The state of California has always been among the strictest in US labor law, and it has strict regulations regarding an employee’s final paycheck before moving on from an organization. As of 2023, there are specific laws in place that dictate what the process of paying an employee’s final paycheck should look like. Understanding these regulations can help California employees know what behaviors should cause them to flag to a final paycheck law attorney.
One of the distinct features of California’s labor law is how it prioritizes an individual being financially supported as they are forced to transition their career to another business. To ensure employees are protected even when they’re terminated, California law has requirements based on two factors.
This combination of promptness and flexibility reflects how, in its labor laws, California prioritizes the financial security of its employees throughout the state.
If an employee has decided to resign from their position at their own will, California also gives direction to this experience based on the timing of their resignation.
Wage and hour law is explicit on what should be included in an employee’s final paycheck, whether they leave at their own will or have been lawfully let go. All wages earned up to the last day of employment must be included. This also includes any accrued vacation days or unused PTO that the employee earned through their employment but never took before leaving. Rather than having the time off, employees instead accept what they would have made for those days.
The only deductions that are allowed to be taken from this final paycheck are legally permitted deductions, like tax withholdings or anything that has been ordered by a court, such as child support or anything else ongoing in another legal case.
A: California employees have the right to receive timely wages while also working in a safe environment that is free of discrimination and harassment. They are also entitled to various meal and rest breaks during work hours, in addition to other benefits such as sick leave and overtime pay when applicable.
When being terminated from your position or formally resigning to move on, employees in California have a legal right to receive their final paycheck on time. Any violations of these conditions can be met with legal recourse by working with a Carlsbad employment attorney.
A: Yes, there are additional penalties an employer will face if they have delayed your final paycheck past the time it is legally due. This is called a “waiting time” penalty. It constitutes your daily wage rate for each day the payment is delayed up to 30 days. This rule is set in place to motivate employers to take the final paycheck law seriously by making it more expensive on their part to delay the process.
To ensure you collect every last dollar you are entitled to, having an employment lawyer review the scenario can possibly uncover other penalties you may be owed.
A: Depending on the specific nature of your role, there could be certain rules in place. For example, a commissioned salesperson may have a different timeline for their true final paycheck, given the nature of how much time is needed to calculate their final commissions. Within the union sector, valid collective bargaining agreements could also outline different terms of payment experience upon termination.
To ensure your employer is not taking advantage of the situation or overlooking how much and when you should be paid, share every detail with your attorney as the process is happening.
A: If you have not received your final paycheck within the required timeframe, first check in with the company’s Human Resources department. If you cannot resolve the issue in a timely manner through that channel, you can work with an attorney to file a claim with the California Labor Commissioner’s Office.
In collaboration with your legal team, that office will investigate the issue and strive to recover all unpaid wages you are lawfully owed. This will include any penalties the employer may face due to the delay.
If you have not received your final paycheck or believe your employer is trying to avoid penalties by not following these rules directly, contact The Law Office of Frank S. Clowney III as soon as you can.
Final paycheck laws are clear to follow and intend to preserve as much financial security as possible for California employees as they advance to their next job opportunity. You do not need to suffer alone from an employer unlawfully delaying money that is rightfully yours. Take legal action today.