Wage Theft in California: Common Examples Employees Overlook

When most people hear “wage theft,” they imagine an employer flat-out refusing to pay wages. In reality, the problem is often far more subtle. Across California, thousands of workers lose hundreds—or even thousands—of dollars each year through small, unnoticed violations that quietly chip away at their paychecks.

From unpaid prep time to off-the-clock work and time rounding, wage theft takes many forms. The result is the same: hours worked but never compensated.

This guide from JusticeGuys breaks down the most common, overlooked examples of wage theft in California, how they occur, and what employees can do to document and reclaim what’s rightfully theirs.

Understanding Wage Theft Under California Law

California has some of the strongest worker protection laws in the nation, including requirements for:

• Minimum wage (statewide and city-specific rates)

• Overtime pay (1.5× for hours over 8/day or 40/week, and 2× beyond 12/day)

• Meal and rest breaks

• Timely payment of all earned wages

• Accurate itemized wage statements

Wage theft occurs when an employer fails to pay for all hours worked or withholds earned compensation in violation of state or federal law. It’s not always intentional—but intent doesn’t matter. If you’re missing pay for time you worked, it’s a violation.

The Subtle Ways Wage Theft Happens

While blatant underpayment grabs headlines, the most common forms of wage theft are quiet, systematic, and easy to overlook.

A. Unpaid Prep or Closing Time

If your shift “starts” at 8 a.m., but you’re expected to clock in only after setting up your workspace, stocking supplies, or prepping equipment, that time counts as work.
Likewise, if you must stay late to close up or clean—even five or ten minutes—it’s compensable.

Example:
Restaurant servers required to roll silverware or set tables before clocking in are owed pay for that time. Similarly, retail workers who must restock after closing are entitled to compensation for every minute.

B. Time Rounding That Always Favors the Employer

California law allows rounding time to the nearest five or fifteen minutes only if the policy is neutral and not used to consistently shave off minutes from employees’ pay.

Illegal Example:
If a company rounds start times down (e.g., 8:07 to 8:00) but rounds clock-outs up (e.g., 4:53 to 5:00), workers lose 10–15 minutes of paid time each day. Over a year, that can total 30+ unpaid hours.

Pro tip: Review your pay stubs and time sheets—if your hours seem consistently “evened out,” rounding may be cutting into your wages.

C. Off-the-Clock Work

Any time you’re required to perform duties before clocking in or after clocking out counts as off-the-clock work, and it’s one of the most frequent wage theft violations.

Examples include:

• Finishing reports or emails after hours

• Responding to messages or calls from supervisors at home

• Attending unpaid meetings or mandatory trainings

• Putting on or removing required uniforms or safety gear (“donning and doffing”)

California law is clear: If your employer controls your activity or requires you to be on duty, you must be paid.

D. “Working Through Lunch” or Interrupted Meal Breaks

Employees in California are entitled to:

• A 30-minute unpaid meal break for shifts over five hours

• A second 30-minute break if working more than ten hours

• Paid 10-minute rest breaks for every four hours worked

But if you’re asked to “cover phones,” “stay nearby,” or “eat while working,” your meal break is not truly off-duty and must be paid.

Example:
An office assistant told to “keep an eye on emails” during lunch is effectively still working. That 30 minutes should be compensated—and repeated violations may entitle you to premium pay (one additional hour per missed break).

E. Misclassification as an Independent Contractor

Some employers label workers as “independent contractors” to avoid paying overtime, benefits, or payroll taxes.

Under California’s AB5 law, a worker is presumed to be an employee unless the employer can prove all three parts of the “ABC Test”:

1. You are free from employer control in how you perform work.

2. You perform work outside the company’s usual business.

3. You operate an independent business in that trade.

If you’re driving for a delivery app, cleaning offices, or performing routine duties under supervision, you’re likely an employee—and entitled to wages, overtime, and benefits.

F. Unpaid Travel, Training, or Waiting Time

California considers you “on the clock” any time you’re under the employer’s control—even if you’re not actively working.

