Workers in California may be entitled to unpaid wages or other wage benefits

California unpaid overtime, minimum wage and more: Who’s affected?

Do you work in California, or have you? Have you been denied overtime or wages for off-the-clock work?

California employees who performed work in the state can take legal action for labor law violations to recover unpaid wages, penalties and other compensation. 

California has the strictest labor laws in the country, requiring minimum and overtime wages, rest and meal breaks and reimbursements for business expenses. The laws also include rigorous guidelines for classifying workers as independent contractors, meaning that many workers are protected as employees under California law even if they would be considered independent contractors in other states.

Although California labor laws provide incredible protections, employers may not follow these guidelines to the letter. California employees who performed work in the state can take legal action for labor law violations to recover unpaid wages, penalties and other compensation.

California labor laws: minimum wage and off-the-clock work

As of Jan. 1, 2023, all employers in California are required to pay employees a minimum of $15.50 per hour , more than double the federal minimum wage of $7.25 per hour. Under California labor laws, tips cannot be used to offset a minimum wage.

When employees are forced to work off the clock, this may result in minimum wage violations. Preshift or post-shift work that isn’t logged on a time clock is considered unpaid work. Significant amounts of unpaid work may result in an hourly wage below the required minimum wage.

Some frequent examples of potentially illegal off-the-clock work include: 

• Employees being required to wait to be searched by their employer or go through a security checkpoint after clocking out at the end of a shift; 
• Employees bring required to put on required safety equipment prior to clocking in; 
• Employees being required to undergo a temperature or health check prior to clocking in;
• Employees being required to communicate with co-workers about work-related matters before clocking in; 
• Employees being required to communicate with their employer while they are at home; 
• Or employees being required to set an alarm, put away equipment, or perform other tasks after having clocked out. 

However, there are dozens of ways in an employer can take advantage of the unpaid work of its employees. Workers who are denied minimum wage could take legal action to recover unpaid wages. 

Are you required to perform any work-related tasks either before you have clocked in or after you have clocked out from work? If so, you should consult with a lawyer to discuss your options.   

California labor laws: overtime

 California labor law requires employers to pay overtime, or time and a half, for all hours worked over 40 hours in a week. However, the state laws also include other unique protections. Even if a worker doesn’t exceed 40 hours in a work week, employers must pay overtime wages for all hours worked over eight hours in a single day and for the first eight hours worked on the seventh consecutive day or worked in a work week.

California overtime rules also include “double time” where employers are required to pay double the regular rate of pay for all hours worked over 12 hours in a day and all hours worked over eight hours on the seventh consecutive day of work. 

The rate of pay used to calculate overtime and double time is not always the same as an hourly wage. If hourly workers are paid shift differentials or non-hourly compensation such as bonuses, this must be considered when calculating overtime or double time. Salary wages and commission wages must also be carefully considered when calculating the overtime rate of pay.

Some workers are exempt from overtime wages. Unlike other states which exempt all salaried workers, California requires businesses to pay salaried workers overtime wages unless they fall into specific exempt roles. For example, executive, administrative or professional employees and outside salespersons are exempt from overtime. However, each of these roles are defined under California law, meaning that exemptions may have exemptions. An experienced labor law attorney can help navigate these requirements and determine if you are owed overtime wages.

For hourly workers, one potential legal violation is that their time entries are “rounded”, which results in them potentially losing out on overtime they may be owed. “Rounding” of time occurs when an employee does not pay employees to the minute, but instead “rounds” the time entry to the nearest quarter hour. So, for instance, if an employee were to clock in at 10:57, the entry would be “rounded” to 11:00, resulting in a loss of three minutes of pay. In most circumstances, this is illegal under California law.   

If you suspect that you are not being paid overtime properly, either because incentive pay/bonuses are not factored in to your overtime rate of pay or because your time is subject to “rounding,” you should consult with a lawyer.

California labor laws: rest and meal breaks

California law guarantees most workers regular meal and rest breaks based on the amount of time they work.

An employee that works five hours or more in a day is guaranteed an uninterrupted 30-minute unpaid meal break. When working more than 12 hours in a day, employees are guaranteed an additional 30-minute break. For every four hours worked in a day, employees get a 10-minute rest period.

