California employment laws are among the country’s most stringent. One of the areas of litigation that employers face often are related to wage and hour disputes. “Wage and Hour” litigation is how this type of litigation is described. The Fair Labor Standards Act (FLSA) and California Labor Code provide guidelines for non-exempt and exempt employees around wages., including overtime pay and minimum wage and/or salary requirements, that if not met can and do result in wage and hour lawsuits.
It is not uncommon for wage and hour claims to take the form as either an Individual Action or “Collective Actions.” A Collective Action is a claim brought by one employee but on behalf of others who may have experienced a similar situation, this can be either a Class Action or in California a Private Attorney General Act (“PAGA”) Action. Experienced attorneys are crucial for these types of matters.
Staggering Back Wages Resulting from Wage and Hour Claims
According to the US Department of Labor website and its Wage and Hour Division regarding 2025, “The U.S. Department of Labor’s Wage and Hour Division today announced it has recovered more than $259 million in back wages for nearly 177,000 employees nationwide – an average of $1,465 per worker – in fiscal year 2025, reaffirming its commitment to strengthening the American workforce.”
These figures are unprecedented. Why? The Covid-19 pandemic resulted in unique work environments and a necessity for working remotely – or in a hybrid situation – like never before.
As well, the “gig economy” was launched.
Along with the more flexible working situations came the associated compliance challenges, as the line between working at home and simply being at home was more of a gray area.
One of the many unintended consequences of the Covid-19 era has been an increased need for expert work and hour litigation attorneys.
Wage and Hour Lawsuit Settlements Can Be Extremely Costly
When a wage and hour lawsuit is filed, it is conceivable that settlements can result in employers ultimately paying in excess of the initial wages. In order to avoid being in this situation, here are some things a defense attorney for California wage and hour claims needs to know on behalf of its clients.
- Proper employee exemption classification is critical. Employees in California may be classified as exempt from overtime pay for a number of reasons. A wage and hour lawsuit attorney like those at Chauvel & Glatt provide guidance on proper employee classification, as well as legal rights and requirements such as overtime and meal
- Non-exempt employees cannot work during their lunch break or off-the-clock hours. All hours worked are considered paid hours.
- “Overtime” in California means a non-exempt employee who works over 40 hours in a given week or over eight hours in a given day is required to be paid time-and-a-half of their regular hourly rate.
- At Chauvel & Glatt, we know how to defend against wage and hour disputes if they arise – and how to arrive at the most favorable wage and hour lawsuit settlements for the employer.
Employee Handbooks Can Help Prevent Wage and Hour Disputes
As a law firm that handles California wage and hour employer defense, we cannot emphasize the value of a professionally, legally created employee handbook strongly enough. Having a comprehensive and customized employee handbook is one of the best ways to ensure that your company is California compliant and minimize the risk of a wage and hour lawsuit.
In addition to wage and hour laws, there are hundreds of laws that relate to employment practices in California. This can seem daunting and overwhelming to even the most sophisticated business owner. Creating an employee handbook customized to your business needs is a great way to organize all of your policies and obligations under California law in a digestible and common sense manner so you and all of your employees are on the same page.
Employee handbooks can also serve as evidence of your knowledge and compliance with California employment regulations and can decrease your risk of liability if an employee sues you by setting out a clear and progressive disciplinary system that can be uniformly applied to all employees for all types of issues that may arise.
Defending Wage and Hour Claims in California
While we recognize the value of employee handbooks, and we skillfully create them, we also know that wage and hour lawsuits are a reality of doing business in California. We are here to assist our clients with all aspects of employment litigation and to arrive at a successful conclusion.