Pay Laws and Wage Claims in California: Understanding Your Rights

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California has strong labor laws. Its wage and hour laws are among the toughest in the U.S. These laws protect workers’ rights and aim to ensure fair pay and promote healthy workplaces.

Unfortunately, wage theft still occurs. Some employers fail to pay employees what they’re rightfully owed.

This might happen due to ignorance of the law, or it might be deliberate. Whatever the case may be, California’s courts take wage theft very seriously.

Understanding your pay rights is the first step. This article provides an overview of key California wage and hour laws.

We’ll start by clarifying who these laws protect. Next, we’ll look at California minimum wage requirements. We’ll also touch on state pay transparency laws.

From there, we’ll discuss California overtime rules. Who gets overtime pay? How is it calculated? We’ll outline requirements for meal and rest breaks too.

Finally, we’ll provide concrete advice. What should you do about potential wage and hour violations?

This guide covers major topics, but it isn’t exhaustive. We have additional articles on California overtime pay rules, rest and meal break laws, and independent contractor classification.

Future articles will cover topics like tip laws, severance pay, paystub laws, and waiting time penalties.

Need specific guidance now? Contact us using the buttons above (desktop) or below (mobile). We’re available for a free and confidential consultation about any issues related to California labor law.

Do California’s Wage Laws Apply to Me or Not?

California’s wage and hour laws apply to most employees working in the state.

However, there are some exceptions. Different laws apply to different kinds of workers. Let’s cover the basic criteria for eligibility.

Independent Contractors

Independent contractors are generally excluded from California’s wage and hour protections. Independent contractors aren’t entitled to receive minimum wage or overtime pay. Mandatory meal and rest break rules don’t apply to them either.

However, worker misclassification is a serious problem in California.1 Employers sometimes wrongly classify employees as independent contractors. It’s important to know your correct legal status. Even if your employer calls you an independent contractor, the law might consider you an employee.

California uses strict legal tests (mainly the ABC Test) to determine worker status. The job title or label used by the employer isn’t the deciding factor. Our Guide to Labor Laws for Independent Contractors explains these tests in detail. 

What if a court, arbitrator or state agency finds you were misclassified as an independent contractor? You could be entitled to compensation. This recovery aims to cover the wages, benefits, and protections you lost.

Potential compensation often includes amounts for:

Unpaid overtime wages: Payment owed for overtime hours worked but paid only at straight time.
Minimum wage back pay: Additional wages due if your effective pay rate fell below California’s required minimum wage.
Compensation for missed meal and rest breaks: One hour of premium pay for each workday you were denied a required meal or rest break (up to 2 hours premium pay/day if you missed both).
Missed retirement plan contributions: The value of matching funds or other employer contributions you lost access to.
The employer’s share of payroll taxes: Reimbursement for the employer portion of Social Security and Medicare taxes you paid through self-employment tax.
Workers’ compensation benefits: The value of benefits you would have received under workers’ compensation insurance if you were injured on the job.
Attorney’s fees and court costs: Your employer might be ordered to pay your reasonable legal expenses for the misclassification claim.
Interest on unpaid wages: Pre-judgment interest may be added to unpaid wages or premium payments found due.

If you believe you’ve been misclassified as an independent contractor? It’s best to speak with a California employment lawyer promptly. They can analyze your work situation under the correct legal test and advise on your rights and options.

Do Wage Laws Depend On My Employer’s Location?

California’s wage and hour laws apply based on a key factor. That factor is where the work is performed.

If you perform your job duties within California, state wage laws generally protect you. This typically holds true regardless of where you personally live. It also applies regardless of where your employer’s main office or headquarters is located.

The “location of work” principle extends to local ordinances too. Does your work take place in a California city or county with its own higher minimum wage or stricter rules? Those local laws generally apply to your work performed there.

This rule is important for remote workers. Do you work remotely from your home or a coworking space within California? Even if the company is based in another state, California wage and hour laws generally apply to you.

