (if it shows you don't meet exempt duties test)
Exhibit G: Any prior complaints or communications with employer about pay issues

Organize Your Exhibits: Number and label each exhibit clearly. Reference the exhibits in your demand letter (e.g., "See Exhibit A for detailed breakdown of hours worked"). This makes it easy for the employer's attorney or HR to review your claim and understand that you have a well-documented case.

Setting a Response Deadline

Your demand letter should include a clear deadline for the employer to respond and pay. The deadline should be reasonable but not so long that it allows the employer to delay indefinitely.

Recommended deadlines:

15 days: If you're still employed and need quick resolution, or if the amount owed is small and undisputed
21 days: Standard deadline that gives employer time to investigate and respond
30 days: If the claim is complex, involves large amounts, or you're willing to be patient to avoid litigation

Sample Deadline Language

I demand payment of the full amount owed ($[X]) within [15/21/30] days of the date of this letter. If I do not receive payment in full or a substantive response proposing a reasonable payment arrangement within this timeframe, I will proceed to file a wage claim with the California Division of Labor Standards Enforcement (DLSE) and/or file a civil lawsuit seeking not only the wages and penalties described above, but also attorney's fees, costs, interest, and any additional penalties available under California law, including PAGA penalties.

I am willing to discuss a reasonable payment plan if [Employer Name] is unable to pay the full amount immediately, but I will not agree to any waiver of my rights or reduction of the amount owed. Please contact me at [your phone] or [your email] within [X] days to arrange payment or discuss resolution.

What If They Don't Respond: If the employer doesn't respond by the deadline, don't immediately assume they're ignoring you. Sometimes there are delays due to vacation, turnover, or slow internal processes. Send a follow-up email or letter saying "I have not received a response to my demand letter dated [date]. Please confirm receipt and provide a substantive response by [new deadline, 7-10 days out]." If they still don't respond, proceed to DLSE or hire an attorney.

What to Expect After Sending Your Demand

After you send your demand letter, one of several things will happen. Understanding the likely responses will help you decide on next steps.

Employer Response	What It Means	Your Next Step
Full payment within deadline	Employer agrees with your calculation and pays in full. This is the best outcome but is rare unless the amount is small or the violations are obvious.	Confirm payment received. If employer sends a release, review it carefully before signing. You may want to consult an attorney before signing away any rights.
Counteroffer or partial payment	Employer disputes some of your calculations but offers to pay a lesser amount. This is common and opens the door to negotiation.	Evaluate the offer. Is it reasonable given the strength of your claim? Negotiate if the gap is small. If the offer is insultingly low, reject and proceed to DLSE or attorney.
Request for more information	Employer asks for additional documentation or clarification of your calculations. This can be good faith or a delay tactic.	Provide the requested information if reasonable. Set a new deadline (e.g., "I will provide this information within 7 days. I expect your substantive response within 14 days thereafter").
Denial of liability	Employer denies owing you anything, often claiming you were exempt, that your hours are incorrect, or that breaks were provided.	If the denial is without merit, proceed to DLSE or hire an attorney. Do not let the employer gaslight you into thinking you don't have a claim.
No response	Employer ignores your letter entirely. This can mean they're consulting counsel, they think you'll go away, or they're disorganized.	Send a follow-up letter. If still no response after 7-10 days, file with DLSE or consult an attorney.
Retaliation	Employer terminates you, reduces your hours, or otherwise retaliates for making a wage claim. This is illegal under California Labor Code § 98.6.	Document the retaliation. File a retaliation complaint with DLSE in addition to your wage claim. Consult an attorney immediately—retaliation claims can have significant value.

Retaliation is Illegal: California law makes it illegal for an employer to retaliate against you for making a wage claim. If you're fired, demoted, or otherwise punished after sending your demand letter, you have a separate retaliation claim that can include reinstatement, back pay, and emotional distress damages. Document any adverse action and consult with an attorney immediately.

