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Wage and Hour Laws

California Wage and Hour Laws: Complete 2025 Guide

California wage and hour laws provide the strongest worker protections in the United States. These laws establish your right to fair compensation, mandatory breaks, overtime pay, and timely final paychecks. If your employer violates these protections, you can file claims to recover unpaid wages, penalties, and damages.

California’s wage and hour protections go far beyond federal requirements under the Fair Employment and Housing Act (FEHA) and the California Labor Code. The state requires daily overtime pay, mandatory meal and rest breaks, immediate final paychecks upon termination, and higher minimum wage rates than federal law. Understanding these rights helps you identify violations and take action when employers fail to pay what you’ve earned.

What Are Wage and Hour Laws?

Wage and hour laws regulate how much employers must pay workers and when payment is due. These laws cover minimum wage rates, overtime requirements, meal and rest break rules, final paycheck timing, proper employee classification, and wage statement requirements.

California’s wage and hour protections come from the California Labor Code and Industrial Welfare Commission Wage Orders. The California Division of Labor Standards Enforcement (DLSE) enforces these laws through investigations, hearings, and civil penalties. Workers can file wage claims directly with the DLSE or pursue lawsuits in civil court.

These laws exist because wage theft remains widespread. Employers sometimes misclassify employees as independent contractors, deny overtime pay, skip mandatory breaks, or withhold final paychecks. California’s strong enforcement mechanisms help workers recover stolen wages and hold employers accountable.

California vs Federal Wage Laws: Why California Is Stronger

Federal wage and hour laws establish minimum standards through the Fair Labor Standards Act (FLSA). However, California law provides significantly greater protections in nearly every area.

Protection Federal Law (FLSA) California Law
Minimum Wage $7.25/hour $16.50/hour (2025)
Overtime Trigger 40+ hours per week 8+ hours per day OR 40+ hours per week
Double Time Pay Not required Required after 12 hours/day
Meal Breaks Not required 30 minutes for 5+ hour shifts
Rest Breaks Not required Paid 10 minutes per 4 hours
Final Paycheck Next regular payday Immediately upon termination
Vacation Payout Not required Must pay all accrued vacation
Day of Rest Not required One day off per seven-day workweek

When state and federal laws differ, employers must follow whichever law provides greater benefits to workers. This means California employees always receive California’s enhanced protections, not just federal minimums.

The FLSA sets a floor, but California’s Labor Code builds comprehensive protections on top of that foundation. Daily overtime rules, mandatory breaks, strict final paycheck requirements, and higher wage rates demonstrate California’s commitment to preventing wage theft and ensuring fair compensation.

The law protects you from California Workplace Retaliation if you report wage violations to the DLSE or any government agency.

Key California Wage Protections

California’s wage and hour laws provide comprehensive protections covering every aspect of compensation. This section links to detailed guides for each major protection area.

Minimum Wage Requirements

California’s statewide minimum wage is $16.50 per hour as of January 1, 2025. This applies to all employers regardless of company size. Many cities and counties set even higher local minimum wages, including San Francisco ($18.07), San Jose ($17.55), and Los Angeles ($16.78).

Your employer must pay at least minimum wage for every hour worked, including time spent in required training, mandatory meetings, and travel between job sites during your shift. Certain industries have higher minimum wages. Fast food workers at chains with 60 or more locations nationwide earn at least $20.00 per hour. Healthcare facility workers have special rates ranging from $23.00 to $25.00 per hour depending on facility type.

If your employer pays less than minimum wage, you can file a claim with the DLSE to recover the difference for all hours worked. The Labor Code allows recovery going back three years, or four years if violations were willful.

Learn more: California Minimum Wage

Overtime Pay Rules

California requires overtime pay at 1.5 times your regular rate when you work more than 8 hours in a workday or more than 40 hours in a workweek. California calculates overtime both daily and weekly, whichever provides greater pay to workers.

