Delays at California Labor Commissioner’s Office Incentivize Employer Wage Theft, New Report Finds
For Immediate Release
Delays at California Labor Commissioner’s Office Incentivize Wage Theft by Employers, New Report Finds
Legal advocates point to challenges, solutions for California workers owed millions of dollars.
July 21, 2026 – Modesto, CA – A new report published today by California Rural Legal Assistance, Inc. (CRLA) finds worsening delays in wage claim processing at the state Labor Commissioner’s Office (LCO) can incentivize employers to ignore workers who turn to the LCO seeking to get paid the wages they’ve earned.
The process of filing a claim with the LCO is designed to be accessible to workers with no need for an attorney. By law, the entire wage claim adjudication process should be completed in a maximum of 135 days. Data in CRLA’s report show that not one of the 472 clients represented by the organization between 2018 and 2026 has had their wage claim adjudicated in the timeframes required by law. On average the process takes about two years, with some cases taking more than five years.
The report also shows that as delays have increased, settlements of wage claims have decreased, with lack of consequences further incentivizing employers to ignore the process. As of May 15, 2026, CRLA represents 214 workers with pending wage claims before the LCO who are collectively owed over $5.6 million in unpaid wages and penalties from employers.
“Employers are less incentivized to follow the law because delays mean they aren’t held accountable to respond to a worker’s wage claim. Workers are disempowered because they don’t have a quick way to recover their stolen wages, especially when rent is due and other bills are piling up. All of this erodes trust in the state’s ability to enforce the strong labor protections we have in California,” noted CRLA Senior Litigator Josephine Weinberg.
The report analyzes common factors causing wage claim delays and outlines actions that would decrease delays, including improved language access and scheduling practices and incentives for employers to engage early in the process, such as a default provision for failing to participate or prejudgment liens.
“State leaders have an opportunity to deliver for working people already struggling in an affordability crisis by fixing delays at the Labor Commissioner’s Office. But to be effective, solutions must reflect workers’ experiences fighting for their wages,” said Anali Cortez Bulosan, CRLA Agricultural Worker Justice Program Director.
“Because CRLA serves much of the state, a report on our case data and insights from our advocates and clients can be especially useful to identify not only the problems but also worker-centered solutions for wage theft,” Cortez Bulosan added.
To access the full report, visit crla.org/wage-theft. A Spanish version of the report will be forthcoming.
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Media Contacts
Josephine Weinberg
Senior Litigator, California Rural Legal Assistance Inc
(831) 757-5221, jweinberg@crla.org
Anali Cortez Bulosan
Agricultural Worker Justice Program Director
California Rural Legal Assistance Inc
(559) 441-8721, acortezbulosan@crla.org
About California Rural Legal Assistance, Inc.
Founded in 1966, California Rural Legal Assistance, Inc. (CRLA) is a nonprofit, anti-poverty law firm that dismantles unjust systems through community lawyering in California’s historically rural areas. We work with people priced out of private legal representation so they can uphold civil rights in housing, employment, health, and public education. Through our 17 service locations, communities can access a broad range of legal tools, including direct legal services, place-based advocacy to expand equity in civic institutions, and specialized litigation to advance civil rights.
crla.org