Employers are legally responsible for compliance. They must follow the labor laws of the state and locality where their employees actually perform work.

Who is Covered by California’s Wage Laws?

California’s minimum wage law applies very broadly. It covers virtually all employees working within the state.

But other key wage and hour rules have exceptions. Laws regarding overtime pay and required meal and rest breaks don’t apply to everyone.

Specifically, certain types of workers are classified as exempt employees. Exempt employees aren’t entitled to overtime pay or mandatory meal and rest breaks in California or elsewhere.

Who might be considered exempt? Many salaried workers in professional, administrative, or executive roles qualify. Some commissioned salespeople or computer professionals might also meet exemption criteria. We’ll discuss the specific legal tests for exempt status below.

What are California’s Minimum Wage Laws?

California’s minimum wage law applies broadly. It covers nearly all employees performing work within the state.

As of January 1, 2025, California’s minimum wage is $16.50 an hour.2

But be aware: many California cities and counties have higher local minimum wage rates. Employers must pay the highest rate applicable based on work location (state or local). Additionally, specific industries like fast food and certain healthcare sectors now have separate, higher state minimum wage requirements.

This minimum wage is the required base hourly pay. It must be paid for all hours worked before considering additions like overtime, tips, commissions, or bonuses. Tips received by employees cannot be credited toward the employer’s minimum wage obligation.

California law generally requires minors be paid the same minimum wage as adults. Any agreement where an employee consents to work for less than the legally required minimum wage is invalid and unenforceable.3 

A few narrow exceptions exist where certain employees might be exempt from state minimum wage rules:4

Certain commissioned salespersons: Employers can potentially pay salespersons less than minimum wage if they qualify for the outside sales exemption.
Learners: Employers can potentially pay new hires with no prior similar experience 85% of the minimum wage for the first 160 hours worked. However, this requires the employer to obtain a special permit from the state Division of Labor Standards Enforcement (DLSE). It isn’t automatic.
Immediate family members of the employer: When the employer is an individual, they don’t need to pay their parent, child, or spouse minimum wage.

Which California Cities, Municipalities, and Counties Have Their Own Minimum Wage Requirements?

Beyond the required state minimum wage, many local jurisdictions set their own rates. California cities, counties, and municipalities can mandate higher minimum pay levels. These local rates cannot fall below the current state minimum wage.

If a city or county isn’t listed in the chart below, it likely follows the general $16.50 per hour state minimum wage (as of January 1, 2025).

City, Municipality, or CountyMinimum Wage Requirement (as of 1/2025)
Alameda$17.00/hour
Belmont$18.30/hour
Berkeley$18.67/hour
Burlingame$17.43/hour
Cupertino$18.20/hour
Daly City$17.07/hour
East Palo Alto$17.45/hour
El Cerrito$18.34/hour
Emeryville$19.90/hour
Foster City$17.39/hour
Fremont$17.75/hour
Half Moon Bay$17.47/hour
Hayward$17.36/hour (companies with more than 26 employees) or $16.50/hour (companies with less than 26 employees)
Los Altos$18.20/hour
Los Angeles$17.87/hour (effective 7/1/2025)
Los Angeles County (unincorporated areas)$17.81/hour (effective 7/1/2025)
Malibu$17.27/hour (effective 7/1/2024)
Menlo Park$17.10/hour
Milpitas$17.70/hour (effective 7/1/2024)
Mountain View$19.20/hour
Novato$17.27/hour (companies with more than 100 employees), $17.00/hour (companies with more than 26 employees), $16.50/hour (companies with 25 or fewer employees)
Oakland$16.89/hour ($18.36/hour for hotel workers with health benefits; $24.48/hour for hotel workers without benefits)
Palo Alto$18.20/hour
Pasadena$17.50/hour (effective 7/1/2024)
Petaluma$17.97/hour
Redwood City$18.20/hour
Richmond$17.77/hour
San Carlos$17.32/hour
San Diego$17.25/hour
San Francisco (including San Francisco County)$19.18/hour (effective 7/1/2024)
San Jose$17.95/hour
San Mateo$17.95/hour
San Mateo County (unincorporated)$17.46/hour
Santa Clara$18.20/hour
Santa Monica$17.81/hour (effective 7/1/2025) ($20.32/hour for hotel workers)
Santa Rosa$17.87/hour
Sonoma$18.02/hour (companies with 26 or more employees), $16.96/hour (companies with less than 26 employees)
South San Francisco$17.70/hour
Sunnyvale$19.00/hour
West Hollywood$19.65/hour (effective 7/1/2025) ($20.22 for hotel workers)

