Wage and Hour

A California Wage and Hour Attorney Protecting Your Right to Fair Compensation

Employers in California are required to comply with the California Labor Code, applicable Industrial Welfare Commission Wage Orders, and federal wage and hour laws. These laws impose strict obligations on employers, and failure to comply can result in significant liability. For employees, violations can mean unpaid wages, missed breaks, and other forms of financial harm that accumulate over time.

If you believe your employer has failed to follow wage and hour laws, you may have a claim. An attorney at Macias Law can evaluate your situation, explain your rights, and take action to recover the compensation you are owed.

Common Wage and Hour Violations

Wage and hour disputes arise in many forms. Some of the most common violations we see include:

• Failure to pay minimum wage (state and local)
• Failure to pay overtime or double time
• Off-the-clock work
• Meal and rest break violations
• Failure to reimburse business expenses
• Failure to pay earned commissions, bonuses, or other incentive compensation
• Paystub (wage statement) violations
• Misclassification (exempt vs. non-exempt or independent contractor)

Even small violations-when repeated over time-can result in significant unpaid wages and penalties.

Minimum Wage and Overtime Obligations

Under California law, employees must be paid at least the applicable minimum wage for all hours worked. Non-exempt employees are also entitled to overtime compensation when they work more than eight hours in a workday or more than forty hours in a workweek. An employer’s failure to pay minimum wage or properly compensate overtime hours may result in legal liability, and employees have the right to pursue claims to recover unpaid wages.

In practice, these violations are not always obvious. Employers may pressure employees to work “off the clock,” fail to record all hours worked, or discourage employees from taking required meal breaks. Raising concerns about pay can be difficult, particularly for employees who fear retaliation or the loss of their job. If you believe you have not been paid all wages owed, including overtime, an attorney at Macias Law can help you evaluate your situation and pursue appropriate remedies.

California State-Mandated Minimum Wages

Employers in California are required to comply with the minimum wage established under state law, as well as any applicable local minimum wage ordinances enacted by cities and counties. In many areas, local minimum wages exceed the statewide rate, and employers must follow the higher applicable standard.

A common issue arises when employers fail to properly track or implement increases in minimum wage. While some employers correct these errors once identified, others delay or fail to pay the full amount owed to employees. Importantly, it is not enough for an employer to simply adjust an employee’s pay rate going forward – they must also compensate employees for any underpayment dating back to the effective date of the wage increase. If you believe you have not been paid all wages owed due to a minimum wage violation, an attorney at Macias Law can assist you in evaluating and resolving the issue.

Off-the-Clock Work

Employers in California may not require or permit employees to perform work without compensation. Put simply, if you are performing work for your employer, you must be paid for that time.

Off-the-clock work can take many forms. It may include work performed before or after a scheduled shift, completing administrative tasks outside regular hours, or working through a meal break. These types of activities are often not recorded, but they are still compensable under California law.

Time worked off the clock must be paid at the employee’s regular rate of pay. If that work results in hours exceeding daily or weekly limits, the employee may also be entitled to overtime compensation.

Requiring or allowing employees to work without pay, or to work more than eight hours in a day or forty hours in a week without proper overtime compensation, violates California wage and hour laws. If you believe you have not been paid for all time worked, an attorney at Macias Law can help you evaluate your situation and pursue recovery of the wages you have earned.

Overtime Wages

The right to overtime compensation is a fundamental protection provided to non-exempt employees under California law. Employers are required to properly compensate employees for overtime hours worked and may not avoid these obligations by pressuring employees to work off the clock or by failing to record all hours worked.

Regular Overtime

California law requires employers to pay non-exempt employees overtime at one and one-half times their regular rate of pay for hours worked beyond certain limits. This includes work performed in excess of eight hours in a single workday or forty hours in a workweek. Employees are also entitled to this rate of pay for the first eight hours worked on the seventh consecutive day in a workweek.

Double Overtime

In addition to regular overtime, California law requires employers to pay double time – twice the employee’s regular rate of pay – under more demanding work conditions. This applies to hours worked in excess of twelve in a single workday, as well as hours worked beyond eight on the seventh consecutive day of work in a workweek.

