To file a California wage claim, you submit a claim with the Labor Commissioner’s Office (the Division of Labor Standards Enforcement, or DLSE), which you can do online, by mail or in person, at no cost and without a lawyer. The Labor Commissioner typically schedules a settlement conference and, if the claim does not settle, a hearing (often called a Berman hearing) that results in a decision either side can appeal to superior court. Most claims for unpaid wages must be filed within three years, so gather your records and act promptly.
Whether you were fired, laid off or quit, California law gives employees strong protections around final pay. Here is what you are owed, how the claim process works, and what to expect.
What You Are Owed When Employment Ends
Final Paycheck Timing
- If you are fired or laid off, all earned and unpaid wages are generally due immediately at the time of termination (Labor Code §201).
- If you quit with at least 72 hours’ notice, final wages are due on your last day.
- If you quit without notice, the employer has 72 hours to pay you (Labor Code §202). You can request that the final check be mailed.
Special timing rules apply in a few industries, but these are the general rules.
Accrued Vacation and PTO
Under Labor Code §227.3, vested vacation or paid time off must be paid out at your final rate of pay when employment ends, regardless of company policy. California does not allow “use it or lose it” policies that forfeit earned vacation, though employers may cap future accrual. Paid sick leave is different: employers generally are not required to pay out unused sick leave at termination unless it is part of a combined PTO policy.
Waiting Time Penalties
If an employer willfully fails to pay final wages on time, the employee may recover waiting time penalties under Labor Code §203: one day’s wages for each day the payment is late, up to a maximum of 30 days. For example, an employee who earns $200 per day and is paid 30 or more days late could claim up to $6,000 in penalties, in addition to the wages owed. “Willful” does not require bad intent, but an employer that has a good faith dispute about whether wages are owed may avoid penalties.
Severance Is Not Required
California law does not require severance pay. Employers that offer severance usually do so in exchange for a release of claims. Final wages and accrued vacation are owed whether or not you sign, and some claims, such as certain wage claims, cannot be waived by a private agreement. Review any separation agreement carefully before signing; our article on severance terms explains what to look for.
Common Types of Wage Claims
- Unpaid regular wages or commissions
- Unpaid overtime and double time
- Minimum wage violations
- Missed meal and rest breaks (premium pay of one additional hour of pay per workday for each type of violation)
- Unpaid vacation or PTO
- Unreimbursed business expenses (Labor Code §2802)
- Waiting time penalties
- Misclassification as an independent contractor or as an exempt employee
Misclassification issues often arise under California’s ABC test, discussed in our article on AB5 and the gig economy.
How to File a California Wage Claim, Step by Step
Step 1: Gather Your Information
Collect as much as you can about the employer and your pay, including:
- The employer’s legal name and address, and the names of owners or managers
- Your job title, duties and dates of employment
- Your rate of pay, pay stubs, offer letter and any commission plan
- Records of hours worked, including your own notes or calendars
- Information about missed breaks, expenses or other violations
Step 2: Complete the Claim
The Labor Commissioner provides an initial report or claim form and an online filing option on its website. The form asks about the employer, your job, your pay, and the amounts and violations you are claiming. Be specific and attach supporting documents where possible.
Step 3: File the Claim
You can file online, by mail, by email where available, or in person at a Labor Commissioner district office. Keep a copy of everything you submit. Filing is free, and you can file regardless of immigration status.
Step 4: Attend the Settlement Conference
In many cases, the Labor Commissioner schedules a settlement conference where a deputy labor commissioner meets with both sides and tries to resolve the claim. Many claims settle at this stage.
Step 5: Hearing and Decision
If the claim does not settle, it may be set for a hearing. Both sides present testimony and documents, and the hearing officer issues a written Order, Decision or Award. Either party may appeal to superior court within the deadline stated in the decision (generally 10 days after service, under Labor Code §98.2), where the case is heard anew. An employer that appeals must generally post a bond for the amount of the award, and an employer that loses its appeal may have to pay the employee’s attorneys’ fees.
Step 6: Collect
If the award becomes final and the employer does not pay, it can be entered as a court judgment, and the Labor Commissioner and the employee have tools to enforce it.
Deadlines to Keep in Mind
- Claims based on statutory wage obligations, such as overtime and minimum wage, generally must be filed within three years.
- Claims based on a written contract generally have a four-year limit, and claims on an oral contract a two-year limit.
- Retaliation complaints to the Labor Commissioner have a shorter deadline, so act quickly if you believe you were punished for complaining about pay.
Instead of a Labor Commissioner claim, employees can also sue in court, which may make sense for large or complex claims or when multiple employees are affected.
The Takeaway
California’s wage claim process is designed to be accessible without a lawyer, but preparation matters. Knowing what you are owed, documenting your hours and pay, and filing on time improves your chances of a fair result. Employers, meanwhile, can avoid most claims by paying final wages correctly and on time, as discussed in our guide on how to let an employee go.
Frequently Asked Questions
How long do I have to file a wage claim in California?
Most claims for unpaid wages under the Labor Code must be filed within three years. Claims based on a written contract generally have four years and oral contracts two years. Retaliation complaints have a shorter deadline.
Does it cost anything to file a California wage claim?
No. Filing a wage claim with the Labor Commissioner is free, and you do not need a lawyer to file or attend the conference and hearing.
When is my final paycheck due in California?
If you are fired or laid off, final wages are generally due immediately. If you quit with at least 72 hours’ notice, they are due on your last day, and if you quit without notice, within 72 hours.
What are waiting time penalties?
If an employer willfully fails to pay final wages on time, the employee can recover one day’s wages for each day of delay, up to 30 days, under Labor Code section 203.
How Sutter Law Can Help
Sutter Law advises on California wage and hour questions, final pay, separation agreements and Labor Commissioner proceedings as part of our employment law and compliance practice. Contact us for a free consultation.
This article is general information, not legal advice. Reading it does not create an attorney-client relationship.
