Employees often ask me: “Can I sue my employer for unpaid wages while I’m still working there?” The short answer is yes, you can file an unpaid wages claim in California even if you’re still employed. But the smarter question is whether you should, and how to do it strategically.
I’m Matt Ruggles, and I’ve been practicing employment law in California for more than 30 years. I’ve represented thousands of employees in wage disputes, retaliation claims, and wrongful termination cases. What I’ve learned is this: the law is one thing, but the practical reality inside your workplace is another. The way you raise a wage claim, and the timing, can make all the difference in whether you walk away with what you’ve earned or end up out of a job.
California law is clear: retaliation for asserting your right to unpaid wages is illegal. An employer cannot fire you, demote you, or otherwise punish you just because you’ve asked to be paid fairly. But here’s the practical reality: filing a lawsuit while you’re still on the payroll usually means your future at that company is bleak. The law protects you on paper, but employers often see a lawsuit as the beginning of the end of the relationship. That’s why the real power is not just in filing a claim, but in structuring it in a way that maximizes leverage and protects your future.
This blog will walk you through your rights under California law, the risks of retaliation, and the step-by-step process for asserting an unpaid wage claim while protecting your job.
Unpaid Wage Claims vs. Wrongful Termination Claims in California
When employees call me about unpaid wages, I always remind them there are really two layers to think about. First, you have your wage claim itself. That’s the straightforward demand: “I worked these hours, I earned these commissions, and I haven’t been paid.” On its own, that claim is usually limited in value, especially if you’re still working and receiving most of your paycheck. You’re chasing a shortfall, not an entire salary.
But here’s where strategy comes in. If you assert that unpaid wage claim and your employer retaliates by firing you, now you’ve got a wrongful termination claim layered on top. And that retaliation claim is often worth more than the wage claim itself. Why? Because wrongful termination damages are not just about a missing paycheck or a miscalculated bonus. They include all the wages and benefits you lose going forward, sometimes months, sometimes years, plus potential penalties.
Think of it this way: if you’re owed $5,000 in unpaid wages, that’s the size of your wage claim. But if your employer fires you for asserting that right, and you’re out of work for a year, suddenly the damages may jump to $60,000, $80,000, or more, depending on your pay rate. In other words, the retaliation claim can dwarf the original unpaid wage claim.
There are exceptions. In high-value cases, unpaid commissions that run into six figures, overtime penalties, or systemic misclassification issues, the wage claim alone can rival or even exceed the value of a termination claim. But for most employees, it’s the retaliation claim that becomes the real hammer.
Example 1: Example: $15,000 California Wage Claim
At the Labor Commissioner’s office, I once saw a case where the employee was owed about $15,000 in unpaid wages. That’s a meaningful sum, but compared to a retaliation claim, it’s relatively small. If the employer had retaliated and terminated the employee, the damages for lost wages could have easily surpassed $50,000 or $60,000 within a year. In that scenario, the retaliation claim would be worth far more than the underlying wage claim.
Example 2: Example: High-Earning Employee with Unpaid Commissions
Now contrast that with a high-earning employee i.e. say a salesperson owed $150,000 in unpaid commissions. In this case, the wage claim itself is already substantial, and it might equal or even exceed the value of a wrongful termination claim. If that employee is fired, the retaliation claim still adds leverage, but the wage claim is the centerpiece because of the sheer dollar value involved.
The takeaway is this: filing a wage claim while you’re employed is legally allowed, but it’s also a chess move. You need to understand not just the value of the unpaid wages, but also the risks and potential upside if retaliation occurs. Handle it correctly, and you may turn a modest wage dispute into a much larger case for justice.
If you’re wondering how to deal with unpaid commissions in California, read my blog, “How Do I Resolve an Unpaid Commission Dispute in California?”
Using Continued Employment as Leverage in a California Unpaid Wage Claim
Continued employment itself has settlement value. Even in at-will employment, employers will sometimes pay more if you agree to a structured exit. For example, if they ask for a general release that covers more than just the wage issue, you can (and should) ask for additional payment.
That’s what happened in one Labor Commissioner case: the employer offered $15,000 for a wage dispute but also wanted a general release. We requested an extra $5,000 for that release and got it. California law requires extra consideration for broader releases.
If your employer isn’t paying what you’ve earned, don’t wait until it gets worse. Call the Ruggles Law Firm at 916-758-8058 for a free, confidential evaluation of your case.
