Understanding Wage and Hour Laws
Wage and hour laws exist to protect employees and ensure fair compensation for their time and effort. In California, these laws cover several critical areas, including:
- Compliance with minimum wage laws and their impact on employees.
- When overtime pay is required and how disputes can arise.
- The distinction between exempt and non-exempt employee classifications.
- How state and federal regulations work together to protect employees’ rights.
It is essential for both employees and employers to be aware of these regulations to prevent wage disputes and ensure fair treatment in the workplace. This section provides an overview of these topics and helps clarify how the laws apply in various situations.
Minimum Wage: One of the key areas of compliance with wage and hours law is minimum wage. California’s minimum wage is currently set at $16.00 per hour, significantly higher than the federal minimum of $7.25. These rates can be even higher in specific cities and counties. In California, there are separate minimum wage requirements for fast food workers and healthcare workers:
- Starting April 1, 2024, all “fast food restaurant employees” who are covered by the new law must be paid at least $20.00 per hour.
- Certain healthcare workers must soon be paid a higher minimum wage. The law will go into effect sometime between October 15, 2024 and January 1, 2025.
Employers must comply with the highest applicable minimum wage rate in their area. Proper adherence to minimum wage laws helps employees meet basic living standards and prevents exploitation.
Overtime Pay: Overtime pay is another important area covered by wage and hour laws. Non-exempt employees are entitled to additional pay for working beyond standard hours—‘time and a half’ for hours over 8 in a day or 40 in a week, and ‘double time’ for hours over 12 in a day or on the seventh consecutive workday. Understanding when overtime applies is crucial, as employers who fail to pay for overtime can face serious legal consequences.
Exempt and Non-exempt employees: A critical distinction in wage and hour laws is between exempt and non-exempt employees. Exempt employees are not entitled to overtime pay or certain other protections because they meet specific criteria related to their job duties and salary level. Non-exempt employees, on the other hand, must be compensated for any overtime hours worked. Misclassification can result in employees being underpaid, so it’s important for both employers and employees to understand this difference.
Fair Labor Standards Act (FLSA): Both state and federal laws provide protection for workers, but California’s laws are often more stringent. While the federal Fair Labor Standards Act (FLSA) sets baseline protections, California’s labor laws go further in areas like minimum wage, overtime pay, and meal and rest breaks. Employees are protected under the law regardless of whether their employer knowingly violates these regulations. Understanding the interplay between state and federal laws ensures employees can advocate for their rights and receive the compensation they deserve.
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Why Choose Colby Law Firm for Your Wage and Hours Cases?
You can rely on Colby Law Firm’s wage and hour attorneys to assess your case, determine what you are entitled to, and advocate for you as your legal representatives. Our employment law attorneys have a proven track record in handling numerous California unpaid wage and hour violation cases, bringing extensive litigation experience and deep knowledge of California labor laws and the FLSA to the table.
It’s important to act quickly, as the wage and hour statute of limitations in California is three years. This means you must file claims for violations such as unpaid minimum wage, overtime, illegal deductions from pay, or unpaid reimbursements within this period. If your employer has violated employment law, they must pay any unpaid wages or compensation owed. Our firm also has extensive experience defending wage and hour claims in California, ensuring that employers understand their legal obligations and respond appropriately to wage and hour disputes.
Colby Law Firm’s specialized practice area is employment law, including the recovery of unpaid wages and other owed compensation through wage theft, workplace discrimination, and employment dispute cases. We offer a strong track record in wage claims, personalized support and representation, and a no-win, no-fee policy.
If your employer has failed to pay you your rightfully earned compensation, you need the best lawyer to represent you and file an unpaid wage claim. Contact us for a free consultation with a California unpaid wages attorney. One of our employment attorneys will discuss the merits of your wage claim case and your legal options in full confidentiality. We serve clients throughout California, including Los Angeles, San Francisco, and San Diego.
Exempt vs. Non-exempt Employees in California: Understanding the Difference
Whether you are classified as an exempt or non-exempt employee in California depends on several factors, including your employment agreement or employment contract, job duties, and compensation. This classification determines your eligibility for minimum wage, overtime pay, and other protections under California’s wage and hour laws.
