| In California, for employees who are terminated, | | | | be done. The employee must only show that |
| all earned and unpaid wages must be paid | | | | the employer knew that wages were due and |
| immediately and on the day of the termination. | | | | failed to pay them. Further, the employee can |
| For employees who quit, all earned and unpaid | | | | bring a claim to recover "waiting time" penalties |
| wages must be paid within 72 hours of the | | | | even if the employer pays all other wages that |
| employee's notice to quit. For employees who | | | | were due. |
| are on a temporary or short-term assignment, | | | | Some employers attempt to assert various |
| the wages are due when the employment | | | | defenses to avoid waiting time penalties. Only a |
| obligations are completed. | | | | few narrow defenses have been recognized, |
| Generally, the employee must be paid at the | | | | including: |
| place where the employee had provided the | | | | - A bona fide, good faith dispute between the |
| services to the employer. If the employee earns | | | | employer and employee as to the amount of |
| commissions, performance bonus, or other forms | | | | wages owed. However, any undisputed wages |
| of deferred compensation, the employer must | | | | must be paid within the time frames as noted |
| pay those wages as soon as they are calculated. | | | | above. |
| Consequences for Late Payment of Final Wages | | | | - If the employer could not calculate the amount |
| Under California Labor Code § 203, an | | | | of wages owed at termination. For example, |
| employer who fails to pay wages immediately | | | | commission wages which have not been |
| upon termination or within 72 hours of a voluntary | | | | determined or calculated would not be subject to |
| quit, is liable for one day's wages up to 30 days. | | | | waiting time penalties. |
| This is known as the "waiting time" penalty. | | | | Any payments that the employee receives as |
| Further, the waiting time penalty accrues at the | | | | waiting time penalties are not considered earned |
| employee's average daily wage for each calendar | | | | wages and the employer cannot withhold normal |
| day regardless of the number of days the | | | | income taxes. Of course, the employer can |
| employee normally worked. | | | | report the payments as another form of income |
| The statute states that the failure to pay wages | | | | (such as miscellaneous income on a 1099 form) |
| must be "willful." However, the term willful | | | | and the employee would be responsible for the |
| simply means that the employer intentionally failed | | | | tax consequences of that income. |
| to perform an act that he was legally required to | | | | |