Overtime Pay Disputes
Overtime rules were enacted to promote job spreading. Overtime hours worked must be paid at a premium. So, the expectation is that if an employer has to pay a premium to an employee working overtime, the employer may hire another employee to avoid paying overtime.
Employees who are paid on an hourly basis, and even some who are paid a salary, are entitled to premium wages (or overtime wages) for overtime hours worked. Any hours worked beyond eight in a workday or 40 in a workweek must be paid at an overtime rate. On the seventh consecutive day worked in a workweek, the employee must be paid one and one-half times her regular rate for the first eight hours worked and two times her regular rate for any hours beyond that. There may also be additional penalties that must be paid to an hourly employee for working seven consecutive days.
It is illegal for non-exempt employees in California to be paid nothing for overtime hours. It is illegal for non-exempt employees in California to be paid their regular rate for overtime hours. It is also illegal for an employer not to pay overtime wages to a salaried employee whose salary is less than two times the minimum wage. Employers, whether it is a clothing storeowner in Santa Ana or a restaurant in Cerritos, commonly make the mistaken assumption that all salaried employees are exempt from overtime and meal and rest break requirements. Thus, whether or not an employee is “exempt” from overtime laws is a critical inquiry employers must answer.
Labor lawyer Jesse Singh has experience with disputes involving unpaid overtime and misclassified employees. Contact us today.Labor and Employment Attorney Jesse Singh has Helped Employees and Employers in California With Their Wage Disputes
When an employee is not paid overtime for overtime hours worked in California, the employee can sue to recover the unpaid balance of any overtime wages due. But for an employer, the damages and penalties can get much worse. The employee could recover penalties up to $4,000 for inaccurate wage statements, under California Labor Code section 226. For example, an employee whose hours and gross pay were not accurately reported would have inaccurate pay stubs, in violation of California Labor Code section 226. A employee who has resigned or been fired may also receive penalties for each day the employer does not pay the employee all wages due, up to a maximum of 30 days, under California Labor Code section 203. Attorney’s fees and costs may also be recoverable.
Employees have options to seek any unpaid overtime compensation. They may file an administrative complaint for unpaid wages, such as a wage claim with the California Labor Commissioner. They may also file a civil lawsuit in court.
If you are an employee or independent contractor who is owed pay, contact Yash Law Group to schedule a free consultation.