WAGE AND HOUR DEMAND LETTER
State of California
Fair Labor Standards Act, California Labor Code, and IWC Wage Order Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, California ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[State Bar of California Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Re: Wage and Hour Violations - [Client Full Name]
Demand for Unpaid Wages Under California Labor Code and FLSA
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO FRE 408 and Cal. Evid. Code Section 1152
Dear [Mr./Ms./Mx. Last Name]:
This firm represents [Client Full Name] regarding claims for unpaid wages against [Company Legal Name] arising from violations of the California Labor Code, Industrial Welfare Commission Wage Orders, and the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
I. CALIFORNIA-SPECIFIC LEGAL FRAMEWORK
California has the most comprehensive and employee-protective wage and hour laws in the nation. The violations described herein expose [Company Short Name] to substantial liability.
A. California Wage and Hour Requirements
Key Requirements:
| Category | California Requirement | Citation |
|---|---|---|
| Minimum Wage | $16.50/hour (statewide, 2026) | Lab. Code Section 1182.12 |
| Overtime (Daily) | 1.5x after 8 hours/day | Lab. Code Section 510 |
| Overtime (Weekly) | 1.5x after 40 hours/week | Lab. Code Section 510 |
| Double Time | 2x after 12 hours/day or 8 hours on 7th consecutive day | Lab. Code Section 510 |
| Tipped Minimum | Full minimum wage (NO tip credit) | Lab. Code Section 351 |
| Pay Frequency | At least semi-monthly | Lab. Code Section 204 |
| Final Pay (Fired) | Immediately upon termination | Lab. Code Section 201 |
| Final Pay (Quit w/72hr notice) | On last day of work | Lab. Code Section 202 |
| Final Pay (Quit w/o notice) | Within 72 hours | Lab. Code Section 202 |
| Meal Period | 30 min for shifts over 5 hours | Lab. Code Section 512 |
| Rest Period | 10 min per 4 hours worked | IWC Wage Orders |
| Wage Statements | Itemized statements each pay period | Lab. Code Section 226 |
B. Local Minimum Wages
IMPORTANT: Many California cities have minimum wages higher than the state rate:
| Jurisdiction | Minimum Wage (2026) |
|---|---|
| Los Angeles City | $17.28+ |
| San Francisco | $18.67+ |
| San Jose | $17.95+ |
| Berkeley | $18.67+ |
| Oakland | $16.50+ |
| Emeryville | $19.36+ |
| [Check applicable locality] | $[Amount] |
C. California Overtime Rules
California provides DAILY overtime, which is more protective than federal law:
| Hours Worked | Rate | Citation |
|---|---|---|
| Over 8 hours in a day | 1.5x regular rate | Lab. Code Section 510(a) |
| Over 40 hours in a week | 1.5x regular rate | Lab. Code Section 510(a) |
| Over 12 hours in a day | 2x regular rate | Lab. Code Section 510(a) |
| First 8 hours on 7th consecutive day | 1.5x regular rate | Lab. Code Section 510(a) |
| Over 8 hours on 7th consecutive day | 2x regular rate | Lab. Code Section 510(a) |
D. Meal and Rest Period Requirements
Meal Periods (Lab. Code Section 512, IWC Wage Orders):
| Shift Length | Meal Period Requirement |
|---|---|
| Over 5 hours | One 30-minute unpaid meal period |
| Over 10 hours | Two 30-minute unpaid meal periods |
| Must be provided | No later than end of 5th hour (1st meal) |
| Must be provided | No later than end of 10th hour (2nd meal) |
| On-duty meal | Only with written agreement and nature of work prevents relief |
Rest Periods (IWC Wage Orders):
| Shift Length | Rest Period Requirement |
|---|---|
| 3.5+ hours | One 10-minute paid rest period |
| 6+ hours | Two 10-minute paid rest periods |
| 10+ hours | Three 10-minute paid rest periods |
| Must be provided | In middle of each 4-hour work period (where practicable) |
Premium Pay for Violations:
- One hour of pay at regular rate for each workday meal period not provided
- One hour of pay at regular rate for each workday rest period not provided
- Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004
E. Wage Statement Requirements (Lab. Code Section 226)
Each pay stub must include:
1. Gross wages earned
2. Total hours worked (non-exempt employees)
3. Piece-rate units and rate (if applicable)
4. All deductions
5. Net wages earned
6. Inclusive dates of pay period
7. Employee name and last four digits of SSN or employee ID
8. Employer legal name and address
9. Hourly rates and hours worked at each rate
Penalties: $50 for first violation, $100 per subsequent violation, up to $4,000 per employee
F. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Unpaid wages | 3 years | Cal. Code Civ. Proc. Section 338(a) |
| Oral contract wages | 2 years | Cal. Code Civ. Proc. Section 339 |
| Written contract wages | 4 years | Cal. Code Civ. Proc. Section 337 |
