Most employees encounter the situation where the employer hasn’t paid all of the employee’s earned wages and the employee is left wondering how to demand unpaid wages. It might be unpaid overtime, a missing commission, an unexplained commission chargeback, or a bonus that mysteriously vanished. And when it happens, most employees feel two things at once: frustrated that they’ve been shortchanged, and afraid that speaking up might get them fired.
Employees in this situation often feel trapped. They need the money, like everyone else, but don’t want to risk the employer’s ire by pointing out a compensation problem. It creates a tough dilemma: keep quiet and keep your job, or demand what you’ve earned and risk retaliation. Many employees end up asking themselves: Is there anything I can do to get my wages without putting my job on the line?
I’m Matt Ruggles, and I’ve been practicing employment law and wage law in California for over 30 years. I’ve handled unpaid wage claims from both sides, employee and employer, and I’ve seen how often companies use fear, confusion, and vague policies to avoid paying what they owe. I also know the most effective and least risky ways employees can demand their wages and get results.
Because most employees hesitate to contact a lawyer, I wrote this blog to give you the exact method I use with my clients. It’s a step-by-step process that will help you identify what you’re owed, cite the right laws, and negotiate like a pro without blowing up your career in the process.
Step 1: Identify the Amount of Unpaid Wages, Unpaid Commissions, or Unpaid Bonuses
Wages
To demand unpaid wages, start by identifying your base hourly rate. If you’re paid a lump sum (weekly, biweekly, or monthly) divide that total amount by the number of straight-time hours worked. Do not include overtime hours in this calculation. Under California law, employers cannot legally bury overtime compensation within a flat salary or lump-sum payment. Doing so is wage theft.
Example:
If your employer pays you $1,500 per week for six 8-hour shifts (48 hours total), your base hourly rate is not $1,500 ÷ 48 = $31.25. That’s illegal. Instead, it’s $1,500 ÷ 40 = $37.50/hour.
The additional 8 hours are weekly overtime and must be paid at 1.5x the base rate:
1.5 × $37.50 × 8 = $450/week.
If you’re not being paid that overtime, you’re losing nearly $2,000 a month, or about $25,000 a year.
If you’re hourly, your wage statement (which must be issued at least twice a month) is required to show your hourly rate. If you’re salaried and unsure whether you’re properly classified as “exempt” from overtime, divide your biweekly salary by 80 hours to determine your base hourly rate.
If you want to learn more about the tactics California employers use to shortchange workers, read my blog, Top 10 Wage Theft Scams.
Commissions
Start by getting your commission plan or compensation agreement. This is where the employer defines how and when commissions are earned. Pay close attention to terms like:
- “Advance” – May signal the commission hasn’t yet been earned.
- “Chargeback” or “Clawback” – The employer is trying to take the commission back, often after a cancellation or return.
Next, review your wage statements for the period in question. You’re looking for:
- Commissions paid
- Deductions marked “advance,” “overpayment,” or “commission adjustment”
- Any retroactive chargebacks
Important: Employers often try to recoup commissions after the fact. Whether that’s legal depends entirely on how the commission agreement is written and most employees have never even read it.
If you’re confused about how your pay is structured or changed, read my blog: What is a Compensation Plan in California?
To understand how employers use commission chargebacks to claw back money you already earned, read my blog: Commission Chargebacks in California: The Great Rip-Off Scheme.
Bonuses
Start by reviewing the bonus language which is typically found in your offer letter or the employee handbook. Then ask the one question that matters:
Is the bonus discretionary or non-discretionary?
- Discretionary bonuses are optional. The employer decides if and how much to pay, with no obligation under California law.
Examples:- A surprise holiday bonus
- A spot bonus for exceptional performance
- A management bonus given “at the company’s discretion”
- Non-discretionary bonuses are earned. If the bonus is tied to hitting a goal, like a sales quota, retention milestone, or project completion, it qualifies as wages under California law and must be paid.
If your bonus is based on metrics, tenure, or job performance, it’s almost always non-discretionary. If your employer withholds it, delays it, or tries to change the rules after the fact, you may have a claim for unpaid wages.
Step 2: Research the Legal Basis for Your Unpaid Wages Claim
This is where most employees go off the rails. They lead their demand with what’s “fair” or “wrong,” without citing to the Labor Code or any applicable regulation.
Don’t do that.
If you want your employer to take your demand seriously, base it on the law, not emotion.
The California Labor Commissioner’s website has straightforward resources for wage claims. Start here:
https://www.dir.ca.gov/dlse/dlse.html
If you’re claiming:
- Unpaid minimum wage → Labor Code §§ 1182.12, 1197
- Unpaid overtime → Labor Code § 510
- Unpaid commissions → Labor Code § 2751
- Missed meal/rest breaks → Labor Code §§ 226.7, 512
Valuable Tip: Read everything. Take notes. If something is confusing, Google it. You’re not writing a legal brief, but you do need to understand what you’re claiming and why it’s illegal.
Create a cheat sheet or bullet-point summary with citations. You’ll use this when you write your demand.
Step 3: Write a Professional Demand for Payment of Unpaid Wages
You don’t need to “lawyer this up,” but you do need to be organized, calm, and specific.
Use this structure:
- Identify who you are and your position
- State that you believe you are owed wages
- List exactly what wages are unpaid, when, and how much
- Attach a spreadsheet or bullet list showing your calculations
- Cite the California Labor Code sections that support your demand
- Ask for a specific deadline to respond (7 to 10 business days)
Tone matters: No insults, no threats, no legal jargon. Be firm and professional.
