What Does California Law Say About Final Paycheck Rules?

California law mandates that final paychecks be provided promptly, with termination pay due immediately and resignation pay within 72 hours. Employers must include all owed wages, expenses, and accrued benefits, with penalties for late or incomplete payments.

By Douglas Wade, Attorney

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Table of Contents

1. What are the rules about California final paychecks?

2. The Wage Laws of California

3. State Requirements for Final Paychecks

4. Your Last Paycheck: What You Need to Know

5. What Are the Deductions from a Last Paycheck?

6. Consequences for Not Paying a Complete Final Paycheck

7. The 2024 California Labor Code

8. Typical Problems with the Last Paycheck

9. What to Do If You Do Not Get Your Final Paycheck or If the Amount Is Wrong

What are the rules about California final paychecks?

Leaving a job can be an exciting or stressful moment in your life. Leaving behind friends, family, and familiar places can be tough, even if you’re leaving to pursue a career you love. If your employer withholds your final paycheck or deducts unfairly from it, quitting your job becomes much more of a nightmare. You absolutely must have a solid understanding of the final paycheck law in the state of California.

You, as an employee, are entitled to compensation for the work that you have done, and this compensation encompasses everything that you earned in your most recent paycheck.

The Wage Laws of California

Paychecks in California are typically due twice a month according to a set schedule. In order to safeguard employees, state law restricts the distribution of these paychecks. Paycheck information is also subject to certain regulations. There are a lot of rules and regulations surrounding termination pay, or last paychecks.

State Requirements for Final Paychecks

Employees are required by California law to receive their final paychecks promptly. Termination pay is due the same day regardless of whether the employee had any say in their dismissal or not. If an employee resigns, they are required to receive their last paycheck no later than 72 hours after giving notice. Workers are required to get their paychecks on the same day they give 72 hours’ notice before their last shift. The paycheck is due no later than 72 hours after their last day on the job, unless otherwise specified.

Your Last Paycheck: What You Need to Know

Also addressed by California law is the content of a final paycheck. This comprises:

All business expenses
All wages
All accrued benefits, including paid time off, vacation, and sick days, and their monetary value
Any commission payments owed on top of base pay

In the event that your final check contains all of these items, it indicates that your employer has compensated you appropriately, and the professional relationship that existed between the company and the worker no longer exists. You might want to consult with an employment attorney if the amounts listed above are not included in the paycheck you received after your termination.

What Are the Deductions from a Last Paycheck?

Employers are limited in what they can deduct or withhold from your last paycheck. Among these are:

Standard federal and state tax deductions
Child support and any other payments ordered by the court, if any
Reimbursement for monetary losses or property damage that you caused or were directly responsible for

Your paycheck shouldn’t be touched in any other way. A company may be subject to fines if it does not pay its employees their final wages.

Consequences for Not Paying a Complete Final Paycheck

You have a right to compensation if your employer does not pay you on time or takes unlawful or unfair deductions from your paycheck. There is a legal right in California to what are known as “waiting time penalties” or one full day’s pay for every day that your full paycheck is late. There is a thirty-day limit on this payment.

Employers may wind up spending a lot more money than they saved by not paying employees their final paychecks. The full amount that was supposed to be included in an employee’s paycheck is due to them, along with these penalty payments.

The 2024 California Labor Code

This year, the state enacted new labor laws, which include:

Higher minimum wage: A $15.50 per hour minimum wage is in effect across the state, and it does not discriminate based on the size of the employer. Corporations are not required to pay a federal minimum wage if the federal minimum wage is lower than the minimum wage in any given city or county.
Pay openness: Employees and job applicants have the right to ask for and receive salary information from their employers. Any job posting by an employer with fifteen or more employees is required to include a salary range.
Bereavement leave is protected: A company with five or more workers is required by law to provide their employees with up to five days of unpaid leave in the event of a family member’s death.
Safety measures for emergencies: There are stronger safeguards in place to prevent employers from retaliating against workers who reasonably fear for their safety on the job due to an emergency.
Notice requirements for long-term exposure to COVID-19.
Enhanced California Family Rights Act Leave to cover specified individuals.
Passed in 2022, the Contraceptive Act forbids the coercion or discrimination of any person with respect to their reproductive health information.

Typical Problems with the Last Paycheck

It might be difficult to tell if there is a problem if you are going through a last paycheck issue for the first time. Understanding your rights and the boundaries of your employer’s responsibilities is critical. Some of the most typical problems with employees’ final paychecks are as follows:

Paycheck Delays or Missing: If your final paycheck is late or never arrived, it could be because your employer has misunderstood the laws governing final paychecks.
Wrong Totals for Final Paychecks: If the amount is wrong, it might appear as either an underpayment or an overpayment; either way, it needs fixing.
Retaliation by Employers: If an employee requests or reports their final paycheck, their employer may take action against them. Retaliation can take many forms, including demotion, unfavorable evaluations of work, and other forms of mistreatment.

What to Do If You Do Not Get Your Final Paycheck or If the Amount Is Wrong

In the event that you are still waiting for your final paycheck following your resignation from a job, or if you have received it but have found errors, there are measures you can take to safeguard your legitimate earnings. Here are some things to think about:

Before you do anything else, make sure you understand the particulars of your final pay by reviewing your employment agreement, business policies, and any other applicable documents.
Get in Touch with an Employment Attorney: Consult a reliable employment attorney without delay upon becoming aware of the problem. You can learn about your rights and possible next steps from the employment attorney. If legal action is required, they will represent you and give you situation-specific legal advice.
Reach Out to Your Boss: Get in touch with your boss or the HR division right away. Explain the problem and politely ask for a fix. Be sure to document all correspondence, whether it be via email, text, letter, or voice memo. In the event that your first attempts at communication fail to resolve the matter, you should submit a formal written request. Explain the issue, specify how much money is due, and give a firm due date for when you would like to receive it. Consider sending this request via certified mail with a return receipt for added peace of mind.
Be Familiar with the Law: In the state of California, if you are fired or if you resign with or without notice, your employer must pay you your last paycheck as soon as possible. If companies don’t pay their employees on time, they might have to pay waiting time penalties.
If your employer refuses to settle the dispute or makes unfair settlement offers, you have the right to file a wage claim with the DLSE in California. For assistance with this, consult an employment attorney. You should bring all necessary paperwork, including pay stubs, contracts, and any correspondence you may have had with your employer.
Get Assistance: If you need more help or resources, you can contact advocacy groups or workers’ rights organizations. With the available resources, you are not alone in navigating this challenge.

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What Does California Law Say About Final Paycheck Rules?

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What Does California Law Say About Final Paycheck Rules?

What are the rules about California final paychecks?

The Wage Laws of California

State Requirements for Final Paychecks

Your Last Paycheck: What You Need to Know

What Are the Deductions from a Last Paycheck?

Consequences for Not Paying a Complete Final Paycheck

The 2024 California Labor Code

Typical Problems with the Last Paycheck

What to Do If You Do Not Get Your Final Paycheck or If the Amount Is Wrong

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