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• Failure to Pay Wages, Overtime, Commissions

Minimum Wage

Minimum wage laws in the United States are laws setting the lowest hourly pay that a worker can earn per hour of work.  The federal minimum wage is $7.25 per hour, with many states having higher minimum wages, including California with a minimum wage of $16.50. 

Minimum wage laws are designed to protect employees and ensure workers receive a certain level of compensation for the time they have worked. Federal, state and local minimum wages for all or nearly all workers generally require the employer to meet the highest minimum wage law or run afoul of local, state or federal rules.  Workers who do not receive the minimum required wages or salary can pursue unpaid wages, typically with penalties. 

Federal Minimum Wage 

The Fair Labor Standards Act (FLSA), established in 1938, set the first federal minimum wage. The federal minimum wage sets the lowest hourly pay rate that employers must provide to covered, non-exempt employees. As of 2024, the federal minimum wage is $7.25 per hour, the since 2009. The FLSA outlines specific categories of workers who are entitled to this wage, as well as certain exemptions. 

State and Local Minimum Wage Laws 

Many states and local municipalities have their own higher minimum wage rates to account for cost-of-living differences. Where state or local minimum wage laws mandate a higher wage than federal, employers must comply with the higher wage. 

For example:  If you work an hourly job in Emeryville, California, you are subject to a federal minimum wage of $7.25.  You are also subject to a California minimum wage of $16.50, as of 2025.  You are also further subject to a city minimum wage of $19.36 per hour.  As $19.36 per hour is the largest minimum wage law in effect in Emeryville, the minimum wage a worker should receive who is eligible to be covered by these laws would be $19.36. 

Some laws can affect only workers in some jurisdictions who have certain job titles, perform specific types of labor, or work in specific industries.  For example in California, a separate law setting a minimum wage of $20 per hour for some fast food workers was passed in 2024. Workers who fit the requirements of that law would have a minimum wage of $20.00. Generally, employers must comply with the largest minimum wage law in effect on the worker at the time they perform their labor. 

2025 State Minimum Wage 

Minimum wage rates across the United States vary significantly by state, below is a overview of each state’s minimum wage for 2025: 

Penalties for Not Paying Minimum Wages 

Employers who violate federal, state, city or county minimum wage laws may face significant penalties, including fines, back pay, and in some cases even criminal charges. The consequences can vary depending on the nature of the violation, the extent of non-compliance, and whether the violation was intentional. 

Federal Penalties Under the Fair Labor Standards Act (FLSA) 

Employers found in violation of minimum wage federal law may face the following consequences: 

1. Back Pay 
   • Employers are required to pay the affected employees all unpaid wages. 
2. Liquidated Damages 
   • Additionally, employees may be entitled to liquidated damages equal to the amount of unpaid wages unless the employer can demonstrate that the violation was in good faith. Liquidated damages doubles the amount owed to employees. If they owed $1,000 in unpaid wages, damages of $1,000 bring that total to $2,000. 
3. Civil Money Penalties 
   • Employers who repeatedly or willfully violate minimum wage laws may be subject to civil money penalties. Willful violations involve situations where the employer knowingly disregarded legal obligations or acted with careless indifference. 
4. Injunctions and Legal Orders 
   • Courts can issue injunctions to limit further violations. These orders may require employers to change payroll practices, correct classification errors, or provide training to management. 
5. Retaliation Penalties 
   • Employers are prohibited from retaliating against employees who report wage violations. Retaliation may result in additional damages. 

