California law requires most employees to be paid at least twice a month.
Most people have been in the situation of waiting anxiously for their next paycheck. Whether you need it to cover your bills, your rent, or some other expense, knowing that you will be paid soon can relieve a significant amount of stress in your life. But what happens if your company doesn’t actually pay you on time?
In California, you have legal recourse if your employer fails to pay your regular wages in a timely manner. According to a California employment lawyer, all employers in the state have a legal obligation to pay their employees their full wages on time. Californians enjoy broad protections under the state’s labor laws, which include coverage for how wages — when you are paid, what information must be included with your paycheck and other wage and hour laws.
California law requires most workers to be paid twice a month (at minimum). If your employer fails to pay you on time, then it may be subjected to penalties that you will be able to collect. As an experienced California employment lawyer can explain, to determine if the employer is liable for a late payment penalty, the state will examine whether the company has a valid reason for the delayed payment. For example, if you provided incorrect information, like the wrong routing number for a direct deposit, then the employer is not at fault for the late paycheck. Some employees are also exempt from this regulation, including executive, administrative and professional workers, as well as exceptions for employees who earn a commission.
However, for all other California employees, if the state determines that there is no valid reason for a delayed payment, then it will be assessed a penalty of $100 for the first violation. Each additional violation will result in a $200 penalty. In some cases, the state may require your employer to pay additional fees on top of penalties. Importantly, even if your employer disputes the total amount owed to you, it still has to pay you the full amount of wages owed on time to avoid the penalties. If it fails to do so, an experienced California employment lawyer can help you examine your options.
For overtime, employers do have some extra time. A company will not receive a penalty for late overtime pay if it is received no later than the date of your next regular paycheck. For example, if you work overtime during pay period 10, the company can pay you for that overtime through pay period 11 without penalty.
If you quit your job, are terminated or otherwise leave employment, a final paycheck must also be timely. If a company withholds your final paycheck, it could result in what is known as a “waiting time” penalty, which may be as much as two pay periods worth of wages. For this reason, most California employers issue final paychecks on the last day of employment or within the last week of employment.