California’s Labor Commissioner has awarded $8.6 million in grants to 16 local prosecutors’ offices to strengthen investigations and prosecutions against employers accused of wage theft and other labor law violations.
The grant funds are part of a dedicated effort by the state to combat wage theft, which can include not paying workers for hours worked, failing to pay overtime when it’s due or underpaying workers. These violations are typically prosecuted at the local level, although the state Labor Commissioner’s Office also conducts investigations.
The Workers’ Rights Enforcement Grant Program was created under Assembly Bill No. 102, an amendment to the Budget Act of 2023, which set aside $18 million over two years for local prosecutors to enforce wage and hour laws. The funds can be used only for personnel and audit-related costs, such as hiring investigators, attorneys and analysts to ensure that resources directly support wage theft enforcement.
Now in its second year, the program drew more than $10.7 million in requests from cities and counties statewide, though only $8.6 million was available. Among the recipients are district attorneys and city attorneys in Los Angeles, Alameda, Orange, San Mateo and San Diego. You can find a full list here.
How local offices are using the funds
Counties are using the grants to strengthen enforcement efforts. For example, San Diego County will apply its $750,000 grant toward investigators, prosecutors and outreach programs to educate workers and employers about labor laws.
Its Office of Labor Standards and Enforcement has fielded more than 600 wage theft complaints over the past year and is pursuing 80 active investigations.
In Fresno, the City Attorney’s Office established a dedicated wage theft prosecution unit. Other counties, including San Mateo and Alameda, have developed specialized “workplace justice” teams to pursue both criminal and civil cases involving wage underpayment.
Wage theft remains a growing problem
The expanded funding comes as new research shows wage theft is worsening across California. A Workplace Justice Lab study at Rutgers University found that low-wage workers in the state lost billions of dollars in unpaid wages between 2014 and 2023, with the number of minimum wage violations nearly doubling during that period.
Los Angeles workers alone are estimated to lose between $1.6 billion and $2.5 billion annually due to underpayment. Across California’s four largest metro areas — Los Angeles, San Francisco, San Diego and San Jose — total losses range from $2.3 billion to $4.6 billion each year.
How employers can stay compliant
The growing focus on enforcement means that employers should be proactive in preventing wage violations and maintaining compliance with state and local labor laws. Key steps include:
- Audit payroll practices regularly. Check that all employees are paid for every hour worked, including overtime, breaks and training time.
- Classify workers correctly. Misclassifying employees as independent contractors or exempt staff can lead to major penalties.
- Stay updated on wage laws. Local minimum wage rates, meal and rest break rules as well as overtime thresholds can vary by city and county.
- Document everything. Maintain accurate, accessible records of hours worked, pay rates and deductions.
- Train supervisors and payroll staff. Many violations result from oversight or misunderstanding rather than intent; regular training helps prevent mistakes.