California Employer Held Liable for Overtime Violation
On November 24, 2025, the U.S. Department of Labor (DOL) announced the recovery of nearly $220,000 in back wages on behalf of approximately three dozen workers in California. An employer in the state was held liable for a violation of overtime law. Here, our Riverside County employment attorney for employers provides an overview of the enforcement action and discusses the lessons for employers in California.
California Employer Pays Six Figures to Resolve Unpaid Overtime Case
A Riverside, California employer is facing liability after a federal investigation into alleged wage and hour violations. Quality Roadside Service Inc. (operating as Liberty Towing Inc.) has been cited by the DOL for violating overtime laws. The company reportedly paid 32 employees straight-time for hours worked over 40 each week. Federal investigators recovered $218,983 in back wages and identified additional recordkeeping violations. The DOL also imposed $11,264 in civil penalties due to the willful nature of the misconduct.
Three Lessons for Employers in California
Lesson #1: Overtime Compensation Must Be Exact (Not Approximate)
The Liberty Towing investigation shows how quickly an overtime mistake becomes a large financial liability. California’s overtime rules are stricter than the federal standard, and employers must pay time-and-a-half for hours worked over eight in a day or forty in a week, plus double-time in certain circumstances. If overtime hours are not recorded (and compensated) properly, an employer can be held legally liable for a wage and hour violation.
Lesson #2: Accurate Records are the Key to Avoiding Unpaid Overtime Liability
Both the FLSA and California state wage and hour laws require employers to keep accurate records regarding the work hours of non-exempt employees. Accurate record keeping is one of the keys to avoiding wage and hour liability. The employer in this case failed to maintain required time/payroll records. In California, inadequate records create two separate problems. First, they constitute an independent violation. Second, they shift the burden of proof. When records are missing or incomplete, investigators and courts default to the employee’s reasonable account of hours worked.
Lesson #3: Willful Violations Trigger Additional Penalties
An employer that commits a “willful” overtime violation will face additional liability. The Department of Labor assessed civil penalties because it found the violations “willful.” In enforcement terms, willfulness does not require malicious intent. It can mean ignoring clear obligations, failing to correct known issues, or maintaining practices that contradict the law. California employers face even higher risk because state agencies impose penalties as well. A proactive approach can help to ensure that employers avoid liability for a willful violation.
Call Our California Overtime Lawyer for Employers for a Confidential Case Review
At Sloat Law Group, APC, our California employment law attorney has the skills and experience to handle wage and hour cases for employers, including overtime issues. If you have any questions or concerns, please do not hesitate to contact us today for a fully confidential initial consultation. We represent employers in Riverside County and throughout all of California.
Source:
dol.gov/newsroom/releases/whd/whd20251124