Meal and Rest Breaks

Meal Breaks

California law requires employers to provide non-exempt employees with compliant meal periods during the workday. Under Labor Code section 512, employees who work more than five hours in a workday are generally entitled to an uninterrupted meal period of at least 30 minutes, and those who work more than ten hours are entitled to a second 30-minute meal period. In limited circumstances, an employee may voluntarily waive a meal period, depending on the length of the shift and the nature of the work.

Although these requirements appear straightforward, disputes often arise over whether a meal period was truly provided. An employer satisfies its legal obligation only if the employee is relieved of all duties, the employer relinquishes control over the employee’s time, the employee is provided a meaningful opportunity to take the break, and the employer does not discourage or interfere with the taking of that break.

When these conditions are not met, the meal period may be considered non-compliant, even if time was technically set aside. Employees and employers frequently disagree on whether these standards were satisfied. If a compliant meal break was not provided, the employee may be entitled to additional compensation under California law.

Rest Breaks

California law also requires employers to authorize and permit paid rest breaks for non-exempt employees. Employees are generally entitled to a net ten-minute rest period for every four hours worked, or a major fraction thereof. During these breaks, employees must be relieved of all duties and cannot be required to remain on call or otherwise under the employer’s control.

Remedies for Violations

When an employer fails to provide compliant meal or rest breaks, California law provides a specific remedy. Employees may be entitled to recover one additional hour of pay at their regular rate for each workday that a compliant meal break was not provided, and an additional hour of pay for each workday that a compliant rest break was not provided.

These payments – often referred to as premium wages – are not always voluntarily paid by employers and may require legal action to recover. If you believe your employer has failed to provide legally compliant breaks, an attorney at Macias Law can help you evaluate your rights and pursue the compensation available under the law.

Expense Reimbursement

Under California law, employers are required to reimburse employees for all necessary expenditures or losses incurred in direct connection with the performance of their job duties. The scope of reimbursable expenses will vary depending on the nature of the employee’s work and the requirements of the position.

Common examples of reimbursable expenses include work-related travel, uniform costs, use of a personal cell phone or internet service for business purposes, training or education required by the employer, and conference or registration fees. In some circumstances, additional business-related expenses may also be recoverable where they are reasonably necessary to perform the job.

Employees are also protected from retaliation for asserting their rights under California wage and hour laws. An employer may not take adverse action – such as discipline or termination – against an employee for requesting reimbursement, raising concerns about wage violations, or pursuing a claim. Termination or other adverse action under these circumstances may give rise to additional legal claims, including wrongful termination.

Vacation Pay in California

Under California law, employers are not required to provide vacation benefits. However, when an employer does offer paid vacation, those benefits are treated as earned wages. Once vacation time is accrued in accordance with the employer’s policy, it cannot be forfeited, and any unused, accrued vacation must be paid out upon termination of employment. As a result, policies that cause employees to lose earned vacation time are not permitted.

Employers may implement reasonable policies governing how vacation time is requested and used. These policies may include advance notice requirements, differences in time-off policies based on job classifications, pre-approval procedures, limits on the amount of consecutive time off, or designated “blackout” periods during which vacation is not permitted.

At the same time, vacation policies must be applied in a lawful and non-discriminatory manner. An employer may not impose or enforce vacation-related policies in a way that discriminates against employees based on protected characteristics, including race, religion, national origin, disability, sex, age, sexual orientation, or other protected categories under California law.

Paystub Violations

Requirements of Wage Statements

California law requires employers to provide employees with accurate, itemized wage statements each pay period. These statements – commonly referred to as paystubs – must include specific information sufficient to allow employees to understand how their wages were calculated.

Required information generally includes the employee’s gross wages earned, total hours worked (for non-exempt employees), any applicable piece-rate units and rates, all deductions, net wages earned, the inclusive dates of the pay period, and identifying information for both the employee and employer. Employers must also list all applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each rate.

Failure to provide complete and accurate wage statements can make it difficult for employees to determine whether they have been properly paid and may result in statutory penalties under California law.

