Unpaid Final Paycheck

Overview

​California labor laws are put into place to punish employers who do not properly follow the procedures needed to be done when an employee leaves the workplace. Employees are entitled certain rights upon termination or resignation from a job. Violations of these rights include delaying of the final paycheck, improperly presenting the final paycheck, and not giving the full amount rightfully owed. There are also rules and exceptions that some employees and employers alike may not be aware of. Employers are at risk of hefty and otherwise easily avoidable penalties if not thoroughly educated on the subject.

Practice Pointers
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The employer must present the final check to the employee at the time of termination or discharge. On the employee’s final day of work, their final check must include all of their earned wages which have not been paid. If the employee voluntarily quit, then the employee must still promptly give them their last paycheck. However, this period depends on if the employer gave sufficient notice to their employee of their resignation. If notice was given seventy-two hours prior to quitting, then the employer must give the check on the last day of work. If there was less than seventy-two hours of notice, then the employee must be given the final paycheck within seventy-two hours of their final work day. Some forms of earned income that are often overlooked include:
 

• Unused vacation time
• Missed lunch and rest breaks
• Overtime
• Unpaid commissions and bonuses

 
Failure to pay the final paycheck on time will create waiting time penalties, which add on to the total amount owed to the employee.  While an employee leaving the workplace can very commonly be a subject that is overlooked, business owners should educate themselves on the proper procedures to follow. This is critical to avoid extra expenditures and penalties that could have been easily avoided.