How do stipends work?

The stipend you refer to is not a Labor Code term. It is a term used by your company. Therefore, there is no way for us to know how they work at your company. You must be paid at least the minimum wage for every hour that you work. If you are not, your company is violating the California Labor Code and the federal Fair Labor Standards Act. You should locate and consult with an experienced employment law attorney as soon as possible to explore your facts and determine your options. I would suggest you look either on this site in the Find a Lawyer section, or go to www.cela.org , the home page for the California Employment Lawyers Association, an organization whose members are dedicated to the representation of employees against their employers. Good luck to you.

Workers' compensation is the system in California that provides benefits to people who are injured on the job or contract a disabling illness from their work exposure. It sounds like your question concerns your Wage & Hour law, and Employment law. You can find attorneys who handle such matters on this website, or at www.CELA.com , the organization for attorneys who represent people in employment law disputes. Good luck to you.

This is likely not legal; I can only surmise that organizations create this artifice in a misguided attempt to avoid paying wages under California law. That being said, you should also keep a copy or request a copy of your payroll statements. Those statements often help with any wage / hour investigation and bolster any claims that you may have. Contact an employment law attorney who deals with wage / hour claims. Most offer a free consultation so don't be afraid to ask.