California law provides employers a short period to give employees their paycheck right after they have been fired or if they quit from offering their services. If per chance the employee misses the deadline, the employee will face the California late paycheck penalty for a day’s pay for any day that employer delays the employee’s paycheck, up until 30 days.
California’s Final Paycheck Law
Most states in the United States of America have laws put in place to dictate when employees should be given their final paychecks. In few states, including California, the time limit is dependent on if the employee was fired or if they voluntarily quit from offering their service. Among all the states, it is important that you aware of the fact that California’s law is the strictest in the entire nation.
In the events of having an employee laid off, the employee is entitled to getting his/her paycheck immediately at the point of layoff, the rule is a little different when the employee quits. If per chance the employee quit without informing the employer, the employee is entitled to getting the final paycheck within 72 hours. If on the other hand an employee after informing the employer after 72 hours, the employee is entitled to getting the final paycheck on the last day.
The California law secures the employees by requiring that the employer makes an addition of all accrued PTO or unused vacation in the final paycheck and it must be paid within the time limit mentioned earlier. It is not all states in the nation that require that the employer cash out the unused PTO and vacation, some states require a payout if and only if the employer adopted a policy that requires it.
If you do not receive your final paycheck as at when due, or perhaps you receive a part payment, there are two options: you can either file a lawsuit against your employer or you file a complaint with the California Division of Labor Standards Enforcement (DLSE). If you win the case, you will be entitled to the money that your employer owes and an addition to make up for the period that your payment was delayed up until 30 days.