California employers often engage in deceptive practices to withhold or underpay workers, exploiting gaps in labor laws or deliberately bending the rules. From improperly misclassifying employees as “exempt” from overtime to avoid paying overtime to denying mandated meal breaks, these tactics constitute wage theft scams and deprive employees of their hard-earned income.
This guide outlines the top ten wage theft scams California employers commonly use, helping you recognize the warning signs and understand your rights to ensure you are fully compensated for your work.
- Failure to Pay California Minimum Wage
California employers are legally required to pay at least the state minimum wage, and in some regions, local ordinances mandate even higher pay.
Red Flags:
- Missing Wage Statements: Your employer does not provide a detailed wage statement with your paycheck.
- Incomplete Wage Information: The hourly rate of pay is missing on your wage statement, leaving you uncertain about how your pay is calculated.
- Under-the-Table Payments: If your wages are paid in cash or off the books, your employer may be avoiding wage regulations.
- No Timekeeping Requirements: Employers fail to keep accurate records of your hours, such as timecards or digital timesheets.
- Overtime Ignored: You work over eight hours a day or 40 hours a week and do not receive proper overtime pay.
- Local Minimum Wage Ordinance Violations
In certain cities and counties across California, the minimum wage requirement is higher than the state minimum. Employers must adhere to the higher wage rate if applicable, as more than 60 jurisdictions in the state have enacted local minimum wage ordinances that exceed California’s minimum wage.
Red Flags:
- Absence of Wage Statements: Your employer does not issue a wage statement at all.
- Lack of Hourly Rate Details: Your wage statement lacks any reference to the applicable local minimum wage rate.
- Split Shift Premium Pay Violations
In California, if you work a split shift, your employer must compensate you with a split shift premium. A “split shift” is when your work schedule includes non-consecutive work periods in the same day, separated by more than a bona fide meal period.
Example Case: Imagine a restaurant server who works from 10:00 a.m. to 2:00 p.m., has a four-hour break, and then returns to work from 6:00 p.m. to 10:00 p.m. In this case, the server has worked a split shift and is entitled to a split shift premium.
Red Flags:
- Lack of Notification: You are not informed about your entitlement to split shift premium pay when you work split shifts.
- Incorrect Premium Calculation: Your employer miscalculates the split shift premium pay, shortchanging your compensation.
- No Record of Split Shift Pay: Wage statements do not reflect any split shift premium pay category.
- False Exemptions: Employers falsely claim you are exempt from split shift pay based on your job title.
- No Adjustments for Wage Increases: Your split shift premium pay does not increase when the minimum wage goes up.
- Missed Meal Period and Rest Break Premium Pay
California law requires employers to provide 30-minute meal periods and 10-minute rest breaks. If they fail to do so, employees are entitled to one additional hour of pay.
Basics of Meal and Rest Break Requirements: For meal periods, California law mandates that employees who work more than five hours in a day must be given an uninterrupted, off-duty 30-minute meal break. If the workday is no longer than six hours, the meal break can be waived by mutual consent. If an employee works more than 10 hours, a second 30-minute meal break is required, which can be waived if the total hours worked are no more than 12 and the first meal break was not waived.
For rest breaks, employees are entitled to a 10-minute paid rest break for every four hours worked, or a major fraction thereof. The rest break should be in the middle of each work period, as far as practicable. If an employee’s shift is less than three and a half hours, a rest break is not required.
Red Flags:
- Consistent Lack of Breaks: Heavy workloads prevent you from taking meal or rest breaks.
- Pressure to Skip Breaks: You feel pressured to skip breaks to meet deadlines.
- Interrupted Breaks: Your meal or rest breaks are regularly interrupted with work tasks.
- Automatic Recording of Meal Periods: Your employer always records a meal period on your timecard, whether or take one or not.
- Lack of Adequate Break Facilities: There is no suitable space for taking breaks.
- Misclassification: Your employer wrongly classifies you as exempt from break requirements.
- Failure to Pay Reporting Time Pay
Employers must compensate employees for reporting to work but being sent home early or working less than half of their scheduled shift.
How Reporting Time Pay Penalties Work: Under California law, if an employee is required to report to work but is either sent home immediately or works less than half of their scheduled shift, the employer must provide reporting time pay. This means the employee is entitled to at least half of their scheduled hours, with a minimum of two hours and a maximum of four hours of pay, at their regular rate. For example, if an employee is scheduled for an eight-hour shift but is only allowed to work one hour, they must be paid for an additional three hours to meet the reporting time pay requirement.
