How to Read Your Pay Stub for Wage Violations

Most wage theft is visible on the pay stub — if you know where to look. California Labor Code §226 requires specific information on every wage statement. Missing elements are violations worth $50 to $100 per pay period. But the deeper value of the pay stub is what it reveals about underlying overtime and break violations.

The Overtime Calculation

California overtime requires 1.5x pay for all hours over 8 in a day and over 40 in a week, and 2x pay for hours over 12 in a day. Most pay stubs show total hours and gross wages. Divide gross wages by total hours. If that number matches your regular rate exactly — with no premium for overtime hours — your employer is not paying California daily overtime. This is the most common wage theft in California.

The Regular Rate Problem

The regular rate of pay for overtime purposes must include all non-discretionary compensation — bonuses, commissions, shift differentials. Employers who pay flat overtime on base hourly rate while paying non-discretionary bonuses separately are miscalculating the regular rate and underpaying overtime on every bonus period.

The Break Premium Check

If you missed any meal or rest breaks, your pay stub should show break premium payments — one hour of regular pay per missed break. Most pay stubs with wage violations show no break premium line at all. That absence is evidence of unpaid break premiums going back three years.

Educational use only. Not legal advice. Justice Foundation.


Comments

Leave a comment