Legal Question in Employment Law in California

Back pay with interest and if so how much?

The company I work for in CA has been paying me at an annual rate lower than my executed offer letter. I found this out a few months later. I know they owe me the difference but should they not also owe me interest? If so, what is the legal interest rate in CA that I should look to so that I can make sure that I am adequately compensated for their error? Thank you.


Asked on 6/27/06, 2:03 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Back pay with interest and if so how much?

The default interest rate in California when none is specified in the contract or agreement is 10%. Be careful about how you approach this issue with your employer. Go to the HR Department with your offer letter and point out the error. The are human and misssed it just like you did. The will probably make arrangements for a lump some check right away. Demanding interest in a situation like this might be harmful to your career at this employer.

Read more
Answered on 6/28/06, 3:19 pm
Robert F. Cohen Law Office of Robert F. Cohen

Re: Back pay with interest and if so how much?

I agree with Mr. Starrett. However, if they don't play nice, you can point out that the law attaches penalties for unpaid wages. But, then again, you would want to have another job lined up elsewhere once you utter those words!

Read more
Answered on 6/28/06, 4:25 pm


Related Questions & Answers

More Labor and Employment Law questions and answers in California