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EMPLOYEES FIRST LABOR LAW

Wage & Hour Violations

Labor Code §98 – Labor Commissioner Wage Claims

Labor Code §98 sets the rules for Labor Commissioner wage claims, from the 30-day first decision to the Berman hearing.

Reviewed by Jonathan P. LaCour, Esq. CEO · Senior Trial Counsel

Updated 9 min read

In this guide12 sections
  1. What Labor Code 98 says
  2. Who can use section 98
  3. The process, step by step in the statute
  4. At the hearing
  5. Exceptions and limits
  6. Remedies and what happens after the award
  7. Deadlines
  8. Related sections
  9. How it plays out
  10. What to do before you file
  11. Frequently asked questions
  12. Sources

Labor Code section 98 gives the California Labor Commissioner the power to investigate wage complaints and to decide them at a hearing, often called a “Berman hearing,” after which the Labor Commissioner issues a written decision that can become a court judgment. Within 30 days after you file, the Labor Commissioner must tell both sides whether there will be a hearing, a lawsuit brought by the Labor Commissioner, or no further action. If a hearing is set, the statute says it is to be held within 90 days of that decision.

This page covers what the statute and the related sections (98.1 through 98.4) require. If you are deciding whether to file with the Labor Commissioner or hire a lawyer, see our guide to a Labor Commissioner wage claim vs. hiring a lawyer.

Key takeaways
  • Labor Code 98 lets the Labor Commissioner investigate and decide wage claims at an informal hearing, often called a Berman hearing.
  • Within 30 days of filing, the parties must be told whether there will be a hearing, a Labor Commissioner lawsuit, or no further action.
  • A hearing is to be held within 90 days of that decision, and the Order, Decision or Award is due within 15 days after the hearing (Labor Code 98.1).
  • An employer that appeals must post a bond equal to the award, and pays your attorney’s fees if you are awarded more than zero.
  • Since January 1, 2026, a final wage judgment left unpaid 180 days after the appeal period ends can draw a penalty of up to three times the amount owed.

What Labor Code 98 says

SubdivisionWhat it says (paraphrased)
(a)The Labor Commissioner may investigate employee complaints and hold a hearing “in any action to recover wages, penalties, and other demands for compensation,” including liquidated damages for pay below minimum wage. It may also hear claims for civil penalties under Labor Code 558 against an employer or “an individual liable pursuant to Section 558.1,” and claims on bounced payroll checks. It sets the 30-day and 90-day timelines and says hearings should be informal while “preserving the rights of the parties.”
(b)If a hearing is set, the complaint (stating the amount claimed) and the notice of hearing are served on all parties personally, by certified mail, or by substituted service.
(c)The employer may file an answer within 10 days after service, pointing out what it says is wrong or missing and the facts it will rely on.
(d), (e)Only a written complaint and answer are required. Evidence on issues not raised in the answer comes in only on the Labor Commissioner’s conditions, and you get a continuance to respond to it.
(f)If the employer doesn’t answer or show up, there is no default. The hearing officer hears the evidence and issues an order, decision or award.
(a), (h)Parties must report address changes within 10 days. If a business used a fictitious name, the Labor Commissioner asks for its legal name and can correct the award.
Labor Commissioner wage claim hearings are to be held within 90 days under Labor Code 98

Who can use section 98

Section 98 covers employees with claims for wages, penalties and other compensation under California law: unpaid minimum wage and overtime, meal and rest break premiums, final pay and waiting time penalties, illegal deductions, sick leave and unreimbursed expenses, among others. The Labor Commissioner says California’s labor laws protect all workers “regardless of immigration status.”

Independent contractors fall outside its wage claim jurisdiction, but the Labor Commissioner says it may hold a hearing to decide whether you were misclassified. PAGA notices, retaliation complaints and public works claims are filed separately, not through the online wage claim filing.


The process, step by step in the statute

StageWhat the law requiresSource
FilingYou file an Initial Report or Claim (DLSE Form 1) online, by email, by mail or in personLabor Commissioner wage claim pages
First decisionWithin 30 days, the parties are told whether there will be a hearing, a Labor Commissioner lawsuit under 98.3, or no further actionLabor Code 98(a)
Settlement conferenceUsually scheduled first; informal and not under oath. If you miss it without good cause, your claim is dismissedLabor Commissioner policies
HearingWithin 90 days of the decision to hold one, unless the Labor Commissioner postpones for an “equitable and just resolution.” Testimony is under oath and recordedLabor Code 98(a); Labor Commissioner hearing page
DecisionAn Order, Decision or Award (ODA) is filed within 15 days after the hearing, with the reasons, and served on the partiesLabor Code 98.1(a)
AppealEither side may appeal to superior court for a new trial (“de novo”)Labor Code 98.2(a)
JudgmentIf no one appeals, the ODA becomes final and is entered as a superior court judgmentLabor Code 98.2(d), (e)

Because the Labor Commissioner can postpone a hearing, real-world timelines can run longer than the 30-day and 90-day figures.

Has your wage claim stalled or been appealed?

Labor Commissioner claims follow strict steps, and an employer appeal moves the case to superior court. We can review where your claim stands and what section 98 and the related sections allow.

At the hearing

  • You and the employer testify under oath before a hearing officer. You can bring witnesses, documents and a lawyer, and question the employer’s witnesses.
  • Only evidence presented at the hearing counts. The Labor Commissioner asks you to bring three sets of copies.
  • Witness subpoenas must be requested at least 15 business days before the hearing.
  • If you don’t attend, your case is dismissed. If the employer doesn’t attend, the decision rests on your evidence.