How to Sue for Unpaid Wages in California While Still Employed: Step-by-Step
Step #1: Gather Evidence for Your California Unpaid Wage Claim
Start by pulling together every document that shows what you were promised and what you were actually paid. The more complete your file, the stronger your California unpaid wage claim.
- Pay Stubs and Wage Statements
Collect all of your pay stubs. If any are missing, request copies from HR. Under Labor Code §226, they are required to provide accurate wage statements. - Compensation Documents
Gather anything that defines your pay structure:
• Offer letters and promotion letters
• Commission plans and bonus plans
• Any written policies on overtime or exempt status - Time and Work Records
Build a detailed time log. Don’t worry if you don’t have perfect punch-in/punch-out records. Use good-faith estimates supported by:
• Calendars
• Call logs
• Emails or recurring meetings
• Even regular phone calls during your commute
Mark clearly the days you did not work (weekends, vacations, hospital stays) and fill in the rest as precisely as you can. - Categories of Unpaid Wage Issues to Look For
Employees often uncover problems in these areas:
• Unpaid overtime i.e. being paid salary when you should be hourly
• Misclassification i.e. treated as exempt when you should be non-exempt
• Unpaid commissions: sales commissions withheld, delayed, or clawed back illegally
• Improper chargebacks: deductions from commissions for returns or cancellations after the commission was earned
• Unpaid bonuses: promised incentive pay not delivered - Your Written Report
Once you have everything, write up a neutral report. Think “police report style”:
• No drama, no adjectives, just the facts
• Numbers first, then short explanations
• Organized by pay period, so the math is easy to follow
This kind of report is what holds up when you bring your claim to HR, the Labor Commissioner, or ultimately to a judge.
Step #2: Submit an Internal Wage Claim in Writing
When you’re ready, put it in writing. Email is best because it creates an automatic record. If you hand-deliver something, make a copy, note the date and time, and record who you gave it to.
Set a clear deadline. Ten to fourteen days is fair. Don’t expect HR to resolve it instantly, but don’t leave it open-ended either. A deadline forces action.
Keep your tone professional. No profanity, no accusations, no insubordination. Just the numbers, the documents, and a fair deadline.
Sample Email to HR
Subject: Request for Review of Unpaid Wages
Dear [HR Manager’s Name],
I have reviewed my recent pay and identified discrepancies between the hours/commissions I worked and the wages paid. Based on my records, the amount owed is [insert your calculation].
I’ve attached supporting documentation, including pay stubs, commission plan terms, and a summary of hours worked. Please review this information and let me know if you see anything differently.
To keep this efficient, I am requesting that the matter be resolved within 14 days (by [insert date]). If additional information is needed from me to complete the review, please let me know as soon as possible.
Thank you for your attention to this matter. I look forward to your response.
Sincerely,
[Your Name]
This sample email does three things at once:
- Shows you’re organized and professional.
- Puts HR on notice of the exact issue.
- Creates a paper trail that becomes evidence if the employer mishandles the claim.
Step #3: Review HR’s Response and Correct Errors
When they get back to you, don’t just accept what they say. Line it up against your numbers. Where they’re wrong, point it out. Do it tight so try to make it one to two pages max. Say, “You state X. That is incorrect because Y. Here’s the amount owed. I’m giving you until this date to resolve it.”
You’re not writing a novel. You’re writing something that’s concise, factual, and deadline-driven.
Step #4: Escalate with a California Wage Lawsuit
If they don’t fix it, that’s when you talk to an employment lawyer. And yes, you can sue your employer for unpaid wages while you’re still employed. The law says retaliation is illegal.
Here’s the practical truth: filing a lawsuit while you’re still working there makes the future bleak. Legally, they can’t fire you for it. Practically, most employers don’t want to keep someone around who’s suing them. That’s why you use your continued employment as leverage. Sometimes the best resolution is a paid separation. This means a deal where you walk away with your wages and more, instead of sticking around in a hostile workplace.
For a more detailed, in-depth read on how to demand unpaid wages, see my blog How to Demand Unpaid Wages Like an Employment Lawyer
Do’s and Don’ts for Filing an Unpaid Wage Claim in California
Do:
Prepare everything at home, on your own time.
Don’t sit there during the workday building your case. That’s company time. They’ll say you’re stealing time, and you’ve just given them a reason to fire you. Keep all of your prep work off the clock and away from your work computer.
Keep copies of all communications.
When you send something, preserve it. Note the date, time, and who received it. If you hand something in, copy it first and write down who you gave it to. Think of it like a police report: factual, neutral, and verifiable.
Stay factual, professional, and deadline-driven.
