Wondering how much you could get from an unpaid wage claim in California?
The short answer is that it varies. The amount you could receive depends on a lot of factors, and it’s not always a straightforward figure.
In this quick guide, we’ll go over the average settlement for unpaid wages in California, and the factors that affect the final value of your settlement.
What Is The Average Settlement For Unpaid Wages In California?
The average settlement for unpaid wages in California usually falls between $25,000 and $100,000, but it can be higher or lower depending on the case. Most people end up getting around $40,000-75,000.
The highest settlement we’ve seen in California is $15.25 million.
Here are some other average settlements we’ve seen over the years:
- Minimum wage violations: $10,000 – $25,000
- Unpaid overtime: $15,000 – $50,000
- Missed meal and rest breaks: $2,500 – $10,000
- Retaliation or serious violations: $50,000+
These numbers are estimates based on past cases. The final amount depends on your specific situation which we will talk about next.
Also Read: How Much Are California Workers’ Compensation Settlements?
Factors That Affect The Settlement Amount For Unpaid Wages
There are quite a few things that can affect the settlement for unpaid wages in California. Here are some of the main factors:
#1 Amount Of Unpaid Wages
It’s pretty straightforward – the more you’re owed, the bigger the settlement will likely be.
If you’re talking about unpaid overtime or unpaid regular wages, the settlement will likely reflect the total amount owed. The larger the amount, the more the employer will need to pay to settle.
But keep in mind that it’s not just about the direct wages.
You could also be entitled to other compensation like penalties or interest (more on this later), which can increase the overall settlement.
#2 Duration Of Violation
How long the violation went on matters, too.
If the employer was regularly withholding wages or not paying overtime over a long period, the settlement could be higher.
For example, if you’ve been working overtime for months without getting paid properly, your settlement would reflect that extended period of unpaid wages.
The longer the violation, the bigger the impact on the final settlement amount.
Also Read: What Is Considered Part-Time in California?
#3 Type Of Violation
Not all violations are equal. There’s a difference between an employer accidentally not paying overtime or failing to provide meal breaks and deliberately misclassifying an employee as exempt from overtime.
The more serious the violation, the higher the penalties and the higher the settlement can go.
If the employer is found to have willfully violated wage laws, the settlement could include extra fines or damages.
#4 Penalties And Interest
In California, if you aren’t paid on time, you may be entitled to interest on the wages you’re owed.
The interest rate is typically around 10% annually. So, if the unpaid wages have been hanging around for a while, the interest can really add up and add to your total settlement.
Plus, California law includes penalties for things like failure to pay wages on time or failure to provide pay stubs.
These penalties could increase your settlement amount a lot.
#5 Employee Classification
Your classification as an employee is another important factor.
California has strict rules about who counts as an employee and who qualifies as an independent contractor. If you’re misclassified, your employer could owe you back wages and possibly penalties.
Employees who should have been classified as non-exempt (entitled to overtime) but were instead classified as exempt might see higher settlements.
Misclassification cases can lead to bigger settlements because they often involve violations of multiple wage laws.
#6 Size Of The Employer
The size of the employer might also affect the settlement amount for unpaid wages in California
Larger companies tend to have more resources, and they might settle for more to avoid the hassle of going to court. Smaller businesses may not be able to afford the same settlement, but they might also settle more quickly just to move on.
That said, there’s no hard rule here—bigger companies don’t always pay more.
But in general, bigger businesses might have more to lose in terms of reputation, so they may offer higher settlements to avoid the negative publicity of a wage dispute.
#7 Class Action Vs. Individual Claims
If you’re dealing with unpaid wages as part of a class action lawsuit, the settlement could be lower compared to an individual claim.
In a class action, multiple employees are involved, and the settlement amount is usually divided among all the workers. This will lower the amount you get individually
That said, class action suits can sometimes lead to bigger settlements because they bring more attention and put more pressure on the employer.
On the other hand, if you’re going through an individual claim, you have the chance to negotiate a more personalized settlement. You’re only focused on your specific case, so the payout might be higher than it would be if it were part of a larger class action.
Also Read: How Long Does a Personal Injury Lawsuit Take in California?
#8 Settlement Negotiations
Like any legal matter, settlement negotiations matter a lot.
In many cases, employers prefer to settle rather than go to court, especially if they’re worried about legal fees or further public scrutiny. If you can negotiate effectively, your settlement might be more favorable.
This is why working with an attorney or wage dispute expert can really help.
Negotiating a fair settlement often means getting the employer to pay for both the unpaid wages and any additional penalties or interest that could apply.
Bottom Line
The average settlement for unpaid wages in California is around $25,000 and $100,000.
The exact amount you might receive in an unpaid wage settlement can depend on many things. There’s no set number, but you can usually expect a bigger settlement if your case involves larger amounts of unpaid wages, a longer violation period, or more serious violations.
If you think you’re owed unpaid wages, the first step is to document everything and speak with someone who knows the ins and outs of California labor laws.