Options for Enforcing Your Wage Claim: DLSE vs Civil Lawsuit

If your employer doesn't pay after receiving your demand letter, you have three main options for enforcing your claim: (1) file a wage claim with the California Division of Labor Standards Enforcement (DLSE), (2) file a civil lawsuit in court, or (3) hire an attorney to negotiate or litigate on your behalf. Each option has advantages and disadvantages.

Key Decision Factors: The best option depends on the size of your claim, the strength of your documentation, whether you want to handle it yourself or hire an attorney, and how quickly you need resolution. For most employees, starting with a DLSE claim is the lowest-risk option, but for large or complex claims, hiring an attorney to file suit may yield better results.

Option 1: File a Wage Claim with DLSE (Labor Commissioner)

The California Division of Labor Standards Enforcement (DLSE), also called the Labor Commissioner's Office, provides a free, relatively informal process for employees to recover unpaid wages. You don't need an attorney to file a DLSE claim, and the process is designed to be accessible to unrepresented workers.

Advantages of DLSE claims:

No cost to file: The DLSE process is completely free. You don't pay filing fees or need to hire an attorney (though you can have one if you want).
Informal process: The hearing is less formal than court. You don't need to know complex legal procedures or rules of evidence.
State investigates: A deputy labor commissioner will investigate your claim, review the evidence, and make a determination. The burden is on the employer to prove they paid you correctly.
Covers most wage claims: DLSE handles unpaid wages, unpaid overtime, meal/rest break premiums, waiting time penalties, and wage statement violations.
Faster than court: DLSE hearings typically occur within 6-12 months of filing, which is faster than civil litigation.

Disadvantages of DLSE claims:

Limited remedies: DLSE cannot award emotional distress damages, punitive damages (in most cases), or wrongful termination damages. You're limited to the wage-related remedies.
Employer can appeal to court: If the Labor Commissioner rules in your favor, the employer can appeal and force you into court anyway. This can delay payment significantly.
No PAGA penalties: DLSE claims are individual claims. You cannot bring a PAGA representative action through DLSE.
Overburdened system: DLSE is backlogged in many areas, and it can take months to get a hearing date.
Limited discovery: You have limited ability to compel the employer to produce documents or answer questions before the hearing.

When to Choose DLSE: File with DLSE if (1) your claim is straightforward and well-documented, (2) the amount is under $25,000, (3) you don't have money to hire an attorney upfront, (4) you're willing to handle the process yourself, or (5) the employer is unlikely to vigorously contest the claim.

How to file a DLSE wage claim:

Go to the DLSE website (dir.ca.gov/dlse) and download form DLSE-1 (Initial Report or Claim)
Complete the form, describing the nature of your claim and the wages owed
Attach supporting documentation (pay stubs, time records, schedules)
Submit the form online or in person at your local DLSE office
DLSE will send a copy to your employer and schedule a settlement conference
If settlement fails, DLSE will schedule a hearing before a deputy labor commissioner
After the hearing, the Labor Commissioner will issue an Order, Decision, or Award (ODA)
If the employer doesn't appeal, you can enforce the ODA like a court judgment

Option 2: File a Civil Lawsuit in Court

Instead of filing with DLSE, you can file a lawsuit directly in Superior Court (or Small Claims Court for claims under $10,000). This gives you more control over the process and access to broader remedies, but it's more expensive and complex.

Advantages of filing in court:

Broader remedies: You can seek not only unpaid wages but also PAGA penalties, injunctive relief, and in some cases emotional distress damages if retaliation is involved.
Attorney's fees: California Labor Code §§ 1194 and 218.5 provide for mandatory attorney's fees if you prevail. This makes it economically viable for attorneys to take wage cases on contingency.
Full discovery: You can conduct formal discovery (interrogatories, document requests, depositions) to obtain evidence from the employer.
Class or representative actions: You can bring a class action on behalf of similarly situated employees or a PAGA representative action seeking penalties on behalf of the state.
No appeal trap: Unlike DLSE, where the employer can appeal and start over, a court judgment is final (subject only to standard appellate review).