Exempt employees are not covered by California’s minimum wage and overtime requirements due to their role, responsibilities, and salary level. To be considered exempt, an employee must meet specific criteria:
Job Duties:
- Primarily perform executive, administrative, or professional duties.
- Exercise discretion and independent judgment in decision-making.
Salary Threshold:
- Earn a salary at least twice the state minimum wage for full-time employment.
Types of Exempt Roles:
- Executive or managerial positions.
- Professional roles such as doctors, lawyers, and engineers.
- Administrative roles like school administrators and certain IT professionals.
- Outside sales personnel.
- Public sector employees.
Non-exempt employees are covered by California’s wage and hour laws and are entitled to minimum wage, overtime pay, and meal and rest breaks. These employees typically perform duties that do not meet the criteria for exemption and are paid based on the number of hours worked. Non-exempt employees are eligible for:
- Overtime pay (for hours worked over 8 in a day or 40 in a week).
- Meal and rest breaks.
- Minimum wage protections.
The Division of Labor Standards Enforcement (DLSE) provides guidelines to help determine the appropriate classification, as demonstrated in several wage and hour cases across the state. Understanding these distinctions is critical to ensuring compliance with California employment laws.
What Are “Salaried Non-Exempt” Employees?
Salaried non-exempt employees are those who are paid a predetermined fixed salary but are still entitled to overtime pay and other protections under federal and state laws.
Their employers must pay them for all hours worked and must provide accurate record-keeping of their hours to comply with overtime pay requirements.
Cases and Conditions of Wages and Hours Violation in California
Wage and hour violations in California can occur in various forms, whether intentional or unintentional on the part of employers. Here is an overview of common workplace violations that involve wage and hour protections.
Minimum Wage Violations
Employers violate minimum wage laws if they:
- Pay less than the required federal, state, or local minimum wage.
- Make unlawful deductions (e.g., uniform costs, cash shortages, breakage, pre-employment expenses) that effectively reduce employees’ pay below the minimum wage.
Overtime Violations
California law prohibits overtime violations, including:
- Failure to pay overtime wages to employees, defined as ‘time and a half’ for hours worked over 8 in one day or over 40 hours in a workweek.
- Misclassification of an employee as exempt to avoid paying overtime compensation.
- Requiring employees to work off-the-clock and not providing any due overtime pay.
Misclassification of Employees
Employers violate wage and hour laws if they:
- Misclassify non-exempt employees as exempt to avoid overtime pay requirements.
- Classify employees as independent contractors to avoid providing benefits and protections.
Recordkeeping Violations
Employers violate recordkeeping labor laws if they:
- Fail to keep accurate records, such as pay stubs, of non-exempt employees’ hours and wages.
- Intentionally falsify records to avoid paying overtime.
Meal and Rest Break Violations
Employers violate meal and rest break labor laws if they:
- Don’t provide all required meal and rest breaks.
- Don’t fully relieve employees of duties during breaks without proper compensation.
Tip Violations
Employers violate tip laws if they:
- Use tips to meet minimum wage requirements.
- Fail to keep accurate records of tips and their distribution.
- Include managers or supervisors in tip pooling.
Prevailing Wage Violations
Employers violate wage laws if they:
- Fail to pay the required federal, state, or local prevailing minimum wage.
- Pay workers on government-funded projects (like construction projects) less than the prevailing wage rates set by the Department of Labor.
Discrimination and Retaliation
Employers violate workplace discrimination laws if they:
- Pay employees differently based on race, gender, age, or other protected characteristics.
- Fire or retaliate against employees who report or file a complaint about an employer’s unlawful actions, including wage and hour violations.
Offshore and Remote Workers Violations
California labor laws apply to offshore and remote employees if they are managed or employed by a California-based company, regardless of where they physically work. Employers violate these laws if they:
- Fail to provide required protections such as minimum wage, overtime pay, and meal and rest breaks.
- Misclassify remote or offshore workers to avoid compliance with California employment standards.
