Common Wage & Hour Violations in California: What Employers Get Wrong

Wage and hour laws are an important part of the workplace, especially in California. These laws protect employees, ensuring they are paid fairly and treated with respect when it comes to their work hours. Despite these laws being in place, many employers still make mistakes, either knowingly or unknowingly. When these laws are not followed, it can result in serious consequences for both the employer and the employee. Understanding these common wage and hour violations is crucial for workers to know their rights and for employers to avoid making costly mistakes. At, The Myers Law Group, APC , we are here to guide you through the legal process and help you navigate the complexities of your case.

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Failure to Pay Minimum Wage

In California, employers are required by law to pay employees at least the minimum wage set by the state. However, some employers either do not understand the current minimum wage rates or they intentionally pay workers less. This is one of the most common violations in the state. California’s minimum wage changes periodically and it can vary based on the size of the company. Failing to adjust wages according to these changes leaves employees underpaid, which is against the law. Even if an employer argues that they cannot afford to pay the state’s required wage, they are still legally required to do so.

Another common problem occurs when employers make deductions from employees’ paychecks for things like uniforms or breakages. While certain deductions may be allowed, they cannot cause an employee’s wages to fall below the minimum wage. Workers who experience this may not realize that their rights have been violated, and employers can find themselves facing legal actions if they do not properly understand the wage laws.

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Misclassification of Employees as Independent Contractors

Many employers in California wrongly classify their workers as independent contractors instead of employees. This practice can save the company money by avoiding certain obligations like paying minimum wage, overtime, and providing benefits. However, misclassifying workers is a violation of state labor laws, and it often leads to lawsuits. Employees who are classified as independent contractors do not receive the same protections as regular employees. They are not entitled to overtime pay, health insurance, or even paid sick leave.

California has specific guidelines for determining whether a worker is an employee or an independent contractor, and it’s not based simply on what the employer wants to call them. The state uses the “ABC test,” which sets strict rules about who can be classified as an independent contractor. Many employers fail to apply these rules correctly, and as a result, they end up violating the wage and hour laws. This can cost employees money and create a lot of problems for the business.

Failure to Pay Overtime Wages

Overtime pay is another area where employers commonly make mistakes. In California, employees who work more than eight hours in a single day or more than 40 hours in a week are entitled to overtime pay. Overtime must be paid at a higher rate than the regular wage, typically time and a half. However, some employers try to avoid paying overtime by miscalculating hours or asking employees to work “off the clock.” This practice is illegal, and employees who are not properly compensated for their overtime work have the right to seek legal action.

Some employers also make the mistake of thinking that salaried employees are exempt from overtime pay. While it is true that some employees are exempt, this does not apply to all salaried workers. California law has specific criteria for determining who is exempt from overtime, and if an employer gets this wrong, they are breaking the law. Employees who believe they are entitled to overtime pay but have not received it should speak up and seek legal help to ensure their rights are protected.

Not Providing Meal and Rest Breaks

California law requires that employees are given regular meal and rest breaks during their shifts. Employees who work more than five hours in a day are entitled to a 30-minute meal break, and those who work more than 10 hours must be given a second meal break. In addition, employees are entitled to a 10-minute paid rest break for every four hours worked. Unfortunately, many employers fail to provide these breaks or they require employees to work through them without proper compensation.

When an employer fails to provide meal and rest breaks, it can lead to significant legal problems. Employees have the right to take these breaks, and if they are not given the opportunity to do so, they may be entitled to additional compensation. Employers sometimes attempt to avoid these requirements by encouraging workers to take shorter breaks or by not properly scheduling break times. This is a clear violation of California labor laws, and it can result in lawsuits and penalties for the company.

Failure to Pay for All Hours Worked

In many cases, employees may find themselves working without getting paid for all the hours they put in. This can happen in a variety of ways. Some employers may ask employees to clock out and continue working, while others may not count certain activities, like preparation or cleanup time, as part of the workday. All hours worked by an employee, including those spent preparing for work or finishing tasks at the end of a shift, must be compensated.

Another common issue is the rounding of time. Some employers round employees’ clock-in and clock-out times to the nearest 15 minutes. While rounding is allowed under certain circumstances, it must not result in the employee being underpaid for the hours they have worked. In situations where the rounding consistently benefits the employer and not the employee, it can be considered a violation of wage and hour laws.

Misuse of Tip Credits and Service Charges

For employees in the hospitality industry, tips can make up a significant portion of their earnings. However, some employers wrongly use tip credits to pay less than the minimum wage or keep a portion of the employees’ tips for themselves. This practice is illegal in California, where the law requires that all tips given to employees belong to them and cannot be taken by the employer.

Service charges, which are often added to bills in restaurants or hotels, can also lead to confusion. In some cases, employers may try to keep these charges or distribute them in ways that shortchange the employees who earned them. It is important for workers to understand their rights when it comes to tips and service charges and for employers to follow the law to avoid wage violations.

Retaliation for Complaints About Wage Violations

One of the most concerning issues employees face is retaliation for speaking up about wage and hour violations. Under California law, employees have the right to file complaints or take legal action if they believe their employer has violated wage laws. Unfortunately, some employers retaliate against workers who raise concerns by cutting their hours, demoting them, or even firing them.

Retaliation is illegal, and employees who experience it have the right to seek justice. California law protects workers from being punished for standing up for their rights. Employers who engage in retaliatory actions can face serious consequences, including fines and lawsuits. Workers should feel safe in reporting violations without fear of losing their job or facing other negative consequences.

Unlawful Deductions from Wages

In California, there are strict rules regarding wage deductions. Employers cannot deduct money from an employee’s paycheck unless it is for a lawful reason, such as taxes, garnishments, or specific deductions agreed upon by the employee. However, some employers take unauthorized deductions for things like damage to property, cash shortages, or mistakes made by the employee. These deductions are generally illegal and can leave the worker underpaid for their labor.

Employers must be careful to follow the law when it comes to deductions. Any deductions made that are not permitted by California law are considered a violation, and employees who have money taken out of their paycheck unlawfully can seek legal action to recover those wages.

Understanding common wage and hour violations is essential for both employees and employers in California. Workers need to be aware of their rights to ensure they are being treated fairly and receiving the wages they are owed. Employers must take care to follow the laws to avoid costly mistakes and legal actions. If you believe your rights have been violated or if you are facing wage and hour issues, it is important to seek legal help.

The Myers Law Group, APC is dedicated to helping employees navigate wage and hour disputes. If you have been underpaid, denied overtime, or faced retaliation for standing up for your rights, contact The Myers Law Group, APC today. Our experienced attorneys are here to provide guidance and support, ensuring that you receive the compensation you deserve. Don’t wait—reach out to us for a consultation and let us help you protect your rights.

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