WAGE & HOUR THEFT
California, and particularly Los Angeles, unfortunately, has a significant prevalence of employer wage and hour violations. Shockingly, 30% of all workers in Los Angeles County earn less than the minimum wage, which is illegal. This translates to a staggering $26-28 million in stolen wages every week.
We all have the right to expect fair compensation for an honest day's work, and when we don't receive it, California state law empowers employees to take legal action against their employers. You should not have to endure being shortchanged in your workplace. Contact the Los Angeles wage and hour lawyers at Zaghi Law for a free and entirely confidential consultation.
What is Wage Theft? Wage theft is a term encompassing various violations of California labor laws related to unpaid wages for employees. In California, wage theft can manifest in several forms, including:
- Failure to pay the minimum wage.
- Neglecting to pay overtime.
- Misclassifying employees as independent contractors.
- Denying meal and rest breaks.
- Failing to reimburse employees for business expenses.
- Unauthorized deductions from employee paychecks.
- Providing inaccurate wage statements.
- Withholding final wages within the legally allowed timeframe, or not providing them at all.
Wage theft, by legal definition in California, constitutes the illegal underpayment or nonpayment of wages to employees. Employers engaging in wage theft can face significant penalties, including fines, the requirement to pay back wages owed to employees, and in some cases, even criminal charges.
What Are Exempt and Non-Exempt Employees? What is the Difference Between the Two? In California, labor laws categorize employees as either exempt or non-exempt, primarily based on their job duties and responsibilities. These classifications determine whether employees are entitled to receive a minimum wage, overtime pay, and meal and rest breaks.
Non-exempt employees typically earn an hourly wage and are entitled to overtime pay for any hours worked beyond eight in a day or 40 in a week. They are also guaranteed meal and rest breaks, among other labor law protections. The majority of wage and hour violations by employers pertain to non-exempt employees.
Exempt employees, conversely, are typically salaried employees who are not subject to certain wage and hour laws. The most common categories of exempt employees include executive, administrative, and professional employees, although there are other categories as well. For instance, outside salespersons and certain computer professionals may also be classified as exempt. Exempt employees are not eligible for overtime pay under state law, but they must earn a minimum monthly salary to qualify for this classification.
I Work on Commission. Do the Same Wage and Hour Laws Apply to Me? In most cases, yes. California wage and hour laws generally apply to employees who work on commission, just as they do to other types of employees. However, some specific rules apply to commission-based employees.
Employees who earn commissions must have a written contract outlining how their commissions will be calculated and paid, signed by both the employer and the employee. The contract should specify the formula for determining the commission rate and when commissions will be disbursed.
Commissions must be paid no less frequently than once a month, and employers must maintain accurate records of commission payments. Commission-based employees must also receive precise, itemized wage statements showing their total commission for each pay period.
California law mandates that most commission-based employees be paid at least the minimum wage for all hours worked. If commissions do not equal or exceed the minimum wage for a pay period, the employer must make up the difference.
California distinguishes between inside and outside salespeople regarding wage and hour laws. Outside salespeople are exempt from minimum wage, meal breaks, and overtime requirements. They are defined as employees over the age of 18 who spend more than half of their workday away from their employer's primary workspace selling goods or securing orders for products or services.
In some instances, unscrupulous employers misclassify employees as exempt to avoid paying overtime and the minimum wage. If you believe this is happening to you, consult with an experienced wage and hour attorney immediately.
Can My Boss Force Me to Work Overtime? Yes, if you are a non-exempt employee, your employer can legally compel you to work overtime. Federal and California state laws permit employers to require overtime from their non-exempt employees and even allow employers to discipline, demote, or terminate workers who refuse to work overtime. You would receive overtime pay as required by California law, which is typically time-and-a-half for hours worked beyond eight in a day and double your hourly rate for hours worked beyond 12 in a day.
However, there are exceptions to mandatory overtime:
- Your overtime hours cannot jeopardize your health or safety.
- It must not violate your employment contract.
Is the Legal Minimum Wage in Los Angeles the Same as In the Rest of California? No, many counties and cities across California have minimum wage rates that differ from the state minimum wage of $15.50 per hour in 2023. The current minimum wage in Los Angeles increased to $16.90 on July 1st, 2023. In unincorporated areas of the city and county, the current rate is $15.96 per hour, also increasing to $16.90 on July 1st, 2023. (SUBJECT TO CHANGE WITH TIME)
Among Los Angeles County cities, Long Beach has set a minimum wage of $16.73 per hour for hotel workers and concessionaire workers, regardless of the employer's size. Pasadena mandates a minimum wage of $16.11 per hour.
My Boss Fired Me for Filing a Wage and Hour Claim. Can I Do Anything About That? Yes, if you were terminated for filing a wage and hour claim against your employer, you would have grounds for retaliation and wrongful termination lawsuits. Employers in California are prohibited from retaliating against employees who take legal action against them for workplace violations.
Can I Afford to Hire Zaghi Law? You can indeed afford to engage Zaghi Law for your wage and hour case representation. We operate on a contingency basis, which means we receive a percentage of your settlement or verdict amount as our fee. You do not need to worry about upfront legal retainers, out-of-pocket expenses, or hidden fees of any kind. The percentage we receive will be clearly outlined in the client representation agreement you sign with us, and it remains fixed regardless of the amount of compensation we secure for you.
You should not have to tolerate unpaid wages at work, and Zaghi Law is here to help.