California may be the most protective state when it comes to employee rights, including the right to be paid on time. California laws on paychecks and paydays cover when you must be paid, what information your employer must provide with your paycheck, when you must receive your final paycheck if you quit or are fired, and what that final paycheck must include.
Generally, California employees have the right to be paid at least twice a month. Compensation earned between the 1st and the 15th of the month must be paid no later than the 26th day of the same month. Compensation earned from the 16th of the month through the end of the month must be paid no later than the 10th day of the following month.
If an employer pays employees weekly, every two weeks, or twice a month according to a different earning schedule, it may comply with the payday laws by paying employees for work performed within seven days after the end of the pay period. For example, an employer that pays employees every two weeks is following the law as long as it pays employees within a week after each two-week payroll period closes.
Employers must designate paydays that meet the requirements above, and notify employees of the time, date, and place they will be paid.
The laws provide some exceptions for certain types of employees. For example, executive, administrative, and professional employees (as defined by California’s overtime laws) may be paid only once a month, as long as they are paid by the 26th day of the month and their paychecks includes their entire salary for the month. Employees who work for a farm labor contractor must be paid every week.
California law requires employers to give employees an itemized written statement with every paycheck. This statement, which can be in the form of a detachable pay stub or a separate document, must include the following information:
California employees are also entitled to examine their payroll records within 21 days of a request to an employer. You may also request a copy of your payroll records, although your employer may charge you for reasonable copying costs. If your employer fails to give you access to your records, you may be owed a $750 penalty from your employer.
If you are fired, laid off, or otherwise involuntarily separated from your job, you are entitled to your final paycheck immediately (that is, at the time of your firing or layoff). Your employer may not wait until the next scheduled payday or even the next calendar day to pay you what you are owed. And, your final paycheck must include all of your accrued, unused vacation time or PTO.
If you quit your job and give your employer less than 72 hours’ notice, your employer must pay you within 72 hours. If you give your employer at least 72 hours’ notice, you must be paid immediately on your last day of work. Like employees who are fired or laid off, your final paycheck must include all of your accrued, unused vacation time or PTO.
To discourage employers from delaying final paychecks, California allows an employee to collect a “waiting time penalty” in the amount of his or her daily average wage for every day that the check is late, up to a maximum of 30 days. For example, if you typically earn $80 a day and your employer is ten days late with your check, you may be able to collect a penalty of $800.
If your employer refuses to pay you on time or issue your final paycheck, contact an experienced employment lawyer to discuss your legal options.