“Back Pay” in California – When am I entitled to it?

In California, back pay is unpaid wages for work you performed during a previous pay period. Back pay, also called “back wages,” is typically paid in a lump sum or added to your next regular paycheck.

If you are owed back pay in California, you can

1. file a wage theft claim with the Labor Commissioner or
2. file a wage and hour lawsuit.

Your employer may also owe you civil fines.

Below, our California labor and employment lawyers discuss the following topics re lawsuits for unpaid wages for California employees:

• 1. Reasons for Unpaid Wages
• 2. How do I get paid?
• 3. Statute of Limitations
• 4. Damages
• 5. Payroll Violations
• 6. Exempt Workers and Independent Contractors
• Frequently Asked Questions
• Additional Reading

1. Reasons for Unpaid Wages

There are many reasons why your employer may have under-calculated the amount of money owed to you. The most common ones are the following:

• Minimum wage violations. If you are a non-exempt employee in California, your employer must pay you at least the minimum hourly wage. In 2025, it is $16.50 an hour. Some counties have a higher rate. (The federal minimum wage under the Fair Labor Standards Act (FLSA) is only $7.25 an hour.)
• Overtime pay violations. As a non-exempt employer in California, you are entitled to time-and-a-half pay if you work more than eight hours a workday, 40 hours a workweek, or six consecutive days in a workweek. Your wages must be doubled if you work more than 12 hours in a workday or more than eight hours on the seventh consecutive day of a workweek.
• Meal and rest break violations, California law requires employers to provide non-exempt employees an unpaid 30-minute meal break for every five hours of work, and a paid 10-minute rest break for every four hours of work.
• “Off the clock” work. California law forbids employers from allowing non-exempt employees to work for no compensation.
• Unpaid final wages. Employees are entitled to their paycheck on their last day or work (or within 72 hours if they have less than 72 hours’ notice).
• Unpaid sick leave. California employers generally must provide 40 hours of paid sick leave each year.
• Exempt misclassification. Employers may not misclassify non-exempt workers as exempt in an attempt to deprive them of overtime pay, paid rest breaks, and other requirements.
• Illegal payroll deductions. For example, employers cannot deduct office supply costs from an employee’s paycheck.
• Unpaid reimbursements. Employers must pay for employees’ work-related expenses, such as travel and lodging.
• Unpaid Shift Pay. Some employers promise a premium rate for working undesirable hours, such as the “graveyard shift” at a 24-hour business. Neither federal nor California law mandates shift pay, but employers must pay it if they promise to.
• Unpaid “Split-Shift” Pay. Employees whose shifts are divided by at least one hour may be eligible for a “split shift premium” of an hour at minimum wage.
• Retroactive pay increases. If your pay rate is increased, and the effective date is set in the past, the difference between the old and new rates for the time worked during that period is considered back pay.
• Incorrect pay. If you were underpaid or not paid at all for some of your work, then your employer must provide back pay to correct the error. It does not matter if the error was completely inadvertent.
• Discrimination or harassment. Sometimes employers unlawfully deprive their workers of pay, bonuses, promised promotions, or other benefits due to a protected characteristic (such as race, gender, etc.).
• Awards or settlements. In cases involving labor disputes or lawsuits, a court or arbitrator may order an employer to provide back pay.
• Wrongful termination. If you were suspended or terminated and later reinstated, you may be entitled to back pay for the time you were not allowed to work.

Sometimes you are owed back pay due to an inadvertent mistake, like a clerical error. Sometimes your employer is deliberately trying to underpay you. Either way, you are owed all the wages you earned, no matter whether you are still employed, furloughed, laid off, or fired.¹

2. How do I get paid?

First, make sure you are indeed owed back pay:

1. Review all your wage statements, which should include information about hours worked, gross pay, taxes, deductions, hourly rates, etc.
2. Flag any inaccuracies and compile any proof in your favor, such as time cards and your employment contract.
3. Then multiply your unpaid hours by your hourly rate to calculate your back pay.

Next, try to resolve the matter with your employer. If the mistake was a good-faith error, they are usually agreeable to paying you right away.

However, if your employer refuses to pay you, you can either:

• File a wage theft claim with the California Labor Commissioner. The Division of Labor Standards Enforcement (DLSE) will investigate your case, hold a settlement conference, and, if necessary, hold a hearing where you can present your case. Within 15 days of the hearing, the hearing officer will make a decision; or
• File a wage and hour lawsuit against your employer. This route can be more time-consuming and expensive, as it involves more paperwork and court proceedings. However, you may be able to recover a bigger settlement that also covers your attorneys’ fees.

Note that even if the Labor Commissioner or court judge orders that your employer pay you, the employer may still appeal. In extreme cases, your only option may be to place a lien on their property or to garnish their bank account.

