California’s general final-pay rules depend on how employment ends:
- Termination: All earned, unpaid wages are due immediately at discharge.
- Resignation with at least 72 hours’ notice: Final wages are due at the time of quitting.
- Resignation with less than 72 hours’ notice: Final wages are due within 72 hours after quitting.
Final pay includes earned, unused vacation—not just the employee’s last hours worked. Industry-specific exceptions can apply. (Labor Code §§ 201, 202, 227.3.)
What happens if payment is late?
Under Labor Code § 203, a willful failure to pay can trigger “waiting time” penalties equal to the employee’s daily wage for each calendar day payment remains overdue, up to 30 days. Weekends and holidays count. These penalties are in addition to the unpaid wages.
For example, an employee earning $30 per hour and regularly working eight hours per day has a daily wage of $240:
- 10 days late: $240 × 10 = $2,400
- 30 days late: $240 × 30 = $7,200
Those figures assume the conditions for penalties are met. Penalties are not automatic, and a qualifying good-faith dispute over whether wages are owed can prevent them.
Even when part of the amount is disputed, employers must timely pay the undisputed wages without requiring a release.
The practical takeaway for employers: Make final pay part of planning the separation. Confirm the deadline, reconcile wages and accrued vacation, and coordinate payment before the termination meeting.