Wage and Overtime Claims

California has some of the strongest wage laws in the country, and employers violate them every day. If you have been denied overtime, paid off the clock, or misclassified, you may be owed unpaid overtime, back pay, and significant penalties.

Smith Trial Group represents employees throughout Orange County and Southern California in individual wage claims, class actions, and PAGA claims. We work on contingency.

On this page: Overtime rules · Common violations · Misclassification · Penalties · Deadlines · FAQ

California Overtime Rules

Unlike federal law, California requires daily overtime. Non-exempt employees are generally entitled to:

• 1.5 times the regular rate for hours over 8 in a workday or 40 in a workweek, and for the first 8 hours on the seventh consecutive day of work
• Double time for hours over 12 in a workday, and over 8 on the seventh consecutive day

The “regular rate” includes more than the hourly wage, such as many bonuses and commissions, and employers frequently miscalculate it.

Common Wage Violations

• Off-the-clock work: pre-shift tasks, security checks, after-hours calls and messages
• Rounding and timekeeping practices that shave time
• Paying overtime at the wrong rate
• Missed, short, or late meal and rest breaks without premium pay
• Unreimbursed business expenses, such as mileage and personal phone use
• Late or incomplete final paychecks

Misclassification

Employers sometimes avoid overtime by labeling workers “exempt” salaried employees or independent contractors. In California, most workers are presumed to be employees unless the company can satisfy a strict test, and exempt status requires both a minimum salary and duties that actually meet the exemption. Job titles do not decide the question.

Penalties and Recoveries

• Unpaid wages and overtime, plus interest
• Waiting-time penalties of up to 30 days’ wages when final pay is late
• Penalties for inaccurate wage statements
• Attorney’s fees and costs, which the employer must pay when the employee prevails

Deadlines

Most wage claims can reach back three years, and in some cases four. Every month of delay can mean lost wages that can no longer be recovered.

Helpful resources: California Labor Commissioner · Labor Commissioner: Overtime FAQ

Minimum Wage and Off-the-Clock Work

California’s statewide minimum wage is $16.90 per hour in 2026, and many cities and counties, along with industries such as fast food and health care, have higher minimums. Employers must pay for all hours worked, including time spent on pre-shift tasks, security checks that employees are required to complete, required trainings, travel between job sites during the workday, and work performed by phone or email after hours. Rounding practices that consistently shortchange employees can also be unlawful.

The Regular Rate: Bonuses and Commissions

Overtime must be paid at one and a half times (or double) the employee’s “regular rate of pay,” which generally includes nondiscretionary bonuses, shift differentials and certain commissions, not just the base hourly rate. Employers who calculate overtime only on the base hourly rate often underpay employees who earn production bonuses or incentive pay.

Records and Wage Statements

Employers must keep accurate time and pay records and provide itemized wage statements showing hours worked, rates, gross and net pay and other information required by Labor Code 226. Inaccurate wage statements can carry their own penalties. Employees have the right to request copies of their payroll records and personnel file. If your employer did not keep accurate records, your own reasonable estimates and records, such as texts, schedules and GPS data, can be used to prove your hours.

Final Pay and Waiting Time Penalties

When employment ends, final wages are due immediately upon termination, or within 72 hours if the employee quits without notice. Willfully late final pay can trigger waiting time penalties of up to 30 days of wages. See California final paycheck law.

Retaliation for Wage Complaints

It is illegal to fire, threaten, cut hours or otherwise retaliate against an employee for complaining about unpaid wages, either internally or to the Labor Commissioner. See workplace retaliation.

Frequently Asked Questions

Should I file with the Labor Commissioner or hire a lawyer?

Both are options. A lawsuit can include claims and penalties the Labor Commissioner process does not, and may be brought on behalf of coworkers. We can help you decide.

I am paid a salary. Can I still be owed overtime?

Yes. Being paid a salary does not by itself make you exempt. If your duties do not meet an exemption, you may be owed overtime.

Related guides: Do salaried employees get overtime? · Final paycheck law · Expense reimbursement