You earn regular overtime (time-and-a-half) for:

Your regular rate includes your hourly wage plus certain bonuses, commissions, and shift differentials. Employers must include all compensation when calculating overtime rates, not just base hourly pay.

Some employees qualify as exempt from overtime based on job duties and salary level. However, exemption requirements are strict. Simply receiving a salary does not make you exempt. Your employer must prove you meet specific duties tests for executive, administrative, professional, or computer professional exemptions.

Learn more: California Overtime Laws

Double Time Pay

California requires double time pay (2 times your regular rate) for hours worked beyond 12 in a single day or beyond 8 hours on the seventh consecutive workday in a week. This protection prevents employers from scheduling excessively long shifts without significant additional compensation.

An employee earning $20 per hour receives $40 per hour for double time hours. These premium wages add up quickly during periods of heavy scheduling. Double time requirements give employers strong financial incentives to limit extremely long shifts.

Learn more: California Double Time Pay

Meal and Rest Break Rights

California mandates meal breaks and rest breaks during work shifts. These breaks are not optional. Employers who deny breaks or pressure you to work through them owe penalty payments equal to one hour of pay for each day breaks were missed.

You must receive a 30-minute unpaid meal break when working more than 5 hours. This break must begin before the end of your fifth hour. You must be completely relieved of all duties and free to leave the premises. A second 30-minute meal break is required for shifts exceeding 10 hours.

Paid 10-minute rest breaks are required for every 4 hours worked or major fraction thereof. Rest breaks should occur in the middle of each work period when practical. Employers must provide these breaks in addition to meal periods.

Each meal or rest break violation results in one hour of pay at your regular rate as a penalty. These penalties stack separately for meal break violations and rest break violations on the same day.

Learn more: California Meal and Rest Breaks

Final Paycheck Requirements

California requires immediate payment of final wages when you’re terminated. If you quit with at least 72 hours notice, your employer must pay all wages on your last day. If you quit without notice, payment is due within 72 hours of your last day.

Your final paycheck must include all earned wages, accrued vacation pay, and any unpaid commissions or bonuses owed. California treats vacation pay as earned wages, so employers cannot implement “use it or lose it” vacation policies. All accrued vacation must be paid upon termination.

Employers who miss final paycheck deadlines owe waiting time penalties under Labor Code Section 203. These penalties equal your daily wage rate for up to 30 days. This means you can recover up to one month of additional pay simply because your employer paid late.

Learn more: California Final Paycheck Requirements

Unpaid Wages and Wage Theft

Wage theft occurs when employers fail to pay earned wages. Common violations include unpaid overtime, working off the clock, automatic meal break deductions for breaks not taken, unpaid commissions, and unreimbursed business expenses. Wage theft is illegal and creates grounds for DLSE claims or civil lawsuits.

California law presumes you should be paid for all time under your employer’s control. If you were required to be somewhere or perform tasks for your employer, that time is compensable. This includes time putting on required uniforms, attending mandatory meetings, and traveling between job sites during shifts.

You can file a wage claim with the DLSE to recover unpaid wages. The process is free and doesn’t require an attorney. The DLSE investigates claims and holds hearings to determine violations and calculate amounts owed.

Learn more: California Unpaid Wages

Independent Contractor Misclassification

California presumes all workers are employees unless the employer proves otherwise under the strict ABC test. Misclassification costs workers minimum wage, overtime pay, meal and rest breaks, unemployment insurance, workers’ compensation, and other employment protections.

The ABC test requires employers to prove all three factors:

If even one factor fails, you’re an employee entitled to full wage and hour protections. Many workers classified as independent contractors are actually employees under California law. You can file a claim to establish employee status and recover all unpaid wages, overtime, and penalties.

Learn more: California Independent Contractor Misclassification

Exempt vs Nonexempt Employees

California law divides employees into exempt and nonexempt categories. Nonexempt employees receive overtime pay, meal and rest breaks, and all wage protections. Exempt employees do not receive overtime pay but must meet strict salary and duties tests.

