Final Paycheck Laws In California

California is an at-will employment state, allowing either an employee or employer to terminate an employee’s job position at any time, for any reason except when an employer’s termination of an employee is based on discrimination or retaliation, or when a contract prohibits the termination of the position.

The state’s employee protection laws, as outlined in the California Fair Employment and Housing Act (FEHA), require employers to provide employees with their final paychecks at the time of the employee’s departure. Contact our wrongful termination lawyers in Orange County for a free consultation today.

What Are the Final Paycheck Law Requirements In California?

There are specific timing requirements for an employee’s final paycheck in California, including the following:

• When an employee is fired or discharged from their position, their employer must pay all of the employee’s earned wages at the time of the discharge, including accrued vacation pay
• When an employee gives their employer at least 72 hours’ notice of their quitting, the employer must pay all of the employee’s earned wages and accrued vacation pay at the time of the employee’s departure
• When an employee quits without giving notice, their employer must pay the employee’s earned wages and vacation pay within 72 hours of their quitting
• Employees who quit without giving 72 hours’ notice may request that their employer mail them their final paycheck, and the date of the mailing becomes the date of pay, meeting the requirement for payment within 72 hours of departure
• If an employee who quits without notice does not request that their employer mail their final paycheck, the final wages must be made available to them at the employer’s office within the county where the employee performed the work
• When an employee is fired or laid off by their employer, the employer must pay the employee at their place of employment and not mail the paycheck to the employee

If an employer fails to comply with California’s final paycheck laws, the employee has the right to take legal action, including asserting their right to collect the “waiting time penalty” payment for the delay.

What Are the Waiting Time Penalties for California Employers

Under California Labor Code § 203, the law defines waiting time penalties as follows:

“If an employer willfully fails to pay any wages of an employee …who is discharged or who quits, the wages of the employee shall continue as a penalty from the due date thereof at the same rate until paid or until an action therefor is commenced; but the wages shall not continue for more than 30 days.”

The penalty pay accrues on non-workdays as well as the employee’s typical prior scheduled workdays.

It’s essential to note that the law provides exceptions for employers when an employee intentionally hides or avoids accepting payment to intentionally accrue penalty pay.

The state also has a statute of limitations in place for employee lawsuits against an employer who failed to pay their final earned wages, accrued vacation pay, and waiting penalty payment. The employee has up to three years to file a lawsuit against an employer to recover their lost paycheck.