Despite the name, “wage theft” generally does not refer to an employee stealing money from an employer.
It describes something going in the other direction: an employer failing to pay an employee wages or other compensation the employee has earned.
Wage theft is not a single violation. The term encompasses a range of wage-and-hour practices, from straightforward nonpayment of wages to less obvious problems involving overtime, off-the-clock work, meal and rest periods, tips, and employee classification. For more information on this matter, contact our Los Angeles employment attorneys.
What Are Common Types of Wage Theft in California?
Unpaid Minimum Wages
California employers generally must pay nonexempt employees at least the applicable minimum wage for all hours worked.
Minimum-wage violations can be straightforward—for example, paying an hourly rate below the applicable minimum. But they can also arise when unpaid work effectively reduces an employee’s compensation.
Unpaid Overtime
Nonexempt California employees may be entitled to overtime compensation when they work beyond certain daily or weekly limits.
An employer generally cannot avoid its obligation to pay for overtime simply by declaring that the additional work was “unauthorized” if the employer knew or should have known that the employee performed the work.
Off-the-Clock Work
Work does not necessarily become uncompensated simply because it occurs outside an employee’s scheduled shift.
Off-the-clock work can include:
- Pre-shift preparation;
- Post-shift closing duties;
- Work performed from home;
- Required administrative tasks completed outside recorded hours; or
- Work-related calls, messages, or other tasks performed during unpaid time.
Whether particular time is compensable depends on the circumstances, but employers generally have an obligation to account for compensable work they permit employees to perform.
Meal and Rest Period Violations
California law provides qualifying nonexempt employees with meal and rest-period protections.
When an employer fails to provide legally required meal or rest periods, the employee may be entitled to additional compensation. The specific requirements depend on factors including the employee’s shift length and circumstances.
Unlawful Deductions
California law limits the deductions employers may make from employee wages.
An employer generally cannot shift ordinary business losses onto an employee simply by taking money out of a paycheck. Different rules may apply depending on the type of deduction and the circumstances surrounding it.
Improperly Withheld Tips
California law also protects employee gratuities.
Employers generally may not take gratuities left for employees. Certain tip-pooling arrangements are permitted, but the legality of a particular arrangement can depend on who participates in the pool and how gratuities are distributed.
Employee Misclassification
Some wage theft claims begin with a classification problem.
An employer may classify a worker as “exempt” and therefore not pay overtime or provide other protections available to nonexempt employees. But a job title—or even a salary—does not by itself determine whether an employee is legally exempt.
Workers may also be improperly classified as independent contractors when the realities of the working relationship indicate otherwise.
Is Every Payroll Error Wage Theft?
Not necessarily.
Employers can make genuine payroll mistakes. A missing hour or incorrect paycheck does not automatically establish an intentional scheme to withhold wages.
But intent is not necessarily the only question. An employer may still owe compensation that should have been paid even when the original failure resulted from an error.
Repeated discrepancies, company-wide practices, or an employer’s failure to correct a known problem may warrant closer examination.
How Can You Tell If Wage Theft May Be Happening to You?
The legal categories only tell part of the story. Wage violations often appear in everyday workplace practices that employees may not immediately recognize as a problem.
If your paycheck does not seem to match the work you actually performed, see How to Know if Your California Employer Is Stealing Tips or Wages for common warning signs and records you may want to preserve.
If you believe your employer has failed to pay compensation you earned, a Fresno, CA employment attorney can review the circumstances and help you understand what options may be available.