Wage theft is a serious issue that affects countless workers across California. From not receiving overtime pay to being misclassified as an independent contractor, the ways employers can shortchange you are numerous. As someone who has faced these challenges firsthand or knows someone who has, it's crucial to understand your rights and the actions you can take.

With so many businesses cutting corners at employees' expense, it's easy to feel overwhelmed and powerless. But you're not alone. Armed with knowledge and resources, you can stand up against wage theft.

Table of Contents:

• What is Wage Theft and How Does it Occur in California?
  • Common Examples of Wage Theft
  • California Labor Laws Protecting Workers
  • Consequences for Employers Engaging in Wage Theft
• Steps to Take if You're a Victim of Wage Theft in California
  • Documenting Evidence of Wage Theft
  • Filing a Wage Claim with the Labor Commissioner's Office
  • Seeking Legal Assistance from a Private Attorney or the Attorney General
• The Role of the California Labor Commissioner's Office in Combating Wage Theft
  • Investigating and Prosecuting Wage Theft Cases
  • Enforcing Judgments Against Employers
  • Providing Resources and Assistance to Workers
• Recent High-Profile Wage Theft Cases in California
  • Radisson Hotel Oakland Airport Wage Theft Case
  • Misclassification of Independent Contractors
  • Wage Violations in the Garment Industry
• Preventing Wage Theft: Best Practices for California Employers
  • Maintaining Accurate Payroll Records
  • Providing Timely Access to Personnel Files
  • Communicating Effectively with Employees about Wage and Hour Laws
• Get Help Recovering Your Wages

What is Wage Theft and How Does it Occur in California?

Wage theft in California is a serious issue that affects thousands of workers every year. It happens when employers fail to pay their employees the full wages they're owed under state labor laws. Wage theft can include the following:

• Overtime Violations: There are strict overtime laws in California that every business must follow. Employers who fail to pay overtime wages as required by California law are committing wage theft, depriving workers of the compensation they've earned for extra hours worked.
• Misclassification: Companies who improperly classify employees as independent contractors are committing wage theft, depriving workers of employment benefits, overtime pay, and other protections they're legally entitled to under California law. If you've been affected by this practice, a misclassification attorney can help you recover the compensation and benefits you deserve.
• Tipped Employee Violations: A company that improperly takes a portion of tips earned by tipped employees or fails to ensure that tipped workers are paid the minimum wage are engaging in wage theft.
• Underpayment: Underpayment occurs when employees are paid less than the minimum wage or agreed-upon salary, leaving them financially disadvantaged.
• Meal and Rest Break Violations: If an employer denies or fails to provide employees with their legally required meal and rest breaks, they are in violation of California's labor laws.  There are a number of California meal and rest break laws that each employer needs to strictly follow.
• Illegal Deductions: Unauthorized deductions from an employee's paycheck, such as for uniforms or tools, violate labor laws and are considered wage theft.
• Off the Clock Work: Companies who require employees to work off the clock without compensation are violating wage laws and depriving workers of the pay they deserve.
• Final Paycheck Violations: A business that fails to provide departing employees with their final paycheck or delay payment are committing wage theft by withholding owed wages.
• Pay Stub Violations: Employers who fail to provide accurate and itemized pay stubs, as required by law, may be engaging in wage theft by withholding important information from workers.

Common Examples of Wage Theft

Some of the most common examples of wage theft include:

• Paying less than the state minimum wage
• Not paying overtime rates for hours worked over 40 per week
• Denying workers their legally mandated meal breaks and rest breaks
• Requiring employees to work off-the-clock without pay
• Taking a portion of workers' tips
• Misclassifying employees as independent contractors to avoid paying benefits
• Not reimbursing workers for necessary business expenses

California Labor Laws Protecting Workers

Fortunately, California has some of the strongest labor laws in the country to protect workers from wage theft. The state minimum wage is higher than the federal rate, and workers are entitled to overtime pay, paid sick leave, and reimbursement for business expenses. California's minimum wage has increased to $16.00 per hour for all employers since January 2024. Employers are also required to provide employees with meal breaks and rest breaks based on the number of hours worked.

For victims who are owed money, wage theft is a crime under Penal Code 487m PC. A recent law may allow state government to prosecute instances exceeding $950 as grand theft.  Under certain conditions, prosecutors could file felony charges under PC 487m.

