Unpaid Wages and Overtime

Unpaid Wages & Overtime in California

Introduction: Your Fundamental Right to Full and Fair Compensation

Every employee in California has a fundamental right to be paid for all the work they perform, including any overtime hours worked. Unfortunately, employers sometimes fail to pay their employees correctly, leading to unpaid wages and/or unpaid overtime. This can happen through misunderstanding of the law, payroll errors, or even intentional wage theft.

At Brightwood Law Group, PC, we are dedicated to ensuring that employees receive every dollar they are rightfully owed. If you believe your employer has failed to pay you accurately for your regular hours or overtime work, we can help.

Understanding Your Right to All Earned Wages

In California, “wages” are broadly defined and include all amounts for labor performed by employees of every description, whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method of calculation. This encompasses more than just your hourly rate or salary; it includes:

  • Regular hourly earnings and salaries;
  • Overtime pay; 
  • Commissions that have been earned;
  • Non-discretionary bonuses (bonuses that are part of your compensation package or promised for meeting certain goals);
  • Piece-rate earnings;
  • Accrued, unused vacation time or paid time off (PTO) that functions like vacation, which must be paid out upon termination;


Employers are legally obligated to pay all earned wages on established, regular paydays. They are also prohibited from making unauthorized deductions from your pay.

California Overtime Law Explained

California’s overtime laws are generally more protective than federal law, mandating premium pay for extended daily work, not just weekly work.

  • Who is Entitled to Overtime? Most employees in California are classified as “non-exempt” and are entitled to overtime pay. Certain executive, administrative, and professional employees may be classified as “exempt” if they meet very specific salary and job duties tests. (If you believe you’ve been misclassified, see our page on Misclassification as Exempt Employee).
  • Daily and Weekly Overtime Rules for Non-Exempt Employees: 
    • You are entitled to one and one-half times (1.5x) your regular rate of pay for all hours worked in excess of eight (8) hours up to and including twelve (12) hours in any single workday.
    • You are entitled to double (2x) your regular rate of pay for all hours worked in excess of twelve (12) hours in any single workday.
    • You are entitled to one and one-half times (1.5x) your regular rate of pay for all hours worked in excess of forty (40) hours in a single workweek (for hours not already qualifying for daily overtime at a higher rate).
    • Seventh Consecutive Day of Work: You are entitled to one and one-half times (1.5x) your regular rate of pay for the first eight (8) hours worked on the seventh consecutive day of work in any given workweek. You are entitled to double (2x) your regular rate of pay for all hours worked in excess of eight (8) hours on that seventh consecutive day.
  • Calculating Your “Regular Rate of Pay”: Overtime is not simply 1.5x or 2x your base hourly wage. It’s calculated based on your “regular rate of pay,” which must include nearly all forms of compensation you receive for your work, such as hourly earnings, piece-rate earnings, commissions, and non-discretionary bonuses. For salaried non-exempt employees, the regular rate is typically determined by converting the weekly salary to an hourly equivalent. Incorrectly calculating this rate is a common way employers underpay overtime.
  • “Suffer or Permit to Work” / Unauthorized Overtime: California law requires employers to pay for all hours an employee is “suffered or permitted” to work, regardless of whether that overtime was explicitly authorized beforehand. If your employer knows or should have known you are working overtime, they must pay you for it. While an employer can discipline an employee for violating a policy requiring pre-authorization for overtime, they cannot withhold payment for hours already worked.

Common Ways Employers Fail to Pay Wages and Overtime

Unpaid wage and overtime issues can arise from various employer practices, including:

  • Requiring or allowing employees to perform work “off-the-clock” (e.g., working before clocking in, after clocking out, or during unpaid meal breaks).
  • Misclassifying non-exempt employees as exempt to avoid paying overtime.
  • Failing to pay daily overtime and only compensating for hours worked over 40 per week.
  • Incorrectly calculating the employee’s regular rate of pay for overtime purposes by excluding non-discretionary bonuses, commissions, or other forms of compensation.
  • Using illegal pay schemes, such as averaging an employee’s hours over two or more workweeks to avoid paying overtime.
  • Not paying for all time worked, including mandatory training time, certain types of travel time, or time spent on work-related tasks outside of scheduled shifts.
  • Withholding an employee’s final paycheck or failing to include all earned compensation, such as accrued vacation pay, upon termination or resignation.
  • Making unlawful deductions from an employee’s wages.

