California Labor Code 1194 Overview & Example Scenarios

Legally reviewed by: Jessica Anvar Stotz, JD, MBA

California Labor Code 1194 is a shorter California Labor Code that provides a remedy for employees who pursue legal action against their employer for failing to provide overtime or minimum wage payments. This remedy includes the full unpaid balance of wages, any interest applicable, reasonable attorney’s fees, and costs of the suit.

California Labor Code 1194 Explained in 90 Seconds

This California Labor Code only applies to employees who have chosen to bring a civil action against their employers and succeeded. Labor Code 1194 outlines what the employee can recover after such a proceeding. Employees in these situations can receive the payment they are owned, either from working overtime or from being paid less than minimum wage, plus any interest on those amounts. Employees can also expect to receive reasonable attorney’s fees incurred by their suit and any other reasonable costs the suit might have produced.

Understanding Minimum Wage and Overtime

Minimum wage is defined as the lowest wage an employer can legally pay an employee each hour. Employers and employees cannot agree to pay and receive less than minimum wage, respectively. As of May 2024, the minimum wage in California is $16.00 per hour. This number is usually adjusted according to inflation each year.

Overtime wages are earned when an employee works beyond their expected hours: they go over the time they would be working in a standard workday. In California, overtime payments automatically apply to any workday of more than eight hours and to the first eight hours worked on the seventh day of work in a row. Overtime payments are equal to one-and-a-half times the employee’s normal wage for the prior two examples. For example, an employee earning $16.00 in California receives $24.00 in overtime payments (half of 16 is 8, 16 plus 8 is 24). If an employee works more than twelve hours in any workday, they receive double pay for all hours beyond the twelfth. Similarly, every hour past the eighth on the seventh workday in a row receives double pay.

Your Rights Under Labor Code 1194

As an employee, your rights under Labor Code 1194 pertain primarily to the remedy you have access to after bringing a successful suit. It empowers you to bring such a claim knowing that you will be compensated for the missing overtime payments, payments below the minimum wage, and legal fees you incur in the process of bringing your claim. It is also worth noting that under California law, agreements to work for less than minimum wage are not enforceable.

Recovering Unpaid Wages

In filing a civil suit against your employer, an employee should be aware of the following. The first and arguably most important thing is to hire an employment attorney to handle your case. Missing wage claims can be straightforward or complicated, and the best way to find out what you have is to hire an attorney who can organize your case. Employees will have to provide documentation showing proof of the missing payments, such as past paystubs. A case will involve litigation, which includes court appearances, negotiations between you and your employer, and potentially a trial if things are not resolved before then.

Exceptions and Considerations

An important exception to the standard wage claim process is the existence of arbitration agreements. Some employment contracts may contain provisions that require an employee to go through arbitration instead of filing a civil action to resolve wage claims. Although mandatory arbitration clauses in employment contracts have been controversial in California, they still function as of May 2024. In such a case, an employee may have to go through arbitration procedures in order to claim lost wages. Employees should be aware of the contents of their employment contract in deciding how to pursue a wage claim (or to see if they have a choice at all). Employees should also be aware that the statute of limitations for such claims is typically three years, so a claim must be brought within three years of the violation to be allowed.

Example Scenarios

Example 1: Employer Fails to Provide Overtime Payments for Hours Worked After the Eighth

• Scenario: A line cook works ten hours on Monday of a week. When payday comes around, he notices that he has not received overtime pay for the two hours he worked beyond the eighth.
• Violation: Failure to pay overtime past the eighth hour of a shift.
• How Labor Code 1194 Protects: In a case like this where overtime payments have not been properly provided, an employee could file a civil action against their employer in court and collect the unpaid wages, reasonable attorney’s fees, and other costs associated with the suit.

Example 2: Employee Sues Employer and Incurs Excessive Legal Fees

• Scenario: After a minimum wage violation, a stocker at a grocery store files a civil action against their employer. During litigation, the employee decides to add several other claims unrelated to the wage violation and which are generally frivolous. The employee ultimately prevails on his wage claim against the employer and is awarded attorney’s fees for only the wage claim proceedings. The employee protests against this.
• Violation: Unreasonable attorney’s fees should not be awarded for civil actions against employers to collect unpaid wages.
• How Labor Code 1194 Protects: Labor Code 1194 provides that employees can win reasonable attorney’s fees at the end of their action if they prevail. In this case, the employee would be entitled to those fees, but not to fees incurred by frivolous or otherwise unnecessary elements of the claim.

Example 3: Employer Fails to Pay Minimum Wage After Agreeing with Employee to Pay Below It

• Scenario: A car wash employee begins working at a car wash and agrees to be paid a dollar below minimum wage in exchange for free car washes for his car.
• Violation: Minimum wage cannot be agreed out of.
• How Labor Code 1194 Protects: Because employees and employers cannot agree to be paid or pay lower than the minimum wage, the employer in this case would be in violation of California law. The employee could bring a claim against them for the unpaid wages resulting from the improper agreement.

It is crucial to note that the above three instances are only to demonstrate the function of California Labor Code 1194. They should not be interpreted as legal conclusions or advice.

Resources for Employees and Employers

1. California Labor Code 1194
2. California Department of Industrial Relations
3. California Department of Industrial Relations – Division of Labor Standards Enforcement
4. California Department of Industrial Relations – Division of Labor Standards Enforcement: File a Wage Claim
5. California Department of Industrial Relations – Division of Labor Standards Enforcement: Overtime

Connect with an Attorney

If you are an employee who is being paid less than the California minimum wage or have not been paid according to proper overtime procedures, you may be able to bring a claim against your employer. Pursuant to California Labor Code 1194, pursuing such a claim, if successful, would provide reasonable attorney’s fees for the suit as well as the unpaid wages. If you are considering bringing such a claim against your employer, let LawLinq assist you. LawLinq is an attorney referral service that wants to help you get connected to a highly experienced employment attorney. They will help you manage your case and get the compensation you deserve for the withheld wages. Don’t hesitate to contact us today, either by phone at (855) 997-2588 or online through our form!

About the Author

Jessica Anvar

California Consumer Litigation Attorney Jessica Anvar, Esq. is the Founder and Managing Partner of Lemon Law Experts, California’s leading lemon law firm. She has multiple years’ worth of experience working with both state and federal lemon laws. Her practice focuses exclusively on consumer protection cases. Ms. Anvar received her J.D. from Loyola Law School. She also earned a Master of Business Administration degree from Loyola Marymount University. Jessica is very active in her local legal community and has helped thousands of clients across the state of California. She has an outstanding record as a true advocate for consumers.