Also, note that if your employer is violating wage and hour laws against you, they may be doing it to multiple employees. This may mean your case can become part of a class action lawsuit on behalf of a large number of employees.

A labor law attorney can help you decide which is the best route to take in your particular case.

3. Statute of Limitations

The “statute of limitations” (deadline) to file a California wage theft claim or lawsuit is generally three years after the most recent violation. However, if your claim involves a breach of contract, the statute of limitations is either:

• 2 years if there was an oral contract, or
• 4 years if there was a written contract.

Note that if your paycheck bounced, you generally have only one year to file a claim.²

Federal Claims

Depending on your case, you may also choose to file a complaint with the U.S. Department of Labor’s Wage and Hour Division (WHD). The deadline to bring a claim is two years from the wage violation, though it is extended to three years if the employer knowingly withheld your pay.

4. Damages

If you win your case for back pay – whether by filing a claim with the California Labor Commissioner or in civil court – you should at least be awarded your unpaid wages plus interest.

If you were denied mandatory meal and rest breaks and are a non-exempt employee, you should be owed an hour’s wages for each missed break. Or if you were paid less than minimum wage, you should be entitled to “liquidated damages,” which is essentially double your back pay.

You may also be eligible for double damages if we can show your employer intentionally underpaid you.

If we bring a lawsuit, we can also ask for other damages, such as:

• pain and suffering,
• reasonable attorney’s fees, and
• court costs.

Late Penalties and Final Paychecks

In addition, the California Labor Code imposes a fee on employers for late paychecks. These include:

• $100 for a first violation (or $200 if the lateness was intentional); or
• $200 for a subsequent violation plus 25% for wages unlawfully withheld.

Meanwhile, if you do not get your final paycheck on your last day of work (or within 72 hours if you gave less than 72 hours’ notice), then you are entitled to a waiting time penalty. This is equal to your daily rate of pay for each day your paycheck is late (up to 30 days).³

5. Payroll Violations

Even if you are paid fully and on-time, your employer may owe you civil fines if your wage statements have incorrect or incomplete information. In general, this would be $50 for the initial violation and $100 for each subsequent one up to $4,000 total.

Furthermore, if your employer fails to show you your payroll records within 21 days of your requesting them, you are entitled to a $750 civil fine.⁴

6. Exempt Workers and Independent Contractors

In California, only non-exempt workers are entitled to certain benefits, such as meal and rest breaks and overtime pay. Still, exempt workers and independent contractors are entitled to all the compensation that they earned.

Therefore, you can bring a wage theft claim or lawsuit for back pay, no matter whether you are paid:

• hourly,
• by salary,
• by retainer,
• by a lump sum,
• by commission, and/or
• piece-meal.

Nor does it matter whether your job is:

• white-collar,
• blue-collar,
• mechanical,
• administrative,
• professional,
• clerical,
• scientific, and/or
• vocational.

Some employers try to lower their expenses by misclassifying you as:

• an independent contractor when you are an employee or
• an exempt employee when you are a non-exempt employee.

In these cases, you may be able to bring a misclassification lawsuit against the employer.

Frequently Asked Questions

How do I know if I’m owed back pay?

Review your wage statements and check for errors like unpaid overtime, missed meal breaks, minimum wage violations, or incorrect calculations. Compare your hours worked to what you were paid. Common signs include working over 8 hours without overtime pay, missing final paychecks, or being paid below California’s $16.50 minimum wage.

What happens if my employer refuses to pay my back wages?

You have two main options: file a wage theft claim with the California Labor Commissioner (free but may take longer) or file a lawsuit in court (potentially higher settlement but more expensive). The Labor Commissioner will investigate and hold a hearing, while a lawsuit allows you to seek additional damages like attorney fees.

How long do I have to file a claim for unpaid wages?

Generally, you have three years from the most recent violation to file a wage theft claim or lawsuit in California. However, if you have a written contract, you have four years. For oral contracts, it is two years. If your paycheck bounced, you only have 1 year to file.

What compensation can I get beyond just my unpaid wages?

You can receive your back pay plus interest, and potentially double damages if your employer intentionally underpaid you. You may also get liquidated damages for minimum wage violations, penalties for late paychecks (up to 30 days of daily wages), and in lawsuits, attorney fees and court costs.

Additional Reading

For more in-depth information, refer to the following scholarly articles:

• Is Back Pay Wages? – American Labor Legislative Review.
• Making Good on Vaca’s Promise: Apportioning Back Pay to Achieve Remedial Goals – UCLA Law Review.
• Back Pay Revisited – Boston College Industry and Commerce Law Review.
• Arbitration Back-Pay Awards – Labor Law Journal.
• The Back Pay Remedy in Title VII Class Actions: Problems of Procedure – Georgia Law Review.

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