Complaints and Appeals to Recover Unpaid Wages

Within 30 days of filing the complaint, the Labor Commissioner must notify the parties if a hearing will be held. If a hearing will be held, the hearing must occur within 90 days of the determination.2

When a hearing is set, a copy of the complaint and a notice of time and place of the hearing is served on all parties. These documents can be served personally or by certified mail or by leaving a copy at the served person’s home or office. Another copy must be mailed to the person at the place where a copy was left. If left at a home, a person over the age of 18 must receive the copy. If left at an office, a person who appears to be in charge must receive the copy. The complaint must include the amount of compensation requested.3

The Labor Commissioner must file an order, decision or award within 15 days after the hearing is concluded and serve notice on the parties. The parties can seek a review of the case by filing an appeal in the municipal or superior court. The time period for doing so will be listed on the order, decision or award.

An employer filing an appeal must post a bond with the court in the amount of the judgment rendered in the administrative hearing. If the appeal is unsuccessful, the court determines the costs and reasonable attorneys’ fees incurred by the winning party and assesses those costs on the party filing the appeal. An employee is successful if the court awards an amount greater than zero.4

All awards made by the Labor Commissioner accrue interest on all due and unpaid wages.5 The interest runs from the date the wages were due and payable until the wages are paid. This interest-bearing period includes the period in which the Labor Commissioner’s decision is being appealed.

California law specifically makes a successor employer liable for its predecessor’s unpaid wage judgments. There are specific criteria to determine successorship detailed in the Labor Code. The law also allows local jurisdictions to enforce state labor standards requirements regarding payment of wages.6

Enforcing Judgments

The law provides that once an order becomes final, a lien is created and the Labor Commissioner has the authority to record a certificate of lien on the employer’s real property.

To enforce a final judgment, the Labor Commissioner can also levy personal assets, including any credits, money or property belonging to the employer, including a successor employer. Specific procedures must be followed with regard to enforcing levies.7

In addition, the Labor Commissioner can issue a “stop order” — preventing the employer from continuing to conduct business in the state — when an employer fails to satisfy a final judgment for unpaid wages. The employer can continue to conduct business if a bond is posted; the amount of the bond varies based on the amount of the judgment the employer fails to pay.8

Failure to observe a stop order is a misdemeanor punishable by imprisonment (jail for up to 60 days) and/or a fine of up to $10,000.

• Effective January 1, 2026, California employers that fail to pay a final wage judgment may face additional costs and penalties. Under a new law, if a final judgment for unpaid wages remains unsatisfied 180 days after the time to appeal expires and there has been no appeal, the judgment debtor (employer) may face a civil penalty up to three times the outstanding judgment amount, including post-judgment interest.9 The employer has opportunity for a reduced penalty if they can show — through clear and convincing evidence —good cause to reduce the penalty.

In addition to heightened penalties for not timely paying a final judgment, the law also provides that a prevailing plaintiff will be awarded attorney's fees and costs in an action to enforce the judgment.

Lastly, California expanded enforcement by allowing public prosecutors, such as the Attorney General, a district attorney, city attorney, county counsel, or any other city or county prosecutor, to step in for employees to enforce unpaid judgments.

1. Lab. Code sec. 98