If you believe your employer has failed to pay you all wages owed—including unpaid regular hours, overtime, or double time—California law provides strong protections and a clear legal framework for you to resolve an unpaid wages dispute and recover money owed to you by your employer.
This guide outlines seven practical steps California employees can take to prepare and pursue an unpaid wage claim. Whether your employer miscalculated your pay, withheld earned wages, or failed to pay overtime, following these steps can help you build a strong, evidence-based demand for payment to your employer.
Learn how to recognize and protect yourself from wage theft in our comprehensive guide to guarding your paycheck. California Wage Theft: A Guide to Guarding Your Paycheck
Why Does an Unpaid Wages Dispute Arise in California?
An unpaid wages dispute often arises when employers fail to follow California’s strict wage and hour laws. These disputes are not limited to missing paychecks—more often, they involve errors, omissions, or unlawful practices that reduce the amount an employee is legally entitled to receive.
Some of the most common reasons employees bring unpaid wage claims include:
Reason #1: Failure to Pay Overtime at 1.5x the Regular Rate of Pay
Under California law, non-exempt employees must be paid 1.5 times their regular rate of pay for hours worked over 8 in a day or 40 in a week. Double time is owed for work beyond 12 hours in a day or beyond 8 hours on the seventh consecutive day in a workweek.
Many unpaid wage disputes involve employers who:
- Pay straight time for overtime hours;
- Miscalculate the regular rate of pay by excluding bonuses, commissions, or shift differentials; and
- Rely on “off the clock” work without compensation to the employee.
Even small errors in overtime pay can add up over time and violate the law.
Not sure if you’re entitled to overtime? Our guide explains the key differences between “exempt” and “non-exempt” status and how misclassification affects your pay. Misclassification of Employees as “Exempt” vs “Non-Exempt” from Overtime: Understanding the Important Differences
Reason #2: Employee Misclassification
In California, employees are presumed to be non-exempt, which means employees are entitled to overtime pay, meal and rest breaks, and other wage protections unless the employer can lawfully classify the employee as “exempt” from overtime. An employer is not free to simply classify everyone as “exempt” to avoid paying overtime; in California, an employer may lawfully classify an employee as exempt only if the employee meets strict legal criteria concerning the employee’s level of authority and discretion in the workplace.
To be properly classified as exempt, an employee must generally:
- Perform primarily executive, administrative, or professional duties that require discretion and independent judgment;
- Earn a salary that is at least twice the state minimum wage for full-time employment; and
- Spend more than 50% of their work time performing exempt duties.
If any of these requirements are not met, the employee must be classified as non-exempt, and the employee therefore is legally entitled to overtime pay, accurate timekeeping, and premium pay for missed rest and meal breaks.
Some employers misclassify employees as exempt in order to avoid paying overtime and other wage obligations. This misclassification often results in significant unpaid wages over time, particularly for employees who work long hours without additional compensation. If you’ve been classified as exempt but your job involves routine, manual, or production tasks and little discretion or supervision of others, you may have been misclassified—and may be owed back pay and penalties.
If you suspect you’re being misclassified to avoid overtime or benefits, read our detailed breakdown of how misclassification leads to stolen wages. California Employee Misclassification: How Employers Steal Pay
Reason #3: Off-the-Clock Work or Unrecorded Hours
Employees are entitled to be paid for all time worked, including tasks performed before clocking in, after clocking out, or during unpaid breaks. Common examples include:
- Pre-shift preparation
- Post-shift cleanup, reporting or security checks
- Responding to emails or texts outside work hours
If your employer knew or should have known that you were performing work, they may be liable for failing to pay for that time.
What Can a California Employee Do to Resolve an Unpaid Wages Dispute?
If you believe you are owed unpaid wages, you don’t have to wait for your employer to make it right. California law gives employees the right to recover every dollar they have earned—whether through direct negotiation, an administrative claim, or a court action.
The key to collecting unpaid wages is evidence and preparation. Employers often deny wrongdoing, insist their records are accurate, or blame payroll errors. But when employees take organized, well-documented steps, they are far more likely to succeed in recovering the wages they are owed.
The next section outlines seven practical steps you can take to move your unpaid wage dispute forward. These steps will help you build a strong, fact-based case and put pressure on your employer to resolve the dispute. Even if you ultimately file a legal claim, taking these steps first will demonstrate that you acted reasonably and gave the employer an opportunity to fix the problem.
Wage Dispute Resolution Step #1: Gather All Wage Statements for Covered Period
In order to resolve and unpaid wages dispute, start by collecting all wage statements (pay stubs) for the period in which you believe you were underpaid. California law requires employers to provide detailed wage statements showing:
- The total hours worked
- Hourly rates and gross wages earned
- All deductions
- The inclusive pay period dates
These wage statements form the foundation of your claim. Review them carefully to identify any inconsistencies or omissions.
Wage Dispute Resolution Step #2: Obtain Payroll Records from Employer
You have the right to request a copy of your payroll records from your employer. This includes timecards, time sheets, and any documentation the employer used to calculate your pay.
Submit your request in writing and keep a copy for your records. Employers must comply with such requests within 21 days under California Labor Code §226.
These records may confirm whether the employer properly recorded all hours worked or if discrepancies exist between your records and theirs.
