EmploymentQuestion 896 of 1632
A contractor pays a worker below the applicable California minimum wage but claims the worker 'agreed' to the lower rate in writing. Is this agreement enforceable?
a.No, but only if the worker later complains to the employer first
b.Yes, because employees may waive minimum wage by written contract
c.No, because minimum wage cannot be waived by agreement
d.Yes, if the worker is paid in cash
Explanation
Under Labor Code §1197, the minimum wage set by the Industrial Welfare Commission is the minimum an employer may lawfully pay, and paying less is illegal. An employee cannot waive the right to minimum wage by agreement; Labor Code §1194 makes such agreements void and lets the worker recover the unpaid balance regardless of any 'agreement.' Method of payment (cash or check) is irrelevant to the violation.
Law Reference: Labor Code §1197This topic, taught in full in the CSLB Law & Business guide. CSLB Law & Business — Complete Study Guide (2026) — PDF + EPUB, $24.99 · 14-day refund →
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)