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Paydays,
pay periods, and the final wages
In California,
wages, with some exceptions (see table below), must be paid
at least twice during each calendar month on the days designated
in advance as regular paydays. The employer must establish a
regular payday and is required to post a notice that shows the
day, time and location of payment. Labor
Code Section 207 Wages earned between the 1st
and 15th days, inclusive, of any calendar month must
be paid no later than the 26th day of the month during
which the labor was performed, and wages earned between the
16th and last day of the month must be paid by the
10th day of the following month. Other payroll periods
such as weekly, biweekly (every two weeks) or semimonthly (twice
per month) when the earning period is something other than between
the 1st and 15th, and 16th
and last day of the month, must be paid within seven calendar
days of the end of the payroll period within which the wages
were earned. Labor
Code Section 204
Overtime wages must
be paid no later than the payday for the next regular payroll
period following the payroll period in which the overtime wages
were earned. Labor
Code Section 204
An employee who is discharged
must be paid all of his or her wages, including accrued vacation,
immediately at the time of termination. Labor
Code Sections 201 and 227.3
A group of employees
who are laid off by reason of the termination of seasonal employment
in the curing, canning, or drying of any variety of perishable
fruit, fish or vegetables, must be paid within 72 hours after
the layoff. Payment shall be made by mail to any such employee
who so requests and designates a mailing address therefor. Labor
Code Section 201
An employee engaged
in the production of motion pictures who is laid off and whose
unusual or uncertain terms of employment require special computation
in order to ascertain the amount due, must be paid by the next
regular payday. However, if such an employee is discharged,
payment must be within 24 hours after discharge, excluding Saturdays,
Sundays, and holidays. Labor
Code Section 201.5
An employee engaged
in the business of oil drilling who is laid off must be paid
within 24 hours after discharge, excluding Saturdays, Sundays,
and holidays. Labor
Code Section 201.7
An employee without
a written employment contract for
a definite period of time who gives at least 72 hours prior
notice of his or her intention to quit, and quits on the day
given in the notice, must be paid all of his or her wages, including
accrued vacation, at the time of quitting. Labor
Code Section 202
An employee without
a written employment contract for
a definite period of time who quits without giving 72 hours
prior notice must be paid all of his or her wages, including
accrued vacation, within 72 hours of quitting. An employee who
quits without giving 72-hours prior notice may request that
his or her final wage payment be mailed to a designated address.
The date of mailing will be considered the date of payment for
purposes of the requirement to provide payment within 72 hours
of the time of quitting. Labor
Code Section 202
The place of the final
wage payment for employees who are terminated (or laid off)
is the place of termination. The place of final wage payment
for employees who quit without giving 72 hours prior notice
and without specifically requesting that their final wages be
mailed to them, is at the office of the employer within the
county in which the work was performed. Labor
Code Section 208 Therefore, it is imperative that an employee
who quits without giving 72 hours prior notice return to the
office of the employer 72 hours after quitting and request his
or her final wage payment.
Direct deposits of wages
to an employee's bank, saving and loan, or credit union account
that were previously authorized by the employee are immediately
terminated when an employee quits or is discharged, and the
payment of wages upon termination of employment in the manner
described above shall apply. Labor
Code Section 213(d)
An employer who willfully
fails to pay any wages due a terminated employee (discharge
or quit) in the prescribed time frame may be assessed a waiting
time penalty. The waiting time penalty is an amount equal to
the employee’s daily rate of pay for each day the wages remain
unpaid, up to a maximum of thirty (30) calendar days. Mamika
v. Barca (1998) 68 Cal.App4th 487 An employee will not be
awarded waiting time penalties if he or she avoids or refuses
to receive payment of the wages due. If a good
faith dispute exists concerning the amount of the wages
due, no waiting time penalties would be imposed. A "good faith
dispute" that any wages are due occurs when an employer presents
a defense, based in law or fact which, if successful, would
preclude any recovery on the part of the employee. The fact
that a defense is ultimately unsuccessful will not preclude
a finding that a good faith dispute did exist. However, a defense
that is unsupported by any evidence, is unreasonable, or is
presented in bad faith, will preclude a finding of a "good faith
dispute". Labor
Code Section 203 and Title
8, California Code of Regulations, Section 13520
Even if there is a dispute,
the employer must pay, without requiring a release, whatever
wages are due and not in dispute. If the employer fails to pay
what is undisputed, the "good faith" defense will be defeated
whatever the outcome of the disputed wages. Labor
Code Section 206
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Employee
Classification
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Rule
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Labor
Code Section
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Executive,
administrative
and professional
employees
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May be
paid once a month on or before the 26th day
of the month during which the labor was performed if
the entire month's salary, including the unearned portion
between the date of payment and the last day of the
month, is paid at that time. Such employees may be paid
more frequently, however.
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204
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Workers
employed by a farm labor contractor
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Must be
paid on payroll periods at least once every week on
a business day designated in advance by the farm labor
contractor. Payment on such payday must include all
wages earned up to and including the fourth day before
such payday.
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205
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Employees
in agriculture, horticulture and viticulture,
stock or poultry raising, and household domestic service
who are boarded and lodged by their employer
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Must be
paid once in each calendar month on a day designated
in advance by the employer as the regular payday. No
two successive paydays shall be more than 31 days apart,
and the payment must include all wages up to the regular
payday.
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205
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Employees
of a motor vehicle dealer licensed by the Department
of Motor Vehicles who are paid commission wages
(mechanics & other employees performing repair or
related services are not considered commissioned employees.)
