Wages and Benefits

Wage and benefit disputes arise due to disagreements between employers and employees regarding the pay or benefits an employee deserves for their work. The leading causes of disputes include miscommunication regarding unpaid benefits, misclassification of employees, and instances where an employer withholds pay as a form of retaliation. California has robust labor and employment laws that ensure employees receive compensation for the work done. If an employee does not receive compensation for the hours worked, he/she deserves to file a claim or a lawsuit against the employer.

Wage and benefits cases can be intricate as they involve employment law, contract negotiations, or labor unions. Contact our attorneys at Stop Unpaid Wages for reliable legal representation in handling employment disputes in California. Whether dealing with overtime violations, unpaid wages, or misclassification issues, our attorneys will fight for you and ensure you receive the compensation you deserve.

California Wage And Benefits Laws

There is more to employment than having a good job and being committed to it. An employee requires assurance that the employer will comply with wage and benefits laws. Employers must also pay their employees fully and on time. Wage and benefit disputes between workers and employers are common and can lead to complex legal battles.

Having an experienced attorney by your side can make a significant difference when handling wage and dispute cases. Seek an attorney with a deep understanding of California labor laws and experience handling complex employment issues.

Minimum Wage Laws

Both federal and state laws establish a minimum wage for all employees in California. Your employer cannot pay you below the minimum wage simply because the employer assumes that the job you do is not worth much. You should also not be underpaid because of your race, age, gender, immigration status, national origin, or as a punishment for low productivity.

A few exceptions to the minimum wage law exist under the Fair Labor Standards Act. Under federal law, an employer can pay a youth minimum wage of $4.25 up to 90 calendar days from starting employment. However, California's higher minimum wage laws supersede this provision. This wage is often paid to student learners. If an employee has a physical or mental impairment that hinders them from performing at the regular standards, the employer can pay them a lower wage. This law does not exist to allow employers to take advantage of impaired people, but rather to prevent impaired people from losing their jobs.

However, an employer must seek official recognition and certification from the Department of Labor before adopting the subminimum wage rate. An employer cannot just decide that a case qualifies for a certain wage and start paying it. It is common for employers to pay training wages or youth wages to people who deserve the full minimum wage. If your employer pays you below the minimum wage, you have grounds for a successful claim or lawsuit.

In 2025, California's statewide minimum wage is $16.50 per hour. If you are a salaried employee, you should not be paid less than the total hours worked at the minimum wage rate. If you are an employee working 40 hours a week, your minimum wage should not be less than:

$660 per week
$34,320 per year

If you are a non-exempt salaried employee who works more than the maximum hours, you should be paid under California's overtime laws. Your employer should not request you to work overtime without providing compensation.

Every year on or before August 1st, California's finance director determines whether the minimum wage should be amended. The minimum wage is amended based on the Consumer Price Index. The minimum wage is amended annually based on the lesser of the change in the California Consumer Price Index, abbreviated as CPI, or 3.5%. Different cities and counties across California have a higher minimum wage than the state minimum.

The federal minimum wage per hour is $7.25. However, if you work in California, you must be paid the higher minimum wage of $16.50. If you are employed in a county or city with a higher minimum wage, you must receive the higher local minimum wage.

Overtime Pay

You deserve overtime pay if you work more than 40 hours a week. The Fair Labor Standards Act, abbreviated as FLSA, requires employers to pay employees one and a half times the normal hourly rate if they work overtime. Many employers want their employees to work overtime, but are unwilling to pay them because this would cost too much. Some employers avoid hiring new employees to avoid recruitment costs and overworking existing employees without paying them overtime. It is illegal for employers to make employees work overtime without compensating them for the extra work. If this happens, you can take legal action against your employer. Many workers are silent regarding unpaid overtime for fear of losing their jobs. Your employer cannot fire you for filing an overtime claim because this would amount to wrongful termination.

However, you should note that employees might not qualify for overtime pay under certain circumstances. You must be a non-exempt employee to qualify for overtime pay. Exempt employees are not entitled to the 150% overtime payment.

You could be exempt and therefore not eligible for overtime pay if:

You have primary duties that involve administrative, executive, or professional tasks
Your duties entail exercising independent judgment or discretion
You earn a minimum wage equivalent to twice the state minimum wage. The minimum wage is calculated based on a 40-hour workweek.
You are a salaried employee entitled to a certain minimum dollar payment per year, and your work time is not compensated per piecework or hour.
You are in management — Under FLSA, managers do not automatically qualify for overtime pay.
You are not under FLSA protection given your job type. Some jobs that do not qualify for overtime pay include babysitters, subcontractors, small farm workers, paper delivery staff, tech help who earn more than $27 per hour, and volunteer workers.

