Does unpaid wage waiting time penalty apply if an employer does not have money to pay employee?
Hypothetical question: I was discharged last week and not paid all my wages. At the time I was discharged my former employer informed me that he could not pay me because he didn’t have the money. Will this be a valid defense to my claim for the waiting time penalty?
Free legal advice. Call now: 800-484-4610
Nakase|Wade law firm represents companies, businesses, and employers – exclusively.
We invite your attention to our disclaimer.
Answer: No, it will not be a valid defense. Inability to pay is not a defense to the failure to timely pay wages under Labor Code Sections 201, 201.5, 202, and 202.5, and does not relieve the employer from liability of the waiting time penalty under Labor Code Section 203.
Other reasons commonly given by employers for not making a timely payment under Labor Code Sections 201, 201.5, 202 and 202.5 that do not relieve the employer of liability from imposition of the waiting time penalty are:
- Payroll checks are only paid on regular paydays, and that is when you will receive your wages.
- Our payroll department is out-of-state and cannot get us a check in time.
- You still owe us money for the goods you purchased, and we are not going to pay you your wages until you pay us.