At A DLSE hearing the hearing officer said that once the state makes theyre ruling that I cannot take anymore action against my former employer including suing in small claims court.

Is this true?

I was told by someone that if the state rules against me I can sue in small claims court.

?

Read Labor Code 98.2 http://law.onecle.com/california/labor/98.2.html

Pay particular attention to the verbage in LC 98.2(a):
Within 10 days after service of notice of an order, decision, or award {from the Labor Commissioner} either party may seek review by filing an appeal to the superior court, where the appeal shall be heard de novo.

Do not, however, overlook the verbage in LC 98.2(c):
If the party seeking review by filing an appeal to the superior court is unsuccessful in the appeal, the court shall determine the costs and reasonable attorney's fees incurred by the other parties to the appeal, and assess that amount as a cost upon the party filing the appeal.

What does de novo mean? and does this mean I can sue within 10 days after the ruling is made?

I made a huge mistake to think the state would help me, I should have gotten a lawyer. :(

harris barnes: What does de novo mean?

It is a latin expression that means "a new trial." The legal matters are looked at fresh (anew) in superior court.

harris barnes: I should have gotten a lawyer

All is not lost. You should do so now.