| Labor Code penalties | 1 year | Cal. Code Civ. Proc. Section 340 |
| PAGA claims | 1 year | Lab. Code Section 2699.3 |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
G. Penalties and Remedies
Waiting Time Penalties (Lab. Code Section 203):
- Up to 30 days' wages at daily rate for failure to timely pay final wages
- Continues to accrue until paid or lawsuit filed
- Can equal or exceed actual wages owed
Wage Statement Penalties (Lab. Code Section 226):
- $50 first violation, $100 subsequent, up to $4,000
Private Attorneys General Act (PAGA) (Lab. Code Section 2698 et seq.):
- Civil penalties for Labor Code violations
- 25% to employee, 75% to LWDA
- $100 per employee per pay period (initial), $200 subsequent
- Requires 65-day notice to LWDA before filing
Labor Code Section 558 Penalties:
- $50/day for first violation, $100/day for subsequent (per underpaid employee)
Interest:
- Lab. Code Section 218.6: Interest on unpaid wages
H. Enforcement Mechanisms
Administrative:
- California Division of Labor Standards Enforcement (DLSE / Labor Commissioner)
- File wage claim (no fee)
- Berman hearing process
- Can recover wages, interest, penalties, waiting time
Private Right of Action:
- Lab. Code Section 1194: Minimum wage and overtime claims
- Lab. Code Section 226: Wage statement claims
- PAGA representative actions
- Class actions under Cal. Code Civ. Proc. Section 382
I. California Exemption Tests
California applies stricter exemption tests than federal law:
Salary Requirement:
- Must be paid at least 2x state minimum wage for full-time work
- 2026: $16.50 x 2 x 2080 = $68,640 minimum annual salary
Duties Test (Narrower than Federal):
- Employee must be "primarily engaged" in exempt duties
- "Primarily engaged" means more than 50% of work time
- Ramirez v. Yosemite Water Co. (1999) 20 Cal.4th 785
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present] in California. [Company Short Name] violated California and federal wage laws by:
[ ] Failing to pay California minimum wage of $16.50/hour [or local minimum of $[X]]
[ ] Failing to pay daily overtime at 1.5x for hours over 8/day
[ ] Failing to pay weekly overtime at 1.5x for hours over 40/week
[ ] Failing to pay double time at 2x for hours over 12/day or on 7th consecutive day
[ ] Misclassifying our client as exempt without meeting California's strict requirements
[ ] Misclassifying our client as an independent contractor in violation of AB 5 / Lab. Code Section 2750.3
[ ] Failing to provide compliant meal periods
[ ] Failing to provide compliant rest periods
[ ] Failing to pay meal period premium when meal periods not provided
[ ] Failing to pay rest period premium when rest periods not provided
[ ] Failing to pay all wages upon termination as required by Lab. Code Sections 201-202
[ ] Failing to provide accurate, itemized wage statements under Lab. Code Section 226
[ ] Failing to reimburse necessary business expenses under Lab. Code Section 2802
[ ] Making unlawful deductions from wages
[ ] Illegally taking a tip credit (California prohibits all tip credits)
[ ] Engaging in unlawful tip pooling
[ ] Rounding time in a manner that results in underpayment
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in California] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/salary] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Semi-monthly / Bi-weekly] |
| Applicable Wage Order | [Wage Order Number, e.g., IWC Wage Order 4 (Professional/Technical)] |
B. Hours Worked
Typical Weekly Schedule:
| Day | Scheduled | Actual Hours | Hours Over 8 | Meal Period? | Rest Periods? |
|---|---|---|---|---|---|
| Monday | [X:XX-X:XX] | [X.X hrs] | [X hrs] | [Y/N] | [X of X] |
| Tuesday | [X:XX-X:XX] | [X.X hrs] | [X hrs] | [Y/N] | [X of X] |
| Wednesday | [X:XX-X:XX] | [X.X hrs] | [X hrs] | [Y/N] | [X of X] |
| Thursday | [X:XX-X:XX] | [X.X hrs] | [X hrs] | [Y/N] | [X of X] |
| Friday | [X:XX-X:XX] | [X.X hrs] | [X hrs] | [Y/N] | [X of X] |
| Saturday | [X:XX-X:XX] | [X.X hrs] | [X hrs] | [Y/N] | [X of X] |
| Sunday | [X:XX-X:XX] | [X.X hrs] | [X hrs] | [Y/N] | [X of X] |
| Weekly Total | [X hrs] | [X hrs] |
C. Meal and Rest Period Violations
Meal Period Violations:
- Number of workdays meal period not provided: [X days]
- Premium pay owed: [X days] x $[hourly rate] = $[Amount]
Rest Period Violations:
- Number of workdays rest period not provided: [X days]
- Premium pay owed: [X days] x $[hourly rate] = $[Amount]
IV. LEGAL ANALYSIS
A. California Labor Code Violations
1. Minimum Wage (Lab. Code Section 1194)
California's minimum wage of $16.50/hour [or local rate of $[X]] applies to all employees. [Company Short Name] failed to pay this rate by [describe violation].
