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“Employers regularly fail to include everything they’re supposed to include in final pay.” Barrie Gross pointed out in a recent CER webinar. But it’s not always obvious what must be included in the final paycheck that is due upon termination. What must be paid immediately? What can be paid at a later date?
What is the waiting-time penalty? Under California Labor Code Section 203, employers will be assessed a penalty for any willful failure of on-time payment of any part of final wages due to a departing employee. Remember that wages earned are due and payable immediately upon discharge for involuntary terminations. For resignations with at least 72 […]
Inappropriate deductions from final pay can get California employers in trouble. Whether an employee quits unexpectedly or departs after a well-planned termination process, the clock is ticking on the delivery of the person’s final pay, which forces employers to act quickly and can unfortunately prompt mistakes made in haste. Getting the final paycheck delivered on […]
When an employee leaves your employment—with long notice or short, whether voluntarily or kicking and screaming—you need to follow a host of rules regarding final pay. Here are some tips for a few of the common situations you might encounter.
Yesterday, we looked at the rules for final pay in California, including the deadlines by which you must pay employees who are leaving either voluntarily or involuntarily. What happens if you miss those deadlines?
Immediately upon termination of an employee, employers in California must hand over the last paycheck, paying all wages earned and unpaid at the time of discharge. Since the employer is the one initiating the termination, it is their responsibility to ensure this happens immediately. Otherwise, there will be consequences under final pay laws.