Wage Theft Is Grand Theft in California: Penal Code 487m Thresholds and How to Put a Claim on the Record

Unpaid wages are not a “payroll misunderstanding” once the employer knows the money is due and keeps it anyway. California added Penal Code section 487m in 2021 (AB 1003, effective January 1, 2022). Intentional theft of wages above a dollar line may be punished as grand theft. That is a district attorney’s charging decision. It is not a substitute for a Labor Commissioner wage claim. File the civil claim. Document the intent. Let the prosecutors decide whether 487m fits.

What the Law Says

Penal Code section 487m(a): the intentional theft of wages in an amount greater than $950 from any one employee, or $2,350 in the aggregate from two or more employees, by an employer in any consecutive 12-month period, may be punished as grand theft. Those thresholds are in the statute. I am not inventing a prison term. Grand theft is charged by a prosecutor under the Penal Code. Section 487m(d) also lets the stolen wages be recovered as criminal restitution, and it does not block the worker or the Labor Commissioner from a civil Labor Code case on the same facts.

“Theft of wages” in 487m(b) is the intentional deprivation of wages as defined in Labor Code section 200, gratuities as defined in Labor Code section 350, benefits, or other compensation, by unlawful means, with knowledge that the money is due under the law. A math error is not this statute. A dual set of time cards, a second identity to dodge overtime, or a kickback of wages the Labor Commissioner already recovered is the kind of fact pattern prosecutors use. I am not publishing out-of-state restaurant convictions as California DIR cases. They are not.

The civil stack is still the one most workers actually collect. Labor Code section 1194 recovers unpaid minimum wage and overtime. Section 226.7 is the meal and rest premium. Section 203 is waiting-time penalties on a late final paycheck. Section 226 is the wage-statement penalty. Section 226.8 is willful misclassification. None of those require a DA. They require a filing.

Labor Code sections 215 and 216 already made certain wage-payment violations misdemeanors. Section 487m sits on top of that and says grand theft is available once the dollar line is crossed. Do not wait for a criminal case. Criminal cases are slow, discretionary, and not under your control.

How to Fight Back, Step by Step

1. Build the 12-month math. List each pay period, hours worked, amounts paid, and the short. If one person is short more than $950 in any consecutive 12 months, or two or more workers together are short more than $2,350, write that total on a single page with dates. That is the 487m threshold. It is also your civil demand.

1. Preserve intent evidence: dual badges, two employee numbers, cash envelopes off the books, texts ordering off-the-clock work, altered time cards, or a demand that you return wages after a Labor Commissioner check. Knowledge that wages were due is an element of 487m(b).

1. File a wage claim with the Labor Commissioner at dir.ca.gov/dlse/HowToFileWageClaim.htm. That is the civil path. Attach your hours log and stubs. Call 1-833-LCO-INFO (833-526-4636) if you need the form in another language. Immigration status is not required.

1. If the facts show intentional theft over the 487m line, you may also report to the local district attorney or ask the Labor Commissioner’s Office about a criminal referral. You do not “file 487m” yourself the way you file a wage claim. A prosecutor charges it, or they do not.

1. Send a written demand that shows the hours, the rate, and the Labor Code stack. A shrug letter that says “you owe me overtime” is not a record. Keep a copy. Retaliation for claiming wages is illegal.

Common Questions

Can I have my former boss arrested for unpaid overtime?

Not by filling out a DLSE form. Section 487m is a Penal Code charging option for a prosecutor when the amount and the intent are there. Your job is the record: hours, pay, and evidence the employer knew the wages were due. File the wage claim first. Ask about a criminal referral if the facts are intentional and over $950 / $2,350. Do not treat a police counter as a payroll department.

If the DA files, do I still get a civil claim?

Section 487m(d) says a prosecution does not block the employee or the Labor Commissioner from Labor Code remedies, and wages can also come back as restitution. File the civil claim. Do not sit on the statute of limitations waiting for a charging decision.

Get the free Wage Theft Recovery Kit at wagetheftkit.com — demand-letter templates, hours worksheets, and DLSE filing checklists. The same kit is at justiceprompt.com. Educational use only — not legal advice.