Understanding Your Rights Under California Law
Imagine you discover your employer isn’t paying you properly — maybe they’ve been shaving hours off your timesheets, misclassifying you as exempt, or failing to pay overtime. You do the right thing and speak up… only to find yourself demoted, reassigned, or stripped of duties soon after.
If this sounds familiar, you’re not alone — and it’s illegal. Under California law, you cannot be punished or demoted for reporting wage theft or standing up for your rights. The Fair Employment and Housing Act (FEHA), Labor Code §1102.5, and the California Whistleblower Protection Act all provide strong protections for workers who report violations of labor law.
At Employees First Labor Law (EFLL), we’ve helped countless California employees fight back against retaliation. Here’s what you need to know if your employer is trying to silence you.
What Is Wage Theft?
“Wage theft” is any practice where an employer fails to pay an employee what they’ve legally earned. Common examples include:
- Not paying overtime or double time
- Requiring off-the-clock work
- Misclassifying employees as “independent contractors” or “exempt”
- Denying meal or rest breaks
- Taking illegal deductions from paychecks
- Failing to pay minimum wage
California law requires employers to pay workers for every hour worked — and punishes those who retaliate when employees assert these rights.
Retaliation: What the Law Prohibits
Under Labor Code §1102.5, it’s unlawful for an employer to retaliate against an employee for reporting or refusing to participate in activities they reasonably believe to be illegal — including wage theft.
Retaliation can take many forms beyond outright firing. FEHA and California labor laws protect against any adverse employment action, such as:
- Demotion or reduction in title
- Pay cuts or loss of bonuses
- Sudden negative performance reviews
- Reassignment to undesirable shifts or locations
- Exclusion from meetings or decision-making
- Creating a hostile work environment
Even if the employer doesn’t explicitly say it’s because you reported wage theft, timing and context matter. A demotion that happens soon after a complaint can be powerful evidence of retaliation.
You Don’t Need to Be “Right” — Just Reasonable
California law doesn’t require that your report of wage theft turns out to be 100% correct. You’re protected as long as you reasonably believed your employer was violating the law when you complained.
This means:
- If you noticed missing overtime pay and reported it, but the company later claims it was a “miscalculation,” you’re still protected.
- If you raised concerns about coworkers’ pay practices, you’re protected even if you weren’t personally affected.
The goal of the law is to encourage employees to speak up without fear.
Remedies for Retaliation
If your employer demotes or retaliates against you for reporting wage theft, you may be entitled to:
- Reinstatement to your former position
- Back pay for lost wages or bonuses
- Emotional distress damages
- Civil penalties against the employer
- Attorney’s fees and costs
In severe cases, punitive damages may also be available to punish willful misconduct.
What To Do If You’ve Been Demoted for Reporting Wage Theft
If you believe you’ve been punished for speaking up:
- Document everything. Keep copies of emails, texts, timesheets, and paystubs.
- Write down timelines. Note when you reported the issue and when retaliation occurred.
- Don’t quit immediately. Speak to an employment lawyer before resigning — quitting can affect your legal rights.
- Contact EFLL. Our attorneys can help you file a retaliation complaint with the California Labor Commissioner or take your case to court.
You have a limited window of time to take action, so don’t wait.
Stand Up. We’ll Stand With You.
No one should be punished for doing the right thing. If your employer demoted you, cut your pay, or changed your position after you spoke up about illegal wage practices, you have rights — and you can fight back.
Contact Us Today
We represent employees who are ready to fight back. Call now or schedule a confidential consultation.
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