California Penalties for Minimum Wage Violations 

Under California law, employees who are not paid the required minimum wage are entitled to recover multiple types of damages. Damages are designed to both compensate for lost wages and penalize non-compliant employers. California unpaid wage damages can be substantial, especially if violations are prolonged or intentional. Damages include: 

1. Back Pay 
   • Employers are required to pay the affected employees all unpaid wages. 
2. Liquidated Damages 
   • Under California Labor Code § 1194.2, employees are entitled to liquidated damages in an amount equal to the unpaid wages. Liquidated damages doubles the amount owed to employees. If they owed $1,000 in unpaid wages, damages of $1,000 bring that total to $2,000. 
3. Interest on Unpaid Wages 
   • Under California Civil Code § 3289(b)Employees can recover interest of 10% per year on unpaid wages. Wages of $1,000 owed 1 year ago would have interest due of $100. 
4. Waiting Time Penalties 
   • Under California Labor Code § 203, if an employer willfully fails to pay all wages owed at the time of termination or resignation, the employer may owe waiting time penalties. The penalty equals an employees daily wage for each day the wages remain unpaid, up to 30 days.  An employee earning $100 per day could claim up to $3,000 in waiting time penalties. 
5. Wage Statement Penalties  
   • Under California Labor Code § 226, employers who fail to provide accurate wage statements reflecting the correct wages earned may owe additional penalties of $50 or $100 per wage period. 
6. Civil Penalties and Attorneys Fees 
   • Employers may also face additional civil penalties, and employees who recover lost wages can also have their attorney’s fees and costs recovered. 
7. Private Attorney General Act 
   • The Private Attorney General Act (PAGA) allows employees to recover additional penalties on behalf of the state.  These penalties are partially paid to employees and the rest to the state.

Overtime and Minimum Wages 

Federal law requires hourly workers receive overtime pay of one and half times their hourly rate for hours worked over 40 hours per week.  As such, an employee earning the minimum federal wage of $7.25 per hour, who works 50 hours a week, should receive a wage of $10.88 per hour for hours worked over 40. 

State laws can make overtime more prevalent.  California requires time and a half overtime for hours over 8 per day for hourly workers, as well as double time for hours over 12.  So a worker working four 13hour shifts per week could receive 16 hours of time and a half pay, and 4 hours of double time pay, and only 32 hours of regular pay (8 hours of regular pay, 4 hours of overtime time and a half, 1 hour of double time, per shift). With the California minimum wage now at $16.50 per hour in 2025, California minimum pay during overtime is $24.75 and double time is $33 per hour. 

Minimum Wage Laws by Industry 

Some states have established higher minimum wages for workers in specific job roles or industries. 

An example is California, which passed the Healthcare Minimum Wage Law, in effect as of January 1st, 2025. This law establishes multiple new minimum wages, such as a minimum wage for large healthcare facilities, defined as those with 10,000 or more full time employees, have higher minimum wages. Other categories include minimum wages for facilities with large portions of payment coming from government services such as Medicare and Medicaid. [[Once blog drafted on topic, link here]] 

California Local Minimum Wage Laws 

In addition to the minimum wage of $16.50 in California, local counties and cities maintain many higher minimum wage ordinances. See below: 

 Can I Be Paid Below Minimum Wage for Daily Work? 

Day rate, or piece rate payments should exceed federal minimum wages and the higher minimum wages in most states and local jurisdictions, depending on any exceptions those laws have for their minimum wage calculations.  

Workers should also expect federal laws to require overtime to be paid even if on a day rate or piece rate when work exceeds 40 hours per week. Some states such as California have additional overtime rules, requiring overtime daily after 8 hours.  

Can I Agree to Be Paid Below Minimum Wage? 

The minimum wage is an obligation of the employer and cannot be waived by any agreement, including collective bargaining agreements. The minimum wage applies to adults and children.   

There are some employees who are exempt from the minimum wage laws. These groups include workers who are directly related to the employer (parent, spouse, child), and some other exemptions.   

Unpaid Minimum Wage Lawyers 

If you believe you are not being paid for all of the time you have worked, are not being paid the proper minimum wage, or are not being paid the overtime due to you, we invite you to schedule a consultation with an employment law attorney in our California, Texas, Washington D.C. or Puerto Rico offices. Schneider Wallace Cottrell Konecky LLP is a national law firm that represents employees in a wide range of employment law cases, including class action lawsuits involving the failure to pay wages, overtime pay and commissions. Contact us at 1-800-689-0024.