Introduction
A remedy for workers who sue their employer for not paying the minimum wage or overtime is provided under California Labor Code 1194, a condensed version of the California Labor Code. The entire amount of overdue wages, any relevant interest, reasonable legal expenses, and suit costs are all included in this remedy.
California Labor Code 1194: An explanation in ninety seconds
Only workers who have decided to file a successful civil lawsuit against their employers are covered by this California Labor Code. The employee’s rights following such a proceeding are outlined in Labor Code 1194. In these circumstances, workers are entitled to their money, including interest, whether they were paid less than the minimum wage or for working overtime. Along with any other acceptable costs the lawsuit may have generated, workers might also anticipate receiving fair legal fees.
Comprehending Overtime and Minimum Wage
The minimum wage is the lowest amount that a company is permitted to pay a worker per hour (mandated by law). It is impossible for employers & employees to agree to pay or receive less than the minimum wage. California’s minimum wage is $16.00 an hour (May 2024). This figure is modified annually to account for inflation.
When a worker puts in more time than they would in a typical workday, they get compensated for overtime. In California, overtime compensation is automatically paid for the initial eight hours of work on the seventh consecutive day of work as well as for each workday that exceeds eight hours. For the first two scenarios, overtime compensation is equivalent to 1.5 times the worker’s regular salary.
For example, in California, an employee who makes $16.00 is paid $24.00 for overtime (half of sixteen is eight; sixteen plus eight is 24). In any given workday, if an employee performs more than twelve hours, they get paid twice for each additional hour. In a similar vein, double pay is paid for each hour beyond the eighth on the 7th consecutive workday.
The Rights You Have Within Labor Code 1194
Your entitlements according to Labor Code 1194 as a worker mostly relate to the recourse you can obtain following a successful lawsuit. Realizing that you would receive money for any overtime that was missed, payments that fall short of the required wage, and the legal costs you incur during the claim-filing procedure gives you the confidence to file such a claim. It’s also important to remember that contracts to work at less than the minimum wage are unenforceable in California.
Getting Back Unpaid Wages
A worker should be mindful of the following while bringing a civil lawsuit against their company. Hiring an employment lawyer to manage your case is the first—and possibly most essential—phase. Hiring a lawyer who can structure your case is the best approach to discover what you have, whether your missing salary claim is simple or complex.
Workers will be required to produce supporting paperwork, such as previous pay stubs, that demonstrate the missing payments. A lawsuit will be involved in a case, which may include appearances in court, discussions between you and the company you work for, and, if the matter is not settled before then, a trial.
Considerations and Exceptions
Arbitration agreements are a significant deviation from the usual wage claim procedure. Certain clauses in employment agreements may mandate that an employee submit wage disputes to arbitration rather than bringing a civil lawsuit. As of May 2024, obligatory arbitration provisions in employment contracts remain in effect despite their contentious status in California. To recover lost earnings in such a situation, an employee might have to go via arbitration proceedings.
When choosing how to proceed with a wage claim—or if they have any options at all—employees should be informed of the terms of their employment contract. Employees ought to be aware that claims of this nature usually have a three-year statute of limitations, meaning that in order for a claim to be accepted, it must be filed within 3 years of the infraction.
Sample Situations
Example 1: When an employee works past the eighth hour in a day of work, the employer doesn’t pay overtime.
Situation: A line cook puts in ten hours of work. He discovers that he wasn’t paid overtime for the two extra hours he worked past the eighth when payday finally arrives.
Not paying overtime after the 8th hour of the workday is a violation.
How Labor Code 1194 safeguards: If overtime payments weren’t made correctly in a situation like this, an employee may bring a civil suit against the company in court to recover the unpaid earnings, reasonable legal expenses, and other costs of the lawsuit.
Example 2: Employee Files Lawsuit Against His Employer & Faces Exorbitant Legal Costs
Situation: A grocery shop employee sues their employer. The employer failed to pay them the minimum wage. The employee chooses to include a number of additional, usually baseless allegations during the lawsuit process that have nothing to do with the pay infraction. In the end, the employee wins his wage claim over the company, and he receives legal fees for just the wage claim process. This is protested by the employee.
Violation: When civil actions are brought against employers to recover unpaid wages, unreasonable legal fees shouldn’t be granted.
The way Labor Code 1194 safeguards: According to Labor Code 1194, if an employee wins their case, they are entitled to reasonable legal fees. The worker would be eligible for those fees in this situation, but not for fees related to pointless or frivolous aspects of the claim.