Vacation Time Violations
Employers violate California wage and hour laws if they:
- Fail to pay employees for accrued vacation time upon termination of employment.
- Have a “use-it-or-lose-it” policy that forfeits unused vacation time, as California law requires vacation time to be treated as earned wages that cannot expire.
Overtime Pay Requirements
California labor laws protect non-exempt employees by ensuring fair compensation for extended hours worked. Understanding overtime pay requirements and other employee rights is crucial for preventing wage disputes and maintaining fair workplace practices. Below is a breakdown of key provisions:
- Standard Overtime Pay:
- Employees must receive one and one-half times their regular hourly rate for:
- Hours worked over 8 in a single workday (up to 12 hours).
- Hours worked over 40 in a workweek.
- The first 8 hours worked on the seventh consecutive day in a workweek.
- Double Time Pay:
- Employees are entitled to double their regular hourly rate for:
- Hours worked over 12 in a single workday.
- Hours worked over 8 on the seventh consecutive day in a workweek.
- Breaks and Off-the-Clock Work:
- Employers must provide non-exempt employees with a 30-minute unpaid meal break for every 5 hours worked and a 10-minute paid rest break for every 4 hours worked.
- Any work performed during meal or rest breaks or outside scheduled shifts must be compensated.
- Requiring or permitting employees to work off-the-clock is illegal.
- Unpaid Off-the-Clock Work Claims:
- Employers must pay employees for all work performed, even if it was not pre-approved.
- If employees work before or after their scheduled hours without clocking in, or if they perform tasks during breaks, it’s considered off-the-clock work and must be compensated.
- Meal and Rest Break Violations: You Deserve Your Downtime:
- Employees are entitled to uninterrupted meal and rest breaks.
- If employers fail to provide these breaks or require employees to work through them, employees are owed one additional hour of pay for each missed break.
- Employer Responsibilities: What is Non-Negotiable Under the Law:
- Employers must maintain accurate records of hours worked and pay employees for all time worked, including overtime and breaks.
- Any violations of these rights can result in legal penalties, and employees are entitled to file claims to recover lost wages and other compensation.
If you believe your employer has violated your rights under California’s wage and hour laws, a wage and hour attorney can provide valuable guidance. If they have violated employment law, your employer must pay any unpaid wages or compensation owed. Unpaid wage lawyers can help evaluate your claim, navigate the legal process, and advocate for your rights to ensure fair treatment and compliance with labor laws.
Wage and Salary Issues
Wage and salary issues can arise in various forms, impacting employees’ ability to receive fair compensation for the work they perform. Whether it’s unpaid wages, commission disputes, or disagreements over bonus programs, understanding your rights is essential. Below are some common wage and salary issues employees may encounter:
- Unpaid Wages and Salary Recovery: Getting What You Have Earned
If an employer fails to pay wages or salary owed, employees have the right to recover these unpaid amounts. This includes regular pay, overtime, and final paychecks upon termination. California law requires employers to compensate employees fully and on time. If you are missing any portion of your wages, you may be entitled to back pay, penalties, and interest. - Commission Disputes: Ensuring Fair Payment for Your Sales Work
Commission pay disputes often occur when there is confusion or disagreement over commission structures, earned commissions, or payout timelines. Employers must honor agreed-upon commission terms and cannot make arbitrary changes or withhold commissions without valid cause. Employees who experience commission disputes can seek legal assistance to recover the pay they are rightfully owed. - Bonus and Incentive Program Disputes: Are You Getting Your Promised Share?
Bonus and incentive programs are often used to reward employees for meeting specific goals or performance standards. Disputes can arise if employers fail to pay bonuses as promised or change the terms without proper notice. Employees who believe they are not receiving their fair share should review their agreements and seek advice to ensure compliance with employment laws.
Understanding your rights in these situations is key to ensuring fair compensation for your work. If you are facing wage or salary issues, seeking advice from a labor attorney can help clarify your options and ensure that you receive what you have earned.
