I have been classified as an exempt employee incorrectly. How is interest calculated to enhance my unpaid overtime award?

Civil Code 3289 states: "If a contract entered into after January 1, 1986, does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum after a breach." Since a claim for unpaid wages is a claim for breach of contract, this section applies. In addition to interest on the unpaid overtime, an individual in your circumstance is likely entitled to a number of additional penalties, such as those provided by Labor Code 203. In many cases, you are also entitled to interest on these penalties. Finally, if you retain an attorney to sue for your unpaid wages in civil court, you are entitled to costs and attorney fees as a prevailing plaintiff. I would strongly recommend that you retain a lawyer to assist you with your claim. There is more at play here than perhaps you realize, and retaining an attorney will give you much needed leverage and credibility to maximize your recovery. Good luck.

I agree with Patrick's answer and will add this link for you to review. It is helpful in navigating your way through an unpaid wages claim. https://www.dir.ca.gov/dlse/LawsTimeMannerPaymentWages.pdf

I also agree with Patrick's answer, but I point out that the interest is not compound. It is 10% simple interest. It doesn't matter what current interest rates are. The interest for breach of contract, as Patrick points out, is fixed by statute. I hope this information is helpful to you. Good luck with your legal issues. Sincerely, Craig T. Byrnes