Wage Statements Must Also Show Available Paid Sick Leave

California law further requires employers to provide written notice of an employee’s available paid sick leave balance. This information must be included either on the wage statement itself or in a separate document provided each pay period.

If your wage statements do not comply with these requirements, you may have a claim under the California Labor Code. An attorney at Macias Law can help you evaluate your pay records and pursue appropriate remedies.

Commission Disputes

Many employees in California earn compensation beyond their base hourly wages or salary in the form of commissions, bonuses, or other incentive-based pay. These amounts are considered wages when earned and are typically tied to performance criteria such as sales targets, productivity metrics, or overall business performance.

Disputes frequently arise regarding when incentive compensation is earned and how it should be calculated. In many cases, the terms are set forth in a written commission or bonus plan, although disagreements may also arise based on prior practices or informal agreements that were not fully documented.

Commission agreements are particularly important because the terms governing when commissions are earned and payable can significantly affect an employee’s rights. Employees are encouraged to ensure that the material terms of any commission structure are clearly set out in writing. Similarly, whether a bonus is discretionary or tied to objective performance criteria can determine how it is treated under California law.

When earned incentive compensation is not paid, it constitutes unpaid wages under California law and is subject to the same legal protections and remedies as unpaid hourly wages or salary.

Tips and Gratuities

California Labor Code section 351 strictly protects employee tips and gratuities. Under this law, employers and their agents – including managers and supervisors – are prohibited from taking, sharing in, or retaining any portion of a tip or gratuity that is left for an employee by a customer.

Employers are also prohibited from deducting any amount from tips or using gratuities as a credit against wages owed to employees. Tips must be paid in full to the employee or employees to whom they are given, without reduction or diversion by the employer.

Under California law, gratuities are considered the sole property of the employee who receives them. A “gratuity” is defined as any tip, service charge, or money given by a patron to an employee over and above the amount due for goods or services provided.

Misclassification

Exempt vs. Non-Exempt Classification

Although most California employees are entitled to the protections of the California Labor Code, including overtime pay and meal and rest breaks, certain employees are classified as exempt under specific legal standards. One of the most frequently litigated wage and hour issues is whether an employee has been properly classified as “exempt” or “non-exempt.”

To qualify as exempt, an employee must satisfy strict legal requirements relating to both job duties and compensation. The burden of proving that an employee is properly classified as exempt rests entirely with the employer, not the employee.

The most common exemptions under California and federal law are the so-called “white collar” exemptions, which include executive, administrative, and professional employees. These exemptions generally apply to employees in managerial roles or highly specialized professional positions. California law also recognizes other exemptions, including those for certain computer professionals and outside sales employees.

Misclassification occurs when an employer improperly classifies an employee as exempt even though the employee does not meet all legal requirements for that exemption. When this occurs, employees are unlawfully denied protections such as overtime pay, meal and rest breaks, and other wage protections. These violations can result in significant unpaid wages over time. If you believe you have been misclassified as exempt, you should consult with an attorney at Macias Law to evaluate your rights.

Independent Contractor Misclassification

Another common form of misclassification occurs when employers improperly classify workers as independent contractors instead of employees. Independent contractors are generally not entitled to the same wage and hour protections as employees, including overtime pay and certain break requirements.

California law strictly regulates this classification. In response to widespread misclassification issues, the California Supreme Court adopted the “ABC test” in Dynamex Operations West, Inc. v. Superior Court, and the Legislature later codified this standard through Assembly Bill 5 (AB 5), with subsequent amendments refining its application.

Under the ABC test, a worker is presumed to be an employee unless the hiring entity can establish all three of the following conditions:

• The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract and in practice;
• The worker performs work that is outside the usual course of the hiring entity’s business; and
• The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

If an employer cannot meet all three requirements, the worker must generally be classified as an employee under California law.

Contact A California Wage and Hour Attorney Today

If you believe your employer has failed to properly compensate you or has violated California wage and hour laws regarding your hours worked or wages earned, Macias Law is available to review your situation and evaluate whether you have a claim.