Employers are required by federal and state law to pay employees overtime wages when they work more than a specific number of hours. When an employer does not appropriately pay an employee for the overtime wages earned, he or she may be held accountable through an unpaid overtime lawsuit in California. This blog will help you understand how to file a lawsuit for unpaid overtime.
When Do Mandatory California Overtime Laws Apply?
Several state and federal laws protect all employees' labor rights. Among these basic rights is for every employee to be fairly compensated for the specific amount of work they put in. An employee is entitled to overtime compensation if they work additional hours. This rate for compensation is referred to as "overtime." Non-exempt workers in California may be entitled to mandated overtime pay when they work for more than:
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An eight-hour workday/a ten-hour workday in a 4-day alternate workweek
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A twelve-hour workday in a three-day alternate workweek
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A forty-hour workweek; or
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Six days in a row in a workweek
It's important to note that employees can't waive their entitlement to overtime pay.
California Employees Eligible for Overtime Pay
While the majority of California workers are eligible for overtime compensation when they work more than the required amount of hours, this is not the case for everyone. Workers who are entitled to overtime compensation are known as "non-exempt" employees under employment law. This word refers to an employee who isn't exempt from the California Labor Code or the Fair Labor Standards Act.
Although there are some distinctions between federal and state legislation when deciding if a worker is exempt, there's also a huge overlap. While this may sound surprising, whether a person is exempt or non-exempt isn't always dependent on if they're being paid on an hourly basis; in some circumstances, employers have to pay salaried workers overtime wages.
Administrative, professional, as well as executive employees, are examples of the most common exempt workers according to federal and state law. This is commonly known as the "white-collar exemption." According to this exemption, an employer isn't required to give overtime wages when a worker:
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Spends at least half of their working hours on executive, administrative, or professional tasks
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Uses discretion as well as sound judgment in carrying out work-related responsibilities
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Receives at least double California's minimum wage in salary or wages
Although the white-collar exemption has been the most prevalent cause why a worker would not be eligible for overtime compensation, several professions have their exclusions, such as:
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Computer specialists
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Surgeons and doctors
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Teachers
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Employees that are paid on commission
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University of California employees
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Salespeople who work on the outside
All of these categories of employees have their own set of overtime laws that apply to them only.
California Overtime Pay Violations
Misclassification of a single or more worker as exempt is among the most typical California overtime wage violations. Employers have all motivation to categorize their workers as exempt since they may save a lot of money on their worker's overtime compensation by doing so. The categorization of an employee by his or her employer, on the other hand, is not enforceable by law; courts get the last word on if or not a worker is exempt.
If an employee feels they are eligible for overtime compensation yet their employer refuses to pay it, that employee may pursue legal action for unpaid overtime claiming that the employer incorrectly classified them as exempt.
When Can You Sue Your Employer for Unpaid Overtime?
You could be capable of collecting unpaid overtime wages by submitting a labor board claim or a suit against your employer when he or she has broken California's wage and hour regulations. Among the types of lawsuits filed against employers in California for violating the state's overtime laws are:
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Failure to give overtime wages for working more than 8 hours per day
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Failing to compensate employees for working more than 40 hours per week
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Failing to compensate employees for working over six consecutive days
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Forcing a worker to labor outside of normal working hours
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Having a worker work during his or her uncompensated lunch break
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Employees being misclassified as "exempt workers"
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Employees being misclassified as "independent contractors"
Employers may underpay employees simply because they're unaware of the law. Other companies deliberately underpay their employees. This is referred to as wage theft. Many workers believe that if their employer owes them little money, that it's not worthwhile to file a case. In overtime wage litigation, however, the worker may be entitled to collect underpaid overtime pay, as well as interest or attorney's fees.
Only because your underpaid overtime isn't a large sum of money doesn't imply you shouldn't pursue legal action. Any infringement of California labor rules should result in the employer being held liable. An employer that does not compensate a worker for their effort may be exploiting other workers. The statute of limitations for wages and hour litigation in California is usually three years from the date when the most current violation happened.
Commencing a Lawsuit
Employees who are owed overtime often file a compensation claim through the California Labor Commissioner's Office's Division of Labor Standards Enforcement (DLSE). After that, the Deputy Labor Commissioner could decide whether to:
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Refute the allegation
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Refer the case to a meeting, in which the entities can try to settle the dispute without having to go to court. The time, date, and place of the meeting will be forwarded to the participants
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Send the case to a hearing, whereby the participants, as well as witnesses, might take the stand in front of a judge during a recorded proceeding. Following that, the participants will get an ODA, which stands for Order, Decision, or Award
In most cases, your lawyer prepares and reviews your grievances before filing them in court. Your lawyer will file the grievances against the employer, who will then be obligated to submit an answer. The court could issue its ruling to the worker if the accused refuses to submit a response on time. The employer's response needs to include a description of his or her "defenses," and also whether it acknowledges or disputes the claims in the complaints.