Frame your report around the numbers including pay stubs, hours, policies. Keep your tone businesslike. Give them a reasonable deadline, ten to fourteen days is typical. You’re not hounding them; you’re giving them a fair chance to respond. But if they miss it, you follow up once and then move it forward.
Be organized and know your numbers.
This is like Shark Tank. You want to be the person who knows every number cold. That’s when you get taken seriously. Your credibility rises or falls on whether you can back up your claim with clear math and documents.
Don’t:
Don’t email company documents to your personal account.
IT can see that. If they catch you forwarding files, they’ll use it as grounds for discipline or termination. If you need pay stubs or records, request them directly from HR. Never sneak them out.
Don’t work on your claim during company time.
Building your case at work opens the door to a “time theft” accusation. Even if the law is on your side, you’ll look bad on the facts. Do all of your prep at home, on your own time, and on your own devices.
Don’t use hostile or insubordinate language.
Profanity, sarcasm, or accusations give your employer ammunition. The law says they can’t retaliate, but if you hand them an excuse, retaliation becomes predictable. Keep every word professional and neutral.
Don’t ignore company policies.
Using work email for personal matters, storing files improperly, or violating IT rules makes it easy for the employer to say you were fired for misconduct, not retaliation. Follow their rules to the letter.
Don’t get sloppy with your facts.
If your math is off, or your documents are disorganized, you lose credibility. Employers (and judges) take seriously the person who knows their numbers cold.
Don’t assume “case closed” after one rejection.
HR will often push back. That doesn’t mean you’re wrong. Point out errors, restate your claim, and set a new deadline. If you fold after one “no,” you’ve just let them win.
Ready to take action? Contact the Ruggles Law Firm today at 916-758-8058. We’ll help you protect your rights, recover your unpaid wages, and hold your employer accountable.
California Laws Protecting Employees From Retaliation
California law spells out your rights in black and white. Three Labor Code sections are especially important:
Labor Code §98.6: Prohibits an employer from discharging, discriminating, or retaliating against an employee for asserting a wage claim.
Labor Code §1102.5: Protects employees who report what they reasonably believe are violations of law, including wage theft, from retaliation.
Labor Code §226: Requires employers to provide accurate, itemized wage statements. Inaccurate statements often signal unpaid wage problems.
Together, these statutes give you the legal footing to press your claim without fear—even if the workplace reality may still be complicated.
If you’re looking for the fastest way to recover unpaid wages in California, read my blog Fastest Way to Recover Unpaid Wages in California
Key Takeaways: Suing for Unpaid Wages in California While Still Employed
- Yes, you can sue your employer for unpaid wages while still employed in California.
- Retaliation is illegal, but the practical risk of termination is real.
- Wrongful termination claims often exceed unpaid wage claims in value.
- Continued employment itself can increase settlement leverage.
- Preparation, documentation, and professionalism drive success.
FAQs: Suing Your Employer for Unpaid Wages in California While Still Employed
Can I sue my employer for unpaid wages in California without quitting my job?
Yes. California law allows employees to sue for unpaid wages without quitting. You can bring a California unpaid wage lawsuit while you are still employed, and your employer cannot legally retaliate against you for asserting your rights.
Is it risky to sue for unpaid wages while I’m still employed?
Legally, retaliation is prohibited. Practically, the relationship may sour. Many employees use continued employment as leverage to negotiate a paid separation.
What evidence do I need for an unpaid wage lawsuit in California?
You should gather pay stubs, commission or bonus agreements, and a time log of your hours. Detailed, organized documentation strengthens your claim.
Can my employer make me sign a release to settle my unpaid wages claim?
No. Wage claims cannot be waived without additional consideration. If your employer wants a general release, they must pay extra for it.
How much can I recover if I sue for unpaid wages in California?
The amount depends on your pay structure, penalties, and damages. For some employees, it may cover only a few months of underpayments. For others, such as those misclassified or owed large commissions, the claim can reach six figures.
Conclusion: Should You Sue Your Employer for Unpaid Wages While Still Employed?
If your employer owes you wages, you have the right to pursue them, even while still employed. California law is on your side. The real question is how to assert your claim without making mistakes that cost you your job or your case.
At the Ruggles Law Firm, we help employees recover unpaid wages in California while minimizing risks and maximizing settlements. If you’re considering a claim, call us. We’ll help you weigh your options, protect yourself from retaliation, and make sure your employer pays what 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 evaluation.
Blog posts are not legal advice and are for information purposes only. Contact the Ruggles Law Firm for consideration of your individual circumstances.
