Small Claims Court for Unpaid Wages in California

Your employer owes you money — unpaid hours, a final paycheck that never arrived, commission they withheld, or a security deposit from a job they fired you from before the work was done. California law gives workers powerful protections for wage theft, and small claims court is one of the tools available to enforce them.

This post covers when small claims court is the right venue, what you can recover, and what evidence you need to build a winning case.

The Claim Limit and What You Can Recover

In California small claims court, individuals can sue for up to $12,500 (CCP § 116.221). For wage claims, this covers:

• Unpaid regular wages — hours worked but not paid
• Unpaid overtime — California requires overtime pay for hours over 8 in a day or 40 in a week for most employees; failure to pay is a wage violation
• Final paycheck violations — California Labor Code § 201 requires employers to pay all wages at the time of termination; § 202 requires final pay within 72 hours if you quit. Each day of delay after the deadline creates a "waiting time penalty" equal to one day's wages, up to 30 days
• Unpaid commissioned sales — if commission terms were written in an agreement and the employer didn't pay according to those terms
• Expense reimbursements — California Labor Code § 2802 requires employers to reimburse business expenses; unreimbursed expenses are recoverable

What you cannot recover in small claims: class-action relief on behalf of other employees, PAGA (Private Attorneys General Act) penalties, or injunctive relief (forcing the employer to change practices). These require regular civil court or an administrative agency.

Small Claims Court vs. the DLSE (Labor Commissioner)

California employees have two main avenues for unpaid wage recovery: small claims court and filing a wage claim with the California Labor Commissioner's Office (also called the Division of Labor Standards Enforcement, or DLSE).

DLSE Wage Claim: - Free to file — no filing fee - The Labor Commissioner investigates and holds a hearing - Can award wages, penalties, and interest - No claim limit (handles claims above $12,500) - Can take 6-18 months for resolution - The Labor Commissioner can pursue retaliation claims and employer penalties you cannot pursue in small claims - Strong option for current employees worried about retaliation — the DLSE has anti-retaliation enforcement powers

Small Claims Court: - Filing fee ($30–$75) - Faster — hearings scheduled in 20-70 days - Limit of $12,500 - You control the process (no waiting for government investigation) - A judgment is easier to enforce yourself than a DLSE award in some cases

For claims under $12,500 where you want faster resolution and don't need the Labor Commissioner's enforcement powers, small claims is often the better choice. For larger claims or situations involving ongoing employment and fear of retaliation, the DLSE has tools small claims lacks.

Can you file both? You can file in small claims and the DLSE simultaneously for the same claim, but you cannot recover double damages. If the DLSE resolves the matter, the small claims case becomes moot.

Correctly Identifying Your Employer as Defendant

Suing an employer requires getting the legal entity right — the same challenge as suing any business.

• Sole proprietor/individual employer: Sue the individual by their full legal name
• Corporation or LLC: Find the exact registered name at bizfileonline.sos.ca.gov; serve the Agent for Service of Process
• Doing business as (DBA): "Maria Santos dba Santos Cleaning Services"

If you are unsure who legally employs you, check your pay stubs (the legal entity name is often printed there), your W-2, or your employment contract.

One important nuance: In California, under the "integrated enterprise" doctrine, related companies can sometimes be treated as a single employer. If the company you worked for is a subsidiary and the parent company controlled wages and hours, you may have a claim against both. This analysis is complex — if your employer situation is unusual, consult the free county small claims advisory service.

What You Need to Prove

1. You performed work. Documentation showing you were an employee (or contractor with a payment agreement) and that you worked the hours or performed the services in dispute. - Time records, timesheets, or shift schedules you kept - Text messages or emails from the employer directing your work - Pay stubs showing partial payment (and the gap)

2. Wages are owed. The specific amount the employer agreed to pay and what they actually paid. - Employment agreement or offer letter showing your agreed pay rate - Pay stubs showing hours paid vs. hours worked - Bank statements showing deposits vs. what should have been deposited

3. The employer failed to pay. Documentation that you requested payment and they did not respond, or that they explicitly refused. - Text/email requests for your final paycheck - Any response from the employer (or lack thereof)

4. Your damages. A clear calculation: - Hours × hourly rate = unpaid wages - For waiting time penalties: daily wage × number of days unpaid (up to 30) - For overtime: hours over 8/day or 40/week × 1.5× your regular rate minus what was paid

Statute of Limitations for Wage Claims

California has a 3-year statute of limitations for wage claims (Labor Code § 98.2 and CCP § 338). If the employer violated a written contract, the limit is 4 years. These windows start when each paycheck was due, not when you filed your previous paycheck claim — so each missed payday has its own clock.

Do not wait. File within 3 years of the missed payment or you lose the right to that specific claim.

Demand Letter for Wage Disputes

Before filing, send a certified mail demand letter stating: - The specific wages owed (with calculations) - The period covered - Your demand for payment within 10-14 days - That you will file in small claims court if not paid

Employers who receive a demand letter sometimes settle quickly because California's waiting time penalties escalate daily and they know courts take unpaid wage claims seriously.

At the Hearing

California courts consistently take wage theft seriously. Bring organized evidence: - Your employment agreement or offer letter - Time records (your own logs if the employer didn't provide accurate ones) - Pay stubs for the relevant period - Bank records showing what was actually deposited - Your calculations, clearly laid out on paper: dates, hours, rates, amounts owed

State your case factually: "I worked [X hours/weeks], I was owed [Y per hour/month], I received [Z], and the difference owed is [amount]."

If You Win

A judgment against an employer is enforceable like any civil judgment. Employers often have bank accounts and business assets that are easier to levy than individual defendants. Enforcement tools include a Writ of Execution (Form EJ-130) for bank levies and wage garnishment orders against the company's own bank accounts or receivables.

The California Small Claims Court Filing Guide covers how to calculate damages accurately, draft your demand letter, and navigate the hearing — including what employers typically argue and how to counter those arguments.

Get the California Small Claims Court Filing Guide