PC 487m states: "(a) Notwithstanding Sections 215 and 216 of the Labor Code, the intentional theft of wages in an amount greater than nine hundred fifty dollars ($950) from any one employee, or two thousand three hundred fifty dollars ($2,350) in the aggregate from two or more employees, by an employer in any consecutive 12-month period may be punished as grand theft.

(b) For purposes of this section, "theft of wages" is the intentional deprivation of wages, as defined in Section 200 of the Labor Code, gratuities, as defined in Section 350 of the Labor Code, benefits, or other compensation, by unlawful means, with the knowledge that the wages, gratuities, benefits, or other compensation is due to the employee under the law.

(c) For purposes of this section, "employee" includes an independent contractor and "employer" includes the hiring entity of an independent contractor.

(d) Wages, gratuities, benefits, or other compensation that are the subject of a prosecution under this section may be recovered as restitution in accordance with Sections 1202.4 and 1203.1. This section does not prohibit the employee or the Labor Commissioner from commencing a civil action to seek remedies provided for under the Labor Code for acts prosecuted under this section.

(e) This section does not constitute a change in, and does not expand or limit the scope of conduct prohibited by, Section 487."

Consequences for Employers Engaging in Wage Theft

Employers who engage in wage theft can face serious consequences under California law. They may be required to pay back wages, penalties, and interest to affected employees. In some cases, they can even face criminal charges for grand theft. According to a study by the Economic Policy Institute, California workers lose out on over $2 billion each year due to wage theft. That's why it's so important for employees to know their rights and take action if they suspect their employer is stealing their hard-earned wages. If the employer does one of the following, the wage claim might be prosecuted as grand theft:

• Over a 12-month period, withhold more than $950 from a single employee
• Over a 12-month period, withhold more than $2,350 from two or more employees

Steps to Take if You're a Victim of Wage Theft in California

If you believe you're a victim of wage theft, the first step is to document everything. Keep detailed records of your hours worked, pay stubs, and any communication with your employer about your wages.

Documenting Evidence of Wage Theft

To build a strong case, you'll need evidence to support your claim. This may include:

• Timesheets or logs of your hours worked
• Pay stubs showing discrepancies in your wages
• Copies of bounced checks from your employer
• Witness statements from coworkers experiencing similar issues

The more documentation you have, the better your chances of recovering your stolen wages.

Filing a Wage Claim with the Labor Commissioner's Office

Once you have gathered your evidence, you can file a wage claim with the California Labor Commissioner's Office. This can be done online, by mail, or in person at a local office. The Labor Commissioner's Office will investigate your claim and may hold a hearing to determine if your employer owes you any unpaid wages. If they find in your favor, they can order your employer to pay you the money you're owed.

Seeking Legal Assistance from a Private Attorney or the Attorney General

In some cases, it may be necessary to seek legal assistance from a private attorney or the California Attorney General's Office. An experienced wage theft attorney can help you navigate the legal process and ensure your rights are protected. The Attorney General's Office also has the power to investigate and prosecute cases of widespread wage theft. They may take action against employers who engage in particularly egregious or systemic violations of California's labor laws.

Why Choose Kingsley Szamet Employment Lawyers for Your Claim

When dealing with a Wage Theft claim, choosing Kingsley Szamet Employment Lawyers ensures you have a dedicated team of experts by your side. With 27 years of experience representing employees in wage disputes, our attorneys have a proven track record of securing favorable outcomes. We understand the complexities of employment law and fight tirelessly to protect your rights and recovery of unpaid wages. Our personalized approach and commitment to your case make us an ideal choice to handle your wage theft claim with the care and attention it deserves.

The Role of the California Labor Commissioner's Office in Combating Wage Theft

The California Labor Commissioner's Office, also known as the Division of Labor Standards Enforcement (DLSE), plays a crucial role in combating wage theft and protecting workers' rights.

Investigating and Prosecuting Wage Theft Cases

The DLSE is responsible for investigating complaints of wage theft and other labor law violations. They have the authority to subpoena records, interview witnesses, and take legal action against employers who break the law. In recent years, the Labor Commissioner's Office has stepped up its enforcement efforts to crack down on wage theft. They have launched targeted investigations in high-risk industries like garment manufacturing, construction, and agriculture.

Enforcing Judgments Against Employers

When the DLSE finds that an employer has engaged in wage theft, they can issue a citation ordering the employer to pay back wages and penalties. If the employer fails to comply, the Labor Commissioner's Office can file a lawsuit to enforce the judgment. The DLSE's Judgment Enforcement Unit is responsible for collecting unpaid wages and penalties from employers who refuse to pay. They can place liens on an employer's property, garnish their bank accounts, or even seize their assets to satisfy a judgment.

