Understanding Wage and Hour Laws in California

Wage and hour laws in California are designed to ensure that employees are fairly compensated for their work. These laws cover a wide range of issues, including minimum wage, overtime pay, meal and rest breaks, and record keeping requirements. Understanding these regulations is crucial for employees to protect their rights and for employers to remain compliant with the law.

Our Attorneys

Attorney Perry G. Smith

Perry G. Smith

Partner

Danielle N. Riddles

Danielle N. Riddles

Partner

Minimum Wage Requirements

In California, the minimum wage is higher than the federal minimum wage, reflecting the state’s commitment to ensuring that workers earn a livable wage. As of January 1, 2024, the minimum wage for employers with 26 or more employees is $15.50 per hour, while employers with 25 or fewer employees must pay a minimum wage of $15.00 per hour. These rates are subject to annual increases based on inflation and other economic factors. Employees must be aware of their right to earn at least the minimum wage and should report any violations to the appropriate authorities.

Overtime Pay Regulations

California law mandates that employees who work more than eight hours in a day or more than 40 hours in a week must receive overtime pay. Overtime is calculated at one and a half times the employee’s regular rate of pay for hours worked beyond these thresholds. Additionally, employees who work more than 12 hours in a day or more than eight hours on the seventh consecutive day of work are entitled to double their regular rate of pay. These overtime rules are designed to discourage excessive working hours and to ensure that employees are fairly compensated for their extra efforts.

Meal and Rest Breaks

Employees in California are entitled to specific meal and rest breaks throughout their workday. For every five hours worked, employees must receive a 30-minute unpaid meal break. If an employee works more than 10 hours in a day, they are entitled to a second 30-minute meal break. Additionally, employees must be given a 10-minute paid rest break for every four hours worked or a major fraction thereof. Employers are required to ensure that these breaks are provided and that employees are relieved of all duties during their meal periods.

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Record Keeping and Pay Stubs

California law requires employers to maintain accurate records of employees’ hours worked and wages paid. Employers must provide itemized wage statements to employees, detailing the hours worked, hourly rates, gross wages, deductions, net wages, and other pertinent information. These records must be retained for at least three years. Employees have the right to inspect and copy their employment records, including pay stubs, and should ensure that their records accurately reflect their work and compensation.

Wage Theft Protection

Wage theft — the unlawful withholding of wages or denial of benefits — is a significant issue in California. The state has implemented strict laws to combat wage theft and protect workers. Employers who engage in wage theft can face severe penalties, including fines, back pay, and other legal consequences. Employees who believe they are victims of wage theft should promptly report the issue to the California Labor Commissioner’s Office or seek legal assistance to recover their lost wages.

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Independent Contractors vs. Employees

Determining whether a worker is classified as an independent contractor or an employee is critical, as it affects the worker’s rights and protections under wage and hour laws. California’s Assembly Bill 5 (AB5), which took effect on January 1, 2020, established a stringent test for classifying workers as independent contractors. The ABC test requires that a worker must be free from the control of the hiring entity, perform work outside the usual course of the hiring entity’s business, and be engaged in an independently established trade or occupation. Misclassification can result in significant penalties for employers and a loss of rights and benefits for workers.

Paid Sick Leave

California law mandates that employees accrue paid sick leave, which they can use for their own health needs or to care for a family member. Employees accrue at least one hour of paid sick leave for every 30 hours worked. Employers can limit the use of paid sick leave to 24 hours or three days per year, but the accrual cap can be set higher. Paid sick leave laws ensure that employees do not have to choose between their health and their paycheck.

Wage and Hour Violations

Employees in California have several options if they believe their employer has violated wage and hour laws. They can file a wage claim with the California Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner’s Office. This process involves submitting a claim form and providing evidence of the alleged violations. The DLSE will investigate the claim, and if violations are found, the employer may be required to pay back wages, penalties, and other damages. Additionally, employees can file a lawsuit against their employer for wage and hour violations. This legal action can be pursued individually or as part of a class action lawsuit if the violations affect a large number of employees.

Retaliation Protections

California law prohibits employers from retaliating against employees who assert their rights under wage and hour laws. Retaliation can take many forms, including termination, demotion, reduction in hours, or other adverse actions. Employees who experience retaliation can file a complaint with the Labor Commissioner’s Office or pursue legal action against their employer. Retaliation claims are taken seriously, and employers found guilty of retaliating against employees can face significant penalties.

Common Wage and Hour Issues

Several common issues can arise under California’s wage and hour laws. Misclassification of employees as independent contractors is a prevalent problem, as it can deprive workers of important rights and benefits. Employers may also fail to provide proper meal and rest breaks, leading to violations. Wage theft, such as failing to pay overtime or minimum wage, is another significant issue. Employees should be vigilant in monitoring their work hours and pay to ensure compliance with the law.

Role of Legal Representation

Navigating California’s complex wage and hour laws can be challenging for employees. Legal representation can be crucial in understanding and asserting one’s rights. Employment lawyers can assist employees in filing wage claims, negotiating settlements, and pursuing legal action against employers. Legal assistance can help ensure that employees receive the compensation they deserve and that their rights are protected under the law.

Fighting for Fair Workplaces

If you believe your employer has violated your wage and hour rights, it is crucial to seek legal assistance promptly. At sickandfired.com lawyers, we are committed to helping employees navigate the complexities of California’s wage and hour laws. Our experienced attorneys can provide you with the guidance and representation you need to assert your rights and recover the compensation you are entitled to. 

California’s wage and hour laws are designed to protect employees and ensure fair compensation for their work. By understanding these laws, employees can better protect their rights and hold employers accountable for any violations. If you need assistance with a wage and hour issue, do not hesitate to reach out to the legal professionals at sickandfired.com lawyers. Contact us today for your free consultation our dedicated team is here to help protect your rights.