This section is punitive in nature. It operates to penalize an employer who is doing business in California for any wage and hour code violations. The legislature included civil penalties that are on top of any wage arrearages that are owed to employees. California Labor Code section 558 states that for a first violation, there is a penalty of $50 for each pay period for each underpaid employee. For a subsequent violation, the penalty is increased to $100 for each underpaid employee for each pay period. Whether it’s an initial or subsequent violation, the penalty is in addition to an amount sufficient to recover the unpaid wages. Recovered wages are to be paid directly to the affected employees.
Alternative Compensation Routes
Note that employees might be able to sue the employer under section 1194 of the California Labor Code, so long as arbitration of such a dispute hasn’t been agreed upon. They might also bring an action to compel payment pursuant to California’s Private Attorney General Act, but even if they’re 100% successful in their lawsuit, they would only see 25% of their penalties awarded to them. The balance would go to the state.
If you believe that your employer has been committing wage and hour violations, contact our law firm to consult with an effective employment law attorney.
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