What Happens If You’re Paid Below Minimum Wage?

California has some of the most worker-friendly labor laws in the United States, particularly when employers have to pay employees minimum wage. Wage and hour laws in California ensure that employees are paid minimum wage (at least) for their work. The laws also can provide protections if employees are paid less than minimum wage. Understanding California’s minimum wage and hour division laws can be essential to protect employee rights.

What is the Minimum Wage in California?

As of January 1, 2024, California’s minimum wage was set at $16 per hour for all employees, regardless of the size of the employer.

Some cities and counties in California have set their own minimum wage requirements that are even higher than the state-mandated rate. For example, cities like San Francisco and Los Angeles have their own minimum wage laws that exceed the state level, often surpassing $18 per hour, depending on the size of the employer.

It’s essential for workers to check their city or county’s specific laws to be cognizant of minimum wage exceptions, and to make sure minimum wage violations are not occurring in the workplace.

What Happens if You Get Paid Under Minimum Wage?

If someone is being paid less than what’s required for California’s state wage laws, there are legal remedies to workers recover the wages owed to them.

1. File a Wage Claim: Workers can file a claim with the California Division of Labor Standards Enforcement (DLSE) (also known as the Labor Commissioner’s Office), or reach out to an employment attorney for help and guidance in recovering the compensation they are owed. Lawyers for Justice, PC (LFJ) offers a free case evaluation for clients. Working with employment attorneys or the DLSE allows employees to seek the difference between what they were paid and the legal minimum wage, plus potential penalties.
2. Back Pay: If a workers wins their claim, you could be entitled to back pay, which is the difference between their actual pay and what they should have received. In addition to unpaid wages, workers may also be entitled to interest on the back wages.
3. Penalties for Employers: Employers who violate California’s minimum wage laws, or the Fair Labor Standards Act, may face significant penalties. Sometimes an employer pays fines for minimum wages violations.
4. Retaliation Protections: California law prohibits employers from retaliating against employees who file wage claims or raise concerns about being paid below the minimum wage. If an employer takes adverse actions against their employee — like firing, demoting, or reducing their hours — workers might be able to file a separate claim for retaliation. If proven, the employer can face additional penalties.

Exceptions to the Minimum Wage

Some employees in California are exempt from minimum wage requirements, though the exemptions are limited. These include certain interns, apprentices, outside salespeople, and a tipped employee. However, even these workers have specific legal protections, and employers must follow all labor laws, including paying overtime where required.

Underpaid At Work What Are My Rights? – FAQ

can an employer lower your pay in california? Typically, employers are usually allowed to reduce employees’ compensation for any reason, as long as it is not illegal and their new rate of pay doesn’t violate California wage and hour laws.

what’s the minimum wage in los angeles? According to LA County, as of July 1, 2024, the minimum wage is $17.27 per hour.

is it illegal to pay under minimum wage? Yes. An employer is required to pay their employees at least minimum wage for every hour they work. If a worker has not received payment for all the hours they worked, their employer may have violated minimum wage laws.

can my employer cut my pay to minimum wage if i quit? It may depend on a collective bargaining agreement or employment contract that is in place between the employer and employee.

what happens if a states minimum wage is lower than federal? If a state’s minimum wage rate is lower than the federal minimum hourly wage, the employer must pay the worker the federal minimum wage rate.

underpaid at work what are my rights? You can reach out to one of the employment attorneys at Lawyers for Justice, PC to explore your options and get the compensation you deserve.

can you sue for being paid under minimum wage? California workers have the right to file a wage claim if they are underpaid so they can collect their unpaid wages or benefits.

is it illegal to pay less than minimum wage in california? Usually, California employers must pay the state minimum wage rate unless their employees are exempt under California law.

is commission only legal in california? According to California Labor Code Section 204, commission-only employees must receive their commissions at least twice per month.

when did california minimum wage go up? As of July 1, 2024, minimum wage in California was set at $17.27 per hour.