Matt Ruggles is a California employment attorney with over 30 years of experience litigating unpaid wage claims on behalf of employees. Over the course of his career, he has handled every type of wage dispute—from unpaid commissions and off-the-clock work to misclassification and overtime violations. The five issues discussed in this blog are the most common forms of wage theft Matt has seen throughout his practice. He explains how to recognize each type of violation and what action you can take if you’re experiencing wage theft in California.
Introduction to Common Wage Violations in California
Most employees who call my office about unpaid wages are frustrated, angry, and rightfully so. They’ve worked hard, followed the rules, and counted on that income to support their families—only to find out their employer has cut corners or outright cheated them. When they confront the company, they get the runaround. And in the back of their minds, many are afraid that pushing too hard will get them fired.
I’ve spent over 30 years representing employees in California wage disputes, and I’ve seen every tactic employers use to underpay or deny workers what they’re owed. In this blog, I’ll walk you through the five most common types of wage theft I’ve encountered—one of them probably applies to you. More importantly, I’ll tell you exactly what to do if you are the victim of these common wage violations.
For a detailed look at the many ways California employers illegally underpay workers, read my blog: California Wage Theft: A Guide to Guarding Your Paycheck. It’s a deep dive into the most common wage violations and how to protect yourself.
Wage Violation #1: Misclassification as “Exempt” from Overtime
Many California employees are misclassified as “exempt” from overtime pay. Employers often assign a job title like “Manager,” “Supervisor,” or “Lead,” or pay a flat salary and assume that exempts them from paying overtime. But under California law, what matters isn’t your title or how you’re paid—it’s the actual duties you perform.
If your daily work consists mostly of routine, hands-on tasks rather than independent decision-making, you may be legally entitled to overtime—even if you’re salaried.
Example:
A retail employee is given the title “Assistant Manager” and paid a salary. However, she spends 90% of her time running the cash register, restocking merchandise, and assisting customers on the sales floor. She has no authority to hire or discipline other employees. Despite her title, she performs the same work as hourly employees and does not exercise meaningful discretion. This is likely a misclassification, and she may be entitled to back pay for overtime hours worked.
Want to know if your job title really exempts you from overtime pay? Read my blog: Misclassification of Employees as “Exempt” vs “Non-Exempt” from Overtime: Understanding the Important Differences.
Wage Violation #2: Off-the-Clock Work at Beginning and End of Shift
Employees are often required to perform work-related tasks before they clock in or after they clock out—such as booting up a computer, preparing their workspace, loading equipment, or commuting between job sites during the workday. These seemingly minor tasks can add up to significant unpaid time. Under California law, if your employer requires you to perform work, you must be compensated for that time—regardless of whether you’re officially on the clock.
Example:
A call center employee is expected to arrive 10 minutes early each day to log into multiple systems and read company announcements before clocking in. Although these tasks are required and essential to the job, the time spent is not included in her paid hours. Over time, this results in dozens of unpaid hours per month. This is likely a wage violation, and the employee may be entitled to back pay.
Wage Violation #3: Failure to Include Periodic Non-Discretionary Bonuses in Base Pay
Under California law, overtime must be paid at one and one-half times an employee’s “regular rate of pay”—not just their hourly wage. This regular rate must include all forms of compensation the employee earns for their work, including non-discretionary bonuses. These are bonuses that employees earn by meeting specific criteria, such as performance targets, attendance goals, or productivity metrics.
Too often, employers calculate overtime based solely on the base hourly rate and illegally exclude earned bonuses. When these non-discretionary bonuses are left out, the regular rate is artificially lowered, which means the employee receives less overtime pay than the law requires.
This practice violates California Labor Code § 510(a), which defines the obligation to pay overtime based on the “regular rate of pay,” and is further clarified in California Wage Orders (e.g., Wage Order 4-2001, Section 3(A)) which require that the regular rate include non-discretionary bonuses. The DLSE Enforcement Manual § 49.1.2 confirms that performance-based bonuses must be included when computing overtime compensation.
Example:
An hourly warehouse employee earns $20 per hour and works 10 hours of overtime per month. He also receives a $200 monthly attendance bonus for not missing any scheduled shifts. His employer calculates his overtime pay using only the $20/hour base rate, excluding the bonus from the calculation. As a result, the employee is paid less than what the law requires. That $200 bonus should be factored into his regular rate, which would increase his overtime rate and total compensation. Failing to do so is a clear violation of California wage law.