Some unionized employees qualify for exemptions from the overtime rules through certain collective bargaining agreements. These employees can enjoy higher base wages, up to 30% higher than the minimum wage. The bargaining agreement should clearly outline the work hours, wages, and working conditions.

Being a salaried employee does not always imply you are exempt from overtime. Typically, non-exempt employees are paid on an hourly basis. However, non-exempt employees can also be paid in salary, provided the amount does not fall below the minimum wage.

California's wage and hour laws protect non-exempt salaried employees like hourly non-exempt workers. Non-exempt salaried workers are covered by the overtime laws and the meal and rest break laws.

The Equal Pay Act

The California Equal Pay Act makes it illegal for employers to pay a lesser salary to employees of the opposite sex for the same work. The act also offers protection for equal pay based on ethnicity or race.

Under Senate Bill 1162, California's Pay Transparency Laws require employers with more than 15 employees to include a salary range in their job postings. If you already work in a company with over 15 employees, you can request a pay range for your position.

Employees who perform significantly equal work and work under similar conditions should be paid equal wages. The Fair Pay Act reduces the disparity in compensation for men and women who perform the same jobs. An employer cannot pay men and women different salaries for performing a similar job. The employer can only pay different salaries after proving that the compensation is based on any of the following:

A merit system
A seniority system
A bona fide factor other than gender can include experience, education, and training.
A system that determines earnings by the quality and quantity of production

In addition, the employer must demonstrate that the bona fide factor:

It is in line with a business necessity
It is not derived from a sex-based disparity in compensation
Is job-related and relevant to the position in question

A business necessity should be a legitimate business purpose. Even if the employer proves that a bona fide factor other than sex was used in paying different wages, this factor is not applicable if you prove that an alternative business purpose existed that would have been used without causing the wage inequality.

If an employer violates the Equal Pay Act or the Fair Pay Act, the employer is liable to pay the employee all the unpaid wages and interest. In addition, an employee can recover additional compensation in the form of liquidated damages.

Laws On Tips

California law outlines that an employee should keep all the tips that he/she receives. An employer should not:

Withhold the tips
Force workers to share tips with managers
Offset the tips against an employee’s regular wage

California law, unlike federal law, prohibits employers from using tips received by employees as a credit towards their obligation to pay minimum wage. Some cities and counties adopt local-level laws governing tips and gratuities. The law allows employers to impose a compulsory tip pooling policy, but does not allow employers to force employees to share tips with others.

Customers voluntarily leave tips for employees. Tips do not increase an employee’s regular pay rate, nor can they be used to calculate overtime pay. Therefore, employers should not use tips as a credit towards the obligation to pay employees a minimum wage.

According to California Labor Code 351, an employer should not share in or keep any portion of tips given to one or several employees by a customer. An employer should also not deduct a worker’s pay from the tip. The violation of LC 351 is a misdemeanor crime under California law. An employer who violates the California tip laws can face up to sixty days in jail and pay a fine of up to $1,000.

Pay Cuts

An employer can reduce an employee’s salary provided it is for a lawful reason. There is no labor law in California that prohibits employers from reducing employees’ salaries. However, an employer should not reduce an employee’s salary below the minimum wage. An employer can reduce an exempt employee's wage provided the wage does not go below twice the state minimum wage. However, the employer must still compensate the employee for overtime work, and the overtime rate should be 1.5 times the standard wage rate.

It is unlawful for an employer to lower an employee’s wage for an unlawful reason or as a form of retaliation for any protected action.

Disclosing Your Salary/Wages

Employees who disclose their wages or inquire about the other employees’ wages are protected under the Fair Wage Act. An employer should not discriminate against you for:

Disclosing your wages
Discussing other employees’ wages
Encouraging other workers to exercise their equal rights

White Collar Workers

White-collar workers are exempt employees. For you to qualify as a white-collar worker, your salary should be twice California's minimum wage, calculated based on a 40-hour workweek. In addition to white-collar workers, other exempt employees include certain unionized employees and independent contractors. Most wage and hour laws in California do not cover exempt employees. For certain occupations, there are specific minimum wage requirements. For example, the minimum wage for a physician is $103.75 per hour.

The minimum wage for computer professionals is $118,657.43 per year
Teachers in private schools should be paid twice the minimum wage, provided they meet the training requirements

Consequences An Employer Can Face For Violating Wages And Benefits Laws

All employers must comply with the California wages and benefits laws; failure to do so can lead to severe consequences. Some of the potential repercussions an employer can face for failing to comply with the California employment law include the following:

Civil Penalties

Employers who do not adhere to California’s wages and benefits laws can face civil penalties. Government agencies like the California Labor Commissioner’s Office can impose the penalties. The affected employees can file private lawsuits against employers, leading to civil penalties. The applicable civil penalties can vary based on the specific violation. If an employer fails to pay an employee their outstanding wages, the court can order the employer to pay the wages and additional penalties.

