California Wage Theft Demand Letters

Unpaid Wages, Overtime, Final Paychecks, Meal/Rest Breaks & Misclassification

California Wage & Hour Law Framework
Core Legal Framework: California Labor Code, the Industrial Welfare Commission (IWC) Wage Orders, and DLSE enforcement regulations provide comprehensive protections for workers. California law is generally more protective than federal law (FLSA), and when there's a conflict, the law most beneficial to the employee applies.
Final Paycheck Timing (Labor Code 201-203)

California has strict deadlines for delivering final wages:

Termination Type Deadline Legal Basis
Fired/Laid Off/Discharged Immediately at time of termination Labor Code 201
Quit with 72+ hours notice On the last day of work Labor Code 202
Quit without 72 hours notice Within 72 hours of quitting Labor Code 202
Seasonal agricultural employees Within 72 hours of termination Labor Code 201
Motion picture industry Next regular payday Labor Code 201.5
Waiting Time Penalties (Labor Code 203)
Penalty for Late Final Paycheck: If an employer willfully fails to pay final wages on time, the employee's wages continue as a penalty at the same daily rate for up to 30 days. This penalty can equal an entire month's wages on top of the unpaid wages.

Calculation Example: Employee earning $200/day who is terminated and not paid for 30+ days can claim:

  • Unpaid final wages: $2,000 (example)
  • Waiting time penalty: $200/day x 30 days = $6,000
  • Total claim: $8,000
Overtime Requirements (Labor Code 510-511)

California has stricter overtime rules than federal law:

  • Daily overtime: 1.5x regular rate for hours worked over 8 in a workday
  • Double time: 2x regular rate for hours worked over 12 in a workday
  • Weekly overtime: 1.5x regular rate for hours worked over 40 in a workweek
  • 7th consecutive day: 1.5x for first 8 hours, 2x for hours over 8
Meal & Rest Break Requirements (Labor Code 512, IWC Orders)
Break Type Requirement Penalty if Missed
First Meal Break 30 minutes if working 5+ hours (off-duty, uninterrupted) 1 hour of pay at regular rate
Second Meal Break 30 minutes if working 10+ hours 1 hour of pay at regular rate
Rest Breaks 10 minutes per 4 hours worked (or major fraction thereof) 1 hour of pay at regular rate
Maximum Penalty Per Day: An employee can recover up to 2 hours of premium pay per workday (1 hour for meal break violation + 1 hour for rest break violation), even if multiple breaks were missed that day.
Minimum Wage (Labor Code 1182.12)

California minimum wage as of January 1, 2024:

  • Statewide minimum: $16.00/hour for all employers
  • Fast food workers: $20.00/hour (employers with 60+ locations nationally)
  • Healthcare workers: $18-23/hour depending on facility type (phased increases)
  • Local ordinances: Many cities have higher minimums (e.g., San Francisco, Los Angeles, San Jose)
Employee Misclassification (Labor Code 226.8, AB 5)
ABC Test (Dynamex/AB 5): A worker is presumed to be an employee unless the hiring entity proves all three factors:
  • A: Worker is free from control and direction in performing work
  • B: Worker performs work outside the usual course of hiring entity's business
  • C: Worker is engaged in an independently established trade, occupation, or business

Misclassified employees can recover: unpaid overtime, meal/rest break premiums, expense reimbursement, minimum wage shortfalls, and penalties.

