Common Wage and Hour Violations Employees Should Watch Out For

Unpaid Overtime

Under California law, non-exempt employees (those who are entitled to overtime pay) must be compensated for hours worked beyond the standard work schedule:

• Time-and-a-half pay for hours worked over 8 in a day or 40 in a week.
• Double-time pay for hours worked over 12 in a day or over 8 on the seventh consecutive workday.

Unfortunately, many employers try to circumvent these rules.

Common Violations include:

• Off-the-clock work: Employers may ask employees to perform tasks before clocking in or after clocking out. These tasks—such as setting up or cleaning the workspace—should be counted toward hours worked.
• Incorrect overtime calculations: Employers may fail to include all forms of compensation, such as bonuses or commissions, in calculating the regular rate of pay for overtime purposes, resulting in a lower overtime pay rate.
• Misclassification: Employers sometimes classify workers as “exempt” from overtime to avoid paying additional wages, even when their job duties do not meet California’s exemption criteria.

How to Recognize It:

• You consistently work extra hours without additional pay.
• You’re asked to clock out but continue working.
• Your overtime pay doesn’t seem to reflect your true hourly rate or includes inaccuracies related to bonuses or commissions.

Missed Meal and Rest Breaks

California law mandates that employers provide regular meal and rest breaks:

• 30-minute unpaid meal break for every five hours worked.
• Second 30-minute meal break for shifts over ten hours.
• 10-minute paid rest break for every four hours worked, or a major fraction thereof.

Important Note: Meal and rest breaks must be uninterrupted and duty-free. Employees should be completely relieved of all work responsibilities during these breaks.

Common Violations include:

• Discouraging employees from taking breaks or scheduling workloads that make breaks impractical.
• Requiring employees to remain on-site or on-call during breaks, which violates the duty-free requirement.
• Automatically deducting meal breaks from paychecks, regardless of whether the break was taken.

How to Recognize It:

• You’re frequently unable to take your meal or rest breaks due to your workload.
• You’re asked to remain on duty or be available during your breaks.
• Your paycheck reflects meal breaks that you didn’t actually take.

Off-the-Clock Work

Off-the-clock work happens when employees are required to perform tasks outside their scheduled hours without compensation. California law prohibits employers from demanding that employees perform any duties without pay.

Common Violations include:

• Pre-shift and post-shift tasks: Employees might be required to prepare their workspace, clean up after hours, or set up for the next shift without compensation.
• Responding to work emails or calls outside scheduled hours: This can be a form of uncompensated labor, especially if it’s frequent or expected by the employer.
• Mandatory off-the-clock meetings or training: If these sessions are job-related, employees should be compensated for their time.

How to Recognize It:

• You’re expected to handle work tasks during your personal time.
• You’re not compensated for mandatory activities outside your scheduled hours.
• Your workload is such that it cannot reasonably be completed within your scheduled shift.

Failure to Provide Accurate Wage Statements

California law requires employers to provide employees with detailed wage statements every pay period, including specific information such as:

• Total hours worked.
• Gross and net wages earned.
• All deductions.
• Overtime hours and pay.
• Pay period dates and employer information.

Common Violations include:

• Providing incomplete or inaccurate wage statements.
• Failing to itemize deductions or overtime pay, making it difficult for employees to verify their wages.
• Not providing wage statements at all.

How to Recognize It:

• Your pay stubs are missing essential information.
• The numbers on your wage statements don’t add up or accurately reflect your hours worked.
• You have difficulty understanding how your pay is calculated due to missing or unclear information.

Failure to Pay Minimum Wage

California sets a minimum wage that varies by city and county, and employers must comply with these standards. State minimum wage laws protect employees by ensuring a base level of compensation for all hours worked.

Common Violations include:

• Paying employees below the minimum wage for their area.
• Misclassifying employees as “independent contractors” to avoid paying minimum wage and other benefits.
• Deducting business costs (e.g., uniforms, tools) from employees’ pay, bringing their wages below the minimum rate.

How to Recognize It:

• Your hourly wage is below the state or local minimum.
• Your employer deducts costs from your wages that result in a net pay below minimum wage.
• You’re paid a flat salary that doesn’t equate to minimum wage when calculated against your hours worked.

Misclassification of Employees

Misclassification occurs when employers label employees as independent contractors or exempt employees to avoid paying overtime, benefits, and other protections. California law, especially under Assembly Bill 5 (AB5), has specific criteria to determine independent contractor status. Generally, if an employer controls the work details, provides tools, or the work is integral to the business, the worker may be considered an employee.

Common Violations include:

• Classifying employees who perform routine work under strict company supervision as independent contractors.
• Labeling employees as “exempt” when they do not meet the specific duties test for exemption under California law.

How to Recognize It:

• You perform regular job duties, but your employer classifies you as an independent contractor.
• You’re denied overtime or other benefits due to your “exempt” status, even if you don’t perform exempt-level job functions.

Unlawful Deductions from Wages

California prohibits employers from making certain deductions from an employee’s wages, such as deductions for business losses, cash shortages, or damaged company property. Deducting wages for expenses that primarily benefit the employer, like uniforms or equipment, can also be unlawful.

Common Violations include:

• Charging employees for theft, loss, or customer non-payment.
• Deducting costs for uniforms, tools, or materials needed to perform the job.
• Making deductions from wages without obtaining written consent.

How to Recognize It:

• Your paycheck includes unexpected deductions you didn’t agree to.
• You’re held financially responsible for business losses, theft, or accidental damages.
• You’re required to pay out of pocket for work-related items essential to your job.