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Must be
paid once during each calendar month on a day designated
in advance by the employer as the regular payday. However,
when such employees are covered by a collective bargaining
agreement that provides for the date on which wages
shall be paid, such arrangement takes precedence over
state law.
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204.1
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Q-1.
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If
I don’t submit my timecard for the pay period, can my
employer delay payment of my wages until the timecard
is submitted? |
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Ans.
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No,
it is the employer's obligation to pay you on the established
payday regardless of whether the timecard is submitted.
There is no exception in the law that allows the employer
to require you to wait until the next payday, or even
until the timecard is turned in. Your employer can comply
with the law, even without having your timecard, by paying
all of the wages that it reasonably knows are due for
your regularly scheduled work period. |
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Q-2.
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I
worked four hours of overtime during the last payroll
period, when must my overtime wages be paid? |
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Ans.
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Payment of overtime wages
earned in one payroll period must be paid no later than
the payday for the next regular payroll period. Only
payment of the overtime wages may be delayed until the
next payday, not straight time wages.
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Q-3.
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I
am currently paid biweekly (every two weeks). My employer
wants to change the payroll period to semimonthly (twice
a month) and pay on the 10th and 25th
of the month. This change will cause a delay in the payment
of my wages. Is this legal? |
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Ans.
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Yes, as long as the employer
gives you prior notice of the change and meets the payday
requirements of the law.
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Q-4.
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If
my regular designated payday falls on a holiday,
when should I be paid? |
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Ans.
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If
your regular designated payday falls on a holiday and
your employer observes that holiday by closing its business,
your employer may pay your wages on the next business
day. |
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Q-5.
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How
frequently must I be paid? |
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Ans.
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With
few exceptions (see table above), you must be paid twice
during each calendar month on days designated in advance
by your employer as regular paydays. |
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Q-6.
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Is
my employer required to keep payroll records? |
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Ans.
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Yes. Every employer doing
business in California must maintain comprehensive payroll
records on each of its employees.
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Q-7.
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Am
I entitled to see my payroll records? |
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Ans.
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Yes. Your payroll records
must be made available to you upon reasonable request,
which request must be complied with by your employer
as soon as practicable, but no later than 21 calendar
days from the date you make such request. Effective
January 1, 2003, a failure by the employer to permit
a current or former employee to inspect or copy his
or her payroll records within the 21 day period entitles
the current or former employee to recover a $750.00
penalty from the employer in a civil action brought
before a court of competent jurisdiction. Additionally,
pursuant to Labor
Code Section 226(a), every time you are paid your
wages, whether by check, in cash, or otherwise, you
must be given a detachable part of the check or a separate
writing showing:
- Gross wages earned
- Total hours worked
(not required for salaried exempt employees)
- The number of piece-rate
units earned and any applicable piece rate if the
employee is paid on a piece rate basis
- All deductions (all
deductions made on written orders of the employee
may be aggregated and shown as one item)
- Net wages earned
- The inclusive dates
of the period for which the employee is paid
- The name of the employee
and his or her social security number
- The name and address
of the legal entity that is the employer
- All applicable hourly
rates in effect during the pay period, and the corresponding
number of hours worked at each hourly rate by the
employee
Click
here for an example of an itemized wage statement
(pay stub) as required by Labor
Code Section 226 for an employee paid an hourly wage.
Note: This itemized statement is not applicable
to an employee whose compensation is solely based on a
salary and who is exempt from payment of overtime under
Labor
Code Section 515(a) or any applicable Industrial
Welfare Commission Order.
Click
here for an example of an itemized wage statement
(pay stub) as required by Labor
Code Section 226 for an employee paid on a piece rate
basis. |
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Q-8.
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I
just gave my employer two weeks advance notice that I
was quitting. Instead of letting me work until the
date of my resignation, he told me that I was discharged,
and instructed me to collect my personal belongings and
leave. Upon leaving he gave me a check for all wages earned
up through my last hour of work. Am I entitled to be paid
for the time that I gave notice? Additionally, when must
my final wages be paid? |
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Ans.
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You
are not entitled to any wages for the notice period because
you did not perform any work during that period. For the
purpose of wage payments, your employer changed a quit
into a discharge, and all of your earned wages became
due and payable immediately at the time he terminated
you. |
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Q-9.
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I
am a commissioned salesperson and was just discharged
from my employment. When must my final wages be paid? |
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Ans.
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In
the event the commissions have been "earned" on or before
the date of your termination, the employer must complete
the necessary calculations and pay the commissions on
the date of the termination in the case of a discharge
or a voluntary quit with more than 72 hours prior notice,
or within 72 hours of the termination of the employment
relationship in the case of a voluntary quit without such
prior notice. It is not permissible for the employer to
wait until the customary time for calculating the commissions
of current employees, nor is it permissible to delay payment
of such earned commissions until the next regularly scheduled
payday. If the commission has not yet been earned at the
time of termination and is awaiting the completion of
some legal condition precedent, for example, receipt of
the customer’s payment, the commission must be paid to
you immediately upon completion of the condition precedent. |
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Q-10.
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If
my employer does not pay me on my regularly scheduled
payday, what can I do? |
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Ans.
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You
should contact the
Division of Labor Standards Enforcement and explain
that your employer is not paying you on the regularly
scheduled paydays. DLSE will assist you by explaining
the law to your employer. Failure to post the payday notice
required by Labor
Code Section 207, and failure to pay wages in good
funds on the regular designated payday as prescribed in
Labor
Code Sections 204, 204b, 205, and 209, respectively,
is a misdemeanor. Labor
Code Section 215 |
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