Statute of Limitations
Claim Type Time Limit Legal Basis
Unpaid wages (written contract) 4 years CCP 337
Unpaid wages (oral/implied contract) 2 years CCP 339
Overtime, minimum wage, meal/rest breaks 3 years Labor Code 1197.1, CCP 338
Waiting time penalties 3 years CCP 338
PAGA claims (Labor Code violations) 1 year Labor Code 2699.3
Common Wage Theft Violations
1. Final Paycheck Violations
Most Common Violation: Employers frequently violate final paycheck timing rules, exposing themselves to substantial waiting time penalties. Even a few days' delay can result in significant liability.
  • Delayed payment after termination: Not paying immediately when employee is fired
  • Mailing final check: Sending check by mail instead of paying on last day (unless employee requests)
  • Withholding for equipment: Refusing to pay until uniforms or equipment returned (illegal)
  • Waiting for payroll cycle: Paying on "next regular payday" instead of immediately
  • Deducting from final pay: Making unauthorized deductions for shortages or damages
2. Overtime Violations
  • No overtime pay: Paying straight time for all hours regardless of daily/weekly totals
  • Incorrect overtime rate: Calculating overtime at wrong rate (must include bonuses, commissions in regular rate)
  • Off-the-clock work: Requiring work before clocking in or after clocking out
  • Auto-deduct lunch breaks: Automatically deducting 30 minutes even when employees work through lunch
  • Misclassifying as exempt: Calling employees "salaried" or "managers" to avoid overtime
  • Averaging hours: Averaging hours over multiple weeks instead of paying daily overtime
  • Comp time instead of overtime: Offering time off instead of overtime pay (illegal for private employers)
3. Meal & Rest Break Violations
  • No meal breaks provided: Working 5+ hours without any meal break
  • Late meal breaks: Not starting meal break before 5th hour of work
  • Working through breaks: Requiring employees to remain available or perform work during "break"
  • On-duty meal periods: Improper on-duty meal agreements that don't meet legal requirements
  • Short breaks: Providing less than 30 minutes for meal or less than 10 minutes for rest
  • No rest breaks: Not providing rest breaks or discouraging employees from taking them
  • Not paying premium: Failing to pay 1 hour of premium pay when breaks are missed
4. Minimum Wage Violations
  • Below minimum wage: Paying less than state or local minimum wage
  • Tip credit: Using tips to satisfy minimum wage (illegal in California)
  • Piece rate shortfalls: Piece rate payments averaging below minimum wage
  • Training wage: Paying "training" or "probationary" rate below minimum (illegal)
  • Illegal deductions: Deductions that reduce pay below minimum wage
  • Not paying for all hours: Not compensating for waiting time, security checks, etc.
5. Misclassification
Independent Contractor Misclassification: Employers often misclassify employees as independent contractors to avoid overtime, meal/rest breaks, workers' comp insurance, payroll taxes, and expense reimbursement. Under California's ABC test, most workers are employees.
  • 1099 instead of W-2: Treating workers as contractors when they're legally employees
  • Exempt misclassification: Classifying non-exempt employees as exempt to avoid overtime
  • Manager/supervisor titles: Using management titles for workers who don't supervise others
  • Salaried non-exempt: Paying salary but not tracking hours or paying overtime
6. Paycheck & Record Violations
  • Inaccurate pay stubs: Missing or incorrect information on wage statements (Labor Code 226)
  • Late paychecks: Not paying within required pay periods (twice monthly for most employees)
  • Bounced checks: Issuing checks that don't clear
  • No records: Failure to maintain accurate time and pay records
  • Not providing records: Refusing to provide copies of time records upon request
Document Everything: Keep copies of pay stubs, work schedules, time records, emails showing work hours, text messages about schedule, and any written communications with your employer about pay issues.
How to Write Your Wage Theft Demand Letter
Step 1: Calculate What You're Owed

Before writing your demand, calculate your total claim:

  • Unpaid wages: Calculate regular and overtime hours worked but not paid
  • Waiting time penalties: If final paycheck was late, calculate daily wage x days late (max 30 days)
  • Meal/rest break premiums: 1 hour of pay per day for each type of violation
  • Minimum wage shortfall: Difference between what you were paid and minimum wage x hours
  • Interest: 10% per year on unpaid wages (Labor Code 218.6)
  • Wage statement penalties: $50 for first violation, $100 per subsequent violation (max $4,000)
Step 2: Gather Documentation
Evidence Checklist:
  • Pay stubs for the relevant period
  • Time records (yours and employer's if different)
  • Employment contract or offer letter
  • Work schedules (printed or screenshots)
  • Emails or texts about hours worked, overtime, breaks
  • Bank records showing deposits (if checks bounced or were short)
  • Evidence of termination date and final pay date
  • Written policies on breaks, overtime, pay periods
Step 3: Format & Tone

Use formal business letter format. Be factual, specific, and professional. Include:

