Overtime and Unpaid Wages

Most California employees paid by the hour are entitled to overtime compensation of one and one-half times their regular hourly pay rate for work in excess of 8 hours per day or 40 hours per week and for the first 8 hours of the seventh day worked. Double compensation may be required for employees who work more than 12 hours in a day, and for all time after the eighth hour on the seventh day worked.

California workers who have been wrongly denied overtime pay are entitled to recover not only their actual unpaid overtime wages due, but in addition may receive reasonable attorneys' fees, costs, interest and substantial penalties. Federal law also permits workers to recover additional 'liquidated damages' equal to the amount of overtime wages owed. State and federal overtime regulation is often complex and confusing, and employers often misclassify employees, intentionally or accidentally, which results in a failure to pay overtime wages.

Exemptions: Certain types of employees are legally 'exempt' from overtime laws and therefore do not receive overtime pay. However, employers often misclassify employees as exempt, when in fact the employees do not meet the legal test for any exemption and therefore should be paid overtime wages. The following types of employees may be exempt from overtime compensation under California law:

  • Independent Contractors: Workers who are truly 'independent contractors' are exempt from overtime laws. However, employers often falsely or incorrectly label employees who are eligible for overtime compensation as 'independent contractors.' It is often difficult to distinguish between employees and independent contractors. For more information, please see our Misclassification page. Simply calling an employee an independent contractor in an agreement or job description does not excuse an employer from paying overtime. If you think you have been denied overtime pay because your employer misclassified you as an independent contractor, please call Kletter Law Firm at 415.434.4300 for an evaluation of your case.
  • Specific Industries and Occupations: California also has a separate and complicated set of overtime pay rules for employees in specific industries. For example, some regulations apply to most 'commercial drivers' but not taxicab drivers, some highly trained nurses are exempt while other nurses are not and computer programmers may be subject to different rules than computer network analysts. Our attorneys can help you understand the particular rules that apply to your industry and occupation. Many people mistakenly believe only low paid laborers or service workers have claims for unpaid wages, overtime or commissions, however, that is simply not the case. Here are some examples of workers who may have large claims for unpaid overtime:
    • truck drivers who do not cross State lines, limo drivers or other drivers who are not being paid for hours worked or for overtime hours worked;
    • computer programmers, software designers, network analysts, computer engineers, IT specialists or other types of computer or software workers who work more than eight hours per day or forty hours per week, and are not paid overtime;
    • nurses (who are not certified midwifes or practitioners) paid hourly or salary who work for over 8 hours per day or 40 hours per week and are not paid overtime;
    • ambulance drivers or emergency medical technicians who work more than 8 hours per day or 40 hours per week and are not paid overtime;
    • janitors, housekeepers, hotel clerks, cashiers and others who are paid by the hour but who aren’t receiving overtime wages;
    • commission salespersons such as a mortgage brokers, stockbrokers, bank or home loan employees, or insurance salespersons who have been wrongly classified as exempt when in fact they are entitled to overtime; and 'managers' or 'assistant managers' in restaurants, clothing stores, or other retail establishments who spend less than half the time managing, who do not have the authority to hire or fire and who have been misclassified as 'exempt' when in fact they are entitled to overtime pay.

If you have been denied overtime because your employer claimed you were exempt, please contact our wage and hour attorneys as soon as possible; we can help determine if you are actually entitled to receive compensation for lost overtime wages.

On-Call Wages: Employers sometimes wrongly deny overtime pay to those workers whom they require to be ‘on call.’ While some employers may pay hourly or flat rate on-call premiums to workers who agree to be available outside regular work time, many do not and disputes can arise. These disputes usually come down to the definition of control and use of time while on-call. For example: You are a customer services representative on-call to answer questions only, but are otherwise free to control your time. Your employer may only need to pay for the time spent handling an actual call. However, if you are a crisis counselor required to be available on-demand constraining your control over your free time, you may be entitled to compensation for all of your on-call time. You may be entitled to on-call wages if you are required to be on site an employer’s facility.

On call wage issues are often complex. Whether you are an employee paid a split-rate wage that may not be compliant with minimum amounts required under wage and hour regulations, or you are an exempt employee paid an on-call premium that can change your exempt status and thus your past and future overtime pay, we have the experience you need to ensure a fair wage. Contact the lawyers at Kletter Law Firm for help assessing your situation and how to proceed.

Prevailing Wage: Under California's Labor Code, certain private employers who are awarded public works contracts from government bodies are required to pay their employees a "prevailing wage." A prevailing wage is a minimum wage set by the Department of Industrial Relations that public works employees in similar industries and locales are paid for their work on such projects. Employers who fail to pay their employees this prevailing wage must not only compensate them for any underpayment but are also subject to significant penalties and fines.

Other Pay Violations: California employers often commit other violations of the California Labor Code such as neglecting to reimburse employees for business expenses, not providing employees with their uniforms free of charge and not providing accurate paystubs.

If you have questions about California Labor Code violations, unpaid overtime or other wages issues, contact at Kletter Law Firm today by calling us at 415.434.4300 to schedule a no-fee initial consultation.

Collecting Unpaid Wages, Overtime, and Penalties: Employees in California have several methods to collect unpaid wages, overtime compensation, and related penalties:

  • Negotiation: One of the most effective approaches is to negotiate directly with the employer. Informal negotiation is often the most efficient way to settle wage and hour claims. Negotiating your claim can enable you to recover fair compensation while avoiding the risks, delays and costs involved in administrative or court proceedings. However, it is often wise to consult with an attorney to advise you of your rights and to discuss negotiation strategy. The attorneys at Kletter Law Firm can represent you in the negotiation process to help you get the money you deserve.
  • Filing a Claim with the Labor Commission: Wage and hour disputes can also be handled by filing a claim with the California Department of Industrial Relations - Division of Labor Standards Enforcement, also known as the 'Labor Commission' or DLSE. The Labor Commission claim process is less formal than a lawsuit, and may have advantages over going to court; for example, the resolution of some types of cases will be faster than in court, and the commissioners are generally very familiar with the legal issues involved with wage claims. The Labor Commission has limited authority however, cannot handle claims under federal law and may not be appropriate if you have other legal claims against your employer in addition to wage claims. Kletter Law Firm can help you decide whether filing a Labor Commission claim is appropriate in your case.
  • Filing a claim in court: You can also file wage and hour claims in State or Federal court. In court you will be able to have a jury and other more formal discovery rules apply. Further the Labor Commission will not enforce federal laws authorizing liquidated damages for overtime claims, while courts can assess these damages. If you have any other legal claims against your employer, it may be most efficient to include your wage and hour claims in the same lawsuit. The lawyers at Kletter Law Firm can help you assess your individual situation to decide how to proceed.