Employees who work in California have a lot of protective laws that aren’t present in other states. Some of these apply to their paychecks, including an employee’s final check. Regardless of what else is going on, employees have the right to get the pay they’re due.
When an employee quits or is terminated, tensions between them and their employer are often high. This can make any issues with pay even more contentious than they would be otherwise.
When should employees receive their final pay?
State law sets deadlines for final paychecks, none of which make allowances for convenience or internal delays. When determining how long the employer has to get the employee their last paycheck depends on how the job ended.
If an employee is discharged, their wages must be paid immediately at the time they’re terminated. An employee who gives at least a 72-hour notice must be paid on their last day of work. If the employee quits without any notice, the employer must pay within 72 hours of the employee quitting.
What must be included in the final paycheck?
One question that’s often asked, besides when the paycheck must be issued, is what has to be included in it. The final paycheck sometimes includes more than just regular pay. In California, accrued vacation that hasn’t been used will have to be paid on the last paycheck.
Employers that don’t pay the wages when they’re due may face waiting time penalties. These penalties will continue to build up by the day up until they reach the statutory limit. This is meant to encourage timely payment of the final wages.
Any issues with final paychecks should be handled promptly. If legal action becomes necessary, both sides should learn their options and have someone to assist them through the process.