Class Action Lawsuits

An employee can bring a class action lawsuit against an employer who violates wage and benefits law. Sometimes, a group of employees could be subjected to similar wage violations. In this case, the employees can come together and take collective legal action. A class action lawsuit can increase an employer’s financial liability, since the employer would have to pay substantial legal fees and damages.

Back Wages And Liquidated Damages

When an employer fails to pay an employee the deserved wages, the court can order the employer to pay back wages. Employees can claim back wages for unpaid regular wages, commissions, overtime, rest break or mealtime premiums, and other pay owed. The court can also order an employer to pay liquidated damages. Liquidated damages are monetary damages given to employees as compensation for wage violations.

Reputational Damage

Other than legal consequences, violating the California wages and benefits laws can hurt an employer’s reputation. News of unfair employment policies or wage and benefits theft spreads fast and can tarnish an employer’s reputation.

Criminal Charges

Employers can face criminal charges for willful or intentional violations of California wages and benefits laws. The California Labor Codes allow employees to sue employers who engage in fraudulent conduct, like withholding wages intentionally. Employers who falsify payroll records can also face criminal charges. Convicted employers would have to pay fines or be subject to probation and imprisonment.

California Wage And Benefits Laws FAQ

Here are the commonly asked questions regarding wages and benefits disputes in California:

What Is A Wage And Hour Violation?

There are many forms of wage and hour violations, including not allowing employees rest and meal breaks, failure to pay overtime, and not paying for all the hours worked. You should consult an attorney if you believe that your employer has violated your rights.

What Should I Do If My Employer Does Not Pay Me On Time?

If your employer consistently delivers your paychecks late, you should document all these incidents and discuss them with your attorney. An attorney can help you understand your legal rights and the steps to take to resolve the situation.

How Do I Know I Am Classified Properly As An Employee?

A misclassification occurs when your employer classifies you incorrectly as either exempt or non-exempt. If you are unsure about your classification, an attorney can shed some light based on your job and responsibilities.

Can My Employer Require Me To Work Off The Clock?

The law does not allow employers to make employees work off the clock. If your employer makes you work without resting, this could be a violation of the labor laws. You should contact an attorney for guidance in handling the issue.

What Are The Potential Penalties If My Employer Violates The Wage And Hour Laws?

An employer can face legal consequences for unpaid wages, including being made to make up for lost wages and pay hefty fines. In some cases, an employee can also recover damages for the emotional distress suffered or other hardships resulting from the employer’s violation.

How Can I File A Claim For Unpaid Wages?

The first step in filing a claim for compensation is compiling and documenting all the relevant information. This information can include time sheets, pay stubs, and communication with your employer. An experienced attorney can guide you through the process of seeking compensation.

How An Attorney Can Help You

When your employer owes you unpaid wages or withholds other benefits, you can feel frustrated and discouraged. An attorney can help you recover your rightful compensation and fight for your rights. Here is how an attorney can help you:

Provide Comprehensive Legal Knowledge

An attorney has comprehensive knowledge of labor laws, including California’s wage and hour regulations. Trying to navigate the intricate legal landscape on your own can be overwhelming, but an attorney makes the process easier. An attorney can evaluate your case, identify violations, and create a strong legal strategy tailored to your unique case.

Thorough Investigation

When you contact an attorney, the attorney will investigate your case thoroughly. Your attorney will gather the relevant evidence, including pay stubs, employment contracts, and time records, to enable you to build a strong case against your employer. An attorney will leave no stone unturned in ensuring that all the facts are presented accurately.

Negotiation & Mediation

In most cases, an attorney can help resolve your case through negotiation and mediation. Lengthy legal cases can be emotionally draining. An attorney will leverage their negotiation skills to communicate with your employer or their representative and find the best resolution for your case. We strive to reach a resolution that satisfies all parties. However, if we cannot reach a resolution out of court, we can help you pursue a court case.

Personalized And Aggressive Litigation

If negotiation and mediation do not arrive at the desired solution, an attorney will take your case to court. An attorney with expertise and experience in labor law litigation will not be afraid of taking your case to court. Go for an aggressive attorney who will help you to present an aggressive case before the judge and advocate for the compensation you deserve.

Find a Reliable Employment Attorney Near Me

You deserve payment for all the hours you have worked. If you or your loved one is a victim of wage and hour violations or you are dealing with any other FLSA violation, an attorney can help. At Stop Unpaid Wages, we stand up for employees by providing guidance and legal representation on intricate wage and hour cases. Whatever the situation you are dealing with, you can trust our attorneys to represent you. We have helped many employees in California to pursue their wages and benefits, and we can do the same for you. You can count on our unwavering support irrespective of how intricate your wage and benefits case is. Contact us at 424-781-8411 to speak to one of our attorneys.