Opinion ID: 2567023
Heading Depth: 2
Heading Rank: 1

Heading: Overview: State Remedies for Unpaid Overtime

Text: An employee's wage rights may be provided for in an employment contract and also are closely regulated by statute. The Labor Code [4] prescribes such matters as the time and manner of paying wages, minimum wage requirements, and mandatory overtime pay. . . . ( Cuadra v. Millan (1998) 17 Cal.4th 855, 858, 72 Cal. Rptr.2d 687, 952 P.2d 704; see § 510, subd. (a).) [5] In addition, the Industrial Welfare Commission (IWC) is empowered to formulate regulations (known as wage orders) governing employment in the State of California. ( Tidewater Marine Western, Inc. v. Bradshaw (1996) 14 Cal.4th 557, 561, 59 Cal.Rptr.2d 186, 927 P.2d 296 ( Tidewater ).) The IWC has promulgated 18 orders that remain in force today, 16 relating to specific industries and occupations, one general minimum wage order that applies to all California employers and employees (excluding public employees and outside salespersons), and one order implementing the Eight-Hour-Day Restoration and Workplace Flexibility Act (Stats.1999, ch. 134). (See Cal.Code Regs., tit. 8, § 11000 et. seq.; especially id., § 11090, Order Regulating Wages, Hours, and Working Conditions in the Transportation Industry (hereafter Wage Order No. 9).) The latter, Wage Order No. 9, is the IWC wage order applicable to persons employed in an automobile painting business. (See Wage Order No. 9, subd. 2(N).) The Division of Labor Standards Enforcement (DLSE), headed by the Labor Commissioner, is empowered to enforce California's labor laws, including IWC wage orders. ( Tidewater, supra, 14 Cal.4th at pp. 561-562, 59 Cal.Rptr.2d 186, 927 P.2d 296.) The Labor Commissioner is required to determine all matters arising under his or her jurisdiction, including questions concerning the employment status of any wage claimant. ( Post v. Palo/Haklar & Associates (2000) 23 Cal.4th 942, 947, 98 Cal.Rptr.2d 671, 4 P.3d 928, citing § 98, subd. (a).) The Legislature also has provided California workers a private right of action to vindicate their overtime rights. (See § 1194, subd. (a).) Pursuant to the foregoing scheme, if an employer fails to pay wages in the amount, time or manner required by contract or by statute, the employee has two principal options. The employee may seek judicial relief by filing an ordinary civil action against the employer for breach of contract and/or for the wages prescribed by statute. (§§ 218, 1194.) Or the employee may seek administrative relief by filing a wage claim with the commissioner pursuant to a special statutory scheme codified in sections 98 to 98.8. The latter option was added by legislation enacted in 1976 (Stats.1976, ch. 1190, §§ 4-11, pp. 5368-5371) and is commonly known as the Berman hearing procedure, after the name of its sponsor. ( Cuadra v. Millan, supra, 17 Cal.4th at p. 858, 72 Cal.Rptr.2d 687, 952 P.2d 704.) We also have recognized that, in an action brought pursuant to the Unfair Competition Law (Bus. Prof.Code, 17200 et seq.), an employee may recover payment of unlawfully withheld wages as a restitutionary remedy. ( Cortez v. Purolator Air Filtration Products Co. (2000) 23 Cal.4th 163, 177, 96 Cal.Rptr.2d 518, 999 P.2d 706.) In addition to the foregoing avenues for the recovery of wages, the Labor Commissioner or the employee may seek certain civil penalties when the employee is not paid statutorily guaranteed wages. (See, e.g., §§ 210 [penalty for failure to pay statutorily prescribed wages], 225.5 [penalty for unlawfully withholding wages], 558 [penalty for violating chapter or IWC order].) And under the recently enacted Labor Code Private Attorneys General Act of 2004 (§ 2698 et seq., added by Stats. 2003, ch. 906, § 2), [n]otwithstanding any other provision of law, any provision of [the Labor C]ode that provides for a civil penalty to be assessed and collected by the Labor and Workforce Development Agency or any of its departments, divisions, commissions, boards, agencies or employees ... may, as an alternative, be [enforced, and the penalty] recovered through a civil action brought by an aggrieved employee on behalf of himself or herself and other current or former employees (§ 2699, subd. (a)).