In California, termination pay including all wages, vacation pay and PTO (paid time off) must be remitted to the employee immediately upon separation of employment unless the employee resigned and failed to give at least 72 hours notice. In the instance where the employee failed to give the employer at least 72 hours notice, California termination pay must be remitted to the employee within a 72 hour period from notice of separation.
Under California termination pay laws, there is one exception to this rule. If the employee is being temporarily laid off, and a firm return to work date exists, under the law in California, termination pay is not required and the employer may pay the employee on the regularly scheduled pay day.
In the event this compensation is not remitted in accordance with the law, one day’s wages will accumulate for up to 30 days in accordance with wage laws under California Labor Code 203. These wages are considered "waiting time penalties" and are something that our California labor lawyers pursue on behalf of our clients. In order to avoid waiting time penalties when terminating an employee, or when an employee provides at least 72 hours written notice of resignation, the employer should simply remit the wages due at the time of separation. California termination pay laws do not allow for common “employer excuses” such as the final compensation is being mailed from a home office or the paychecks are not issued until later in the week. The bottom line is, California employers must comply with the guidelines in California Labor Code 203 or they will be exposed to waiting time penalties.
California Labor Attorneys Offer Termination Pay Claim Reviews
It is not uncommon for employers to fail to pay workers their proper compensation when an employee is discharged or resigns for a variety of reasons. However, failure to do so in a timely manner subjects the employer to legal exposure under the various California labor laws. If you are an employee who has been the victim of such illegal termination pay practices, contact one of our California labor law attorneys so your potential claim may be reviewed.
