What you need to know about wage theft and retaliation

According to a 2017 report by the Economic Policy Institute, which gathered data from the ten most populated states in the U.S., including California, approximately 2.4 million workers lose $8 billion each year because of minimum wage violations. This translates to an average annual loss of $3,300 for full-time, year-round workers.

Wage theft happens when employers do not meet their legal obligations in compensating workers for their labor. This includes failing to pay at least the minimum wage, neglecting to provide overtime or double-time pay and denying required meal and rest breaks. 

California Labor Commissioner Lilia García-Brower, in conversation with CALÓ News, explained that employers are also responsible for “making sure that workers are compensating for whatever expenses that they may have […] something employer requires them to use, particular types of gloves or shoes or rain gear that needs to be provided by the employer […] so that they are reimbursed for those types of business expenses.”

 The study also found that workers who are paid less than the minimum wage are much more likely to live in poverty, more than three times as likely as a typical worker eligible for the minimum wage.

“We're not talking about an isolated violation of law. We're talking about employers whose mode of operation is to systematically rob workers of their wages,” said García-Brower. She explains that in certain low-wage industries, systemic wage violations are a recurring issue, often taking the form of flat-rate contracting piece-rate payments that fail to meet minimum wage and overtime requirements, and cash payments designed to evade record-keeping. These practices are particularly prevalent in industries such as agriculture, garment manufacturing, warehousing, domestic work, residential care, construction—including the day labor sector—and car washes.

For her, these industries rely heavily on an immigrant workforce, many of whom face significant vulnerabilities. With many workers having English as a second language, they often struggle to understand workplace protections and the processes to access them. Additionally, past exclusions from government services—such as healthcare, education, a broken immigration system or challenges with law enforcement—create further barriers. These factors make it difficult for immigrant workers to seek out information on how to defend their rights in the workplace, leaving them more susceptible to unfair treatment.

Another element that plays a role is the fear of retaliation. The commissioner describes that when workers exercise their legal rights, such as demanding the minimum wage or requesting paid sick days, they should be protected from retaliation by their employers. Unfortunately, it often manifests in harmful ways—like reduced hours, reassignment to less convenient or more distant worksites or even termination—all in an attempt to punish the worker for asserting their rights.

To prove retaliation, however, there must be a clear connection between the worker's protected action and the employer's response. “To win a retaliation case, you have to demonstrate that the employer had knowledge. The employer knew you were exercising your right,” said García-Brower. In this sense, making a complaint stating the name of the worker is crucial. “If you made a confidential complaint, right? How are we going to show that it was you who complained? […] That's a myth that workers think they're safer when they are silent, but actually, they are more protected legally when they document them exercising their rights.”

Education is essential. To make this information more accessible, the commissioner’s office has taken proactive steps to reach communities directly. In the Inland Empire, they have partnered with TODEC Legal Center to offer workshops and clinics in Perris, Victorville, Indio and Coachella. They also plan to expand their outreach to more cities throughout the year.

In Los Angeles, they collaborate with the Koreatown Immigrant Workers Alliance (KIWA) and the Garment Worker Center among other organizations. Individuals interested in joining the sessions can reach out to the office at WRAP@dir.ca.gov for more information or visit the website wagetheftisacrime.com, also available in Spanish.  Additional resources include the "How to File a Wage Claim" guide, available in Spanish as well.

Beyond workers, the office has also strengthened its efforts to educate employers through its Business Engagement Program. According to García-Brower, in 2024 alone, the program trained over 11,000 employers responsible for more than six million workers, ensuring they understand and comply with labor laws. Those interested in participating in these training meetings can contact the office at makeItFair@dir.ca.gov.

Over the past three years, the California Labor Commissioner’s Office has processed more than 70,000 wage claims, successfully recovering millions of dollars for workers. One notable example is a 2024 case in which the office secured a $1.7 million settlement against the owner of five Wingstop locations in Bakersfield.

The investigation revealed that between 2019 and 2022, the businesses were structured as separate corporations despite having a single owner. This arrangement was intended to bypass labor laws. By handling each location as an independent employer, the owner managed to compensate workers with a reduced minimum wage meant for small employers with 25 or fewer employees.

“Employees scheduled to work at more than one Wingstop in one day were denied overtime pay when they worked more than eight hours in a workday or 40 hours in a workweek. […] [the owner] avoided paying missed meal break premiums to staff when scheduling them at more than one location. Additionally, employees were not compensated for off-the-clock work during their time traveling from one location to another,” indicated the office press release.  

As a result of the action, approximately 550 workers will receive compensation, with the franchisee required to pay $5 for every $1 owed initially.

“It is a very scary time for our state and this country, so we share those concerns. However, we are focused on doing our job because the federal government does not impact the law in California […] It is the duty of the Labor Commissioner's Office to educate workers and to enforce State law. Immigration status is not relevant. We do not ask about immigration status,” said García-Brower, adding that California has led efforts to strengthen protections for immigrant workers, preventing employers from using immigration status to exploit them.

Laws such as the Immigrant Worker Protection Act prohibit employers from voluntarily granting ICE access or sharing records without a judicial warrant while ensuring compliance with federal law. The office continues to communicate these protections to both workers and employers, ensuring they understand their rights and obligations.