New owner of company owes me a raise, backpay, and overtime. What can I do?
Asked in Los Angeles, CA Last answered on November 3, 2026The company has 10 employees. I am owed money. My raise, my bonus, overtime, and no meal breaks. My boss, after 3 months, was going to give me a raise and a bonus, but didn't because he spent a lot of money taking his family to Hawaii. He promised he would do back pay, even for my overtime, in full. He was also going to pay me my 40 hours of sick pay. I had problems with a coworker making me feel unsafe at work. My boss was going to fire her and pay me my money, but he died. The wife took over the company. The manager said that I was going to get paid in full and that the wife would honor it. She didn't want to pay me. Didn't fire my coworker, instead gave her an office promotion, which I don't care for, but that also meant I'll have to see her more, and I felt unsafe around her. I'm a driving instructor for Manhattan Beach, and we still go to the office for paperwork. I was the best employee. The wife, the new owner, instead of paying me, started falsely accusing me of stuff, so I was forced to resign. I even had to call the cops so they could be a witness for when I dropped off the company vehicle and my last paycheck. I have some emails and texts as proof. It's been hard finding a lawyer.
1 answer
I’m sorry you’re going through so much at once. Situations like this are easier to sort out when the issues are separated, because each one follows different rules.
Under California law, unpaid overtime counts as wages, and so does the extra hour of pay owed for a missed meal or rest break. Wage claims can generally reach back three years. A promised raise or bonus is less certain. Whether it can be recovered usually depends on how clearly it was promised and whether the employee relied on that promise, which is why emails and texts can be important. Unused vacation or PTO generally must be paid out when employment ends, but unused sick leave usually does not.
An employee who is discharged is owed final pay immediately. When an employee resigns without notice, final pay is generally due within 72 hours. If it is paid late and the delay is willful, the law allows a penalty of up to 30 days’ pay on top of the wages owed.
An owner’s death does not by itself erase wage debts. A corporation or LLC generally keeps its obligations no matter who runs it. If the owner ran the business as a sole proprietorship, claims may need to be made against the owner’s estate, which has its own deadlines. California also has rules that can make a successor business responsible for unpaid wage judgments.
Quitting because conditions became intolerable can sometimes be treated as a termination, if the employer caused those conditions or knew about them. Courts set a high bar for this.
Anyone can file a wage claim with the Labor Commissioner. Because the outcome always depends on the specific facts, an employment attorney can review the full situation and explain the options.
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