2. Overtime (Lab. Code Section 510)
California requires:
- 1.5x pay for hours over 8 in a day
- 1.5x pay for hours over 40 in a week
- 2x pay for hours over 12 in a day
- 2x pay for hours over 8 on the 7th consecutive day
Our client regularly worked [X]-hour days and [X]-hour weeks without proper overtime compensation.
3. Meal Period Violations (Lab. Code Section 512)
[Company Short Name] failed to provide compliant 30-minute, uninterrupted, duty-free meal periods. Under Brinker, the employer must provide the opportunity for a meal period, not merely make it available. [Describe specific violations]
4. Rest Period Violations (IWC Wage Orders)
[Company Short Name] failed to authorize and permit required 10-minute rest periods. [Describe specific violations]
5. Waiting Time Penalties (Lab. Code Section 203)
Our client's employment terminated on [Date]. [Company Short Name] failed to pay all wages due [immediately upon discharge / within 72 hours of resignation]. Waiting time penalties continue to accrue up to 30 days.
Daily Rate: $[Hourly Rate] x [Hours Worked/Day] = $[Daily Rate]
Waiting Time Penalties: $[Daily Rate] x 30 days = $[Maximum Penalties]
6. Wage Statement Violations (Lab. Code Section 226)
[Company Short Name]'s wage statements failed to include [describe missing/inaccurate information]. These violations are "knowing and intentional" because [explain].
B. Misclassification Analysis
[If applicable:]
Exempt Misclassification:
[Company Short Name] classified our client as exempt from overtime. This classification fails under California's strict tests because:
- Salary below threshold: Our client earned $[Salary], below the required $68,640 minimum
- Primarily engaged test: Our client spent more than 50% of work time on non-exempt duties including [describe]
- Ramirez v. Yosemite Water Co., 20 Cal.4th 785
Independent Contractor Misclassification (AB 5):
[Company Short Name] classified our client as an independent contractor. Under the ABC test codified in Lab. Code Section 2750.3:
| Factor | Analysis |
|---|---|
| A - Free from control | Company controlled [work schedule, methods, equipment] |
| B - Outside usual course of business | Work was [within company's core business] |
| C - Customarily engaged in independent trade | Our client [did not have independent business] |
V. DAMAGES CALCULATION
A. California Labor Code Damages
Relevant Period: [3 years prior to anticipated filing] to [End Date / Present]
Total Weeks: [X weeks]
Total Workdays: [X days]
1. Unpaid Overtime
| Period | Daily OT Hrs/Wk | Rate | Premium (0.5x) | Weeks | Daily OT Total |
|---|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Period | Weekly OT Hrs/Wk | Rate | Premium (0.5x) | Weeks | Weekly OT Total |
|---|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Period | Double Time Hrs/Wk | Rate | Premium (1.0x) | Weeks | DT Total |
|---|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
Overtime Subtotal: $[Amount]
2. Meal Period Premiums
| Period | Violations | Hourly Rate | Total |
|---|---|---|---|
| [Period] | [X days] | $[X.XX] | $[Amount] |
3. Rest Period Premiums
| Period | Violations | Hourly Rate | Total |
|---|---|---|---|
| [Period] | [X days] | $[X.XX] | $[Amount] |
4. Waiting Time Penalties (Lab. Code Section 203)
| Daily Rate | Days (up to 30) | Total |
|---|---|---|
| $[X.XX] | [X] | $[Amount] |
5. Wage Statement Penalties (Lab. Code Section 226)
| Violation Type | Number | Penalty | Total |
|---|---|---|---|
| First violation | 1 | $50 | $50 |
| Subsequent | [X-1] | $100 | $[Amount] |
| Maximum | $4,000 |