What Are California’s Laws Regarding Pay Transparency?

Applying for jobs without knowing the pay range can be frustrating. It wastes time for both applicants and employers if salary expectations don’t align.

California now has laws promoting pay transparency. These laws aim to prevent unfair pay disparities. They ensure workers have better access to pay scale information.

One key rule affects job postings. Employers with 15 or more employees must include the reasonably expected pay range (salary or hourly wage) in any job listing.

Current employees also have rights under this law. You generally have the right to ask for and receive the pay range for your current position.5

This transparency helps combat wage discrimination. It makes it harder for employers to maintain unfair pay gaps based on factors like gender or race.

What are California’s Laws About Overtime Pay?

Our Guide to Overtime Laws in California covers this topic in much more detail. Here, we’ll summarize the basics of overtime eligibility.

Who Qualifies for Overtime Pay in California?

Most employees in California are entitled to overtime pay. The main exception involves certain workers classified as exempt employees. Exempt employees generally aren’t eligible for overtime under state or federal wage laws.

Key exempt categories include:

Executive employees: Those whose primary duties involve managing the business or a department, regularly supervising other workers, and having significant input into hiring or firing decisions. Examples might include high-level executives, managers with direct reports, and department heads.
Administrative employees: Those whose primary duties involve office work directly related to management policies or general business operations, requiring the regular use of discretion and independent judgment. Examples might include HR managers, marketing managers, operations managers, financial managers, and analysts.
Professional employees: Those licensed in professions like law, medicine, or teaching. Also includes those in learned or artistic fields whose work requires advanced knowledge and discretion. This category can include doctors, teachers, lawyers, scientists, engineers and commercial airplane pilots, among others.

These are sometimes called white collar exemptions. To qualify for these exemptions, employees generally must meet both:

A minimum salary requirement. This salary must be at least twice the current state minimum wage for full-time employment. (As of early 2025, this requires a minimum annual salary of $68,640.)
Specific job duties. These duties must primarily involve executive, administrative, or professional tasks requiring substantial independent judgment and discretion.

Other potential overtime exemptions exist for specific roles. Certain commissioned salespeople or highly compensated computer professionals might be exempt under different tests. Overtime rules can be complex and vary based on industry or specific job functions.

Not sure whether you should be earning overtime pay, or suspect that you’re improperly classified as exempt? It’s best to consult an employment attorney. We can analyze your specific job duties, pay structure, and help determine your correct classification.

When Do Employees Qualify for Overtime Pay in California?

Federal law requires overtime pay for hours worked over 40 in a single workweek. California law generally provides broader overtime protections. It often requires daily overtime pay in addition to weekly overtime.

Eligible non-exempt California employees must receive overtime pay under these circumstances:6

Hours worked over 40 in one workweek. Pay is 1.5x the regular rate.
Hours worked over 8 (up to 12) in one workday. Pay is 1.5x the regular rate.
Hours worked over 12 in one workday. Pay is 2x the regular rate.
First 8 hours worked on the 7th consecutive workday in any single workweek. Pay is 1.5x the regular rate.
Hours worked over 8 on the 7th consecutive workday in a workweek. Pay is 2x the regular rate.

Employers can’t evade overtime laws by asking for or allowing work off the clock. All hours an employee is permitted to work must be counted and paid. This applies if the employer knew or reasonably should have known about the work.7 

What about non-standard schedules? Alternative workweek schedules (AWS) like four 10-hour days can sometimes be implemented legally.

