For employees in California, receiving a paycheck on time is not just a matter of convenience - it's a legal requirement. When an employer fails to pay wages according to the established pay schedule, they may be subjected to penalties under California labor laws.
Understanding your rights as an employee and the potential consequences for employers who violate wage payment laws is crucial. In this blog post, we'll explore what happens if your paycheck is late in California, including the penalties employers may face, the steps you can take to address the issue, and answers to frequently asked questions about late payment of wages.
What Is Waiting Time Penalty Pay?
In California, employers are required to pay their employees on time and in full, according to the established pay schedule. If an employer fails to do so, they may be liable for penalty pay, also known as waiting time penalties or wage penalties. Waiting time penalties are essentially a financial consequence imposed on employers who fail to pay their employees' wages on time.
What to Do if Your Employer Doesn't Pay You on Time
If your employer is late with your paycheck, the first step is to notify them in writing, keeping a copy for your records. This serves as official notice and starts the clock ticking for potential penalties. If the issue persists after a reasonable amount of time, you may file a wage claim with the California Labor Commissioner's Office.
Late Paycheck Penalty in California
Under California Labor Code Section 203, if an employer willfully fails to pay an employee's wages after their employment has been terminated, they are liable for penalty pay. The penalty is calculated as the employee's daily wage rate, multiplied by the number of days the employee was not paid, up to a maximum of 30 days.
Labor Code 204 Penalties
For employees who are still employed but experiencing late paychecks, California Labor Code Section 204 applies. This section requires employers to pay employees their earned wages semi-monthly or at least twice during each calendar month. If an employer fails to do so, they may be subject to penalties under Labor Code Section 210, which can include a penalty of up to 30 days' worth of wages as well as other labor law penalties under the Private Attorney’s General Act (“PAGA”).
California Late Payment of Wages FAQs
Is It Illegal to Get Paid Late in California?
Yes, it is illegal for employers in California to pay their employees late, without a valid reason. Employers must adhere to the established pay schedule and pay employees on time, or face potential penalties.
How Long Does an Employer Have to Correct a Paycheck in California?
There is no specific grace period established in California law for correcting late paychecks. However, employers should address the issue as soon as possible to avoid potential penalties.
Can I Sue My Employer for Not Paying Me on Time?
In California, employees can file a wage claim with the Labor Commissioner's Office for late payment of wages. If the claim is successful, the employer may be liable for penalty pay, interest, and potentially other damages. Employees may also be able to pursue a civil lawsuit against their employer for unpaid wages and penalties. Contact Nevels Nichols, LLP now for a consultation to help understand your rights.
By understanding their rights and taking appropriate action, employees in California can protect themselves from the financial hardship caused by late paychecks and hold their employers accountable for violating labor laws.