6. Unreimbursed Expenses (Lab. Code Section 2802)
| Expense Type | Amount |
|---|---|
| [Cell phone] | $[Amount] |
| [Mileage] | $[Amount] |
| [Other] | $[Amount] |
| Total | $[Amount] |
B. PAGA Penalties (If Applicable)
| Violation Type | Employees | Pay Periods | Penalty | Total |
|---|---|---|---|---|
| [Overtime] | [X] | [X] | $100/$200 | $[Amount] |
| [Meal periods] | [X] | [X] | $100/$200 | $[Amount] |
| [Rest periods] | [X] | [X] | $100/$200 | $[Amount] |
| PAGA Total | $[Amount] |
Employee share (25%): $[Amount]
C. Summary of Individual Damages
| Category | Amount |
|---|---|
| Unpaid Overtime (Daily) | $[Amount] |
| Unpaid Overtime (Weekly) | $[Amount] |
| Double Time | $[Amount] |
| Meal Period Premiums | $[Amount] |
| Rest Period Premiums | $[Amount] |
| Waiting Time Penalties | $[Amount] |
| Wage Statement Penalties | $[Amount] |
| Unreimbursed Expenses | $[Amount] |
| PAGA Penalties (25%) | $[Amount] |
| Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the extensive California Labor Code violations, we demand payment of $[Settlement Demand Amount] to resolve all claims.
This represents a significant discount from full exposure at trial, which would include:
- Full unpaid wages and premiums
- All statutory penalties
- PAGA penalties
- Interest
- Substantial attorney's fees under Lab. Code Section 1194
This demand will remain open for twenty-one (21) days, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If not resolved, we will:
- File a complaint with the DLSE/Labor Commissioner
- File a PAGA notice with the LWDA
- File suit in California Superior Court seeking:
- All unpaid wages
- Meal and rest period premiums
- Waiting time penalties
- Wage statement penalties
- PAGA penalties
- Interest
- Attorney's fees and costs - Alternatively or additionally, file in U.S. District Court (Central, Northern, Eastern, or Southern District of California)
- Seek class certification and/or PAGA representative status
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
Immediately preserve all documents including:
- Time and attendance records (electronic and paper)
- Payroll records and pay stubs
- Meal and rest period records and acknowledgments
- Personnel files and job classifications
- Employee handbooks and policies
- Scheduling software and data
- Manager emails regarding timekeeping
- Training materials
- Prior DLSE complaints or investigations
- Expense reimbursement records
- Tip records (if applicable)
Sincerely,
[Attorney Name]
[State Bar of California No.]
[Firm Name]
CALIFORNIA-SPECIFIC PRACTICE NOTES
[ ] Daily Overtime: California's daily overtime is separate from weekly; calculate both
[ ] Double Time: Don't forget 2x rate for 12+ hours/day and 7th day overtime
[ ] Meal/Rest Premiums: One hour at regular rate for each workday violation; can stack
[ ] Waiting Time Penalties: Can exceed actual wages owed; powerful leverage
[ ] No Tip Credit: California prohibits all tip credits; servers must receive full minimum wage
[ ] Local Minimum Wages: Check city/county ordinances; many exceed state rate
[ ] PAGA: Consider filing PAGA notice early; 65-day waiting period
[ ] Exemption Salary Threshold: Must be 2x minimum wage; higher than federal threshold
[ ] Primarily Engaged Test: California requires 50%+ time on exempt duties
[ ] AB 5 / ABC Test: Strict independent contractor test; presume employee status
[ ] DLSE Contact:
- Statewide: (844) 522-6734
- Website: dir.ca.gov/dlse
- Online wage claim filing available
[ ] Statute of Limitations Strategy:
- Wages: 3 years
- Penalties: 1 year
- File promptly to maximize penalty recovery