Legal Question in Employment Law in California

There are few things here that don't make sense. First, you say he worked in 2007 and now it's 2009. The statute of limitations on a claim under a verbal contract (which I assume this would be) is two years, so if he has a legitimate claim he would need to bring it within 2 years of the time he was let go. Did he?

I am also assuming that this was not a lawsuit you were served with but rather a claim by the Labor Commissioner, because that is typically how a worker makes a claim for wages against an employer. If that's the case, then you should go to the hearing and tell your side of the story. The Labor Commission process is informal and you do not need a lawyer, but you should have your arguments and proof ready. Your "proof" might be the testimony of other workers who were present or any one else who witnessed that you hired the guy for a day and then dismissed him for non-performance. You will need to get them to come with you to the hearing--if they refuse, you can subpoena them or get their sworn statements.

If you keep records of your transactions and your books show that you paid this worker $300 for a day's work, then take that with you. At the hearing, you should press him to explain how he arrived at the figure of 67 hours and exactly what he did in that time. His answer will probably give you ammunition to poke holes in his story.

If this is a Small Claims case, the process is similar but a bit more formal.