Meal breaks must be “uninterrupted” to count under California law. This means that workers must be relieved of all duty and may not be discouraged from taking their breaks. Employees who are forced to remain on duty during meal periods may only do so if the nature of their work prevents an uninterrupted break, if the on-duty meal periods are agreed to in writing and if the breaks are paid. 

Businesses may not automatically apply rest and meal breaks to employee time sheets while not actually allowing workers their full, uninterrupted break periods. 

Employers who fail to grant these rest and meal breaks may be required to pay penalties for missed breaks. For each missed meal or rest break, employers must pay an additional hour of pay at a worker’s regular rate. 

One common way that employees are denied meal or rest breaks is by being forced to remain on the company premises during them, or by being required to perform any sort of work duty during the breaks. For instance, if an employer requires that an employee stay inside the workplace during their meal or rest breaks, this amounts to a non-compliant “captive” break. Or, even if the employee is allowed to leave the workplace, if the employee is required to carry a walkie-talkie or respond to phone calls that come in during the break the break, the employee is not receiving legal breaks. In fact, even if the phone never rings while the employee is on their break but is expected to answer it if it did ring, it is still potentially a non-compliant break.

If you are required to spend your meal or rest periods at your place of work or are required to perform any type of work–even if it is just carrying a walkie-talkie or cell phone–during your breaks, you should consult with a lawyer to determine whether you are receiving illegal breaks.

California labor laws: expense reimbursement

California law requires employers to pay for “all necessary expenditures or losses” directly related to an employee’s job. A number of expenses may qualify under this definition, including:

• Travel expenses, including mileage reimbursement. This includes driving between work locations during a shift, driving to client locations, or even driving to the bank to make a deposit at the end of a shift.
• Business use of a cell phone. This includes situations in which employers require employee to log in or clock in using an app on their personal cell phone.
• Employers are not permitted to charge employees for uniforms or specialized equipment necessary for the performance of their job.

Employee vs. independent contractor

The California wage and hour protections described above apply to all non-exempt employees. Unfortunately, businesses may attempt to circumvent these requirements by classifying workers as independent contractors instead of employees.

To help curb employee misclassification, California implemented an employment status law as of Jan. 1, 2020, which requires the “ABC test” to determine if a worker is an employee or not. Under the ABC test, workers can only be considered independent contractors if they meet all  three following conditions:

1. The worker is free from the control and direction of their employer when it comes to work performance.
2. The worker performs work duties which are outside their employer’s normal course of business.
3. The worker is engaged in an independent trade, occupation or business of the same nature as the work being performed under contract. 

This law received backlash from gig economy employers such as Uber and from the trucking industry at large. Although court battles are ongoing about exemptions from this law, the independent contractor classification rules remain in effect. The most important question for a worker who is classified as an independent contractor should consider is: is my job central to the business of the company I am working for? By way of example, if you work for a company that paints buildings and your job is to paint houses, you most likely should be classified as an employee. On the other hand, if you hired by an accounting firm to paint their office, you most likely are not an employee of the accounting firm, as their central business is to provide accounting services. 

California protections for truckers

Truckers may be protected under California labor laws, even if they do not live in the state. Although many truckers are considered independent contractors in other states, they may be considered employees in California, meaning they are entitled to minimum wage, expense reimbursements, and other benefits. 

Truckers who perform work in California may have been wrongfully denied the full benefits owed to them under state law. An experienced attorney can help evaluate trucker situations and determine if they are owed additional compensation. 

Join a California worker unpaid wages class action lawsuit investigation

California labor laws provide strict protections for workers, even for truckers who are not based in the state but perform some work there. If your employer fails to follow California labor laws, you could take legal action to recover unpaid wages and penalties. An experienced lawyer can help you navigate the complexities of California labor laws and recover compensation through an unpaid wages class action lawsuit.

If you are a California worker or a trucker who worked in California and experienced labor law violations, you could be eligible to join this California unpaid wages class action lawsuit investigation. 

Fill out the form on this page for a FREE case evaluation.