California law requires employers to pay employees all wages earned — fully, accurately, and on time. Wages include not just hourly pay, but also commissions, bonuses, accrued vacation, and reimbursements for necessary business expenses. When employers fail to pay what workers have earned, they violate core provisions of the California Labor Code, including §§ 201–203, § 204, § 221, and § 2802, and may be liable for penalties, interest, and attorney’s fees.

Unpaid wages commonly occur when employers underreport hours, miscalculate overtime, or delay payment after termination. Under Labor Code § 201, all earned wages are due immediately upon discharge, and under § 202, within 72 hours when an employee resigns without notice. Employers who fail to timely pay all earned wages — including vacation pay, commissions, and bonuses — may owe waiting-time penalties of up to 30 days’ wages under § 203.

Earned vacation is treated as wages in California. Once vacation time is accrued, it cannot be taken away, forfeited, or labeled “use-it-or-lose-it.” When employment ends, the employer must pay all unused, accrued vacation at the employee’s final pay rate. Failure to do so constitutes an unpaid wage violation subject to penalties.

Commissions and bonuses are likewise wages once they are earned — meaning the employee has satisfied all conditions under the applicable commission or bonus plan. Employers may not delay payment, retroactively change the terms, or disguise earned compensation as “discretionary” to avoid paying it. Courts construe ambiguities in these agreements against the employer.

Expense reimbursements are separately protected under Labor Code § 2802, which requires employers to reimburse all necessary expenditures incurred in the course of employment — including mileage, cell phone and internet use, home office expenses, uniforms, and tools. Employers cannot shift the cost of doing business onto their employees.

When employers withhold or underpay wages, fail to pay earned vacation, ignore commission or bonus obligations, or refuse to reimburse expenses, employees are entitled to recover:

• All unpaid wages, vacation, commissions, bonuses, and reimbursements;

• Interest and statutory penalties;

• Waiting-time penalties for late final pay; and

• Attorney’s fees and costs.

At Levine Labor Law, we meticulously analyze pay records to identify every unpaid dollar — from commissions and bonuses to unused vacation and unreimbursed business costs — and hold employers accountable under California’s strong wage protection laws.