Component What to Include
Header Your name, address, phone, email; date; employer's name and address
Subject Line "Demand for Unpaid Wages and Penalties Pursuant to California Labor Code"
Employment Details Position, dates of employment, pay rate, termination date (if applicable)
Violations Specific description of each violation with dates and amounts
Legal Basis Cite specific Labor Code sections violated
Total Demand Itemized breakdown of all wages and penalties claimed
Deadline Typically 10-14 days to respond and pay
Consequences State you will file with DLSE and/or sue if not paid
Step 4: Delivery Method
  • Certified Mail, Return Receipt: Provides proof of delivery and receipt date
  • Email + Certified Mail: Send via both methods for faster notice and legal proof
  • Keep Copies: Retain copies of the letter and proof of delivery
Timing Matters: Send your demand letter promptly. Waiting time penalties stop accruing at 30 days, but you want to preserve your full claim and demonstrate the employer's willful failure to pay.
Step 5: What to Expect After Sending

After sending your demand letter:

  • Employer pays: Best outcome - you receive full payment within your deadline
  • Employer negotiates: They may offer partial payment or dispute some amounts
  • Employer ignores: If no response, proceed to file a claim with DLSE or court
  • Employer retaliates: Illegal - document any retaliation and include in your claim
Sample Wage Theft Demand Letters
Sample 1: Final Paycheck & Waiting Time Penalties
[Your Name] [Your Address] [City, CA ZIP] [Phone] [Email] [Date] [Employer Name] [Company Name] [Company Address] [City, CA ZIP] RE: Demand for Unpaid Final Wages and Waiting Time Penalties Former Employee: [Your Name] Dear [Employer Name]: I am writing to demand immediate payment of all wages owed to me pursuant to California Labor Code Sections 201, 202, and 203. EMPLOYMENT INFORMATION: - Position: [Your Job Title] - Employment Period: [Start Date] to [End Date] - Regular Rate of Pay: $[Amount]/hour (or salary of $[Amount]/[period]) - Termination Type: [Fired/Laid Off/Quit] VIOLATION OF FINAL PAYCHECK REQUIREMENTS: I was [terminated/quit] on [Date]. Under California Labor Code Section 201, you were required to pay all wages owed to me [immediately at termination / within 72 hours of my resignation]. As of today, [X] days have passed, and I have not received my final paycheck. WAGES OWED: 1. Unpaid regular wages: [X] hours x $[rate] = $[Amount] 2. Unpaid overtime: [X] hours x $[OT rate] = $[Amount] 3. Accrued, unused vacation: [X] hours x $[rate] = $[Amount] 4. [Any other unpaid amounts] Subtotal Unpaid Wages: $[Amount] WAITING TIME PENALTIES (Labor Code 203): Because you have willfully failed to pay my final wages on time, I am entitled to waiting time penalties at my daily rate of pay for each day wages remain unpaid, up to a maximum of 30 days. Daily rate: $[rate] x [8 hours or actual daily hours] = $[daily amount] Days late (as of this letter): [X] days Waiting time penalty: $[daily amount] x 30 days = $[Amount] TOTAL DEMAND: $[Total Amount] DEMAND FOR PAYMENT: I demand that you pay the full amount of $[Total] within ten (10) calendar days of your receipt of this letter. Please make payment by certified check or wire transfer to [your address/account information]. If you fail to pay this amount within ten days, I will immediately file a wage claim with the California Division of Labor Standards Enforcement (DLSE) and/or file a civil lawsuit to recover all unpaid wages, penalties, interest at 10% per annum (Labor Code 218.6), and attorney's fees (Labor Code 218.5). Please confirm receipt of this letter and advise when I can expect payment. Sincerely, [Your Signature] [Your Printed Name] Enclosures: - Copy of final pay stub (if received) - Calculation worksheet
Sample 2: Overtime & Meal/Rest Break Violations