Wage Violation #4: Complete Failure to Pay Wages When Due
Some employers delay issuing paychecks, underpay employees, or skip payment entirely—often assuming workers won’t challenge them or don’t know their rights. But under California law, wages must be paid in full and on time according to a regular payroll schedule, whether that’s weekly, bi-weekly, or semi-monthly. Delays in payment, partial payments, or missed paychecks are not just bad business practices—they are wage violations.
Employers may justify late payments by blaming cash flow issues, payroll system errors, or administrative delays. None of these excuses matter. California Labor Code §§ 204 and 210 require prompt payment of all earned wages. Failure to comply can result in statutory penalties, including daily fines and waiting time penalties.
Example:
A restaurant server is scheduled to be paid every two weeks. On multiple occasions, the employer delays issuing paychecks by several days or short-pays the amount owed, claiming the business is waiting on credit card payments to process. The employee relies on that income to pay rent and bills but is left in financial distress. This is a violation of California wage laws, and the employee may be entitled to recover unpaid wages, interest, and penalties.
Why It’s Illegal:
Labor Code § 204 mandates that employees must be paid all earned wages no later than the designated payday. Employers who fail to do so may face civil penalties and liability for damages. Repeated delays or nonpayment can also indicate broader wage theft practices—and employees have the right to take legal action to recover what they are owed.
Wage Violation #5: Failure to Pay Wages at Termination
California has strict laws governing when and how final wages must be paid after employment ends. Whether an employee is terminated or resigns, the employer is legally required to promptly pay all wages owed, including any accrued but unused vacation time.
- If the employee is terminated or laid off, all final wages must be paid immediately—at the time of termination.
- If the employee quits with at least 72 hours’ notice, the employer must pay all final wages on the employee’s last day.
- If the employee quits without notice, the employer has 72 hours from the time of resignation to issue the final paycheck.
Final pay must include not only regular wages, but also any earned overtime, bonuses, commissions (if calculable), and accrued vacation. Employers who delay or withhold final pay violate California Labor Code § 201–203.
Example:
An office assistant gives her employer five days’ notice before resigning. On her last day, she is told her final paycheck will be mailed the following week. That paycheck arrives nine days later and does not include her accrued vacation. This is a clear violation of California law. The employee is entitled not only to the missing wages and vacation pay but also to waiting time penalties—a full day’s wages for each day the final pay was late, up to 30 days.
Wondering what your employer owes you after you quit or get fired? Read my blog: Wages Earned at Termination: What Are Employees Entitled To?
What Should You Do If Your Employer Won’t Pay You Correctly?
If you believe your employer is violating California wage laws, don’t assume it will resolve on its own. Most employers do not fix wage violations until they are forced to—either through a legal demand or a lawsuit. If your pay seems short, late, or incomplete, here’s what you should do:
Step #1: Document All Wage Information
Keep detailed records of your hours worked, pay received, bonuses promised, and any communications about your compensation. These records can become powerful evidence.
Step #2: Review Your Paystubs or Wage Report
California law requires employers to provide itemized wage statements. Check to see if overtime, bonuses, and hours worked are properly reported.
Step #3: Ask Questions About Unpaid Wages In Writing
If you raise the issue with your employer, do it in writing. A short, professional email asking for clarification about your wages can establish a clear record.
Step #4: Don’t Wait to File a Claim for Unpaid Wages
California imposes strict deadlines on wage claims. For example, waiting time penalties (Labor Code § 203) or unpaid wage claims (Labor Code § 1194) must be filed within specific time limits. The longer you wait, the more likely it is that your claim will be time-barred.
Step #5: Consult an Employment Lawyer to Fight Common Wage Violations in California
Wage violations are complex, and employers often use subtle tactics that are hard to detect without legal training. An experienced employment attorney can quickly determine if you have a claim—and how much you may be owed.
Conclusion
If your employer has underpaid you or withheld wages you’ve rightfully earned, you’re not alone—and you have legal options. Read my blog: How Do I Resolve an Unpaid Wages Dispute in California? to learn the practical steps you can take to protect your rights and recover the wages you’re owed.
Contact the Ruggles Law Firm at 916-758-8058 to Evaluate Your Potential Lawsuit
Matt Ruggles has a thorough understanding of California employment laws and decades of practical experience litigating employment law claims in California state and federal courts. Using all of his knowledge and experience, Matt and his team can quickly evaluate your potential claim and give you realistic advice on what you can expect if you sue your former employer.
Contact the Ruggles Law Firm at 916-758-8058 for a free, no obligation consultation.
Blog posts are not legal advice and are for information purposes only. Contact the Ruggles Law Firm for consideration of your individual circumstances.