Disadvantages of filing in court:

Need an attorney: Court litigation is complex and adversarial. Unless the claim is very small (Small Claims), you'll likely need an attorney.
Upfront costs: Filing fees, service of process costs, and expert witness fees can add up. However, attorneys often advance these costs in wage cases.
Longer timeline: Civil litigation typically takes 12-24 months or longer from filing to trial, though many cases settle earlier.
Employer will fight harder: In court, the employer will hire counsel and mount a vigorous defense. You'll face motions, discovery battles, and potentially a jury trial.

When to Choose Court: File in court if (1) your claim is large (over $25,000), (2) you have a complex misclassification or exemption issue, (3) you want to pursue PAGA or class action, (4) the employer is sophisticated and will appeal a DLSE award anyway, or (5) you have an attorney willing to take the case on contingency.

Option 3: Hire an Attorney to Negotiate or Litigate

For many employees, the best approach is to hire an employment attorney to send a demand letter, negotiate with the employer, and if necessary, file suit. California's mandatory attorney's fees provisions make this economically viable even for moderate-sized claims.

What an attorney can do for you:

Evaluate your claim: An experienced attorney can review your facts and tell you what your case is actually worth, including penalties and fees you may not have considered.
Send a more powerful demand: A demand letter on law firm letterhead signals that you're serious and that litigation is imminent if the employer doesn't settle.
Negotiate from strength: Attorneys know how to negotiate with employers and their counsel, and can often obtain better settlements than unrepresented employees.
Handle all procedures: Your attorney will handle filing, discovery, motions, and trial, freeing you from the burden of managing complex litigation.
Pursue PAGA and class claims: If your employer's violations are widespread, your attorney can bring a PAGA representative action or class action that benefits other employees and increases settlement pressure.

How employment attorneys charge:

Most California employment attorneys handle wage and hour cases on a contingency fee basis, meaning you pay nothing upfront and the attorney gets paid a percentage of the recovery (typically 33-40%). Because California law provides for mandatory attorney's fees if you win, the employer often ends up paying your attorney's fees on top of the wages and penalties owed to you.

Consultations: Most employment attorneys offer initial consultations for wage and hour cases. You can describe your situation, get an assessment of your claim's value, and decide whether to hire the attorney. There's no downside to consulting with an attorney even if you're considering handling it yourself.

Statute of Limitations: Time Limits for Wage Claims

California has time limits for bringing wage and hour claims. If you wait too long, you'll lose the right to recover your unpaid wages. Understanding these deadlines is critical.

Type of Claim	Statute of Limitations	Notes
Unpaid minimum wages	3 years	Measured from each pay period where underpayment occurred
Unpaid overtime	3 years	Same as minimum wage claims
Meal/rest break premiums	3 years	Treated as wages under California law
Waiting time penalties (Labor Code § 203)	3 years from termination	Penalties accrue for 30 days after termination, but you have 3 years to bring the claim
Wage statement violations (Labor Code § 226)	1 year from date of violation	Shorter statute of limitations than other wage claims
Unfair competition (Bus. & Prof. Code § 17200)	4 years	Sometimes used as alternative theory to extend statute for wage claims
PAGA claims	1 year from PAGA violation	Must send notice to LWDA and employer before filing suit

Don't Wait: Even though you have 3 years for most wage claims, don't delay. Evidence gets lost, witnesses forget, and employers may go out of business or file bankruptcy. File your claim as soon as you realize you've been underpaid. The longer you wait, the harder it becomes to prove your case.

Continuing Violations: For wage claims, each pay period is a separate violation. This means if you're still employed and being underpaid, the statute of limitations runs separately for each paycheck. You can recover 3 years' worth of underpayments measured back from when you file your claim. However, once you leave the job, the clock starts running on the oldest violations.

Professional Legal Services for California Wage and Hour Claims

If you've been denied wages, overtime, meal breaks, or other compensation owed under California law, I can help you recover what you're owed—plus penalties and attorney's fees. I represent employees throughout California in wage and hour claims against employers of all sizes, from small businesses to large corporations.