You should be paid for:

• Mandatory training or orientation sessions

• Travel between job sites during the workday

• Waiting for assignments, materials, or equipment

If your company requires you to wait on standby, remain at a location, or travel as part of your role, those hours must appear on your paycheck.

G. Tip Theft and “Shared Tip” Violations

Tips belong entirely to the employees who earn them. Employers cannot:

• Deduct tips to cover credit card processing fees

• Redistribute tips to managers or supervisors

• Pool tips with non-tipped staff (like kitchen managers)

Even small skims can add up to serious losses, and California’s Labor Code strictly prohibits any employer interference with gratuities.

H. Unreimbursed Expenses

With remote work on the rise, more employees pay out-of-pocket for tools or expenses their employers are legally obligated to cover.

You should be reimbursed for:

• Work-related cell phone or internet use

• Mileage or transportation for job duties

• Required uniforms or protective gear

• Home office expenses (if you’re required to work remotely)

Failure to reimburse is another form of wage theft—one many employees don’t recognize until tax season.

How to Identify Wage Theft in Your Own Job

Sometimes, the only way to recognize a violation is by comparing your daily routine with your pay statements.

Ask yourself:

• Do I ever perform tasks before clocking in or after clocking out?

• Do I skip breaks or eat while working?

• Does my paycheck seem “rounded down”?

• Have I paid for tools, gas, or uniforms out-of-pocket?

• Have I ever been told to log fewer hours than I worked?

If you answered “yes” to any of these, you might be losing money without realizing it.

Steps to Take if You Suspect Wage Theft

1. Document everything.
   Keep a written log of your hours, breaks, and any unpaid work. Include dates, tasks, and supervisor instructions.

2. Save evidence.
   Keep pay stubs, timecards, emails, or messages showing when you were asked to work off the clock or skip breaks.

3. Compare records.
   Match your notes against your official timesheets to see where hours were lost or altered.

4. File a claim.
   You can file a wage claim with the California Labor Commissioner’s Office or seek legal help from a labor attorney to recover unpaid wages, penalties, and attorney’s fees.

Why Wage Theft Persists in California

Despite strict laws, wage theft remains rampant—especially in industries with high turnover or vulnerable workers.
Common industries affected include:

• Restaurants and food service

• Retail and grocery

• Janitorial and warehouse operations

• Health care and caregiving

• Construction and delivery services

Many workers fear retaliation or assume “a few minutes” don’t matter. But collectively, those minutes can mean hundreds of millions in lost wages across California each year.

How to Protect Yourself Going Forward

• Track your time independently. Use your phone or notebook to record start and end times daily.

• Take your breaks fully. Clock out and leave your work area when possible.

• Ask for written policies. Understand your employer’s timekeeping, overtime, and break rules.

• Speak up early. Address discrepancies immediately to prevent long-term loss.

Downloadable Resource: Wage Theft Documentation Log

If you suspect unpaid wages, time rounding, or off-the-clock work, don’t rely on memory alone. Download JusticeGuys’ Wage Theft Documentation Log to record your hours, pay discrepancies, and manager instructions. Accurate records are your best defense when filing a claim or speaking to an attorney.

Download Your Free Wage Theft Documentation Log

If you believe you’re a victim of wage theft in California, you don’t have to face it alone.

JusticeGuys connects you with experienced employment lawyers who understand California labor laws and can help you recover lost wages quickly and confidentially.

Get matched with a lawyer today at JusticeGuys.com — your paycheck deserves protection.

5 FAQs

1. What qualifies as wage theft in California?
Any situation where you’re not paid for all time worked—like skipped breaks, off-the-clock duties, or withheld overtime—may count as wage theft.

2. Can I be fired for reporting unpaid wages?
No. California law prohibits retaliation against employees who report wage theft or file a claim.

3. How long do I have to file a wage claim?
You typically have three years to recover unpaid wages under California law.

4. What if I don’t have proof of wage theft?
Personal notes, coworker statements, or text messages can serve as evidence—especially if official records are inaccurate.

5. Do I need a lawyer to file a claim?
Not always—but consulting an employment attorney increases your chances of recovering full compensation, penalties, and interest.

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