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.
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