What I handle:

Unpaid wages and overtime (daily, weekly, seventh-day)
Missed meal and rest break premiums
Misclassification as exempt (improperly denied overtime)
Minimum wage violations
Off-the-clock work
Waiting time penalties for unpaid final wages
Wage statement violations
PAGA representative actions for widespread violations
Class actions on behalf of similarly situated employees
Retaliation for making wage claims

Why California Wage Cases Are Strong: California's wage laws are employee-friendly, with automatic penalties and mandatory attorney's fees. This means employers face significant exposure even for relatively small wage violations, creating strong settlement pressure. I know how to leverage this to maximize your recovery.

How I Maximize Recovery for Wage Claims

My approach to wage and hour cases is thorough, strategic, and results-driven. I don't just calculate the unpaid wages—I identify every available penalty, premium, and remedy to maximize your total recovery.

Comprehensive Claim Analysis: I review your pay stubs, time records, job duties, and pay structure to identify ALL violations—not just the obvious ones. Many employees don't realize they were misclassified as exempt, are owed meal break premiums, or qualify for waiting time penalties. I find everything you're owed.
Precise Calculation: I calculate exactly what you're owed using California's complex wage and hour rules. This includes regular rate calculations that factor in bonuses and commissions, daily and weekly overtime, double-time, meal and rest break premiums, and all applicable penalties.
Strategic Demand Letter: I send a detailed demand letter that demonstrates the strength of your claim, cites specific Labor Code sections, and warns of attorney's fees and PAGA exposure. This creates immediate settlement pressure.
Negotiation or Litigation: If the employer responds reasonably, I negotiate a settlement. If they lowball or deny liability, I file suit in Superior Court and pursue the claim aggressively through discovery, motions, and trial if necessary.
PAGA and Class Action Assessment: If your employer's violations are systematic and affect other employees, I evaluate whether a PAGA representative action or class action is appropriate. These cases can result in much larger recoveries and force employers to change their illegal practices.
Retaliation Protection: If your employer retaliates against you for making a wage claim (firing, demotion, schedule changes), I pursue a separate retaliation claim that can include reinstatement, back pay, emotional distress, and punitive damages.

Schedule a Consultation for California Wage Claims

If you believe your California employer has not paid you correctly, contact me for a confidential consultation. I'll review your pay stubs and time records, calculate what you're owed, and explain your options. You owe nothing unless I recover money for you.

Email: owner@terms.law

Frequently Asked Questions

No. California Labor Code § 98.6 makes it illegal for employers to retaliate against employees for making wage claims or reporting Labor Code violations. If you're fired, demoted, or otherwise punished after making a wage claim, you have a separate retaliation claim that can include reinstatement, lost wages, and substantial damages.

You can file a wage claim with DLSE yourself at no cost. However, for larger or more complex claims, hiring an attorney often results in better outcomes. Most employment attorneys work on contingency (no upfront fees) and California law requires employers to pay your attorney's fees if you win, making legal representation affordable.

You have 3 years from the date of each underpayment to file a claim for unpaid wages, overtime, or meal/rest break premiums. You have 1 year for wage statement violations. Don't wait—file as soon as you realize you've been underpaid, as evidence can be lost and employers may go out of business.

If you were fired or quit and your employer didn't pay all wages due at termination (including unpaid wages, accrued vacation, and commissions), you're entitled to a penalty of one day's wages for each day payment was delayed, up to 30 days maximum. This penalty can be substantial—if you earned $200/day, the penalty alone is $6,000.

Many employers misclassify employees as exempt. To be exempt in California, you must: (1) be paid a salary (not hourly), (2) meet the minimum salary threshold ($66,560/year for most exemptions in 2024), and (3) perform job duties that meet one of the narrow exemptions (executive, administrative, professional, etc.). If any of these three requirements is not met, you're non-exempt and entitled to overtime. Having a "manager" title or being paid a salary doesn't automatically make you exempt.

PAGA (Private Attorneys General Act) allows employees to bring representative actions on behalf of the state to recover penalties for Labor Code violations. PAGA cases are typically filed when an employer's violations are widespread and affect many employees. PAGA penalties can be substantial ($100-$200 per employee per pay period), creating significant settlement pressure. Whether to file a PAGA claim depends on the scope of the violations and number of affected employees—consult with an attorney to evaluate whether PAGA makes sense for your situation.