If you discover that your employer has withheld lawfully earned wages from your paycheck, you may decide to bring these pay discrepancies to your employer’s attention. Unfortunately, your employer may react poorly. If they decide to retaliate, it can pose a significant financial or emotional toll on your life, especially if that retaliation takes the form of a demotion, reduction in pay, or termination.

When your employer retaliates against you for raising concerns about your own pay or participating on behalf of a co-worker in a wage theft claim, you may have the right to pursue additional compensation or other relief from your employer. Contact Moon Law Group for a free case review with an experienced employment lawyer to discuss how our firm can help you protect your job or financial interests from retaliatory efforts by an employer after wage theft occurs.

What Is Wage Theft Retaliation in California?

Wage theft occurs when an employer does not pay wages lawfully earned by employees. Common wage violations include the following:

  • Not paying overtime pay to a non-exempt employee
  • Forcing hourly employees to work off the clock or requiring them to respond to emails, text messages, or phone calls at home
  • Minimum wage violations that occur when employers fail to pay the state-mandated minimum wage for hours worked
  • Denying meal or rest breaks or requiring employees to work through unpaid breaks
  • Taking unlawful allowances or deductions from an employee’s paycheck
  • Letting non-tipped employees share in a tip pool
  • Purposefully misclassifying employees to avoid paying overtime pay

Can Employees File a Claim Against Wage Theft?

Employees who suspect that their employer has engaged in wage theft may raise or participate in legal claims or actions to report or seek relief from the employer’s actions. For example, an employee might file an internal complaint to raise issues with missing pay in their paycheck. Alternatively, an employee might report their employer’s suspected wage theft to government regulators, or they may file a legal action to recover illegally withheld pay. Employees may also participate in their co-worker’s wage theft cases, such as by testifying in an administrative investigation or lawsuit.

How Can an Employer Retaliate?

Employees who file a retaliation complaint or undertake the activities described above may fear retaliation from their employer. Wage theft retaliation occurs when an employer who takes adverse action against an employee who participates in a wage theft case against the employer. State and federal employment laws prohibit retaliation. Examples of adverse employment actions that may constitute wage theft retaliation under state and federal law include the following:

  • Demotion
  • Reductions in pay
  • Denial of bonuses or commissions
  • Denial of promotions
  • Denial of shifts or reduction in hours
  • Denial of career advancement opportunities
  • Assignment to less desirable shifts or tasks
  • Loss of benefits
  • Discipline based on fraudulent allegations of misconduct
  • Termination
  • Harassments or threats of adverse employment actions
  • Blacklisting and giving negative employment references

If your employer has engaged in any of these actions in violation of California law, contact our employment law firm today for a free consultation to determine if you have a viable retaliation case.

Wage Theft Tactics Used by Employers

Some of the common tactics used by employers to unlawfully withhold wages earned by employees include:

  • Failing to track employees’ hours to differentiate between regular and overtime hours
  • Requiring employees to perform pre-shift or post-shift work, such as setting up or cleaning up their workspace, and not allowing them to clock in early or clock out late
  • Making improper deductions from paychecks, such as broken equipment, missing inventory, or shortages in registers
  • Misclassifying workers as exempt from overtime or as independent contractors
  • Failing to advise workers of their right to take meal or rest breaks

What Protections Are Available Against Wage Theft Retaliation in California?

Federal and state laws prohibit wage theft retaliation. The Fair Labor Standards Act prohibits wage theft retaliation. The federal law states that it is a violation for any person to “discharge or in any other manner discriminate against any employee because such employee has filed any complaint” or participated in any proceeding related to the act. Employees are protected whether they reported the issue to the Wage and Hour Division of the United States Department of Labor or internally to their employer.

The California Wage Theft Protection Act provides employees with certain rights and protections to minimize the risks of wage theft by employers. Under the Wage Theft Prevention Act, employers must provide a written notice to employees regarding their workplace rights that includes the employee’s rate(s) of pay, designated payday, and the employer’s intent to claim meal or lodging allowances. The notice must also inform employees of the employer’s “doing business as” name. Employees must receive this statutorily required notice at the time of hiring and within seven days of any change to an employee’s information on their notice. Employees have the right to receive notice in the language their employer typically uses to communicate with them.

The law also imposes penalties on employers who violate the act. Wage theft retaliation consequences for employers in California include:

  • Criminalizing willful nonpayment of wages after a court judgment or administrative order
  • Restitution to employees plus civil penalties for failure to pay minimum wages
  • Extended periods for the Division of Labor Standards Enforcement to obtain judgments on final orders for the collection of penalties
  • Enhanced bond requirements for employers with convictions or court judgments for nonpayment of wages, including mandatory accounting of assets upon request by the DLSE or a California court
  • Making the statutory penalties for violations of wage-related statutes under the Labor Code minimum penalties (allowing for higher penalties)
  • Allowing employees to recover legal fees and expenses incurred to enforce a judgment for unpaid wages

Employees who experience retaliation from their employer for filing or participating in a wage theft case may pursue legal action to obtain various forms of relief, such as:

  • Reinstatement to employment if the employer terminated or demoted the employee from their job
  • Recovery of lost wages following a retaliatory termination, demotion, or reduction of pay
  • Civil penalties assessed by the DLSE or the court
  • Reimbursement of legal fees and expenses incurred to pursue a wage theft retaliation action

These federal and state laws provide strong protections to employees. Our law firm can discuss pursuing a civil action to fight for justice and your rightful pay, including back pay for hours worked and not compensated.

Steps to Take if Your Employer Retaliated Against You After Wage Theft

When you suspect that your employer has retaliated against you for claiming wage theft or participating in a co-worker’s wage theft case, steps you should take to protect your rights and interests include:

  • Keep all relevant documentation, including records of your work schedules, pay stubs, disciplinary notices, employer communications, emails, or text messages.
  • Identify co-workers or other witnesses who may have testimony regarding the retaliatory acts you experienced from your employer.
  • File a complaint with the Labor Commissioner’s office as soon as possible.
  • Contact a wage theft retaliation attorney to discuss your rights and obtain a legal advocate who will fight to protect your interests and pursue compensation for any losses you sustained due to your employer’s retaliatory conduct.