Workers who cannot hire an employment attorney can be represented by the DSLE when the company appeals.) The judge will make a ruling against the employer that refuses to pay unpaid wages after the court has mandated him or her to do so. The worker might either try to obtain it on his or her own or request the DLSE to do so.
Employees might also file a conventional lawsuit for unpaid overtime wages against their employer.
Employees can submit a grievance with the office of the Labor Commissioner Office or file a lawsuit against their employer when they retaliate for filing, or when they threaten to file. Employers can use flimsy excuses, such as stating that the worker consented to work for less than minimum pay or didn't work quickly enough. In FLSA proceedings, the employer's arguments are severely interpreted against him.
When you take legal action, you'll be the claimant in the litigation and must follow all relevant court and arbitration discovery requirements, which may include keeping and possibly providing records to your employer.
Discovery is known as the phase of the lawsuit wherein every party is allowed to gather information and testimonies from the other side's witnesses as well as its witnesses. Employers usually submit payroll and time records, the employee file, as well as his or her wage-and-hour compliance guidelines as part of their evidence in wage-and-hour disputes.
Unpaid Overtime Settlement
Many wage-and-hour disputes, as with all disputes, are ultimately resolved. In most class action lawsuits, the stated claimants and their lawyers will discuss a settlement sum that'll be split among the workers who have joined the action.
If the claim is in the settlement stage, it's critical to know the scope of monetary sums your lawyer is requesting for you, and also other conditions of the settlement. The lawyer must be aware of any situations that might be affected by a proposed settlement, like any other outstanding or future claims against your employer.
The settlement arrangement is sometimes presented to the judge for authorization before the compensation money is paid, generally at the request of your employer or when the specific court requires it. The goal of obtaining court clearance is to ensure your compensation is fair.
If your lawsuit does not resolve and the Judge decides that there's so much contradicting evidence or testimony to rule, the matter will be tried. During a trial, the court of law will listen to witness accounts and proof presentation. If the claim contains a he-said/she-said scenario, the court will determine who is speaking the truth then give judgment accordingly.
The struggle may not be done even if you win in court or secure a verdict against the employer for the unpaid payments. Employers fail to compensate and conceal assets in far too many situations. Employers could also exploit bankruptcy rules to shield themselves from their accountability to you.
How Much Can You Win in a Wage or Overtime Case?
The employer is required to compensate you at the usual rate for any non-overtime hours worked. In addition, when you work extra hours, your employer is required to compensate you with the overtime set rate. When your employer owes you normal or overtime payments, you could sue to collect the unpaid overtime, interest, as well as, in some cases, penalties which the law demands your employer to give.
You are eligible for overtime compensation when you work more hours above your usual hourly salary. In most circumstances, overtime pay is calculated at 150 percent of your normal rate. A worker who does his or her job above 40 hours in a workweek is eligible for overtime compensation, according to federal statutes.
Damages
Damages refer to the sum of compensation you can get in a wage dispute or litigation against your employer. The damages that you might receive when you are successful in your case against an employer are divided into many categories, which are outlined below.
Unpaid Wages
First and foremost, you are eligible for your underpaid pay. If a worker wins a wage case or litigation, the sum of earnings that their employer refused to pay could be given to them. Any unpaid overtime premium is included under this category. If the employer gave you normal earnings for extra hours, you shall then be compensated for any difference between the normal pay and the overtime pay you were entitled to.
Interest
Secondly, you shall be eligible to interest at a rate defined by law on unpaid overtime wages. The rate of interest for unpaid pay or overtime pay will be determined by state law. Alternatively, you could be entitled to collect an amount known as "liquidated damages" rather than interest. (Liquidated damages is the money amount specified beforehand by law and granted to workers in place of interest as per federal wage rules.) According to federal law, the employer could be required to pay twice the unpaid salary amount that he or she owes you as liquidated damages when he or she acted deliberately.
Penalties
In several states, on top of the unpaid earnings, employers are required to pay additional penalties. For instance, California law mandates that an employer should pay "waiting for time" penalties equivalent to thirty days' worth of overdue earnings to a worker.
Attorney's Fees
When you win the overtime lawsuit, your employer must additionally pay the attorney's fees as well as the expenses for litigating the case.
Suing your employer for unpaid overtime wages may appear easy. If your claim is straightforward and insignificant, you could be capable of pursuing it yourself by submitting a grievance with the California labor department. However, if your matter is huge or complicated, you might consider hiring a lawyer to defend you. If you're not sure which path to follow, speak with an employment attorney who can evaluate your situation and determine the best course of action for recovering what you're entitled to.
Find a Unpaid Overtime Attorney Near Me
If you have unpaid overtime wages or if you're a victim of any other type of wage theft, you're entitled to seek compensation when you file an unpaid overtime lawsuit. To talk to an attorney who can assist you, call Stop Unpaid Wages at 424-781-8411 now.