When Does My Employer Have to Give Me My Last Paycheck in CA?

Leaving a job is a complicated and stressful process, whether you quit or your employer let you go. It is made worse, however, if you have a hard time getting your last paycheck. To prevent waiting months to receive your last paycheck – or from not receiving it at all – it is important that you know California’s laws about pay periods.

California Laws About Final Paychecks

To protect the rights of workers who are leaving their jobs, most states have created laws about when an employer needs to have paid the final paycheck. In California, the laws about last paychecks are more strict than in the rest of the country. The time period varies depending on the circumstances of your exit.

If your employer fires you, he or she is legally required to give you your final paycheck on the spot. Because he or she knew you would be terminated, he or she must have the last payment for you during or immediately after the termination.

The law shifts slightly for employees who quit. If you quit without warning, your employer must provide you with your final paycheck within three days. If you inform your employer that you are going to quit at least three days in advance, your employer must pay you on the day that you are leaving the company.

The final paycheck does not only need to include your wages, however. Unlike many other states, California law requires that employers include any wages that you have in unused paid vacation or time off. For example, if you have five days of paid vacation on your last day that you have not used, your employer must add five days pay to your final paycheck.

Penalties for Paying Late

In California, there are clear penalties for employers that do not provide the final payment in the 72-hour period after you leave. Employers owe employees a day’s wages for every day that they do not pay after the three-day deadline. For example, if an employee quits who earns $20 an hour and works eight hours a day, the employer would need to pay the employee an extra $160 for each day that the final paycheck is late.

If you only work part-time, the employer bases the late fee on an average day of work. For instance, if you usually work five hours each day, your employer would owe you five hours of wages each day that he or she is late in paying you. If you work fewer or more hours every once in a while, California law does not take that into account when awarding late fees. Overtime pay is only a part of the penalty if your employer usually scheduled you to work overtime.

Penalties for Paying Less Than You Earned

There is also a penalty if your last paycheck is less that you earned, even if the employer provides the payment within the three-day time period. Your employer will need to pay you a late fee for each day that you wait past the deadline until receiving your full payment. For example, if your employer does not include unused accrued paid time off in your final paycheck and you need to wait five days after the deadline for your employer to pay you for your unused paid time off, your employer needs to pay an extra five days of wages, even though you received most of your paycheck within the deadline.

Exception to California Late Fee Law

There is one exception to the law regarding late fees on final paychecks. Your employer does not need to pay the penalties for a late payment if you are disagreeing with him or her about the amount of your final payment. Seek legal advice if you are unsure whether your employer owes you late fees. A Los Angeles wage and hour attorney can help determine if you have a valid claim or not. Contact Mathew & George for a free initial consultation.