California Rules on Final Paychecks & Waiting Time Penalties

Final Paychecks And Waiting Time Penalties

If you quit your job, are fired, or laid off, California laws require your employer to promptly issue you a final paycheck that includes everything you are owed, including all wages, overtime, and accrued vacation and paid time off or “PTO.” If your employer fails to promptly issue a final paycheck, or if the check doesn’t include every penny you are owed, you may be entitled to waiting time penalties. Waiting time penalties are calculated based on your average daily earnings and begin to accrue for up to 30 days after the final paycheck for all wages due should have been issued.

Final Paychecks – When Are They Due?

If you are terminated: If you are terminated, you must be paid your final wages at the time of termination. The final paycheck must include all wages earned, all overtime, and all accrued paid time off.

If you quit and give notice first: If you give at least 72 hours notice to your employer before quitting, your employer must provide your final paycheck on your last day of work.

If you quit without notice: If you quit your job without giving your employer notice prior to quitting, your employer must provide your final paycheck within 72 hours. You have the right to request that your final paycheck be mailed to you.

Waiting Time Penalties

Waiting time penalties are designed to encourage employers to issue final paychecks promptly and to pay employees everything they are owed when employment ends. Waiting time penalties can really add up. For example, if your average daily earnings are $250 and your employer fails to issue a final paycheck for 30 days, you would be entitled to 30 days of pay, or $7,500, in addition to the unpaid wages already owed.

Waiting time penalties are owed if the employer “willfully” fails to pay final wages within the required time period. The employer can avoid paying waiting time penalties if there is an actual and good faith dispute as to what wages are owed, but the employer must still pay all wages that are not in dispute.

The Law Offices of Corbett H. Williams is a premier employment law firm that represents employees in a wide-range of matters. Contact us today using the form below or call: 949-528-4220.