Ensuring timely payment of wages is a crucial responsibility for California employers. Following our recent discussion on final pay for employees, several readers raised further questions about wage payment schedules and the handling of tips. In response, this Friday’s Five highlights key reminders about employers’ obligations to timely pay wages and tips under California law:
1. Employers must establish pay periods.
California employers must establish a regular payday and are required to post a notice that shows the day, time, and location of payment. This is usually set forth in the employee handbook as well.
2. Normal payroll deadlines.
California law generally requires that employers pay employees at least twice during each calendar month. Paydays must be designated by the employer and posted at the worksite, as required under Labor Code 207. Labor Code section 204 requires the following:
- Wages earned between the 1st and 15th of the month must be paid no later than the 26th day of the month in which the work was done.
- Wages earned between the 16th and the last day of the month must be paid by the 10th of the following month.
If the employer pays on a different basis, such as weekly, bi-weekly, or twice a month, when the pay period is something other than the 1st to the 15th and the 16th to the end of the month, then the employee must be paid within seven calendar days of the end of the payroll period. See Labor Code section 204(b).
3. Pay due upon termination or...
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