Common exemptions include executive, administrative, professional, computer professional, and outside sales exemptions. Each requires meeting specific job duty requirements and, for most exemptions, earning at least twice the state minimum wage on a salary basis.

Many employers incorrectly classify workers as exempt. Job titles don’t determine exemption status. Your actual job duties and how you’re paid determine whether you’re truly exempt. If misclassified, you can recover unpaid overtime for years of work.

Learn more: California Exempt vs Nonexempt Employees

Wage Statement Requirements

California requires employers to provide accurate, detailed wage statements (pay stubs) with each paycheck. Wage statements must include your name, employer information, pay period dates, hours worked, rates of pay, gross wages, deductions, net wages, and dates of the pay period.

Inaccurate or missing wage statements trigger penalties of $50 for the first violation and $100 for each subsequent violation, up to $4,000 maximum per employee. These penalties apply even if you were paid correctly, as long as the wage statement was inaccurate or incomplete.

Wage statement violations often reveal other wage problems. Employers who provide inaccurate pay stubs frequently have underlying payroll violations like unpaid overtime or missed meal breaks.

Learn more: California Wage Statement Requirements

Common Wage and Hour Violations

California employers commit wage theft in various ways. Recognizing these violations helps you identify when your rights have been violated.

Off-the-Clock Work

Requiring or permitting employees to work before clocking in, after clocking out, or during meal breaks without pay violates wage laws. All hours worked must be compensated, even if your employer discourages overtime or expects you to complete tasks unpaid.

Automatic Meal Break Deductions

Some employers automatically deduct 30 minutes for meal breaks from every shift regardless of whether you actually took the break. If you worked through meal breaks, these automatic deductions result in unpaid wages. You’re entitled to full pay for time worked plus meal break penalties.

Misclassifying Employees as Exempt

Employers often incorrectly classify workers as exempt to avoid paying overtime. Giving someone a manager title or paying them a salary doesn’t automatically create exempt status. True exemptions require meeting strict tests that most workers don’t satisfy.

Paying Straight Time for Overtime

Some employers pay the same hourly rate for all hours instead of time-and-a-half for overtime. California requires premium rates for overtime hours. Simply working additional hours at your regular rate violates wage laws.

Denying Rest Breaks

Employers who don’t schedule rest breaks or create environments where taking breaks is impossible owe break premiums. Working through your shift without 10-minute rest breaks triggers penalty payments.

Withholding Final Paychecks

Employers sometimes delay final paychecks to pressure former employees into signing releases or returning property. California requires immediate payment regardless of outstanding issues. Delayed final paychecks trigger waiting time penalties.

How to File a Wage Claim in California

You can file a wage claim with the California Division of Labor Standards Enforcement if your employer violated wage and hour laws. The process is free and doesn’t require legal representation, though complex cases may benefit from attorney involvement.

The DLSE Claims Process

File your claim online through the DLSE website, by mail, or in person at a local DLSE office. Provide your personal information, employer details, description of violations, and amount you believe you’re owed. Include supporting documents like pay stubs, time records, and schedules.

The DLSE serves your claim on your employer and conducts an investigation. Your employer must respond and provide payroll records. The DLSE attempts to settle the dispute through a conference. If settlement fails, the case proceeds to a hearing before a deputy labor commissioner.

At the hearing, both sides present evidence and witness testimony. The hearing is less formal than court but follows legal procedures. After the hearing, the deputy labor commissioner issues an Order, Decision, or Award determining whether violations occurred and calculating amounts owed.

Either party can appeal to superior court within 10 days of the decision. If you win and your employer doesn’t appeal, the DLSE can help enforce the award through liens, wage garnishment, or other collection methods.

Time Limits for Filing

California’s statute of limitations for wage claims varies by violation type:

File promptly after discovering violations. Waiting risks missing deadlines and losing your right to recover unpaid wages. Even if some wages fall outside the limitations period, you can still recover wages within the allowable timeframe.