[Your Name] [Your Address] [City, CA ZIP] [Phone] [Email] [Date] [Employer Name] [Company Name] [Company Address] [City, CA ZIP] RE: Demand for Unpaid Overtime and Meal/Rest Break Premiums Employee: [Your Name] Dear [Employer Name]: I am writing to demand payment of unpaid overtime wages and meal/rest break premiums owed to me under California law. EMPLOYMENT INFORMATION: - Position: [Your Job Title] - Employment Period: [Start Date] to [End Date, or "present" if still employed] - Hourly Rate: $[Amount] - Classification: Non-exempt OVERTIME VIOLATIONS (Labor Code 510): During my employment, I regularly worked more than 8 hours per day and/or 40 hours per week without receiving proper overtime compensation. Specifically: [Example violations - customize as applicable:] - Week of [Date]: Worked 52 hours; paid for 52 hours at straight time instead of 40 hours regular + 12 hours at 1.5x - Week of [Date]: Worked 10-hour days Monday through Thursday; not paid daily overtime for 8 hours at 1.5x rate - [Continue with specific examples] Unpaid overtime calculation: - [X] hours at 1.5x rate: [X] hours x ($[rate] x 0.5) = $[Amount] - [X] hours at 2x rate: [X] hours x $[rate] = $[Amount] Total unpaid overtime: $[Amount] MEAL BREAK VIOLATIONS (Labor Code 512): I was regularly required to work more than 5 hours without receiving a 30-minute off-duty meal break, and/or was required to remain on-duty during meal periods. Under Labor Code 226.7, I am entitled to one hour of pay at my regular rate for each workday a meal period was not provided. [X] workdays with meal break violations x $[hourly rate] = $[Amount] REST BREAK VIOLATIONS (IWC Wage Orders): I was regularly denied rest breaks or not permitted to take the required 10-minute rest period for every 4 hours worked. Under Labor Code 226.7, I am entitled to one hour of pay for each workday a rest period was not provided. [X] workdays with rest break violations x $[hourly rate] = $[Amount] TOTAL DEMAND: - Unpaid overtime: $[Amount] - Meal break premiums: $[Amount] - Rest break premiums: $[Amount] - Interest at 10% per annum: $[Amount] TOTAL: $[Amount] DEMAND FOR PAYMENT: I demand that you pay the full amount of $[Total] within fourteen (14) calendar days of receipt of this letter. If payment is not received within this time, I will file a wage claim with the DLSE and/or pursue legal action to recover all unpaid wages, penalties, interest, and attorney's fees as permitted by law. Sincerely, [Your Signature] [Your Printed Name]
Sample 3: Independent Contractor Misclassification
[Your Name] [Your Address] [City, CA ZIP] [Phone] [Email] [Date] [Employer Name] [Company Name] [Company Address] [City, CA ZIP] RE: Demand for Wages Owed Due to Misclassification as Independent Contractor Worker: [Your Name] Dear [Employer Name]: I am writing to demand payment of wages, overtime, and other compensation owed to me as a result of your illegal misclassification of me as an independent contractor when I was, in fact, an employee under California law. WORK ARRANGEMENT: - Position/Work Performed: [Description] - Work Period: [Start Date] to [End Date] - Payment: $[Amount] paid as 1099 contractor - Hours Worked: Approximately [X] hours per week MISCLASSIFICATION UNDER CALIFORNIA LAW: Under California Labor Code Section 2750.3 and the ABC test established in Dynamex Operations West, Inc. v. Superior Court, I was your employee, not an independent contractor. Specifically: A. Control: [You controlled my schedule, work methods, required me to follow specific procedures, etc.] B. Usual Course of Business: The work I performed was central to your business operations, not outside your usual course of business. [I performed the same work as your W-2 employees, the work was core to your business, etc.] C. Independent Business: I was not engaged in an independently established trade or business. [I worked exclusively for you, did not have my