This requires a valid written agreement and adherence to strict rules, including a secret ballot election requiring a 2/3 vote of affected employees.8

Even with a valid AWS, overtime rules still apply for hours worked beyond the established schedule or over 40 hours per week. Double time also applies to all hours worked over 8 on any days employees work outside their regularly scheduled AWS days.

What are California’s Laws on Rest and Meal Breaks?

In California, eligibility for overtime pay generally aligns with break rights. If you’re entitled to overtime (as a non-exempt employee), you’re usually also entitled to meal and rest breaks.

The specific number and timing of breaks depend on how long you work each shift.

Let’s discuss California’s meal break requirements first.

Outlining California’s Meal Break Requirements

California employers must provide unpaid meal breaks to eligible employees. The first 30-minute meal break is generally required before the end of an employee’s fifth hour of work.

How many meal breaks are required? It typically depends on the total shift length:

How long is your shift?Number of meal breaks you’re entitled to
Less than 5 hours0 meal breaks
5-10 hours1 meal break
10.5-15.5 hours2 meal breaks
16-21 hours3 meal breaks

Can required meal breaks be skipped? Yes, but only under specific conditions defined by law. A valid waiver requires a mutual, voluntary agreement between the employee and employer (ideally in writing). The first 30-minute meal break can legally be waived only if the total workday is 6 hours or less.9

A second 30-minute meal break is required for shifts lasting more than 10 hours. This second break can be waived only if the total workday does not exceed 12 hours, and the first meal break was actually taken.

Your meal break must also be genuinely off-duty. It must last at least 30 consecutive, uninterrupted minutes. Your employer can’t require or permit you to do any work during this time. You can’t be required to remain “on call.” You must generally be free to leave the premises during your break.10

There are narrow exceptions allowing on-duty meal-breaks for certain types of jobs. These must follow specific rules, however.

Outlining California’s Rest Break Requirements

California’s wage and hour laws also require employers to provide paid rest breaks. These generally apply to non-exempt employees.

The basic rule requires 10 minutes of paid rest time for every 4 hours worked. A break is also required for working a “major fraction” of a 4-hour period (meaning more than 2 hours).11

This means your first 10-minute break is typically due once you work at least 3.5 hours. The number of required breaks increases with longer work shifts.

Here’s a general guide based on total hours worked in a shift:

How long is your shift?Number of rest breaks you’re entitled to
Less than 3.5 hours0 rest breaks
3.5 – 4 hoursRounded up: 1 rest break
4 hours exactly1 rest break
4 – 6 hoursRounded down: 1 rest break
6 – 8 hoursRounded up: 2 rest breaks
8 hours exactly2 rest breaks
8 – 10 hoursRounded down: 2 rest breaks
10 – 12 hoursRounded up: 3 rest breaks
12 hours exactly3 rest breaks
12 – 14 hoursRounded down: 3 rest breaks
14 – 16 hoursRounded up: 4 rest breaks
16 hours exactly4 rest breaks
16 – 18 hoursRounded down: 4 rest breaks
18 – 20 hoursRounded up: 5 rest breaks
20 hours exactly5 rest breaks
20 – 22 hoursRounded down: 5 rest breaks
22 – 24 hoursRounded up: 6 rest breaks
24 hours exactly6 rest breaks

These required rest breaks must be genuinely duty-free. They must be at least 10 uninterrupted minutes. Your employer can’t require you to perform any work or remain “on call” during this paid time.12 

Rest breaks also cannot be combined with required meal periods to form one longer break. Employers should schedule rest breaks near the middle of each 4-hour work period whenever practical.

What Should I Do If My Employer Is Violating California’s Wage and Hour Laws?

Is your employer paying less than minimum wage, denying earned overtime pay, refusing required meal or rest breaks, or possibly misclassifying you as an independent contractor?

These are all potential forms of illegal wage theft under California law. You have rights and legal options.

