As a state with employee-focused wage and hour laws, California has steep penalties for employers who are late in providing final paychecks. To avoid such consequences, employers must abide by stringent deadlines, which are among the strictest in the nation.

Toolkit: California Wage and Hour Laws

Prior to these rules, there “was the perception that employers [had] not been in a huge rush to get employees their final paycheck,” said Joseph Beachboard, an attorney with Beachboard Consulting Group in Torrance, Calif. In response, the state designed a severe penalty to ensure a high rate of compliance. Employees may submit a claim to the Division of Labor Standards Enforcement for free, with no lawyer needed.

The deadlines for final wage payments are as follows:

• When an employer fires an employee, it must provide the worker with their final paycheck on their last day of work.
  
• When an employee resigns with at least 72 hours’ notice, they must receive their final paycheck on their last day of work.
  
• When an employee resigns with less than 72 hours’ notice, the employer must provide their last paycheck within 72 hours of their last day of work.

Employers must provide the sum of all wages owed at the designated time, not just a portion. Final wages include any compensation, including earned vacation time, and “can also include commissions if they can be calculated at that time,” Beachboard said. “You have to pay all of it, or you go into the penalty provision.” The penalty...

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