What to Do If You Have Unpaid Wages or Overtime

If you believe your employer owes you wages or has not paid your overtime correctly:

  1. Review Your Pay Stubs: Carefully examine your pay stubs for accuracy regarding hours worked, pay rates, and deductions. Compare them with your own records.
  2. Keep Detailed Personal Records: Maintain your own independent logs of all hours worked, including start times, end times, and break times. Note any discrepancies.
  3. Document Everything: Keep copies of any employment contracts, offer letters, employee handbooks, policies related to pay and overtime, and any communications with your employer regarding your hours or pay.
  4. Communicate With Your Employer (Optional): You may choose to discuss the potential discrepancies with your supervisor or Human Resources department. Sometimes errors are unintentional and can be corrected.
  5. File a Wage Claim: You have the right to file a wage claim for unpaid wages and overtime with the California Labor Commissioner’s Office (Division of Labor Standards Enforcement - DLSE).
  6. Consult with Brightwood Law Group, PC: Wage and hour laws are intricate. An attorney can help you understand your rights, accurately calculate what you are owed (including potential penalties and interest), and determine the best legal strategy for recovering your unpaid compensation.

Recovering Your Unpaid Wages and Overtime: Legal Remedies

If your employer has failed to pay you all wages due, including overtime, California law provides several avenues for recovery:

  • Unpaid Wages (Back Pay): You are entitled to recover the full amount of wages unlawfully withheld, including unpaid minimum wages and overtime compensation.
  • Liquidated Damages (for Minimum Wage Violations Only): If you were paid less than the applicable minimum wage, you might be entitled to liquidated damages in an amount equal to your unpaid minimum wages plus the interest accrued on those unpaid wages. This effectively can double your recovery for the minimum wage portion of your claim. This remedy is not available for unpaid overtime.
  • Interest: You are generally entitled to pre-judgment interest on unpaid wages, typically at a rate of 10% per annum, calculated from the date the wages were due until they are paid.
  • Statutory Penalties: 
    • Late Payment Penalties (Labor Code §210): For an initial failure to pay wages on time, the penalty is $100 for each employee. For subsequent or willful violations, it’s $200 per employee plus 25% of the unlawfully withheld wages.
    • Waiting Time Penalties (Labor Code §203): If your employer willfully fails to pay all your final wages promptly upon termination, you may be entitled to a penalty equal to your daily rate of pay for each day the wages are late, up to a maximum of 30 days.
    • Pay Stub Penalties (Labor Code §226(e)): If your wage statements are inaccurate due to the unpaid wages or other required information is missing, you may be entitled to penalties ($50 for the first violation, $100 for subsequent violations, up to $4,000) if you suffered injury due to a knowing and intentional failure by the employer.
  • Attorney’s Fees and Costs: In many wage and hour cases, particularly for unpaid minimum wage or overtime, a prevailing employee is entitled to recover their reasonable attorney’s fees and litigation costs from the employer.


Statute of Limitations:
It’s crucial to act promptly. Generally, the statute of limitations for filing a claim for unpaid wages or overtime in California is three years from when the wages were earned. This can sometimes be extended to four years if pursued under California’s Unfair Competition Law (UCL) for wage restitution. Deadlines for penalties are often shorter (e.g., one year).

How Brightwood Law Group, PC Can Help You Recover Your Earned Wages

At Brightwood Law Group, PC, we are deeply committed to ensuring that every employee receives the full and fair compensation they are legally entitled to. We have extensive experience navigating California’s complex wage and hour laws and aggressively advocate for workers who have been underpaid. We can assist you by:

  • Conducting a comprehensive review of your pay records, work hours, and employment situation to identify all potential unpaid wages and overtime.
  • Accurately calculating the full amount of compensation owed, including any applicable interest, liquidated damages, and statutory penalties.
  • Clearly explaining your rights and legal options.
  • Sending a demand letter to your employer to seek recovery of your unpaid wages.
  • Representing you in negotiations, mediation, or claims filed with the California Labor Commissioner’s Office (DLSE).
  • Filing and litigating individual or class action lawsuits in court to recover your unpaid wages and hold your employer accountable.


Understanding your pay rights is crucial. For a general overview, visit our
California Wage and Hour Laws Page.

If you believe you’ve been misclassified, see our page on Misclassification as Exempt Employee.

If multiple employees are affected, a Class Action Lawsuit may be appropriate.

Don’t Let Your Hard-Earned Wages Go Unpaid. Assert Your Rights.

If you believe your employer owes you unpaid wages or overtime, it’s important to act to protect your rights. Contact us at Brightwood Law Group, PC today for a free confidential consultation. Our experienced California employment law attorneys will fight for you to recover the full compensation you deserve. Call us at (310) 895-9075 or fill out our online contact form.