What is the penalty for not paying employees the minimum wage?

In California, employers must pay their employees at least the minimum wage as mandated by law. If an employer fails to pay the minimum wage, they can face serious penalties. The most common penalty for not paying employees the minimum wage is the back wages. The back wages are the difference between the amount of wages an employee actually received and the amount they should have received under the law. The employer must pay the employee all of the back wages that are owed. The California Labor and Workforce Development Agency can also impose other penalties on employers who don’t pay the minimum wage. This includes a civil penalty up to $1000 per employee, per violation, suspension of the employer’s business license, and re-coupment (the employee must be paid the wages owed, plus all interest due). Employees can also take legal action against their employer. They can file a lawsuit against the employer and may be able to collect back wages, interest, and attorney’s fees. In some cases, employees can also receive punitive damages if their employer knowingly violated the law. In short, employers in California who don’t pay the minimum wage can face serious penalties. They must pay the owed back wages, may be subject to civil penalty, and may even face legal action from their employees.

Related FAQs

What are the rules for paying employees for work-related travel?
What are the laws regarding the payment of bonuses?
What are the laws governing wages and tips for tipped employees?
What is the overtime rate for hourly employees?
Is it legal to pay workers working abroad different wages than domestic workers?
When can employers legally ask employees to work off the clock?
What types of benefits are covered by wage and hour law?
What are the requirements for having a work week?
Are employers allowed to pay different wages for the same job?
Are employers allowed to require employees to work additional hours without pay?

Related Blog Posts

What is Wage and Hour Law and How Does it Affect Your Business? - July 31, 2023
What Employers Need to Know About Wage and Hour Law - August 7, 2023
The Basics of Payroll Law and Compliance - August 14, 2023
Compensating Your Employees - Tips for Wage and Hour Law Compliance - August 21, 2023
Understanding Overtime Rules Under Wage and Hour Law - August 28, 2023