Employers are responsible for paying wages correctly. In some cases, individual owners, officers, or managers might be held personally liable for wage violations.

If your employer is found liable for wage theft, you could recover significant compensation. Potential recovery includes:

Unpaid wages: The full amount of earned pay you were denied. This covers minimum wage shortfalls and unpaid overtime. It may also include waiting time penalties.
“On-call” or “Standby” pay: Compensation if you had to remain available for work but weren’t properly paid for that “on-call” time.
Interest: Pre-judgment interest is often added to unpaid wages.
Attorney’s fees and court costs: If you prevail in a lawsuit, the employer might be ordered to pay your reasonable legal expenses.

California also mandates premium pay for break violations specifically. You are typically owed one extra hour of pay for each workday a required rest period was denied or non-compliant. You get another extra hour of pay for each workday a required meal period was denied or non-compliant (maximum two hours of premium pay per day).14

Detailed records are crucial for proving wage and hour claims. Keep accurate notes and gather supporting information. Helpful steps include:

Track your hours: Track your actual start times, stop times, and break times daily. Keep records separate from your employer’s system. Compare your notes carefully to your official pay stubs. Immediately document any discrepancies you notice.
Document “off-the-clock” work: This includes any work performed during unpaid meal breaks or before/after your scheduled shift if requested or permitted by your employer.
Track overtime hours: Track hours over 8 in a day, over 40 in a week, and work on the 7th consecutive day.
Document missed breaks: Record the specific dates and times you were denied required meal or rest breaks, or if breaks were cut short or interrupted.
Save communications: This includes emails, text messages, or work platform messages regarding your hours, schedule, pay, or breaks.
Document retaliation: Document any negative actions you believe are retaliation for raising concerns about pay or breaks.
Talk to coworkers: Note if they experienced similar violations and ask for contact information if they might serve as witnesses.

Do you see a pattern of potential wage violations? It’s time to consult with a California employment lawyer.

They can help investigate and advise on filing a claim. Claims can often be filed with the California Division of Labor Standards Enforcement (DLSE) (the Labor Commissioner’s Office). A lawyer help you determine the right course of action.

Your options might include filing a lawsuit in court, or even a class action if labor violations are widespread. Another option may be a claim under the Private Attorney’s General Act (PAGA).

We have another article about PAGA claims, which enable you to sue on behalf of yourself, other impacted employees, and the State of California.

We assist California employees with wage theft and hour disputes. We help workers understand their rights and navigate the legal process. Click the button above (on desktop) or below (on mobile) for a free, confidential consultation.

Citations

  1. See “Independent Contractor Misclassification Imposes Huge Costs on Workers and Federal and State Treasuries” (Go back)
  2. Cal. Lab. Code § 1182.12 (Go back)
  3. Cal. Civ. Code §§ 1668, 3513 (Go back)
  4. California Minimum Wage Order (MW-2022) (Go back)
  5. 2021 California Senate Bill No. 1162 (Go back)
  6. Cal. Lab. Code § 1182.12. See also See’s Candy Shops, Inc. v. Superior Ct. (2012) 210 Cal.App.4th 889 (Go back)
  7. Cal. Lab. Code § 511 (Go back)
  8. See Dynamex Operations W. v. Superior Ct. (2018) 4 Cal.5th 903 (Go back)
  9. Cal. Lab. Code § 512 (Go back)
  10. Cal. Code Regs. tit. 8, § 11040 (Go back)
  11. Division of Labor Standards Enforcement Policies and Interpretations Manual (Go back)
  12. Cal. Code Regs. tit. 8, § 11040 (Go back)
  13. “Managing agents are employees who ‘exercise substantial independent authority and judgment in their corporate decisionmaking so that their decisions ultimately determine corporate policy.’” See White v. Ultramar, Inc. (1999) 21 Cal.4th 562, 577 and Cal. Lab. Code § 558.1 (Go back)
  14. Cal. Lab. Code § 226.7 (Go back)
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