2023 California Basic Wage and Hour Violations
Categories of Wage and Hour Violations
Failure to Pay Minimum Wage
Labor Code § 1194.2
Damages
Minimum Wage: Actual wage that you are owed
Interest: 10% per annum since accrual
Liquidated Damages: Actual wage that you are owed
Attorney’s Fees: If you have an attorney
Costs of Suit
Example of Minimum Wage Damages
Peter works at a coffee shop. For 1 hour each day, he is supposed to clean off the clock. 30 minutes before and after each shift. Peter makes $15 per hour. 5 days/week for 1 year.
Damage: $15/hr x 5days/wk x 52wks = $3,900
Liquidated damages: $3,900
Interest: $390
Atty Fees: $5,000
Total Damages: $13,190
Failure to Pay Overtime
Labor Code § 1194
Damages
Overtime
Interest
Attorney’s Fees
Costs of Suit
What is Overtime?
Overtime is over 8 hours per day, or 40 hours per week, whichever is greater
OT Rate = 1.5x hourly
Double time is over 12 hours per day
DT Rate = 2x hourly
Examples of Overtime Damages
Peter works at a coffee shop. For 1 hour each day, he is supposed to clean off the clock. 30 minutes before and after each 8-hour shift. Peter makes $15 per hour. 5 days/week for 1 year.
OT Rate = $15 x 1.5 = $22.50
$22.50/hr x 5hrs/wk x 52wks/year = $5,850
Liquidated Damages = $5,850
Interest = $585
Attorney’s Fees = $5,000
Total Damages = $17,285
Failure to Issue Accurate Paystubs
Labor Code § 226
Damages
$50 for first violation
$100 for each subsequent violation (max $4,000)
Example of Failure to Issue Paystubs: Damages
Peter works at a coffee shop. For 1 hour each day, he is supposed to clean off the clock. 30 minutes before and after each 8-hour shift. Peter makes $15 per hour. 5 days/week for 1 year. Peter gets paid biweekly. The hours and wages are inaccurate.
26 pay periods
1 pay period = $50
25 pay periods = $2,500
Total damages = $2,550
+ Attorney’s fees
Meal and Rest Breaks
Meal Breaks
30 minutes before the 5th hour for at least six hours worked, 2 meal breaks for a shift of 10+ hours
Meal breaks need to be recorded
Rest Breaks
10 minutes every 4 hours of work
Meal and Rest Break Violations
Up to penalty of 1 hour wage for meal break violation per day
Up to penalty of 1 hour wage for rest break violation per day
Meal and Rest Break Violation
Peter works at a coffee shop. He works for 8 hours per day. His meal and rest breaks are all interrupted. His wage is $15/hr. This occurred for one year, 5 days per week.
1 meal break
2 rest breaks
Violations
1 hour for meal break = $15 x 5 days/wk x 52 weeks = $3,900
1 hour for rest break = $15 x 5 days/wk x 52 weeks = $3,900
Failure to Reimburse
Labor Code § 2802
Amount of reimbursement (save your receipts!!)
Costs of suit and attorney’s fees
Failure to Pay Upon Termination
Labor Code § 203
Daily wage x 30 days
Failure to Pay Upon Termination
Peter works at a coffee shop. For 1 hour each day, he is supposed to clean off the clock. 30 minutes before and after each shift. Peter makes $15 per hour. Peter works 5 days per week.
$15/hr x 8 hrs x 30 days = $3,600
OT $22.50 x 1hr x 30 days = $675
Waiting time penalties: $4,275
Unfair Business Practices
Business & Professions Code § 17200
Under CA law, wage and hour violations are 3 years statute of limitations
When B&P § 17200 is applied, it extends to 4 years
Unfair Business Practices Example
Peter works at a coffee shop. For 1 hour each day, he is supposed to clean off the clock. 30 minutes before and after each shift. Peter makes $15 per hour. Peter works 5 days per week. First coffee shop violation occurred Jan. 1, 2019 through January 1, 2023.
When you don’t use B&P § 17200, damages period: 2020-2023
When you do use B&P § 17200, damages period: 2019-2023
Conclusion
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