Here’s how I would structure a letter and exactly how I’d write it if I were in your shoes:
Sample Unpaid Wages Demand Letter:
Subject: Demand for Payment of Unpaid Wages
Dear [Manager or HR Representative],
My name is [Your Name], and I am currently employed as a [Job Title] with [Company Name]. I am writing to formally request payment of wages that I believe have not been properly paid.
Specifically, I believe I am owed the following:
- [Description of unpaid wages, e.g., 8 hours of overtime for the week of April 1–7 at time-and-a-half rate of $45/hour = $540]
- [List additional items, such as unpaid commissions, bonuses, or missed meal/rest breaks if applicable]
I’ve attached a spreadsheet showing the dates, hours worked, applicable rates, and total amounts due.
Under California law, including Labor Code §§ 204, 510, and 1194, I am entitled to full payment of all earned wages, including overtime. I am requesting payment in full or a written explanation within 10 business days of the date of this email.
I hope we can resolve this quickly and amicably. Thank you for your attention to this matter.
Sincerely,
[Your Full Name]
[Phone Number]
[Email Address]
Step 4: Negotiate the Response from Your Employer
Don’t expect your employer to run down the hall with a check the moment you raise the issue. Even when you’re right, and you may be, they often don’t see it that way at first. Employers rarely admit mistakes on the spot. It might take a few conversations, a few uncomfortable meetings, and a bit of internal back-and-forth before they accept the problem and agree to fix it.
This is a negotiation, not a war. You’ll need to exercise patience and stay methodical.
Document everything:
- After any conversation, send a follow-up email.
Example:
“Hi [Manager], I just want to confirm what we discussed earlier today. You stated…” - Save every email, letter, and note in one place.
- Keep a timeline of who said what and when. You may need it later.
Stay professional. It’s okay to show that you care, emotion signals this is important, but keep it in check. Think of emotion like salt: just enough to add flavor, not so much that it spoils the dish.
Step 5: Carefully Review Any Payment Offer
Here’s the golden rule: Never agree to give up your right to wages you’ve already earned.
Under California law, your employer can’t ask you to waive wages that are clearly owed and not in dispute. The law only allows compromise when there’s a real disagreement about how much is owed. For example, when both sides honestly disagree about whether a bonus was earned, or whether certain hours count as overtime.
If there’s no disagreement, for example, you worked 40 hours and your hourly rate is clear, then that money is yours, and you can’t legally waive it just because the employer offers you a partial payment and a release form.
Be cautious with the fine print. If a payment comes with language like:
“In exchange for this payment, the employee waives all known and unknown claims…”
That’s a red flag. It means you’re being asked to give up your rights, possibly including unpaid wages, overtime, or even future legal claims in return for money you were already supposed to receive.
Bottom line: Don’t sign anything until you fully understand:
- What the employer is paying you for
- Whether there’s a real dispute about the amount
- What rights you’re being asked to give up
When in doubt, have an employment lawyer review the document. It’s easy to lose leverage if you sign away your claims too soon.
Step 6: Seek Legal Help to Demand Unpaid Wages
If your employer refuses to pay or offers you a lowball settlement, it’s time to escalate.
You have two main options:
Option #1: Hire an Employment Lawyer
This is usually the fastest and most effective way to recover unpaid wages. Here’s why:
- Quick evaluation: An experienced employment lawyer can quickly assess whether you have a strong claim.
- Full service: The lawyer handles all the legal work—letters, documents, deadlines, and strategy.
- Leverage: A formal legal demand from a lawyer carries more weight and puts pressure on your employer to settle.
- Contingency fee: Most wage claims are handled on a contingency basis, meaning:
- You pay nothing upfront
- The lawyer only gets paid if you win
- Less stress for you: You don’t have to:
- Write legal arguments
- Navigate hearings
- Represent yourself
Option #2: File a Claim with the California Labor Commissioner
This option is free, and it’s designed to be employee-friendly. But the downside is speed and complexity. The process can take three to four years, and during that time, you’ll need to represent yourself, attend conferences, respond to paperwork, and navigate procedures that can get confusing.
The Labor Commissioner’s office won’t charge you anything, but they also won’t walk you through the case step by step.
Bottom line: If you want results quickly and with the least hassle, hiring a lawyer is usually your best move. If you’re comfortable going slower and doing more of the work yourself, the Labor Commissioner is still a solid option.
Start here if you choose that route:
https://www.dir.ca.gov/dlse/HowToFileWageClaim.htm
Frequently Asked Questions About Unpaid Wages in California
How do I legally demand unpaid wages in California?
You must clearly identify what you’re owed, cite the California Labor Code, and give your employer a deadline to respond, preferably in writing. See our sample letter above.
Can my employer fire me for asking about unpaid wages?
No. California law prohibits retaliation for asserting your legal right to be paid. If they do, you may have an additional legal claim.
What’s the difference between unpaid wages and unpaid commissions?
Wages include hourly or salaried pay and overtime. Commissions are based on sales or performance and must be clearly defined in a written agreement.
How long do I have to file a claim for unpaid wages in California?
Generally, you have three years to file a claim, but don’t wait. The sooner you take action, the better your chances of recovering the full amount.
Can I get penalties on top of unpaid wages in California?
Yes. If your employer willfully withholds wages, you may be entitled to waiting time penalties under Labor Code § 203 (up to 30 days of your daily wage.)
Final Thoughts About Demanding Unpaid Wages
Unpaid wages aren’t just frustrating, they’re illegal. And the longer you wait, the more likely your employer will get away with it.
By identifying what you’re owed, citing the law, and presenting your claim clearly, you’ll put yourself in the best position to recover your wages. And if you need help, that’s what we do.
For a broader look at how to protect yourself from common wage violations, read my blog: California Wage Theft: A Guide to Guarding Your Paycheck.
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.
