California workers may not be aware that when they are fired or laid off, employers are required to pay them their final paycheck for all unpaid earned wages on that same day. On the other hand, when employees quit or resign, then they are entitled to receive their final paycheck within 72 hours of giving notice that they are moving on to greener pastures. If an employee gives at least 72 hours of notice of quitting before the resignation becomes effective, then employers still must pay that final check on the last day of work. It is illegal for employers to wait for their regularly scheduled pay days that happen after these deadlines. Note, this final paycheck must also include any accrued paid time off or vacation time.
If an employer fails to satisfy these final paycheck requirements, then that employer must pay the separated employee an additional full day’s worth of wages for each day that the final paycheck is late up to a maximum of 30 days. For example, an employer that failed to pay even a few dollars of earned wages within the required time limits who regularly earned $25 per hour for eight (8) hour workdays totaling a daily wage rate of $200 per day would be entitled to an additional $6,000 on top of the underlying unpaid wages!