own clients, did not market my services to others, used your equipment, etc.] DAMAGES FROM MISCLASSIFICATION: As a misclassified employee, I am entitled to recover: 1. OVERTIME (Labor Code 510): I regularly worked [X] hours per week without overtime pay. [X] overtime hours x ($[hourly equivalent] x 0.5) = $[Amount] 2. MEAL/REST BREAK PREMIUMS (Labor Code 226.7): I was not provided meal or rest breaks as required by law. [X] days x $[hourly equivalent] x 2 = $[Amount] 3. UNREIMBURSED BUSINESS EXPENSES (Labor Code 2802): I was required to use my own [vehicle/phone/tools/equipment] for work without reimbursement. Mileage: [X] miles x IRS rate = $[Amount] Other expenses: $[Amount] 4. MINIMUM WAGE SHORTFALL (Labor Code 1194): When accounting for all hours worked, my effective hourly rate fell below minimum wage. [X] hours x ($[minimum wage] - $[effective rate]) = $[Amount] 5. WAGE STATEMENT VIOLATIONS (Labor Code 226): I was not provided proper itemized wage statements. $100 per pay period x [X] pay periods = $[Amount] (max $4,000) TOTAL DEMAND: $[Amount] DEMAND FOR PAYMENT: I demand that you pay the total amount of $[Amount] within fourteen (14) calendar days of your receipt of this letter. If you fail to pay, I will file a wage claim with the California Division of Labor Standards Enforcement (DLSE), report the misclassification to the Employment Development Department (EDD) and Franchise Tax Board (FTB), and pursue all legal remedies including civil penalties under Labor Code 226.8 (up to $25,000 per violation). Sincerely, [Your Signature] [Your Printed Name]
Sample 4: Minimum Wage Violation
[Your Name] [Your Address] [City, CA ZIP] [Phone] [Email] [Date] [Employer Name] [Company Name] [Company Address] [City, CA ZIP] RE: Demand for Unpaid Minimum Wage Owed Employee: [Your Name] Dear [Employer Name]: I am writing to demand payment of minimum wage shortfalls owed to me pursuant to California Labor Code Section 1194. EMPLOYMENT INFORMATION: - Position: [Your Job Title] - Employment Period: [Start Date] to [End Date] - Hourly Rate Paid: $[Amount] - Applicable Minimum Wage: $[Amount] (California state minimum / [City] local minimum) MINIMUM WAGE VIOLATION: During my employment, you paid me $[Amount] per hour, which is below the applicable minimum wage of $[Amount] per hour required by [California Labor Code 1182.12 / [City] Municipal Code Section [X]]. Calculation of Wages Owed: Total hours worked: [X] hours Hourly shortfall: $[minimum wage] - $[rate paid] = $[shortfall] Total minimum wage owed: [X] hours x $[shortfall] = $[Amount] [If applicable, include additional violations:] Additionally, when tips [were improperly credited toward minimum wage / were not properly distributed], my effective hourly wage fell further below minimum wage. Under California law, employers cannot use tips to satisfy minimum wage obligations. LIQUIDATED DAMAGES (Labor Code 1194.2): Because you failed to pay minimum wage in good faith, I am entitled to liquidated damages equal to the amount of unpaid wages plus interest. Liquidated damages: $[Amount] Interest at 10% per annum: $[Amount] TOTAL DEMAND: - Unpaid minimum wage: $[Amount] - Liquidated damages: $[Amount] - Interest: $[Amount] TOTAL: $[Amount] DEMAND FOR PAYMENT: I demand immediate payment of $[Amount] within ten (10) calendar days. If you fail to pay, I will file a wage claim with the DLSE and/or a civil lawsuit. Under Labor Code 1194, I am entitled to recover unpaid wages, liquidated damages, interest, and reasonable attorney's fees. Sincerely, [Your Signature] [Your Printed Name]
Filing Wage Claims in California
Option 1: DLSE Wage Claim (Labor Commissioner)
Division of Labor Standards Enforcement (DLSE): The DLSE handles wage claims for unpaid wages, overtime, meal/rest break violations, final paycheck violations, and waiting time penalties. It's free to file, and you don't need an attorney.

