The U.S. Department of Labor’s Wage and Hour Division announced that it had recovered $863,860 in back wages and damages for 58 workers employed by four residential care providers in California that denied them minimum wage, overtime, or both.
According to news release from the agency, the recoveries were made at several residential care homes where officials say the workers who have been most seriously harmed are women and low-wage earners “who can least afford to be denied their full wages.”
Overtime and Other Wage Violations
The Department of Labor investigated a residential care provider for persons with developmental disabilities in three locations in Stockton. Officials said that the company failed to pay workers required overtime pay for hours over 40 in a workweek as required under California law.
The division recovered $483,185 in wages for 11 workers and assessed $7,546 in penalties. Another investigation found that another owner of six residential care facilities for the elderly in the Sacramento area did not pay overtime wages to their 44 employees. In that case, the division recovered $306,066 in back wages and damages for workers and assessed $18,326 in penalties.
In addition, a provider in Sacramento and another in Davis also faced penalties and paid back wages to employees for failing to pay due wages, making illegal deductions not specified in the contract, and failure to pay overtime.
Officials said these investigations are part of a wider effort by the division to hold violating employers accountable and to provide outreach and education to workers and employers to raise awareness and prevent such violations of wage and hour laws.
What Are California Overtime Laws?
California’s overtime laws are among the most comprehensive in the country, providing strong protections for workers. Under the California Labor Code and Industrial Welfare Commission (IWC) wage orders, non-exempt employees are entitled to overtime pay for hours worked beyond specific thresholds.
California law requires hourly employees to be paid 1.5 times their regular pay rate for hours worked over 8 in a single workday. Employees are entitled to double their regular pay rate for hours worked over 12 in a single workday and for hours worked over 8 on the seventh consecutive day of work in a workweek. Overtime also applies for hours worked over 40 in a workweek.
Typically, only nonexempt employees are covered. Exempt employees, such as executives, professionals, and certain administrative workers, must meet specific salary and job duty criteria to be excluded from overtime laws. Employees may agree to alternative schedules, such as four 10-hour days, without triggering daily overtime.
This requires a formal vote and employer compliance with specific legal procedures. Employers who violate overtime laws may face penalties, back pay, and lawsuits. Employees can file complaints with the California Division of Labor Standards Enforcement (DLSE).
Other Common Types of Wage Theft in California
Wage theft is a significant issue in California, involving various illegal practices by employers that deny workers their rightful earnings. Beyond unpaid overtime, other common forms of wage theft include:
Minimum wage violations: Employers may fail to pay the state-mandated minimum wage, which is higher than the federal minimum wage. This varies in California based on employer size and where you live. Some local jurisdictions, such as Los Angeles County, have set higher minimum wages than the state. When this is the case, employers must pay the higher minimum wage. Paying less than the minimum wage is illegal.
Misclassification of employees: Employers may misclassify workers as independent contractors or exempt employees to avoid paying minimum wage, overtime, and other benefits. Misclassified employees often lose protections under California’s wage and hour laws.
Meal and rest break violations: California mandates meal breaks after 5 hours of work and rest breaks for every 4 hours worked. Employers who fail to provide these breaks or discourage employees from taking them violate state law. Workers are entitled to penalty pay if these breaks are denied.
Tip theft: In industries like hospitality, some employers unlawfully take or withhold tips from employees. California law protects workers’ rights to keep all tips given to them.
Unpaid wages or commissions: Some employers delay or fail to pay wages, including commissions and bonuses, after an employee has earned them. Withholding final paychecks after termination is another common violation.
Time shaving: Employers may alter time records to reduce the number of hours worked, effectively stealing wages by underreporting time.
Failure to reimburse business expenses: California law requires employers to reimburse workers for job-related expenses such as mileage, tools, uniforms, or cell phone use. Failing to do so is a form of wage theft.
What Steps Can You Take If You Are Owed Unpaid Wages?
If you are owed unpaid wages, it is important to take prompt action to recover the money to which you are legally entitled. The first step is to gather evidence of the hours you worked and the pay you received. This includes pay stubs, timesheets, employment contracts, or communications with your employer.
Accurate records strengthen your case. Before taking formal action, discuss the issue with your employer or HR department. Provide documentation of the discrepancy and request payment of the unpaid wages. Sometimes, misunderstandings can be resolved informally.
If the issue is still unresolved, file a wage claim with your state’s labor department. In California, the DLSE handles unpaid wage claims. You can submit a claim online or in person. Include supporting documentation to help investigators assess your case.
For larger claims or to explore a possible class action involving a larger group of employees, it is important that you contact an employment attorney. You may file a lawsuit for unpaid wages, damages, and potentially attorney’s fees. California law allows employees to recover penalties for wage theft, increasing the potential compensation.
It is also important to remember that it is unlawful for employers to retaliate against workers for pursuing unpaid wages. Retaliation includes firing, demotion, or harassment. Report any retaliatory actions to the Labor Commissioner.
Acting promptly in such situations is critical because time limits, also known as statutes of limitations, apply to wage claims. In California, you generally have three years to file a claim for unpaid wages. An experienced California employment lawyer can provide you with more information about pursuing your rights.
Source: https://www.dol.gov/newsroom/releases/whd/whd20241112-2
Ian Silvers
Ian Silvers is a partner and employment law attorney at Bisnar Chase. He heads up the litigation department and is a trial lawyer handling wage and hour violations, discrimination, and other workplace-related complaints.
