How Long Does an Employer Have to Pay Final Wages After Termination in California?

Losing your job is stressful enough without having to chase down your former employer for your final paycheck. But how long can your boss legally take to pay you your last wages?

In California, strict laws govern the timely payment of an employee’s final wages upon termination or resignation. Failing to follow these rules can result in stiff penalties for the employer. Here’s what you need to know.

Immediate Final Pay for Terminated Employees

Under California Labor Code Section 201, if an employer fires an employee, the employee’s final wages are due immediately upon termination.

This means if you’re dismissed, your boss must pay all of your final wages, including accrued vacation or PTO, on your last day. They can’t wait until the next regular payday or delay payment for any reason.

The final paycheck must include all wages earned up until and including the last day of work. If the employee was entitled to overtime, commissions, or other compensation, those amounts must be timely paid as well.

72-Hour Rule for Resigning Employees

Employees who quit are entitled to receive their final wages within 72 hours of giving notice of resignation, according to Labor Code Section 202.

If the employee provides 72 or more hours’ notice, the employer must pay final wages on the last day of work. If the employee provides less than 72 hours’ notice, the employer has up to 72 hours after notice is given to pay.

For example, if you quit on Monday effective immediately, your employer has until Thursday to pay you. But if you give two weeks’ notice, you must be paid on your last day.

Exceptions for Remote Workers

But what if you work remotely and can’t easily collect your final paycheck in person? California law addresses this situation too.

If you quit without giving 72 hours’ notice and your final wages aren’t available at your usual workplace, your employer must mail your paycheck within 72 hours. If you request that your final wages be mailed to a designated address, your employer must do so at their own expense.

Layoffs and Facility Closings

In the event of a layoff or termination due to the closure of a business or facility, the employer must pay final wages on the last day of operation. If that’s not feasible, they must pay no later than 72 hours after the layoff or closing.

Employers who fail to timely pay final wages in these situations may be subject to waiting time penalties, just like with individual terminations or resignations.

Waiting Time Penalties

If your employer misses the deadline for paying final wages, they may owe you “waiting time penalties” under Labor Code Section 203.

The penalty is a full day’s wages for each day the employer is late, up to a maximum of 30 days. The daily rate is based on your regular wage, including commissions, bonuses, and vacation pay.

For example, if your usual pay was $150 per day and your employer is 10 days late, they may owe you an additional $1,500 ($150 × 10 days) on top of your final wages.

To be liable for waiting time penalties, the employer must have willfully failed to pay final wages on time. This means they intentionally delayed payment or took no reasonable steps to comply with the law.

Exceptions for Certain Industries

Special rules apply to certain occupations:

• Seasonal workers in curing, canning, or drying fruit must be paid within 72 hours of termination, regardless of the reason for separation.
• Movie industry employees can be paid by the next regular payday.
• Oil drilling employees who are laid off must be paid within 24 hours after discharge.
• Live event venue workers must receive final pay on their last day if they are terminated or within 72 hours if they resign without 72 hours’ notice.

Getting Your Final Pay

If you haven’t received your final wages on time, first contact your former employer and request payment. If they still don’t pay, you can either file a wage claim with the California Labor Commissioner’s Office or file a lawsuit in court.

You have the right to file a claim for unpaid final wages, including waiting time penalties, for up to three years from the date the wages were due. If you file with the Labor Commissioner, you don’t need an attorney and can attend a settlement conference to resolve the matter informally.

An experienced employment attorney can assess your case, advise you of your options, and represent you in a wage claim or lawsuit. They can help you recover the maximum penalties and compensation available.

Protect Your Right to Timely Final Pay

California law is clear: employers can’t withhold or delay your final wages after termination or resignation. You have the right to receive your hard-earned pay on your last day or shortly after.

If your former employer hasn’t paid you on time, you may be entitled to significant waiting time penalties in addition to your final wages. Don’t wait to stand up for your rights.

At TONG LAW, our attorneys are dedicated to fighting for employees who have been wronged in the workplace. If you haven’t been paid your final wages on time, contact us for a confidential consultation. We can help you get the compensation you deserve.