Unpaid Wages Demand Letter Example

A complete demand letter for a California employee seeking $4,850 in unpaid overtime and a withheld final paycheck, with FLSA and state labor code citations.

About This Example

This demand letter addresses one of the most common wage disputes: an employer who failed to pay overtime and withheld a final paycheck after termination. Under California Labor Code § 201-203, employers must pay all wages owed at the time of termination. Waiting time penalties of up to 30 days' wages can apply for willful failure to pay.

Key Elements in This Letter

The Complete Demand Letter

Marcus J. Rivera
4721 Sunset Boulevard, Apt 8
Los Angeles, CA 90027
[email protected]
(323) 555-0291

January 20, 2026


Via Certified Mail — Return Receipt Requested

Ms. Karen Wu, CEO
TechForward Solutions, Inc.
1200 Wilshire Boulevard, Suite 400
Los Angeles, CA 90017


Re: Demand for Unpaid Wages — $4,850.00
Employee ID: TFS-2847

Dear Ms. Wu,

I am writing to formally demand payment of $4,850.00 in unpaid wages owed to me by TechForward Solutions, Inc. ("TechForward"). This amount represents unpaid overtime compensation and my withheld final paycheck following my termination on December 20, 2025.

Employment Background:

I was employed by TechForward as a Marketing Coordinator from March 15, 2024 through December 20, 2025, at a salary of $55,000 per year ($26.44/hour based on a 40-hour work week, or $220/day). I was classified as a non-exempt hourly employee and was entitled to overtime compensation for all hours worked in excess of 8 hours per day or 40 hours per week.

Unpaid Overtime — $3,200.00:

During the period from September 2025 through December 2025, I regularly worked 50-55 hours per week at the direction of my supervisor, James Park. Despite recording these hours in TechForward's timekeeping system (Clockify), my paychecks reflected only 40 hours per week. I estimate a minimum of 80 unpaid overtime hours during this period. At 1.5x my regular rate ($39.66/hour), the unpaid overtime totals approximately $3,200.00.

I have copies of my Clockify time entries, email correspondence from Mr. Park directing me to work weekends, and my pay stubs showing only 40-hour weeks, all of which substantiate this claim.

Withheld Final Paycheck — $1,650.00:

I was involuntarily terminated on December 20, 2025. Under California Labor Code § 201, when an employer discharges an employee, all wages earned and unpaid are due and payable immediately at the time of discharge. My final paycheck covering December 1-20 ($1,650.00 gross) was not provided at termination and has still not been received as of this date — 31 days later.

Legal Basis:

Your obligations to pay these wages arise under both federal and California state law:

1. Fair Labor Standards Act (FLSA), 29 U.S.C. § 207: Non-exempt employees must receive overtime at 1.5x their regular rate for hours exceeding 40 per week. Failure to pay overtime constitutes a federal wage violation.

2. California Labor Code § 510: California additionally requires overtime for any work exceeding 8 hours in a single day, and double-time for hours exceeding 12 in a day.

3. California Labor Code § 201: All wages are due immediately upon involuntary termination.

4. California Labor Code § 203 (Waiting Time Penalties): An employer who willfully fails to pay wages due at termination shall pay a penalty equal to the employee's daily rate of pay for each day wages remain unpaid, up to a maximum of 30 days. At my daily rate of $220.00, your maximum penalty exposure is $6,600.00.

5. California Labor Code § 1194: Employees may recover unpaid overtime plus interest, attorney's fees, and costs.

Total Demand:

I demand payment of $4,850.00 representing $3,200 in unpaid overtime and $1,650 in withheld final wages. I am not at this time including waiting time penalties, which I reserve the right to pursue.

Deadline:

Payment must be received within ten (10) business days of your receipt of this letter, by certified check or direct deposit to the account on file.

Consequences:

If payment is not received by the stated deadline, I will:

1. File a wage claim with the California Division of Labor Standards Enforcement (DLSE);
2. Pursue a civil action under California Labor Code § 1194, seeking unpaid wages, waiting time penalties (up to $6,600), liquidated damages, interest, and attorney's fees;
3. Report the FLSA violations to the U.S. Department of Labor, Wage and Hour Division.

I strongly encourage you to resolve this matter promptly. My total exposure claim — including waiting time penalties and statutory damages — significantly exceeds the $4,850 I am requesting today.

Sincerely,

[Signature]

Marcus J. Rivera

Enclosures:
— Clockify time records (Sept-Dec 2025)
— Pay stubs showing 40-hour weeks
— Supervisor emails directing weekend work
— Termination letter dated 12/20/2025

📝 Why this works: This letter is devastating because it (1) quantifies the employer's total financial exposure ($4,850 + $6,600 penalties = $11,450+), (2) cites both federal AND state law creating dual liability, (3) references specific, preserved evidence (Clockify records, emails, pay stubs), and (4) frames the $4,850 demand as a discount from what a lawsuit would cost. Smart negotiation anchoring.

Breakdown: Why This Letter Is Effective

1. Dual Federal + State Claims

By citing both the FLSA and California Labor Code, the letter creates two independent legal bases. This is especially powerful in California, which has some of the strongest employee protections in the country. The employer faces exposure on multiple fronts.

2. The Penalty Math

The letter explicitly calculates the waiting time penalty exposure ($6,600) but doesn't include it in the demand. This is a sophisticated tactic — it shows the employer that settling for $4,850 is their best-case scenario, while making clear that litigation will cost much more.

3. Specific Evidence References

Naming the timekeeping system (Clockify), the supervisor who directed overtime (James Park), and attaching documentation shows the employee has built a case, not just made accusations.

4. Multiple Escalation Paths

The letter threatens three distinct actions: DLSE wage claim, civil lawsuit, and federal DOL complaint. Each has different consequences for the employer, making inaction extremely risky.

California Wage Law — Key Facts

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