Waiting Time Penalties
In California, employees are entitled to receive their final paycheck promptly upon termination or resignation. California law mandates that terminated employees must be paid on their last day of work, while those who quit must receive their final paycheck within 72 hours of giving notice. These final paychecks must include all wages earned and the cash value of any accrued benefits, including unused vacation time, at the employee’s final rate of pay.
Pursuant to California Labor Code section 204, employers must pay employees twice a month on designated paydays, with some exceptions. Overtime wages must be paid by the second regular payday after the work is performed. All employees must receive written notice of their rate of pay at the start of employment and be informed in writing of any changes within seven (7) days.
For terminated employees, final paychecks checks should be handed over on the last day of employment. If not provided in person, it must be mailed within 72 hours. This ensures that employees have immediate access to their earned wages upon leaving a job.
Employers who willfully withhold final paychecks face significant penalties. Under California Labor Code section 203, employers are liable for a “waiting time penalty” equal to the employee’s daily wage for each day the paycheck is late, up to a maximum of 30 days. This can result in substantial additional payments for the employee. Additionally, Labor Code section 210 imposes penalties for late regular paychecks: $100 for first-time violations and $200 plus 25% of withheld wages for subsequent or intentional violations. These penalties serve as a strong deterrent against employers delaying wage payments.
If you or someone you know was not timely paid and owed waiting time penalties, contact us immediately.
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