Wage Dispute Resolution Step #3: Obtain/Create Documentation of All Hours Worked, Including Overtime Hours
Even if your employer did not keep accurate time records, you can still prove the hours you worked. Begin gathering your own documentation, including:
- Personal calendars or notes
- Text messages or emails confirming work hours
- Login/logout records or system access logs
- Security badge or building access reports
- GPS or mileage records for mobile or offsite work
Focus on identifying not only regular hours worked, but also any unpaid overtime. In California, non-exempt employees are entitled to:
- 1.5x pay for work over 8 hours in a workday or over 40 hours in a workweek
- Double time for hours worked beyond 12 in a day or beyond 8 on the seventh consecutive workday
Accurately documenting your work hours is a critical step in determining how much you are owed and strengthening your legal claim.
What If My Employer Did Not Require Me to Document My Hours on a Timecard or Timeclock?
In California, the burden of proof is on the employer to maintain accurate, contemporaneous records of hours worked. If your employer failed to provide a timecard, timesheet, or clock-in system, and you are later underpaid, the law favors the employee.
When there is an overtime dispute and the employer did not maintain contemporaneous records of hours work, California courts and the California Labor Commissioner will generally accept the employee’s reasonable estimate of hours worked based on whatever evidence the employee can muster, even if that evidence only is the employee’s reasonable estimate based on memory.
If your employer didn’t require you to clock in or out, you should still create a record of your hours. The best way to do this is to use a calendar and write in your estimated start and end times for each day worked, as accurately as possible. Include notes about tasks performed, breaks taken, or communications that can support your recollection.
When filling out your calendar of hours worked, start by excluding dates you are positive you did not work as a good faith effort to exclude false hours. In other words, if you took a two-week vacation from work, do not claim any overtime hours worked during that two-week period. If you are unsure if you worked certain dates, indicate that on your calendar. Doing so will increase the credibility of your estimated hours worked because it shows you are trying to be “fair” under the circumstances.
These personal records—while not official—can serve as strong supporting evidence and may shift the burden back to the employer to disprove your account. The more detail you can provide, the more credible your claim becomes.
Wage Dispute Resolution Step #4: Identify Dates and Amounts of Unpaid Wages and Unpaid Overtime Wages
Once you have your wage statements, payroll records, and personal records, identify the specific dates and pay periods where you were underpaid. Calculate:
- The number of unpaid regular and overtime hours
- The hourly rate that should have been paid
- The total amount you are owed for each pay period
This step allows you to quantify your claim and present a clear, organized accounting of the unpaid wages.
Wage Dispute Resolution Step #5: Create Annotated Report of Unpaid Wages/Unpaid Overtime
Prepare a detailed report that includes:
- Date of each underpayment
- Number of hours worked versus hours paid
- Applicable hourly/overtime rates
- Total unpaid wages
- Explanatory notes and references to your documentation
This annotated report helps establish the factual basis of your claim and shows that your demand is grounded in records, not estimates. Attach supporting documents such as pay stubs, time records, and correspondence.
Wage Dispute Resolution Step #6: Submit Report to Employer and Set Deadline for Response
Submit your report to your employer in writing, by email or certified mail. Your cover letter should state:
- That you are requesting payment of unpaid wages
- The specific amount you believe is owed
- A reference to the supporting documentation you’re enclosing
- A deadline (typically 10–15 business days) to provide a response
This step gives the employer an opportunity to fix the issue and shows that you acted reasonably to resolve the dispute before escalating it.
Wage Dispute Resolution Step #7: Submit Claim to Court and/or Labor Commissioner
If your employer fails to resolve the issue, you may file a claim with either:
- The California Labor Commissioner (Division of Labor Standards Enforcement), which offers a free process to resolve wage claims without needing a lawyer, or
- The California Superior Court, often used for larger or more complex wage claims, typically with legal representation
If you prevail, you may be entitled to recover:
- Unpaid wages and overtime
- Interest
- Waiting time penalties (up to 30 days of wages for late final pay)
Whether you file with the Labor Commissioner or in court, your success will depend heavily on the documentation and preparation you’ve done in the earlier steps.
Discover the most common tactics employers use to avoid paying full wages in our list of the top ten wage theft scams. Top Ten Wage Theft Scams
FREQUENTLY ASKED QUESTIONS ABOUT UNPAID WAGES IN CALIFORNIA
Do unpaid wages count as wage theft in California?
Yes. When an employer fails to pay wages that are owed—whether regular hours, overtime, or final wages—it can be considered wage theft. Under California law, employers must pay all earned wages on time, and failure to do so may result in penalties, including waiting time penalties and interest.
What if my employer didn’t keep accurate records of my hours?
If your employer failed to maintain accurate time records, California law allows employees to testify to the hours they worked based on good faith estimates. Courts and the Labor Commissioner will accept reasonable evidence from employees when employers neglect their recordkeeping duties.
Can I recover penalties for unpaid overtime?
Yes. In addition to unpaid overtime wages, you may be entitled to interest, statutory penalties, and waiting time penalties if your employer willfully failed to pay all wages due at the time of termination or resignation.
Do I need a lawyer to file an unpaid wage claim?
Not necessarily. Many straightforward wage claims can be filed with the California Labor Commissioner without an attorney. However, for complex claims, large amounts of unpaid wages, or situations involving retaliation, it’s often helpful to consult an experienced employment lawyer to evaluate your options and maximize your recovery.
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.