How to File:

  • File online at www.dir.ca.gov/dlse or in person at your local DLSE office
  • Complete Form DLSE-1 (Initial Report or Claim)
  • Attach supporting documents (pay stubs, time records, employment contract)
  • DLSE will review and may schedule a conference or hearing

DLSE Process Timeline:

Stage Timeframe Description
Filing Day 0 Submit claim form and documents online or at DLSE office
Assignment 2-4 weeks Claim assigned to deputy labor commissioner
Conference 2-6 months Informal meeting to discuss claim and attempt settlement
Hearing (Barcena) 6-12 months If not settled, formal hearing before hearing officer
Decision 1-3 months after hearing Written decision issued; can be appealed to Superior Court
DLSE Backlog: The DLSE has significant backlogs. Claims can take 1-2 years to resolve. For larger claims or faster resolution, consider filing in court or consulting an attorney.
Option 2: Small Claims Court

For claims up to $12,500 (or $6,250 for businesses), small claims court offers faster resolution:

  • Limit: $12,500 per claim for individuals
  • No attorney: Attorneys are not allowed in small claims court
  • Fast: Hearings usually scheduled within 30-70 days of filing
  • Filing fee: $30-$75 depending on claim amount
  • Where to file: Small claims division of Superior Court where you worked or employer is located
Option 3: Civil Court Lawsuit

For claims over $12,500 or when you want an attorney to represent you:

  • Limited civil: Claims $12,501-$25,000
  • Unlimited civil: Claims over $25,000
  • Attorney fees: Under Labor Code 1194, 218.5, and 226, prevailing employees can recover attorney fees from the employer
  • Class action: If violations affected many workers, a class action may be appropriate
Option 4: PAGA (Private Attorneys General Act)
PAGA Penalties: Under Labor Code 2698-2699.5, employees can sue on behalf of themselves and other employees to recover civil penalties for Labor Code violations. 25% of penalties go to the employee(s), 75% to the state.

PAGA Requirements:

  • Must give LWDA (Labor and Workforce Development Agency) 65 days written notice before filing suit
  • LWDA may investigate or allow you to proceed with lawsuit
  • Penalties: $100 per employee per pay period for initial violation, $200 for subsequent violations
  • No cap on total penalties
What to Expect at DLSE Hearing
  • Prepare documents: Bring organized copies of all evidence (pay stubs, time records, calculations, demand letters)
  • Bring witnesses: Coworkers who can corroborate your claims
  • Know your numbers: Be prepared to explain your calculations clearly
  • Be professional: Dress appropriately and speak respectfully
  • Employer may not appear: If employer doesn't show, you may win by default
Collecting Your Judgment

If you win, but the employer doesn't pay voluntarily:

  • Wage garnishment: Garnish employer's bank accounts
  • Property liens: Place lien on employer's real property
  • DLSE collection: DLSE can assist with collection efforts
  • Judgment increases: Interest accrues at 10% per year on unpaid judgments

Related Wage Claim Resources

Attorney Services
Need Help Recovering Your Unpaid Wages?

I represent California employees in wage theft cases, including final paycheck disputes, overtime claims, meal/rest break violations, and misclassification claims. If your employer owes you wages, I can help you recover what you're owed plus penalties and attorney fees.

How I Can Help
  • Demand Letter Drafting: I draft comprehensive demand letters that cite specific Labor Code violations and calculate all penalties to maximize your recovery
  • Claim Calculation: I review your pay records and calculate overtime, meal/rest break premiums, waiting time penalties, and other amounts owed
  • DLSE Representation: I represent clients at DLSE conferences and hearings to ensure your case is presented effectively
  • Court Litigation: For larger claims or when DLSE is not the best option, I file lawsuits in Superior Court
  • PAGA Claims: I handle PAGA representative actions for widespread violations affecting multiple employees
  • Class Actions: For systemic violations, I evaluate and pursue class action claims on behalf of affected workers
  • Settlement Negotiation: I negotiate settlements that recover your full wages and penalties without the delay of litigation when possible
Common Cases I Handle
  • Final paycheck not paid on time (waiting time penalty claims)
  • Unpaid overtime - daily and weekly
  • Missed or shortened meal and rest breaks
  • Off-the-clock work (unpaid pre-shift, post-shift, or work during breaks)
  • Misclassification as exempt (salaried employees owed overtime)
  • Independent contractor misclassification
  • Minimum wage violations
  • Unpaid commissions and bonuses
  • Expense reimbursement claims
  • Wage statement (pay stub) violations
Contingency Fee Representation
No Upfront Costs: Most wage theft cases are handled on a contingency fee basis - you pay nothing unless we recover money for you. Additionally, California law allows prevailing employees to recover attorney fees from the employer in most wage cases, which means your recovery is often not reduced by legal fees.
When to Contact an Attorney
Consider consulting an attorney if:
  • Your employer owes you significant unpaid wages (generally $5,000+)
  • You were terminated and not paid your final paycheck on time
  • You regularly worked overtime without proper compensation
  • You were denied meal or rest breaks
  • You believe you were misclassified as exempt or as an independent contractor
  • Your employer has ignored your demand letter
  • Multiple employees have similar claims (potential class action or PAGA)
  • You're concerned about retaliation for asserting your wage rights
Schedule a Consultation

Book a consultation to discuss your wage claim. I'll review your situation, calculate your potential recovery, and explain your options for pursuing your claim.

