In California, employers are required by law to give their employees their final paycheck after the termination of their employment. According to California labor laws, payments should be made on regular paydays or at least twice during each calendar month. Any wages earned between 1st and 15th of the month in question should be paid before 26th of that month. Likewise, wages earned on the 16th day of the month should be paid before 10th of the following month. And if the employee had worked overtime, the employer is obligated by law to add the amount in the next regular pay period. The employer must also pay all the accrued vacation at the time of termination.

When an employee is laid off/fired, he or she is entitled to the final paycheck immediately. On the other hand, if an employee quits without giving notice the employer is bound by law to give the final paycheck within 72 hours. But, if you quit by giving three days notice to your employer, you should have your paycheck on the last working day. However, you’re not entitled to any payments on unused paid sick hours. And in case you have a mutual agreement with the employer to mail the last paycheck, he cannot force you to come to the office to pick it.

What are the unique rules to specific industries?

Film industry

All short-term employees involved in broadcasting or motion picture production should collect their paychecks from the employer the next regular payday. But, if the employees are working under a collective bargaining agreement, alternative provisions on final payments may apply.

Agriculture industry

Seasonal employees who work with canning or drying fish, vegetables or perishable fruits are entitled to payments within a reasonable time not exceeding 72 hours.

Live entertainment

Any employee working at live concert events should collect his or her final pay as provided in the bona fide collective bargaining agreement.

Oil industry

Employers who lay off employees engaged in oil drilling should be paid within 24 hours, excluding weekends and holidays.

Waiting Time Penalties

If you’ve been terminated and your employer has failed to submit the final paycheck, you’re a victim of wage theft. For each day the employer delays the last payment, you’re entitled to collect money as a waiting time penalty on your previous employer. In California, this penalty is calculated by taking the employee daily rate and then multiply by the number of days that remain unpaid (up to 30 days). Even after collecting final paychecks on time, employees may still be entitled to waiting time penalty if they did not receive all compensation.

If your employer has failed to give the final paycheck on time, you should seek the services of UELG (united employee law group) to file a lawsuit against him or her.

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Both employer and employees should be aware of waiting time penalty in California. The law is strict on employers; all employers are supposed to pay their workers in time failure to which they can experience a penalty. If an employer will miss a deadline, the employee is entitled to an extra day pay till 30 days.

California’s Final Paycheck Law basics

The state of California has strictest laws on final paycheck. If an employee is fired, he is entitled to his final pay immediately after the determination of his duties. If an employee quits without notice, the employer has up to 72 hours to pay for the final paycheck. Failure to pay the employee upon determination of his work due to quitting can attract a penalty. An employee who quits with a notice is supposed to be paid immediately. The state of California also protects the employee by requesting the employee to pay accrued and unused vacation and the PTO to the employee final pay check.

Waiting Time Penalties

An employee has the right to be paid upon completion of his work. If an employee waits and the employer fail to pay him is paycheck, the law requires the employee to access extra pay on the days he will have to wait. For example, if the employee receives a regular pay of a certain amount, then the late payment check will be based on the average wage of the employee for the day the employer will be late to pay the final check. There are several rules which apply to late payment penalties. Some of the rules which apply include the following:

If an employee works 8 hours a day, he or she will have to earn about 12 in a day. Each late payment will be equal to the $120 an employee earns. The employer will have to pay an equal amount to the amount he pays the employee on his daily schedule.

If an employee works in a part time basis, then he will have to earn the same amount during his wait time. If, for example, an employee earns $80 per day on his part time work, he will have to be paid the exact amount if he is subject to waiting upon completion of his job.

Overtime is included in the waiting paycheck if it is regularly included in the paycheck of individuals who is subject to waiting wages. Even if the employer pays you your final paycheck, you may be entitled to waiting paycheck if you have not been compensated fully.

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In most states, there are laws regarding when employers will have to pay the final checks to their employees. However, in California, the law is extremely strict and is in favor of the employees. If you have been fired, then you are entitled to get your final check right at the time of your termination. However, the law is slightly different if you have resigned. If you haven’t provided any notice to your employer informing him or her of your resignation, then they have to pay you within 72 hours. However, if you have given him a 72 hour notice, then they are entitled to pay you on your final day.

Waiting Time Penalty: If your employer fails to pay you on time, then they have to pay a penalty. The penalty is calculated on the basis of some rules:

1. If you work 8 hours every day for 5 days a week, then the penalty for each day is your hourly wage rate multiplied by eight. For example, if you are earning $20 every hour, then the penalty will be $160 for each day. So if the employer is late by 5 days, he will have to pay $800.

2. If you are a part time employee working 4 hours for 5 days a week, the penalty for each day is your hourly wage rate multiplied by 4. Hence, if your hourly wage is $15, the penalty will be $60 for each day.

3. Overtime wages are also included if you frequently work for extra hours. However, if you work overtime occasionally, then it won’t be included.

Things which are included in the final pay check:

Here also, the California Law heavily favors the employees. The employers are required to pay all the accrued wages and commission. Apart from that, they also have to pay you for unused vacations. If a client pays your employer commission later on, for a work which you have done before resigning, then he should pay it to you as soon as possible.

If you are not paid: In case your employer doesn’t pay you on time or pays only a part of the total expense, then you have 2 options. You can approach the DLSE and file a complaint with them. Other than that, you can also sue your employer. In that case, you will need a lawyer to help you out. United Employees Law Group can help you out in this regard. If you win the case, you will get back all your dues within 30 days.

This article is not meant to be legal advice. If you are not sure about the policies regarding final pay at your company and in California, refer to your company handbook or speak to someone in your HR team.

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