What to Expect at a Labor Board Hearing

Receiving a labor board claim notice can be high-risk for employers, especially when the process and next steps are unclear. Understanding how the DLSE (Labor Commissioner) process works is critical to avoiding early mistakes that weaken your position.

John Fagerholm, Managing Partner at DefendMyBiz, walks through the process step by step from the first notice all the way through the hearing, so you know exactly what you're walking into.

Step 1: Initial Notice (Don't Respond Yet)

"The first thing that happens is you get the notice, and then they say you could answer this."

Many employers instinctively respond immediately to explain their position. John says that's a mistake and one he made himself early in his career.

"People make the mistake of answering. That sounds like a funny thing to say, but when I first became a lawyer, I would answer everything. Then I figured out shortly into it that that answer gets taken and gets shown to the other side. Then the other side can make their adjustments. Basically, they have my entire case before I ever go in there and even discuss what happened. Don't do that anymore."

Your answer, filed prematurely, hands the employee's attorney a roadmap to your defense before you've even had a conversation. Hold it.

Step 2: Notice of Claim & Conference (Settlement Stage)

After the initial notice, the next step is what the Labor Board calls a "notice of claim and conference." John describes this stage as primarily focused on encouraging settlement.

Here's how the conference runs: 

"The Deputy Labor Commissioner will start by listening to the plaintiff's story: 'Okay, what happened? How many hours did you work and didn't get paid for? How badly were you treated?' So on and so on. Then they go, and they listen to the company, the defendant's side of the story. Then they separate you and the Deputy Labor Commissioner comes in and explains to you why you should settle today for some dollar amount, because of all of the bad things that's going to happen if you go to a hearing."

One thing John is emphatic about: "Nothing happens at the notice of claim and conference that's going to take money out of your pocket unless that's what you decide. You have to decide to settle in order for it to go away."

No evidence is presented at this stage. No decision is made. This stage is designed to encourage both parties to reach a settlement before proceeding to a formal hearing. For context on how the DLSE process works and what your defense options look like at this stage, see our DLSE / Labor Commissioner defense page.

Step 3: The Hearing (Trial-Like Proceeding)

If you don't settle at the conference, the case proceeds to a hearing. In Los Angeles County, John notes the wait is significant.

"Sometime down the road in Los Angeles County, it's about a year away, but in counties that aren't as crowded as Los Angeles, it's probably sooner. There's a hearing. At that hearing, it functions similarly to a trial. That's where you get to present evidence."

The structure follows a familiar trial format. "If you have a good lawyer, there's going to be an opening, a cross-examination of the plaintiff because the plaintiff goes first, then there's going to be a direct examination of you and your testimony, then there's going to be closing arguments."

This is the stage where preparation, documentation, and legal strategy actually matter.

Understanding your wage-and-hour obligations before a claim is filed is the foundation of a strong hearing defense. Our post on California overtime laws for employers and the breakdown of defending high-stakes unpaid overtime litigation covers the evidentiary issues that most often arise at these hearings.

Do You Need an Attorney for a Labor Board Hearing?

John gives an honest cost-benefit answer on this one:

"If it's a big number, you should hire an attorney. If it's a small number, it depends on whether it's valuable to you. Because if you have to spend $5,000 on an attorney to avoid paying $5,000, it's better to go in there and either try to settle it or do a hearing yourself if you think you've got the evidence to prove that you didn't do anything wrong."

The decision often comes down to cost versus exposure. 

A small claim with clear documentation and a confident employer may not need full legal representation through the hearing. A larger claim, a complex factual dispute, or a situation where the evidence is thin; that's where having an attorney changes the outcome.

What John doesn't say explicitly but implies throughout is that, in many cases, involving counsel before the conference stage is more effective than waiting until after key decisions have been made.

Watch John's full breakdown below:

Don't Walk Into a Labor Board Proceeding Unprepared

A labor board claim moves through three stages: initial notice, settlement conference, and hearing. Early responses can impact your defense, settlement is voluntary at the conference stage, and the hearing functions like a trial, where documentation becomes critical.

Preparation at each stage of the DLSE process directly impacts your outcome.

If you've received a labor board notice or want to understand your position before the conference, schedule a free 15-minute consultation with DefendMyBiz. We handle Labor Commissioner defense exclusively on the employer side.

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Disclaimer: The above content is for informational purposes only. This is not legal or tax advice. Laws, IRS guidance, and withholding requirements can change, and outcomes depend on specific facts. You are advised to contact a qualified attorney for any legal advice.