Contact Information

Email: owner@terms.law

Frequently Asked Questions
If you are fired, laid off, or otherwise discharged, your employer must pay all wages owed immediately at the time of termination (Labor Code 201). If you quit with at least 72 hours notice, payment is due on your last day of work. If you quit without 72 hours notice, payment is due within 72 hours of quitting. Many employers violate these rules by waiting until the next regular payday, which triggers waiting time penalties.
Waiting time penalties under Labor Code 203 continue your wages as a penalty for each day your final paycheck is late, up to a maximum of 30 days. The penalty is calculated at your daily rate of pay. For example, if you earn $25/hour and work 8-hour days, your daily rate is $200. If your final paycheck is 30+ days late, you can recover $6,000 in waiting time penalties on top of your unpaid wages. These penalties can often exceed the underlying unpaid wages.
No. California law requires employers to relieve employees of all duty during meal periods. You must be free to leave the premises and do as you please during your 30-minute meal break. If your employer requires you to stay on-site, remain available, or perform any work during your break, that violates the law. You're entitled to one hour of premium pay at your regular rate for each day a compliant meal period wasn't provided. The same applies to rest breaks - you must be relieved of all duty for the full 10-minute rest period.
Being paid a salary doesn't automatically make you exempt from overtime. To be exempt, you must: (1) be paid a salary of at least 2x minimum wage for full-time work (currently $66,560/year for most employers); (2) spend more than 50% of your time on exempt duties (executive, administrative, or professional); and (3) regularly exercise independent judgment. Many "salaried" employees are actually misclassified and entitled to overtime, meal/rest breaks, and other protections. Job titles like "manager" or "supervisor" don't determine exemption - your actual duties do.
Under California's ABC test, you're an employee unless the company proves ALL THREE factors: (A) you're free from control over how you perform your work; (B) your work is outside the company's usual business; AND (C) you have an independently established business doing the same type of work. If you work primarily for one company, follow their schedule, use their equipment, or do work that's central to their business, you're likely an employee. Misclassified workers can recover overtime, meal/rest break premiums, expense reimbursement, and employer's share of payroll taxes.
No. Labor Code 98.6 prohibits employers from retaliating against employees who file wage claims, complain about wage violations, or testify in wage proceedings. If you're fired, demoted, or otherwise punished for asserting your wage rights, you may have a separate retaliation claim. Remedies include reinstatement, back pay, and penalties. If you're a current employee concerned about retaliation, consider consulting an attorney before confronting your employer, and document everything.
DLSE (Labor Commissioner) is free to file and you don't need an attorney, but it has long backlogs (often 1-2 years). DLSE is best for smaller claims or when you want to represent yourself. Court allows faster resolution and attorney representation, and is often better for larger claims or when attorney fees will be recoverable. Small claims court (up to $12,500) is fast and informal. For claims over $12,500, Superior Court with an attorney is usually the best option. An attorney can advise which forum is best for your specific situation.

California Wage Theft: Know Your Rights

Wage theft occurs when employers fail to pay workers the wages they have legally earned. In California, this includes failure to pay minimum wage, overtime, meal and rest break premiums, final paychecks, and commissions. California has some of the strongest worker protection laws in the nation.

Common Forms of Wage Theft

Penalties for Employers

California law provides significant penalties for wage violations, including waiting time penalties of up to 30 days wages for late final paychecks, one hour of premium pay per day for meal/rest break violations, liquidated damages for minimum wage violations, and attorney fees. These penalties often exceed the underlying unpaid wages, giving employers a strong incentive to settle valid claims.

Related Resources

Recover Your Unpaid Wages

If your employer owes you wages, overtime, or penalties, I can help. Most wage cases are handled on contingency - you pay nothing unless we recover money for you.

Schedule a Free Consultation