Providing Resources and Assistance to Workers

In addition to its enforcement efforts, the Labor Commissioner's Office also provides resources and assistance to workers who have experienced wage theft. They offer information on workers' rights, help with filing wage claims, and referrals to other agencies or legal services. The DLSE also conducts outreach and education programs to inform workers about their rights and how to report violations. They have launched public awareness campaigns in multiple languages to reach vulnerable populations who may be at higher risk of wage theft.

Recent High-Profile Wage Theft Cases in California

Unfortunately, wage theft remains a widespread problem in California, affecting workers across many industries. Here are a few recent high-profile cases that illustrate the scope and impact of this issue:

Radisson Hotel Oakland Airport Wage Theft Case

In 2021, the California Labor Commissioner's Office cited the Radisson Hotel Oakland Airport for multiple wage theft violations, including failure to pay minimum wage, overtime, and split shift premiums. The hotel was ordered to pay over $200,000 in back wages and penalties to 14 affected workers. This case highlights how wage theft can occur even at well-known, seemingly reputable businesses. It also shows the importance of the Labor Commissioner's Office in holding employers accountable and recovering stolen wages for workers.

Misclassification of Independent Contractors

Another common form of wage theft is misclassifying employees as independent contractors to avoid paying minimum wage, overtime, and other benefits. This practice is particularly prevalent in the gig economy and industries like trucking and delivery services. In 2020, California passed Assembly Bill 5 (AB5), which created a stricter test for determining whether a worker is an employee or an independent contractor. The law aimed to combat misclassification and ensure more workers are protected by labor standards. However, some industries have pushed back against AB5, seeking exemptions or challenging the law in court. This ongoing battle highlights the complexity of the issue and the need for continued advocacy to protect workers' rights.

Wage Violations in the Garment Industry

The garment industry has long been plagued by wage theft and other labor abuses. Many garment workers are paid by the piece rather than hourly, which can result in sub-minimum wages and pressure to work long hours without breaks. In 2021, California passed the Garment Worker Protection Act (SB62), which aims to combat wage theft in the industry. The law makes fashion brands and garment manufacturers jointly liable for wage violations and prohibits piece-rate pay unless workers earn at least minimum wage. While SB62 is a step in the right direction, advocates say more must be done to address the root causes of wage theft in the garment industry, such as the pressure for fast fashion and low prices.

Preventing Wage Theft: Best Practices for California Employers

For employers in California, it's crucial to prioritize compliance with state labor laws and take proactive steps to prevent wage theft. Here are some best practices they should follow:

Maintaining Accurate Payroll Records

One of the most important things employers can do to prevent wage theft is to keep accurate and detailed payroll records. This includes tracking employees' hours worked, pay rates, deductions, and any overtime or bonus payments. Employers should also provide employees with itemized wage statements (pay stubs) each pay period, as required by California law. These statements should include the employee's gross wages, total hours worked, deductions, and net pay. Maintaining organized and transparent payroll records not only helps prevent wage theft but also provides important documentation.

Providing Timely Access to Personnel Files

California law requires employers to provide employees with access to their personnel files and payroll records upon request. Employers must provide this access within a reasonable timeframe, typically within 30 days of the request. Providing timely access to personnel files helps promote transparency and allows employees to verify that their wages and benefits are being properly calculated and paid. It also demonstrates a commitment to compliance and can help build trust between employers and employees.

Communicating Effectively with Employees about Wage and Hour Laws

Finally, employers should prioritize clear and effective communication with employees about their rights under California wage and hour laws. This includes providing information on minimum wage, overtime, meal and rest breaks, and the process for reporting any concerns or violations. Employers can communicate this information through employee handbooks, posters in the workplace, and regular training sessions. They should also create a culture where employees feel comfortable raising questions or concerns about their pay without fear of retaliation. By taking these proactive steps and staying up-to-date on California labor laws, employers can help prevent wage theft and create a fair and compliant workplace for all employees.

Conclusion

If there's one thing I've learned through years of advocating for fair treatment at work; understanding your rights changes everything. So stay informed on issues like wage theft in California because knowledge truly is power.

Those who need help from experienced wage theft attorneys can contact our law firm to receive a free consultation. Give us a call, engage with our chat, or fill out our form to receive help today.