The Californian Labor Commissioner’s Office was handling almost 47,000 wage-theft claims that were still pending by the end of the fiscal year 2022–2023. The scenario indicates that the employees are not getting the complete sum of their wages timely, as they are made to wait for very long.
This increasing backlog signals the expensive risks of violating labor laws. It is the employees and the companies who are sharing the costs of noncompliance, with the latter being heavily fined for breaking the corresponding labor laws in California.
As a business owner, you have to know very well the huge penalties that come with labor law violations in California. Monetary fines can be very severe and they could range from safety violations to wage theft layers.
The penalties can affect your profits and also lead to lawsuits from employees. Understanding the risks is very important if you aim to have a compliant organization that prioritizes the wellness of its workers.
Here are the specific penalties in California’s labor laws that you should be aware of.
Unpaid Wages and Overtime Penalties
Unpaid wages and overtime penalties can create significant financial strain for workers in California.
Sometimes, employees work with a heavy heart when they are not getting paid accordingly. When employers fail to pay you for your time, the delay not only causes you to miss your paycheck but also results in compromising your stability and affecting your peace of mind.
When extra hours are put in at work without getting paid for them, penalties, overtime in this case, could stack up. Hence, knowing and confirming your rights is very important. It not only helps you but also reinforces the whole workers’ community.
Misclassification of Employees
Being wrongly marked as an independent contractor instead of an employee by your employer can result in you losing critical benefits and protections. Misclassification might lead to your exclusion from health insurance and retirement and unemployment benefits. These results might lead to feelings of distrust in yourself later on.
In the United States, the difference between an employee and a contractor impacts the whole area of taxation, insurance, and liabilities along with wages and overtime pay. These legal definitions establish your rights, including minimum wage and overtime pay, as well as other rights typically granted to employees. To prevent lawsuits that can seriously harm the reputation of a business, employers should be cautious in classifying their workers.
According to business lawyer Daniel Tercero, individuals planning to start a new business can rely on lawyers for help. If you are starting a limited liability company (LLC), a corporation, a limited partnership, or a general partnership, or if you have questions about the pros and cons of being an unincorporated sole proprietor, contacting a law firm or a lawyer can give you the adequate legal assistance to get started. These legal professionals will see to it that you comply with existing labor laws.
Although overtime pay and minimum wage are basic rights, they may not be accessible to independent contractors or freelancers. In most cases, the classification of an employee or a contractor is an important factor in determining the rights and claims.
In case you feel you are misclassified as an independent contractor, do take action and present your argument. Also, it will be a struggle for you to claim your rights and have your view acknowledged unless you join forces with other people in your situation.
Retaliation and Discrimination Violations
In the legal aspect, one’s knowledge of the rights concerning workplace retaliation or discrimination is certainly the most essential thing to grasp in California. When it comes to workplace issues, no one should fear being retaliated against by his or her employer simply because they reported harassment or contributed as a witness during the investigation. Protection under the law is provided to all workers irrespective of their race, sex, or whatever feature they have.
If you are convinced that you belong to the group of affected persons, you may file a complaint with the California department of Fair Employment and Housing (DFEH).
The right to work under safe and respected conditions is everlasting for you. You will have support throughout the process. Expressing your rights might motivate others to do so, which will eventually form a more accepting working environment. Therefore, do not think twice about seeking help and taking steps.
Failure to Provide Required Breaks
The law in California clearly outlines specific break times for workers, which some may underestimate, but these breaks are essential for workers’ health and efficiency.
Whatever the case may be, 10 minutes of break are granted to every worker at the end of 4 hours of work, and if the shift is longer than 5 hours, 30 minutes of lunch break will be given as a rule.
Breaks are not only a worker’s right, but they are also a necessity that applies to everyone in the company. It has an impact on the company’s overall productivity.
If your boss forbids you to take your breaks at the times scheduled, he or she is breaking the law and might get punished in court. Knowing your rights is a must. It will strengthen not only your position but also that of your co-workers.
Penalties for Health and Safety Violations
Not following safety precautions can result in major penalties. This ranges from several thousand to tens of thousands of dollars and more, depending on the extent of the breach.
If the same infringement is tolerated repeatedly by you or if it is discovered that you are taking the risk on purpose, the penalties may be even bigger. Companies may face lawsuits when employees get injured on the job. It also happens when inspections result in bad publicity.
Ensuring the safety of a workplace does not only protect the employees. It also helps the company’s reputation and avoids penalties from authorities. In prioritizing health and safety, you are providing your employees with the sense of community and concern, which is a prerequisite for the total success of your enterprise.