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During your free consultation, you will meet with Colby Law Firm employment lawyer to evaluate your case and advise you on the legal options available to you. We will listen to your concerns and keep all your case information completely confidential. If you decide to pursue a case, our licensed law firm offers a no-win, no-fee policy, ensuring you won’t face any additional financial burden while seeking justice.
Founded by experienced employment attorney Aaron Colby, Colby Law Firm’s team of super lawyers comprises one of the best law firms in California for employment law. We provide personalized support, advice, and representation throughout the legal process. We are prepared to take legal action to defend your rights and approach our work with compassion, attentive listening, assertiveness, creativity, and perseverance—qualities essential for navigating legal challenges, particularly in the labor law landscape.
Are You In Need of A Wage and Hour Attorney Near You in California?
The Colby Law Firm office is located in Los Angeles and licensed to practice throughout California, giving us a deep understanding of local courts, their nuances, and procedures. With extensive expertise in California labor law, our firm offers top-tier legal representation.
Time is of the essence when it comes to wage and hour claims, as the California statute of limitations is three years. This means you have a limited window to file your claim and recover any unpaid wages or compensation. Our team of attorneys is committed to guiding you through the legal process to find the best course of action for your situation. Contact us today to meet with a Los Angeles unpaid wage attorney.
Frequently Asked Questions
What Is the Minimum Wage in California, and Can My Employer Pay Me Less Than That?
As of January 1, 2023 the minimum wage in California is $15.50 per hour for all employers. Employers must pay all employees at least the minimum wage per hour.
How Can I Recover Unpaid Wages or Overtime Pay From My Employer in California?
In California, you can file a wage claim with the California Labor Commissioner’s Office to recover unpaid wages or overtime pay. You may also consult with an employment attorney to help you navigate the process and ensure that you receive the compensation you are owed. Colby Law Firm specializes in wage and hour law and can help you recover your lost wages.
Is It Worth It To File a Claim with the California Labor Board for Unpaid Overtime?
In many cases, if you work more than 8 hours a day or 40 hours a week, your employer may be required to pay overtime wages. Under California wage and hour laws, if your employer has not paid you overtime, it is a form of wage theft, and you have rights and avenues to claim those wages. You may be able to recover your unpaid overtime by filing a lawsuit or by bringing a Labor Board complaint. Your employer may also have to pay penalty fees depending upon various factors. Colby Law Firm can review your case and help determine if you have the necessary criteria to proceed.
Colby Law Firm provides a free and confidential consultation that can assist you. One of the first actions you’d want to review is whether you should proceed with the California labor board complaint with the appropriate state agency that could hear and investigate your claim or consider filing a lawsuit.
What Are My Rights Regarding Meal and Rest Breaks in California?
Most California employers must provide employees with the following breaks:
- An uninterrupted 30-minute unpaid meal break when working more than five hours in a day.
- An additional 30-minute unpaid meal break when working more than 12 hours in a day.
- A paid 10-minute rest period for every four hours worked.
If your employer denies you these breaks, they may be violating the law and you may be entitled to compensation.
Is My Employer Required To Reimburse Me for Work-Related Expenses in California?
In California, employers are required to cover the cost of reasonable work-related expenses. This can include things like mileage, tools, uniforms, or other items required for your job.
What Can I Do if I Was Wrongfully Terminated Without Pay in California?
If you believe you were wrongfully terminated without pay, it’s essential to consult with an experienced employment attorney who can help you understand your rights and explore your legal options. You may be entitled to compensation for lost wages, benefits, and possibly other damages. Colby Law Firm specializes in employment law. Our Los Angeles wrongful termination lawyers can help. Contact us for a free case evaluation.
What Are the Rules for Overtime Pay in California, and What Can I Do if My Employer Refuses To Pay Overtime?
While federal law requires employers to pay nonexempt employees an overtime rate of at least one-and-one-half times their regular wage for every hour worked over 40 in a workweek, California law provides even further protections.
California’s overtime law requires employers to pay nonexempt employees one-and-a-half times their regular hourly rate of pay for:
- All hours worked in excess of 8 in a single workday
- All hours worked in excess of 40 in a single workweek, and
- The first 8 hours worked on the seventh consecutive work day in the workweek.
