Wage Theft in California

Wage theft is more common than most workers realize, and it’s illegal. In California, some of the strongest employee protections in the country are in place to prevent employers from cutting corners on wages. Yet thousands of workers across industries — from restaurants and retail to healthcare and construction — are still underpaid or unpaid for the work they’ve done.

If you suspect that you’re a victim of wage theft, this blog will help you recognize the signs, understand your rights, and know what steps to take next.

What Is Wage Theft?

Wage theft refers to any situation where an employer fails to pay you what you are legally owed. It’s not always obvious, sometimes it’s hidden in missed breaks, unpaid overtime, or being misclassified as a contractor.

Common Forms of Wage Theft in California:

1. Unpaid Overtime
   Failing to pay time-and-a-half for hours worked beyond 8 in a day or 40 in a week.
   
2. Off-the-Clock Work
   Asking employees to prep before clocking in or clean up after clocking out.
   
3. Missed Meal and Rest Breaks
   Not providing proper breaks or failing to pay penalties when breaks are missed.
   
4. Misclassification as an Independent Contractor
   Labeling a regular employee as a contractor to avoid paying benefits or taxes.
   
5. Minimum Wage Violations
   Paying below California’s state or local minimum wage (which varies by city).
   
6. Illegal Deductions
   Taking money out of a paycheck for uniforms, shortages, or equipment damage without consent.
   
7. Tip Theft
   Taking all or part of tips meant for employees, or using tips to meet wage obligations.
   

Why It Happens and Who It Affects

Wage theft isn’t limited to low-wage jobs, though it’s more common in industries like:

• Food service
• Janitorial and cleaning services
• Hospitality
• Retail
• Construction
• Nail and beauty salons
• Agricultural work
• Health care (especially home care aides)
  

Immigrant workers, younger employees, and those unfamiliar with their rights are often the most vulnerable — but anyone can be affected.

California Wage Laws: Your Rights Under the Law

California is one of the most worker-friendly states in the nation, and you are protected by laws that:

• Guarantee minimum wage ($16/hr statewide in 2024, higher in some cities)
  
• Require overtime pay at 1.5x or 2x your regular rate
  
• Mandate 30-minute unpaid meal breaks and paid 10-minute rest breaks
  
• Prevent retaliation for speaking up or filing a complaint
  

For official wage laws: California Labor Commissioner’s Office

How Do I Know If I’m Experiencing Wage Theft?

Here are a few red flags:

• Your hours worked don’t match your pay stub
• You’re being asked to work “off the clock”
• You don’t get meal or rest breaks
• You’re paid in cash without records
• You’ve been called an “independent contractor” but follow a regular schedule
• Your employer changes time cards or docks your pay
  

If any of these sound familiar, it’s time to take a closer look.

What Can I Do If My Employer Is Stealing Wages?

1. Document Everything
   Keep copies of:
   
   • Pay stubs
   • Time sheets or your own time logs
   • Work schedules
   • Texts or emails from your employer related to hours/pay
     
2. Speak to HR or Your Supervisor
   In some cases, wage errors are accidental. Raise the issue internally first if you feel safe doing so.
   
3. File a Claim with the Labor Commissioner
   You can file a wage claim through California’s DLSE website
   
4. Contact a Wage and Hour Attorney
   If the wage theft is significant or involves retaliation, you may need a legal advocate to recover what you’re owed, and possibly more.

What Compensation Can You Recover?

Victims of wage theft may be entitled to:

• Unpaid wages
• Overtime compensation
• Interest on unpaid amounts
  Meal/rest break premiums
• Penalties for late payments
• Attorney’s fees
• Compensation for retaliation (if fired or demoted)
  

In some cases, class action lawsuits can be filed if the wage theft affects many employees at the same company.

Helpful Links:

• California Department of Industrial Relations (DIR)
  
• How to File a Wage Claim – DLSE
  
• Retaliation Complaint Form

Worried About Retaliation? California Law Protects You

It’s illegal for an employer to fire, demote, cut hours, or otherwise punish you for:

• Filing a wage claim
• Asking about your pay
  Helping others file claims
  

If you’ve faced retaliation, you may have a wrongful termination or retaliation lawsuit on top of your wage claim.

Call Shaumyan & Derbarseghian, LLP — We Fight for California Workers

If you believe your employer has stolen your wages, you don’t have to fight alone. At Shaumyan & Derbarseghian, LLP, we help employees hold their employers accountable and recover what they’re rightfully owed.

We take employment law cases on a contingency basis — you don’t pay unless we win.

We serve workers across Los Angeles, Glendale, and throughout California.