Red Flags:
- Last-Minute Schedule Changes: Your employer frequently changes your schedule, leading to lost hours and pay.
- Reduced Work Hours: You are sent home early and not compensated for half your scheduled shift.
- No Advance Notice: Your employer cancels shifts without sufficient notice.
- Failure to Meet Minimum Hours: Your work hours do not meet the minimum requirements for reporting time pay.
- Overtime Pay Violations
California employees are entitled to overtime pay at 1.5 times their regular rate for hours worked over eight in a day or 40 in a week.
Red Flags:
- Straight Time for All Hours: You receive your regular pay rate even when you work overtime hours.
- Off-the-Clock Work: You are required to perform work tasks before or after your shift without compensation.
- Fixed Daily or Weekly Rates: You are paid a flat rate regardless of how many hours you work.
- Policies Against Overtime: Your employer enforces a policy that prohibits overtime, but still expects you to complete unpaid tasks.
- Misinformation: Your employer misleads you about your eligibility for overtime pay.
- Misclassification of Employees
Employers in California may misclassify workers as “exempt” from overtime pay to avoid paying proper compensation, often by paying a salary instead of hourly wages, regardless of the number of hours actually worked. Misclassification is illegal and can cost employees thousands of dollars in unpaid overtime and other benefits. Many times, employers incorrectly classify employees because they fail to apply California wage laws accurately to the worker’s actual job duties and responsibilities.
Under California law, employees are presumed to be “non-exempt,” meaning they are entitled to overtime pay unless they meet specific exemption criteria. The most common exemptions include the executive, administrative, and professional categories, each requiring not only a salary threshold but also that employees perform particular job duties. Simply paying an employee a salary does not automatically make them exempt; the employee’s duties must align with the legal requirements for an exemption.
Misclassification often involves employers using tactics such as assigning inflated titles like “manager” without the employee performing genuine managerial duties, or drafting misleading job descriptions to make routine tasks seem more significant. Additionally, some employers pay salaries that barely meet the minimum threshold and wrongly assume that this alone exempts employees from overtime. Employees who believe they are misclassified should compare their daily tasks to exemption criteria, document their work, and consider consulting with an employment attorney to protect their rights. Misclassification not only impacts immediate pay but can also lead to financial strain and lost benefits, making it vital for employees to stay informed and proactive.
Red Flags:
- Managerial Titles with No Duties: You are given a supervisory title but do not perform any management tasks.
- Misleading Job Descriptions: Your job description is more complex than the work you actually perform.
- Salary Manipulation: You are paid just above the minimum salary threshold for exemption, even if your job duties do not qualify.
- Off-the-Clock Work
Employers must pay for all hours worked, including tasks performed outside normal working hours.
Red Flags:
- Pre-Shift or Post-Shift Tasks: You are required to perform duties before clocking in or after clocking out.
- Unpaid Training: You attend mandatory training without receiving pay.
- Company Shuttle: You must take a company-provided shuttle without compensation for travel time.
- Responding to Emails Off Duty: You are expected to check and respond to work emails outside of working hours.
- Illegal Paycheck Deductions
Employers cannot deduct money from your paycheck for things like cash register shortages, damaged property, or uniform expenses without proper authorization.
Red Flags:
- Unlawful Deductions for Property Damage: You are charged for damages without any evidence or consent.
- Paycheck Advance Repayment Issues: Your employer deducts more than what is legally permissible from your paycheck for advance repayments.
- Charging for Uniforms: You are required to pay for work uniforms or safety gear, causing your wages to fall below minimum wage.
- Failure to Reimburse Expenses
California law mandates reimbursement for necessary business expenses, such as uniforms, safety equipment, or travel.
Red Flags:
- Uniform Maintenance Costs: You must pay for cleaning or maintaining your uniform, reducing your net earnings.
- Tool or Equipment Costs: You are responsible for buying work tools, which decreases your take-home pay.
- Travel Expenses: Your employer fails to reimburse travel expenses for work-related tasks.
If you believe you have experienced wage theft in California, you have several options to recover your unpaid wages. You can file a wage claim with the California Labor Commissioner’s Office, which will investigate and potentially hold your employer accountable. Alternatively, you may pursue a civil lawsuit to seek compensation for lost wages and other damages.
Consulting with an experienced employment attorney can help you understand your rights, evaluate the strength of your claim, and guide you through the best course of action to maximize your recovery. Taking swift action is crucial, as labor laws have specific timelines for filing wage theft claims.
Contact the Ruggles Law Firm at 916-758-8058 to Evaluate Your Potential Lawsuit
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.
