How California Employers Can Avoid Costly Wage & Hour Disputes

An employer can greatly minimize the chance of receiving a wage and hour complaint in California by having the proper policies, timekeeping records, and an employment law attorney who routinely works with employers to review and develop their policies prior to mistakes  happening.

Why Wage & Hour Disputes Are So Costly

California has extremely strong wage and hour laws. Even an innocent error on the employer's part could trigger penalties, attorney fees, and class and/or PAGA actions. Common wage and hour mistakes include unpaid overtime, missed meal/break violations, work "off the clock", and misclassification of the employee. These errors can add up across several employees and all pay periods.

All claims (including PAGA claims) can be pursued through either the Labor Commissioner, civil lawsuits, and/or representative actions. An employer can be held liable to an employee for back pay, interest, penalties, and attorney fees.

Get Overtime & Scheduling Right

To comply with California's overtime laws and regulations, an employer must do more than simply monitor an employee's 40-hour work week or 40 hours worked during the week. It is important to note that most non-exempt workers are entitled to receive time-and-a-half for any hours worked over eight hours in a day or 40 hours in a week. Additionally, non-exempt employees who work twelfth hours or more during any single shift are entitled to receive double-time premiums, and employees who work seven consecutive days will be entitled to receive additional premium pay. Employers must utilize accurate and secure written time-keeping systems that will document time worked by all employees and will document all preparatory work, training, and attending required meeting time. 

An employer will need to have a policy in place to prohibit employees from working for free off-the-clock and will need to provide additional training for all supervisory employees about how not to encourage time worked off the clock (for example, by saying "Just finish this before your time is up."). All schedules and payroll must be reviewed regularly with an attorney who specializes in employment defense to verify that overtime, double-time, and seventh-day premium pay have been calculated correctly.

Coastal Employee Assault Prevention Payscale Violations Are Not Just Wage Theft Below Min Wage on Purpose! State Compliance Laws on Late Payrolls & Aggregation Incorrect Payslips/Statements Also Defined As Wage Theft.

Prevent Wage Theft Allegations

“Employer wage theft prevention” runs to more than just underpayment by design; in California, late paychecks, inaccurate wage statements and unauthorized deductions may also constitute what the state views as “wage theft.” The Wage Theft Prevention Act mandates detailed wage notices at hire and an updated notice when key pay terms change, with penalties for non‑compliance. ​

• Give you a pay notice in writing stating your wage rate, the overtime rate if applicable, how frequently and on what day you will be paid, and also the name of your employer; update these notices when changes happen. ​

• Don’t deduct for shortages, damage or uniforms unless specifically authorized by law and authorized (and never if it would push pay below minimum wage or cut into overtime). ​

• Challenge: Maintain a scheduled internal audit of payroll records and wage statements with lawyer for employer near me in the event you catch mistakes before it evolves into an actual defense to a wage claim type situation. ​

Policies, Training & Documentation

Well-drafted policies and accurately documented decisions are foundational to preventing wage disputes, and to successfully defending the company if a claim is brought. When conflict arises, employers who can provide compliant written policies, training proof and accurate records are much better situated to engage the assistance of workplace lawyers near me or an employer attorney near me in order to attempt to resolve the matter. ​

• Keep current, written handbooks on timekeeping, approving overtime, meal and rest breaks, remote work, reporting concerns. ​

• Regularly train managers on California wage and hour laws so their day‑to‑day decisions match what is in print. ​

• Maintain complete records of time, pay and personnel employees may have a right to inspect many of these documents, and organized files can deter frivolous claims. ​

The Right Time To Contact An Employer Defense Lawyer

Collaborating with local defense counsel provides employers with pragmatic, fact-specific counseling and a ready response team when problems arise. A firm like Brereton, Mohamed, & Korte LLP in Santa Cruz routinely counsels California employers on how to best comply with the law and represents them in wage and hour disputes heard in courts throughout the state. ​