Wages for All Hours Worked
Employees in California must be paid at least minimum wage for every hour worked. As of January 1, 2024, all California employers must pay $16 an hour.
Under California law, employers cannot average pay in a pay period or workweek to determine if minimum wage requirements are met (i.e., an employer cannot meet the minimum wage requirement by dividing total wages paid for a period by the hours worked). Rather, the law requires that employers pay at least minimum wage for each hour worked. The right to be paid at least minimum wage cannot be waived; that is, an employee cannot agree to work for less than minimum wage.
In most circumstances, employees can recover minimum wage payments going back four years. In addition, they can often recover liquidated damages that double the minimum wages owed, attorneys’ fees and costs, and potentially penalties.
Attorneys at Kaufmann & Gropman have represented thousands of workers who have not been paid wages for all hours worked, including retail store employees, flooring installers and other construction workers, and truck and shuttle drivers.
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Minimum wage laws apply whether the worker is paid by the hour, salary, piece-rate or commission. For instance, employers paying a commission or piece rate must pay at least minimum wage, even if the employees’ sales or production would cause them to earn less. An employer must also pay employees for work time that is not tied to the earning of a commission or piece rate, such as attending a general meeting or other “non-productive” work.
Most employees paid a piece-rate or similar production-based rate must also be paid separately – at least the minimum wage – for all of their rest periods (excluding 30-minute meal periods) because these breaks are considered time worked.
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Many cities and counties—like San Francisco, Los Angeles, Berkeley, and Oakland—have wage ordinances (often called “living wage” laws) that may require employers to provide a minimum wage rate, sick leave, and health benefits that match or exceed the protections provided under California state law. The local ordinances may also provide for recovery of penalties not available under California state law.
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Work performed on public contracts (that is, where private companies provide services to state, county or local government) must often be paid at a “prevailing wage” rate that typically exceeds the California minimum wage rate.