Protection from Retaliation

California law prohibits retaliation against workers who file wage claims or report violations. Your employer cannot fire, demote, discipline, or otherwise punish you for asserting wage rights. Retaliation creates separate legal claims with their own damages and remedies.

If you experience retaliation for filing a wage claim, document everything and file an additional retaliation complaint. See our guide on California Workplace Retaliation for detailed information about your rights.

Damages and Remedies Available

California provides multiple types of compensation for wage violations. These remedies make workers whole and punish employers who violate wage laws.

Types of Damages

Unpaid wages: The full amount of wages you should have received, including minimum wage shortfalls, unpaid overtime, missed commissions, and unreimbursed expenses.

Waiting time penalties: Up to 30 days of wages if your employer delayed your final paycheck under Labor Code Section 203. These penalties often exceed the underlying unpaid wages.

Meal and rest break premiums: One hour of pay at your regular rate for each day your employer denied compliant meal or rest breaks. These premiums add up quickly over time.

Wage statement penalties: $50 for the first violation and $100 for each subsequent violation if your employer provided inaccurate pay stubs, up to $4,000 maximum per employee.

Liquidated damages: For minimum wage violations, you can recover the unpaid amount plus an equal amount as liquidated damages, effectively doubling your recovery.

Interest: 10% annual interest on unpaid wages from the date they were due until paid.

Attorney’s fees and costs: If you hire an attorney and prevail in court, your employer must pay your legal fees and litigation costs.

Civil Penalties

The California Labor and Workforce Development Agency can impose civil penalties on employers who commit serious or repeated violations. These penalties are paid to the state but can be recovered through Private Attorneys General Act (PAGA) lawsuits, which allow employees to sue on behalf of the state and keep a portion of penalties recovered.

Statute of Limitations for Wage Claims

You must file wage claims within specific deadlines called statutes of limitations. Missing these deadlines permanently bars recovery regardless of how clear the violations were.

California’s wage claim deadlines are:

The limitations period begins when the violation occurs. For ongoing violations like repeated unpaid overtime, each paycheck creates a new violation date. You can recover wages for the full limitations period before filing, not just recent violations.

Don’t wait to file claims. Evidence disappears, witnesses forget details, and employers may close or file bankruptcy. Filing promptly preserves your rights and maximizes recovery.

Learn more about timing requirements: California Wrongful Termination Statute of Limitations

Related Topics

California’s wage and hour laws connect to other employment protections:

For more information about California employment law, visit the California Civil Rights Department or the Division of Labor Standards Enforcement.

What to Do Next

If your employer violated California wage and hour laws, take action now to protect your rights:

Document everything: Gather pay stubs, time records, schedules, employment contracts, and employee handbooks. Save emails, texts, and other communications about your pay and hours. Take photos of timekeeping systems or posted notices.

Calculate what you’re owed: Compare your actual pay to what you should have received under California law. Include unpaid regular hours, overtime violations, missed breaks, and delayed final paychecks.

Request your records: California law requires employers to provide copies of your personnel file and payroll records. These documents help prove violations and calculate damages.

File a claim or consult an attorney: You can file a DLSE wage claim yourself at no cost, or consult with an employment attorney for complex cases. Many attorneys offer free consultations and work on contingency, meaning you pay nothing unless you recover money.

Act quickly: Don’t wait to assert your rights. Wage violations don’t fix themselves, and delays risk missing filing deadlines. California’s strong wage laws exist to protect you, but only if you take action.

Get Help Recovering Unpaid Wages

Owed unpaid wages, overtime, or meal break penalties? Get a free case review from an employment law expert who can help you understand your rights and recover the money you’ve earned.

References

Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. Employment laws vary by state and change frequently. For advice specific to your situation, please consult with a licensed employment attorney in your state. Employment Law Aid is not a law firm and does not provide legal representation.