EmploymentQuestion 957 of 1605
An employer is found to have paid several workers below minimum wage. Under Labor Code §1197.1, in addition to the unpaid wages, the employer may owe:
a.Only a warning for a first offense
b.A reduction in the workers' future wages
c.Civil penalties plus liquidated damages and restitution of wages owed
d.Just the difference in wages, nothing more
Explanation
Labor Code §1197.1 authorizes civil penalties for paying less than minimum wage (for example, $100 per underpaid employee for an initial intentional violation and $250 for subsequent violations), in addition to restitution of the unpaid wages. Separately, Labor Code §1194.2 allows liquidated damages equal to the unpaid minimum wages. The exposure is far greater than merely paying the wage difference.
Law Reference: Labor Code §1197.1; minimum wage penaltiesPractice all 1605 questions free — no signup required.
Related questions on this topic
- AB 5 contains a special provision for legitimate construction subcontracting. For a bona fide subcontractor relationship in construction to be evaluated under Borello rather than the strict ABC test, the subcontractor generally must:
- After a Labor Commissioner (Berman) hearing results in an award for the employee, what may a dissatisfied party generally do?
- Labor Code §1174 requires employers to keep certain payroll records. Which records must be maintained and for how long, generally?
- Under Labor Code §1194.2, when an employee prevails on a minimum wage claim, 'liquidated damages' generally equal:
- What does the Private Attorneys General Act (PAGA) allow an 'aggrieved employee' to do?
- For calculating daily overtime, how does California define a 'workday'?
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California CSLB Contractor License Law & Business Exam · How we review
Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)