California Law on Final Paychecks: Waiting Time Penalties
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.
Photo Credit: Shutterstock/Mego Studio