Unpaid Wages: Your Rights and What to Do Next

You gave your time, you did the work… you are entitled to every bit of the compensation you worked to earn.

Employers are legally obligated to pay their employee’s wages in full and on time. In California, if you are not paid all of your earnings, or you’re paid late, you are protected by labor laws. Your right to payment stands regardless of your birthplace or legal immigration status.

In this article, I’ll explain the fundamentals of unpaid wages so that you can make an informed decision about your next course of action.

Under California law, wages are payment for labor– not just physical labor, but any work or services an employee performs.

Wages include the following types of compensation:

• Fixed salaries
• Hourly pay
• Commission
• Adhoc payments that change depending on the project or task
• Guaranteed bonuses
• Piece-rate payments
• Benefits an employee is entitled to, such as clothing, sick pay, and vacation pay

In most cases, the employer and employee will agree to terms that specify when wages will be paid.

California law requires that certain standards apply regardless of any agreement. For example, most employees must be paid wages at least twice a month, and employers must make regular paydays known to employees. Salaried exempt employees can be paid once a month.

If you are not paid on a twice-monthly schedule, your employer is typically required to pay your wages no later than one week after your work period. These rules apply to both regular and overtime wages.

Unpaid wage cases are not always as straightforward as missed paychecks. Sometimes, employers take a more subtle approach to underpayment:

• Your employer asks you to arrive at work early to prepare for work. Or they require you to stay late to “clean up” after your shift is over and you’ve clocked out. They don’t pay you for this extra time.
• Your employer takes small amounts of time off your timecards to reduce your pay.
• Your employer fires you so that they don’t have to pay you the commission or bonus you are entitled to.
• Your employer makes you work through your lunch break.
• Your employer subtracts 30 minutes off your timecard, even though you only get 15 minutes to have lunch.
• Your employer pays you cash-in-hand ‘under the table’ to avoid their legal obligations.

• If you resign with at least 72 hours’ notice, your employer must pay your final wages on your last day of employment. If you give less than 72 hours’ notice, your employer must pay your final wages within 72 hours after your last day of work.
• If your employer fires you, you must be paid your final wages (including the wages you earned on the day you were fired) on the day you were terminated. Some exceptions apply, so ask your trusted employment attorney.

Also, keep in mind that vacation pay is a form of wage. While not required under law, if your employer does offer paid vacations, they must pay you for any unused vacation time when you resign or are fired.

First, you should contact your employer and demand to get paid all outstanding, unpaid wages, fringe benefits, and other cash compensation you’re owed. If they refuse to pay all or any part of it, ask why-- your employer’s intention is a crucial fact in whether they will owe you penalties for failing to pay in a timely way. For example, did they deliberately fail to pay you, knowing that you were owed the money but delaying without any legitimate reason? Or do they have a legitimate and fair defense? They might have reason to believe they don’t actually owe you the money, for example after you’ve made a sale for which they owe you a commission, but the buyer hasn’t paid for it yet.

If they claim they failed to pay you because of a legitimate question about the law, this is called a good-faith dispute

If your employer deliberately failed to pay you, you could pursue compensation in one of several ways:

You can attempt to resolve the dispute directly with your employer, with or without a lawyer negotiating on your behalf. If you take this course of action, read my tips on protecting yourself below.

You can file a lawsuit.

You can file a wage claim with the US Department of Labor.

You can file a wage claim with California’s Division of Labor Standards Enforcement 

Resolving the dispute directly with your employer can be the quickest and easiest solution. However, if your employer refuses to come to an agreement, you may benefit from filing a lawsuit or claim.

If you are planning to quit your job or your employer has fired you, protect yourself with the following useful tips:

• If you are ready to quit your job, contact a lawyer before submitting your resignation. If you resign, you may lose vital legal rights and remedies. A lawyer can advise you of your legal entitlements and flag any risks specific to your situation.
• Keep your tone professional and clear when writing to your employer, supervisor, or the Human Resources (HR) department. Don’t make it personal or make accusations—imagine a judge reading your letters and emails out loud in crowded courtroom.
• If you have important discussions face-to-face with supervisors and HR, you may want to ask their permission to record the conversations. Never record workplace conversations without consent. This is illegal and cannot be used to support your claim.
• If the conversation happens by phone, send a follow-up email detailing key points. The email may be the only evidence of what was said. 
• If your employer behaves in an unlawful and extremely upsetting way, share your experience and feelings with a trusted friend, family member, or partner. If you later file a lawsuit, they may be able to recall the conversation and testify.
• Where appropriate, voice your concerns about your employer’s unlawful behavior.

California law provides employees with a wealth of rights. If your employer refuses to pay your wages, contact me today and put a qualified employment lawyer on your team to help you get what you’ve earned .

I have over 25 years of experience in employment litigation, and this is my promise to you: I will fight to protect your rights and work to resolve your unpaid wage dispute, and keeping you informed in plain English every step of the way. I’m here to make your life easier, so contact me today and let’s chat.