EmploymentQuestion 262 of 1632

An employer pays an employee below the legal minimum wage. Labor Code §1197.1 authorizes a civil penalty for an initial intentional violation of:

a.No penalty at all for a first offence, only back wages
b.$25 for each underpaid employee, counted once per case
c.$100 per underpaid employee for each pay period
d.$10,000 flat, whatever the number of employees

Explanation

Labor Code §1197.1(a)(1) sets $100 for each underpaid employee for each pay period of an initial intentional minimum-wage violation, and §1197.1(a)(2) raises it to $250 per underpaid employee per pay period for each subsequent violation of the same offence. The penalty is on top of the underpaid wages themselves, liquidated damages under §1194.2 and any §203 waiting-time penalty, so a first offence is never penalty-free and never a bare repayment of wages. The $25 figure belongs to no minimum-wage provision, and no flat sum replaces the per-employee, per-pay-period count.

Law Reference: Labor Code §1197.1(a)(1), §1197.1(a)(2); §1194.2; §203

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