Attorney advertisement by Edwin Aiwazian of Lawyers For Justice, PC, headquartered at 410 Arden Avenue, Glendale, CA 91203
Waiting time penalties in California are financial penalties imposed on employers who have shown a failure to pay wages and final wages to employees who are ending his or her employment. A waiting time penalty is meant to incentivize employers to provide payment of wages in a timely manner and deliver a final paycheck promptly when employees leave their jobs.
- When Does a Waiting Time Penalty Apply?: A waiting time penalty typically comes into play when an employee is terminated, quits, or resigns, and the employer willfully fails to provide the final paycheck and/or payment of wages at the time of separation as required by California labor code.
- Timing for Final Paycheck: Under the California labor code, if an employee is terminated or laid off and they are owed unpaid wages, the employer is generally required to provide the final paycheck and/or final payment of his or her wages, including all earned wages and accrued vacation time, on the employee’s last day of work. If an employee resigns with at least 72 hours’ notice, the final paycheck is due on the last day worked. If the employee resigns without 72 hours’ notice, the paycheck is due within 72 hours of resignation. Failure to pay final wages can result in waiting time penalties.
- Waiting Time Penalties: If an employer fails to provide the final paycheck, or final wages, on time, waiting time penalties may be imposed. Waiting time penalties accrue at the daily rate of the employee’s average daily earnings for each day the final paycheck is late, up to a maximum of 30 days.For example, if an employee’s daily rate of pay is $100 and the final paycheck is delayed by 10 days, the waiting time penalty would be $1,000 (10 days x $100/day).
- Maximum Penalty Duration: The waiting time penalties can be imposed for unpaid final wages for up to a maximum of 30 calendar days, even if the delay in payment continues beyond that period.
- Good Faith Disputes: If the employer has a good faith dispute over the amount of unpaid wages due (with disputes over unpaid commissions, for example), the employer is still required to timely pay the undisputed wages. Waiting time penalties may apply only to the undisputed portion of the wage claim.
In order to avoid paying a waiting time penalty, it’s important for employers to ensure that they pay final wages in accordance with California law. Timely and accurate payment of final wages is crucial for both compliance with the regulations of the California labor code and the fair treatment of employees. Employees who believe their final wages were not been paid in accordance with the law can file a complaint with the California Division of Labor Standards Enforcement or seek legal advice with an employment attorney. Mr. Justice’s team of powerful employment lawyers at Lawyers for Justice, PC enforce final pay rules, federal fair labor standards, and fight for employees with unpaid wages.
Call (818) JUSTICE today for a FREE consultation to speak to a our team about your final wages dispute.
Waiting Time Penalties in California – FAQ
can i sue for not getting paid on time? Yes. If you are owed unpaid wages, you can file an unpaid final wages lawsuit against your employer (or former employer) to recover unpaid wages, in addition to possibly other damages provided by law. An employer who exhibits a failure to pay final wages, or who pays late wages, is in violation of California wage and hour laws. And thus, they are subject to a wage and hour lawsuit.
how to calculate waiting time penalties in california? The waiting time penalty is measured by multiplying the employee’s daily rate of pay by the number of days that the employee was not paid, up to a maximum of 30 days.
how to file waiting time penalty california? Thinking about filing a waiting time penalty on wages owed to you? You can either file a wage claim with the Division of Labor Standards Enforcement (the Labor Commissioner’s Office), or call a final wages attorney to bring a case against your former employer to recover the wages owed to you. In the latter case, the employment lawyer can help you claim the waiting time penalty for final paychecks.
can my employer pay me late? In most jurisdictions, including California, employers are legally required to pay wages immediately on the scheduled payday for each pay period. Late payment of wages can result in waiting time penalties. Failure to pay in a timely manner may also be a violation of state or federal wage and hour laws.
what happens if my paycheck is late in california? If an employer willfully fails to pay a California employee their daily rate of pay on their scheduled payday, the employee can send a written notice to their employer requesting payment for his or her wages. If the employer still does not pay wages and violates the employment relationship or a collective bargaining agreement, the California employee may file a claim with the California Labor Commissioner’s Office to obtain payment of wages.
what is considered late period? Typically, and while there are some exceptions to payment of wages, generally, employees must be paid no less than twice a month. All work done from the 1st to the 15th of the month must be paid no later than the 26th, and work done from the pay period of the 16th to the last day of the month must be paid no later than the 10th of the following month.
how long can an employer not pay you? All work completed from the 1st to the 15th must be paid no later than the 26th, and work done from the 16th to the last day of the month must be paid no later than the 10th of the following month. If not, a waiting time penalty could be applied if the employer fails to pay wages that are owed.
how long does an employer have to pay retroactive pay? According to PayScale, employers usually must make retroactive payments within 12 days; retroactive pay from a previous period that cannot accommodate that time frame must be issued as a one-off payment.
what happens if a company can’t make payroll? If an employer willfully fails to pay employees, causes delays, or reductions, it may result in legal action and fines for the employer, like a waiting time penalty.
what’s retroactive pay? Retroactive pay is extra income added to an employee’s paycheck to compensate the employee for any unpaid work they performed in a prior pay period. To calculate retroactive pay, you can subtract the amount of wages an employee received from the amount of wages they should have received for the work they completed.
how long does an employer have to correct a payroll when it is wrong? In California, employers have up to 30 days to correct payroll errors. If an employer does not fix the error, or issues late paychecks in that time, employees are entitled to their daily rate of pay for each day the error isn’t corrected.
what happens if payroll is late? Employers who break a collective bargaining agreement or do not pay their employees their daily rate of pay on time can face waiting time penalty. When wages remain unpaid, an employee has rights under California law to retrieve what they are owed.
what is considered a late payment? Usually, “if an employee does not receive full payment of the wages due on the payday designated by the employer in accordance with Labor Code section 204, the payment is late.”
when does your employer have to pay you? Employers should pay their workers on pay day. For final wages, they can pay an employee within 72 hours of their last shift.
my paycheck is late what can i do? If you did not receive all the wages you are entitled to, you can file a wage and hour claim. Reach out to Lawyers for Justice, PC (LFJ) today for help.
what to do if employer is withholding pay? If an employer intentionally fails to pay you, they could be in violation of California law. Reach out to LFJ today for help on getting what you deserve.
will my last paycheck be direct deposited? Typically, according to Labor Code Section 208, your employer must give you all wages owed at the place of termination unless you previously authorized direct deposits.
can a job hold your check if you quit? If an employee resigns with 72 hours’ notice, their employer must provide the final paycheck on their last day of work. If the employee resigns without giving proper notice, the employer has up to 72 hours to give the employee their final paycheck.
how long can an employer hold your check after termination? An employee must pay the employee within 72 hours if they do not give proper notice.
does your last check get mailed? Typically, the employer will issue the final paycheck upon termination.
is it illegal to withhold pay? If an employer improperly withholds pay, the employee may be subject to waiting time penalties in California.
can a company withhold your final paycheck? If a company withholds a final paycheck, a waiting time penalty applies: the pay must be equal to the worker’s daily rate of pay for each day late, up to 30 days.
Attorney advertisement by Edwin Aiwazian of Lawyers For Justice, PC, headquartered at 410 Arden Avenue, Glendale, CA 91203