Example 3: The employer agrees to pay the employee less than the minimum wage
The situation: An employee at a car wash starts working there and accepts complimentary car washes for his vehicle in return for a dollar less than the minimum salary.
Violating the minimum wage is impossible.
What Labor Code 1194 Guards Against: The employer would be breaking California law in this instance, since employers and employees are unable to negotiate to be paid less than the minimum wage. Due to the incorrect agreement, the employee may file a claim against the company for the unpaid pay.
FAQs
1. If we agree, is it possible for my employer to give me less than the minimum wage?
“Non-waivable” refers to a non-exempt employee’s entitlement to legal overtime compensation and no less than the minimum wage. Section 1194 of the California Labor Code, which forbids employers and non-exempt staff from making a secret agreement wherein the employer agrees to pay the worker less than the legally required minimum wage and overtime rate, is intended to safeguard workers against unlawful labor practices. A contract of employment that pays an employee an amount below the minimum wage is null and void.
Workers in Brea, Downey, and throughout California who are paid on an hourly or salary basis are entitled to no less than the minimum wage. The minimum salary may differ depending on the city and the employer’s workforce size.
2. Can the company take money out of my paycheck for lost or stolen property?
If an employee misplaces, breaks, or damages business property while working, the employer can’t deduct that money from their pay. Examples of common situations include when an individual steals a shirt from a retail establishment in Orange County, California, or when an employee accidentally destroys a vase while on duty. In a similar vein, patrons of a Bellflower eatery may “dine and dash,” or consume food without paying for it. The price of the vase, garment, or dinner cannot be deducted from the employee’s pay by the company.
However, there is a significant exception: pay may be withheld if the company can demonstrate that the employee’s “gross carelessness” or dishonest, deliberate actions were the source of the loss or damage. Employers that suspect an employee of stealing money or damaging corporate property out of dishonesty, willfulness, or gross negligence must exercise extreme caution when reducing wages. The worker would be eligible for payment of the wages that were withheld, as well as possibly extra damages if the employer was in error.
There are further restricted situations in which an employer may withhold wages. The IRS W-4 form must be filled out and submitted by the employee in order for taxes to be withheld from wages. Additional legal justifications for wage deductions include paying premiums for insurance that the worker enrolled in and fulfilling court orders that mandate deductions, like child support judgments.
3. How Can I Get My Lost Wages Back?
Every employee in California has the right to compensation for services or labor rendered (even when there is no formal contract. Employees should typically file a complaint. It should be given in writing to HR or another designated employer representative as soon as they feel they are not receiving their full salary. Employers in California typically give their staff members an employee handbook.
It can be anywhere from a few pages to a few hundred pages. The organization’s procedure or process that must be followed in order to file a complaint regarding payroll problems or salary disputes will be included in the handbook. Observe any internal grievance mechanisms.
In the event that the parties cannot settle the wage dispute amicably, California workers who have not received their wages correctly have the right to file a grievance with the US Department of Labor’s Wage & Hour Division or bring an action in court. It is important to file the administrative complaint at the appropriate branch. An employee must file a Labor Commissioner claim with the Santa Ana branch, for instance, if the employer’s restaurant, business, or workplace is in Anaheim or Brea. On the one hand, an administrative case may be far less conventional than a lawsuit.
Employees can substantiate their allegations of underpaid pay and other wage & hour breaches through lawsuits and regulatory complaints, which can allow them to obtain penalties and damages. To establish a claim for underpaid pay, supporting documentation is required.
An employee’s statement may occasionally be sufficient to support their claims. Not always, though. Employees should therefore keep track of all the hours they worked that were either underpaid or unpaid, including normal and extra hours, as well as all of the payments that are owed.
4. If I file a complaint over unpaid wages, will I be protected?
Workers who use their legal rights and “whistleblowers” are protected by state and federal laws. For instance, if an employee complains about unpaid pay, the employer is not allowed to fire, demote, or suspend them under sections 98.6 & 1102.5 of the California Labor Code.
A formal documented complaint or perhaps a lawsuit is not necessary for a worker’s complaint to be safeguarded. Protection under federal and state whistleblower laws may be activated by a written or verbal disclosure to a supervisor or manager. Employees who file a complaint about underpaid wages may also file a lawsuit for discrimination and retaliation if their employer takes adverse action against them. A wrongful termination lawsuit may also be filed against an employer who dismisses a worker who has complained about underpaid wages.