Is There a Difference Between Unpaid Wages and Wage Theft in California?

The terms that you hear at work in California can get confusing, especially when you find yourself in a situation where you’re not being paid correctly. This only increases if you try to file a claim, where you come across language talking about “wage theft” and “unpaid wages.” Out of this, many questions come up about the differences–if there are any. Our team at Ferraro Vega Employment Lawyers can answer your questions in a free consultation. Set up yours today.

Is There a Difference Between Unpaid Wages and Wage Theft?

A lot of workers hear the term “wage theft” and think it only applies to extreme cases—like when your employer completely refuses to pay you. But under California law, wage theft can happen in much smaller, everyday ways. The difference between unpaid wages and wage theft usually comes down to:

• Why you weren’t paid, and;
• Whether your employer did it on purpose.

Here’s a closer look at the two:

• Unpaid wages. Sometimes, missing pay is just a mistake. Maybe payroll missed your overtime hours, or your timecard didn’t get approved in time. These things still matter—they’re violations—but they’re often unintentional. Some examples of unpaid wages are:
  • Payroll errors or delays.
  • Missing overtime or missed meal/rest break pay because of a timekeeping issue.
  • A final paycheck that’s late but gets corrected quickly.

When your employer fixes the problem right away, it’s typically treated as an unpaid wage issue, not theft. With that said, these situations are usually indicative of the much bigger issue of wage theft.

• Wage theft. Wage theft happens when your employer knowingly withholds or avoids paying the money you’ve earned. It’s not a mistake—it’s deliberate. California law makes this illegal, whether it’s a big company or a small local business. Here’s how it usually happens:
  • Asking you to work off the clock.
  • Refusing to pay overtime or double-time.
  • Misclassifying you as an “independent contractor” or “manager” to avoid paying overtime.
  • Making you pay for uniforms or equipment out of your own pocket.
  • Taking unlawful deductions from your paycheck.
  • Not paying you your final wages when you leave the job.

Both unpaid wages and wage theft are against the law, and so if you find yourself in a situation where one–or both–have happened to you, it gives you options

What Options Do I Have For Wage Theft or Unpaid Wages?

When your paycheck doesn’t match the hours you worked, it’s discouraging. It might be a simple payroll mistake—or it might be something more serious. Either way, you have options to recover what you’ve lost (and potentially more):

• File a claim with the Labor Commissioner’s Office. You can start by filing a claim with California’s Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner’s Office. They’re the state agency that handles both unpaid wage and wage theft claims.

Once you file, they’ll look into what happened to figure out whether it was an honest payroll mistake or something more serious. If the investigation shows your employer broke the law, they can order your employer to pay you what you’re owed—and if it was intentional, they can add extra penalties on top of that.

It’s a straightforward process that doesn’t require going to court, and for many workers, it’s the simplest way to make things right and hold an employer accountable.

• Make a formal demand. If your employer keeps making excuses or refuses to fix the problem, formal demand can make it clear that you’re serious. You can do this directly, or our team can put together a “demand letter” that spells out exactly what you’re owed and points to the specific California laws your employer may be violating. Sometimes, it’s enough.
• File a lawsuit. When your employer intentionally withholds pay, falsifies records, or repeats the same behavior with others, that’s not just an oversight—it’s wage theft. At that point, you can file a civil lawsuit or, if multiple employees are affected, join a class action. Through a lawsuit, you may be able to recover damages that include:
  • Unpaid wages and overtime
  • Missed meal and rest break pay
  • “Liquidated damages” (which double your unpaid wages in many cases)
  • Attorney’s fees and court costs

In California, you generally have up to three years from the date of the unpaid or stolen wages to file a claim. But the sooner you act, the easier it is to prove your case—especially if your employer has a history of shorting workers.

Contact Ferraro Vega Employment Lawyers For an Unpaid Wage or Wage Theft Claim in California

When you’re not being paid what you’ve earned, it can leave you feeling powerless. You start to wonder if speaking up will even make a difference—or if it might just make things worse. The truth is, you don’t have to handle it alone. Our California unpaid wage lawyers at Ferraro Vega Employment Lawyers can help you through either situation by:

• Making sense of your situation.
• Helping gather records and evidence to build your claim.
• Handling all the talks with your employer so you don’t have to worry.
• Protecting you from retaliation
• Filing claims and making sure you’re paid.

It might not feel like it, but taking advantage of your legal options in this situation is a way to not just make things right for you, but perhaps hundreds of others. It takes courage to stand up to your employer, but with our team on your side, you can make sure you’re paid what you’re owed. To get started, reach out today for a free consultation.