California Final Paycheck Laws: When You Must Be Paid After Termination
When you leave a job in California—whether you’re fired, laid off, or quit—you’re entitled to your final paycheck under strict legal deadlines. California final paycheck laws are among the nation’s strongest, designed to prevent employers from withholding earned wages. If your employer misses the deadline, even by a single day, they owe you additional penalty wages equal to a full day’s pay for each day of delay, capped at 30 days. Understanding these rules protects your income and gives you powerful remedies if your employer violates them.
Why Final Paycheck Timing Matters
You need your final wages to pay bills and transition to new employment. California’s strict final paycheck deadlines protect you from employers who withhold your earned wages. When employers delay your final paycheck, even by one day, they owe you penalty wages for each day of delay. These penalties add up quickly and can equal an entire month’s salary.
Final Paycheck Timing Requirements
When You’re Terminated, Fired, or Laid Off
If your employer ends your employment, they must provide your final paycheck immediately at the time of termination.
“Immediately” means at the moment of termination or within a reasonable time at the termination location. If you’re fired at work, you should receive your final paycheck before you leave the building. If you’re fired remotely (phone call, video call), your employer must make your final paycheck available immediately at the workplace or by mail.
If your employer cannot physically provide the check immediately, they can mail it, but it must be postmarked on the termination date. They can also offer direct deposit if it processes immediately.
When You Quit With 72+ Hours Notice
If you provide at least 72 hours’ advance notice of your resignation, your employer must provide your final paycheck on your last day of work.
The 72-hour notice period includes all calendar hours, not just business hours. If you give notice on Monday at 10:00 AM and work through Friday, your last day is after 72 hours and you must receive your final paycheck on Friday.
Your notice must clearly indicate your last day of work. An ambiguous statement like “I might leave soon” doesn’t count as proper notice. Say clearly: “My last day of work will be Friday, June 15th.”
When You Quit Without 72 Hours Notice
If you quit without giving 72 hours’ advance notice, your employer has 72 hours from your resignation to provide your final paycheck.
The 72-hour period runs from when you inform your employer of your resignation, not from your last day worked. If you quit on Monday at noon, your employer must provide your final paycheck by Thursday at noon.
You can pick up your final paycheck at the workplace during normal business hours, or your employer can mail it to your last known address. If mailed, it must be postmarked within 72 hours.
Comparison of Final Paycheck Timing
Understanding the different timelines helps you know when to expect your final wages and when penalties begin.
| Scenario | Deadline | Examples |
|---|---|---|
| Terminated/Fired/Laid Off | Immediately | Fired on Tuesday at 3 PM = paycheck at 3 PM Tuesday |
| Quit With 72+ Hours Notice | Last day of work | Notice Monday, last day Friday = paycheck Friday |
| Quit Without 72 Hours Notice | Within 72 hours | Quit Monday 2 PM = paycheck by Thursday 2 PM |
| Seasonal Work Ends (definite date) | Immediately (treated as termination) | Summer job ends August 31 = paycheck August 31 |
| Contract Expiration | Immediately (if employer ends it) | Contract ends March 1 = paycheck March 1 |
Your employer cannot delay payment for any reason. They cannot wait until the next regular payday. They cannot withhold payment while investigating alleged misconduct or missing property.
What Must Be Included in Your Final Paycheck
Your final paycheck must include all wages you earned up to your last day of work. California law is specific about what counts as earned wages.
Required Components
All unpaid wages: Payment for every hour worked, including partial days. If you worked 3 hours on your last day, those 3 hours must be paid.
Accrued vacation time: All unused, accrued vacation must be paid out at your final rate of pay. In California, vacation is considered earned wages. Your employer cannot implement “use it or lose it” policies that forfeit accrued vacation.
Accrued PTO (if treated as vacation): If your PTO policy doesn’t distinguish between vacation and sick time, unused PTO must be paid out like vacation.
Earned commissions: Commissions you earned according to your commission agreement, even if the commission period hasn’t ended yet.
Earned bonuses: Non-discretionary bonuses you earned but haven’t received yet, such as production bonuses or attendance bonuses.
Overtime and double time: All premium pay owed for overtime or double time hours worked.
Expense reimbursements: Outstanding reimbursements for business expenses you incurred.
Accrued but unpaid wages from prior pay periods: Any wages your employer failed to pay in previous paychecks.
What Your Employer Can Deduct
Your employer can only make specific, limited deductions from your final paycheck:
Required by law: Taxes, social security, Medicare, court-ordered garnishments, child support
You authorized in writing: Health insurance premiums, 401(k) contributions, union dues
Your employer cannot deduct:
- Alleged cash register shortages
- Claimed damage to equipment or property
- Cost of uniforms or tools
- Training costs or certification fees
- Severance of employment costs
- “Missing” property without your specific authorization
Even if you signed an agreement allowing these deductions, California law prohibits most of them. Your employer cannot reduce your final wages below minimum wage through deductions.
What About Accrued Sick Leave?
California law does not require employers to pay out accrued sick leave when you leave employment. Sick leave is different from vacation time. Your employer’s policy may voluntarily pay out sick leave, but they’re not legally required to do so.
If your employer’s PTO policy combines vacation and sick time into one pool without distinction, the entire balance must be paid out as vacation time.
Waiting Time Penalties (Labor Code § 203)
When your employer misses the final paycheck deadline, they owe you waiting time penalties in addition to your final wages.
