What counts as wage theft in California

"Wage theft" is a plain-language term for an employer not paying what the law requires. California's rules are among the most protective in the country, and they apply to most private employers regardless of size.

Minimum wage

Every hour worked must be paid at least the applicable minimum wage (Labor Code 1197). In Los Angeles, the city and county minimums are higher than the state's, and some industries have their own rates. An employee paid less can recover the difference plus "liquidated damages" equal to the unpaid amount, interest and attorney fees (Labor Code 1194 and 1194.2).

Off-the-clock work

"Hours worked" includes all time an employee is under the employer's control, not just time on assigned tasks. Common examples: required early arrival, security or bag checks, putting on required gear, closing tasks after clocking out, and work messages after hours.

Overtime

California overtime is daily as well as weekly (Labor Code 510). The details are in our overtime guide.

Meal and rest breaks

• Meal: a 30-minute, duty-free meal period starting before the end of the fifth hour of work, and a second before the end of the tenth hour (Labor Code 512). Some waivers are allowed for short shifts.
• Rest: a paid 10-minute rest break for every four hours worked or major fraction of four hours.
• Premium pay: for each workday a required meal break is not provided, one additional hour of pay at the regular rate; and another hour for a day with missed rest breaks (Labor Code 226.7).

Deductions, expenses and tips

• Employers generally cannot deduct for cash shortages, breakage or lost equipment unless caused by the employee's dishonesty, willful act or gross negligence.
• Employers must reimburse necessary work expenses, such as personal phone use, mileage, and required tools (Labor Code 2802).
• Tips belong to the employees. Owners, managers and supervisors may not take any share (Labor Code 351).

Misclassification

A worker labeled an "independent contractor" is presumed to be an employee unless the hiring business proves all three parts of the ABC test: the worker is free from its control, does work outside the usual course of its business, and is customarily engaged in an independently established trade (Labor Code 2775). There are many statutory exceptions, so classification depends on the job.

Paystubs and final pay

Each paycheck must come with an itemized statement showing hours, rates, gross and net pay, deductions and the employer's legal name (Labor Code 226). When employment ends, final wages are due immediately on a firing, and within 72 hours on a resignation without notice; willful delays can cost the employer up to 30 days of wages (Labor Code 203).

Keep your own record

Write down your start and stop times, breaks and any unpaid tasks each day, and keep photos of schedules and paystubs. Your own notes are evidence, especially when the employer's records are incomplete.