California employers must pay non-exempt employees twice their regular hourly rate of pay for:
- All hours worked in excess of 12 in a single workday, and
- All hours worked in excess of 8 on the seventh consecutive day of work in the workweek.
Employees deprived of overtime pay because of misclassification can seek back pay for the unpaid overtime wages. Additionally, the employer may be obligated to pay the legal costs and attorney fees that the employee incurred while pursuing their overtime wages.
Colby Law Firm specializes in employment law. Our Los Angeles wage and hour lawyers can help. Contact us for a free case evaluation.
What Should I Do if My Employer Is Violating California’s Wage and Hour Laws?
If you believe your employer is violating wage and hour laws, such as by failing to pay minimum wage, overtime, or provide meal and rest breaks, you can file a wage claim with the California Labor Commissioner’s Office. Additionally, consulting with an experienced employment attorney can help you understand your rights and legal options.
Colby Law Firm specializes in employment law. Our Los Angeles wage and hour lawyers can help. Contact us for a free case evaluation.
Can I Be Forced To Be On Call With No Pay?
In most cases, an employer does have the right to require employees to be on call and to report as called in. Typically, only the time actually spent working is paid.
Your employer does have the right to require you to be on call. Usually, your employment contract can provide information on the “on call” requirements your employer has. This can help to guide you in determining if you can be forced to be on call with no pay. It may also help you determine if your employer’s demands violate your employment contract.
Typically, an “on call” worker is not paid unless he is called in to work.
There are state laws that cover how that time is to be paid. Normally, an employee who is on call can still engage in most aspects of their life as usual. The difference is that the employer has put the employee on call and asks that you be ready to go to work if called. For that reason, it is not uncommon to see the employer require on call staff to remain sober while on call.
California does not require employers to pay for the on call hours where the employee is not directly working for the employer but it is advisable to consult with a competent law firm to clarify what you can and cannot be paid for while on call and if your employment contract has been violated. Consider Colby Law Firm for a free and confidential consultation.
Should I Be an Exempt Employee?
To qualify as an exempt employee your job must fit the requirements for exempt employee status. Understanding the difference between an exempt employee and a non-exempt employee is the first step. When you are exempt, your job is not subject to the state and federal laws that govern how to pay wages and hourly rates. When you are a non-exempt employees your job is subject to the state and federal laws that govern how to pay wages and hourly rates.
If your job doesn’t qualify for exempt status, then you cannot be an exempt employee. Usually, there are three criteria that must be met to be an exempt employee but there are exceptions to the rule. If your job requires you to make independent decisions or judgement calls, is mostly an administrative, executive or managerial type position and your salary is at least twice the amount of California’s minimum wage for full time employees then you qualify as exempt.
And some employees are only partially exempt. This means, they are protected by some labor laws, but not others. If your employer has qualified you as an exempt employee and you do not feel that it is valid, you should seek competent legal advice. You can contact Colby Law Firm for a free and confidential consultation as your first step.
Colby Law Firm is a California Employment Firm who fights for the rights of the employee. Our firm was started by Aaron Colby who spent 15 years working “for the other side” before he started his own firm to work for the employee. Contact us for your free and confidential consultation.
Is There a Statute of Limitations for Wage and Hour Cases?
If you have been a victim of wage theft and are considering pursuing a wage and hour case, the first thing you’ll need to know is the statute of limitations. The simple answer is yes there is a statue of limitations for wage and hour cases, however the statue of limitations can be either three years, two years or four years depending upon a number of factors.
That’s why your first action should be to reach out to a competent law firm that can assist you with your case. In California, that firm is Colby Law Firm. We provide free and confidential consultations to employees.
Colby Law firm was started by Aaron Colby who worked for employers for fifteen years before he opened his own firm to represent employees. He brings all his knowledge of the California labor laws and how employers use those laws to their advantage to help win your case.
Depending upon the circumstances surrounding your wage and hour case, you may qualify for recovering more than just the unpaid wages. Please reach out to Colby Law Firm and request a free and confidential case review. They’re here to help you.