Exceptions and limits

  • A hearing is not automatic. Section 98(a) lets the Labor Commissioner decide to take “no further action,” or to sue on your behalf under Labor Code 98.3 instead of holding a hearing.
  • Settlements on the Labor Commissioner’s forms. The Labor Commissioner says it will only enforce settlements signed on its own forms.
  • Arbitration agreements. An employer may try to move a pending claim into arbitration. A petition to compel arbitration must be served on the Labor Commissioner, which may represent you in that fight (Labor Code 98.4(c)).
Penalty of up to three times an unpaid wage judgment under Labor Code 238.05 from January 1, 2026

Remedies and what happens after the award

  • Interest. Awards earn interest on unpaid wages at the rate in Civil Code 3289(b), which is 10% a year, from the date the wages were due (Labor Code 98.1(c)).
  • Employer appeals. To appeal, an employer must first post a bond or cash deposit equal to the award (Labor Code 98.2(b)). If the employer loses, the court assesses your costs and reasonable attorney’s fees against it. On an employer’s appeal, you count as successful if the court awards you more than zero (98.2(c)). The same rule cuts the other way: a worker who appeals and is unsuccessful can be charged the employer’s costs and fees.
  • Claims in the appeal. In Iloff v. LaPaille (Aug. 21, 2025), the California Supreme Court held that a worker may raise paid sick leave claims in an employer’s appeal of an award, even if they weren’t raised before the Labor Commissioner. The trial court has discretion over whether to allow claims the Labor Commissioner didn’t consider.
  • Free representation. If you can’t afford a lawyer, the Labor Commissioner may represent you in the appeal, and must if you are defending the award and don’t object to any part of it (Labor Code 98.4(a)).
  • Unpaid judgments. Since January 1, 2026, a court can impose a civil penalty of up to three times the outstanding amount if a final wage judgment stays unpaid 180 days after the appeal period ends (Labor Code 238.05, SB 261). Half goes to the workers named in the judgment. There is an exception for an employer that reaches a payment agreement under Labor Code 238(b) before day 180 and stays in full compliance. A creditor who enforces a judgment “shall be awarded” costs and attorney’s fees (98.2(k)).

Deadlines

WhatDeadlineSource
File a claim for minimum wage, overtime, break pay, sick leave, illegal deductions or reimbursements3 yearsLabor Commissioner filing guidance
Claim based on a written contract4 yearsSame
Oral promise to pay more than minimum wage2 yearsSame
Bounced check penalties; denied access to payroll or personnel records1 yearSame
Employer’s answer10 days after serviceLabor Code 98(c)
Appeal of the ODA10 days after service under the statute; the Labor Commissioner says 15 days from the date on the certificate of mail service, or 20 days if served out of stateLabor Code 98.2(a); Labor Commissioner “After the Hearing” page

In Seviour-Iloff v. LaPaille (Cal. Ct. App. 2022), the court measured the limitations period from the date the worker filed the Initial Report or Claim with the Labor Commissioner, not from a later filing. The Supreme Court reversed that decision on other issues, and the Court of Appeal repeated this ruling in its published opinion on remand (Dec. 23, 2025). Filing promptly protects the most back pay.


SectionWhat it adds
Labor Code 98.115-day decision deadline, notice of appeal rights, interest on awards
Labor Code 98.2Appeals, the employer’s bond, fee shifting and conversion of the award into a judgment
Labor Code 98.3The Labor Commissioner may sue for workers who can’t afford a lawyer
Labor Code 98.4Labor Commissioner representation on appeal and in arbitration
Labor Code 98.6Protection from retaliation for filing a wage claim
Labor Code 98.7How to file a retaliation complaint with the Labor Commissioner
Labor Code 558.1Owners, officers and managing agents who can be named personally

How it plays out

💡 Example: Ana, a hypothetical warehouse worker, files a wage claim for $4,800 in unpaid overtime on January 12, 2026. The Labor Commissioner has 30 days, until February 11, 2026, to tell the parties what happens next. It decides on February 9 to hold a hearing, so under section 98 the hearing should be held within 90 days, by May 10, 2026, unless it is postponed. The hearing ends May 5, and the ODA must be filed within 15 days, by May 20. Ana is awarded the $4,800. If the ODA is mailed May 20, the Labor Commissioner’s 15-day rule for mail service puts the appeal deadline at June 4. To appeal, the employer must first post a $4,800 bond. If no one appeals and the final judgment then goes unpaid for 180 days after the appeal period ends, a court can add a penalty of up to three times the outstanding amount, including postjudgment interest, under section 238.05. On the $4,800 alone, that is up to 3 × $4,800 = $14,400.


What to do before you file


Frequently asked questions

What is a Berman hearing?

It is the common name for the hearing the Labor Commissioner holds under Labor Code 98. A hearing officer takes sworn, recorded testimony and documents in an informal setting, then issues an Order, Decision or Award.

What if my employer ignores the wage claim?

Section 98(f) says no default is entered. The hearing goes forward, and the hearing officer can issue an award based on your evidence.

Can I name the owner personally in a Labor Commissioner claim?

Section 98(a) lets the Labor Commissioner hold hearings to recover Labor Code 558 civil penalties against “an individual liable pursuant to Section 558.1,” which covers owners, directors, officers and managing agents who caused the violation.

How long does the employer have to appeal?

The statute says 10 days after service of the decision, with extra time when it is served by mail. The Labor Commissioner tells parties 15 days from the date on the certificate of mail service, or 20 days if served out of state. The employer must post a bond equal to the award first.

Will the Labor Commissioner represent me if my employer appeals?

It may, if you can’t afford a lawyer, and it must if you are defending the award and don’t object to any part of it (Labor Code 98.4(a)). The Labor Commissioner sends a request form and a financial status form when an appeal is filed.


Sources


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This article provides general information about California law and is not legal advice for any specific situation. Reading it does not create an attorney-client relationship. Past results do not guarantee a similar outcome.

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