How Waiting Time Penalties Work
You receive one day of pay for each day your final paycheck is late, up to a maximum of 30 days.
Your “daily rate of pay” is calculated as:
- For hourly employees: Regular hours per day × hourly rate
- For salaried employees: Annual salary ÷ 260 workdays (or weekly salary ÷ 5)
The penalty runs from the day after the payment deadline until your employer pays you or 30 days pass, whichever comes first.
When Waiting Time Penalties Apply
Waiting time penalties only apply when your employer willfully fails to pay on time. “Willful” means:
- Your employer knew the wages were due
- Your employer intentionally failed to pay
- There was no good faith dispute about the amount owed
An honest mistake about the deadline typically isn’t willful. But if your employer knows about the deadline and deliberately delays payment, that’s willful.
Good faith disputes over the exact amount of wages owed may reduce or eliminate penalties, but your employer must pay the undisputed amount on time. They cannot withhold your entire paycheck while disputing a small portion.
Calculating Waiting Time Penalties
Example 1: Hourly Employee
Sarah earns $22/hour and works 8-hour days. She was fired on Monday and didn’t receive her final paycheck until 10 days later.
Daily rate: 8 hours × $22 = $176/day
Days late: 10 days
Waiting time penalty: 10 × $176 = $1,760
This penalty is in addition to the actual wages Sarah was owed in her final paycheck.
Example 2: Salaried Employee
Marcus earns $80,000/year. He quit without notice on Friday. His employer didn’t provide his final paycheck within 72 hours. Marcus received his paycheck 15 days after quitting.
Daily rate: $80,000 ÷ 260 workdays = $307.69/day
Deadline: 72 hours after quitting
Days late: 15 days from the deadline (approximately 12 days late)
Waiting time penalty: 12 × $307.69 = $3,692.28
Marcus receives this penalty plus all wages owed in his final paycheck.
Example 3: Maximum Penalty
Jennifer earns $25/hour and works 8-hour days. She was laid off and her employer never provided her final paycheck. She filed a wage claim 45 days after termination.
Daily rate: 8 hours × $25 = $200/day
Maximum penalty days: 30 days (even though 45 days passed)
Waiting time penalty: 30 × $200 = $6,000
Jennifer receives the maximum 30-day penalty plus her actual final wages. The employer’s failure to pay for 45 days doesn’t increase the penalty beyond 30 days.
Common Mistakes and Violations
Mistake 1: Waiting Until Next Regular Payday
Many employers incorrectly believe they can pay final wages on the next regular payday. This violates California law. Final paychecks have their own deadlines that are usually sooner than the next regular payday.
Example: Your regular payday is the 15th and 30th of each month. You’re fired on October 20th. Your employer must pay you immediately on October 20th, not on October 30th.
Mistake 2: Withholding Pay for Unreturned Property
Employers cannot withhold your final wages because you haven’t returned a laptop, uniform, keys, or other property. They must pay your final wages on time and pursue property return through separate means.
If your employer withholds payment for this reason, you’re entitled to waiting time penalties for each day of delay.
Mistake 3: Requiring Employee to Pick Up Check
If you’re terminated, your employer must provide your paycheck at the termination location. They cannot require you to return to the office days later to pick it up.
For employees who quit, the employer can require pickup at the workplace during business hours or can mail the check.
Mistake 4: Providing Partial Payment
Your employer cannot provide partial payment on the deadline and the remainder later. The entire final paycheck must be provided by the deadline. Partial payment triggers waiting time penalties for the unpaid portion.
Mistake 5: Not Paying Out Accrued Vacation
Failing to include accrued vacation in the final paycheck is one of the most common violations. Vacation is earned wages in California and must be paid at termination.
Real-World Final Paycheck Penalty Examples
Example 1: Terminated Restaurant Manager
David worked as a restaurant manager earning $60,000/year. He was fired on a Tuesday. His employer said the paycheck would be ready Friday (3 days later).
What happened: David didn’t receive his final paycheck for 3 days after termination.
Wages owed: $2,500 (regular wages) + $800 (accrued vacation) = $3,300
Daily rate: $60,000 ÷ 260 = $230.77/day
Waiting time penalty: 3 days × $230.77 = $692.31
Total owed: $3,300 (wages) + $692.31 (penalty) = $3,992.31
A 3-day delay cost the employer nearly $700 in penalties.
Example 2: Retail Worker Who Quit Without Notice
Maria worked retail earning $18/hour, typically working 35 hours per week. She quit without notice on Monday. Her employer mailed the final paycheck the following Monday (7 days later).
Deadline: 72 hours after quitting (Thursday)
Days late: 3 days (Friday, Saturday, Sunday)
Daily rate: 7 hours × $18 = $126/day (assuming standard workday)
Waiting time penalty: 3 days × $126 = $378
Wages owed: $630 (one week’s wages)
Total owed: $630 + $378 = $1,008
The 3-day delay added $378 in penalties to a $630 paycheck.
Example 3: Commissioned Salesperson
Kevin worked in sales earning a $40,000 base salary plus commissions. He was laid off. His employer provided his base salary immediately but delayed $8,000 in earned commissions for 20 days while “calculating” the amount.
Daily rate: $40,000 ÷ 260 = $153.85/day
Days late: 20 days
Waiting time penalty: 20 days × $153.85 = $3,077
Total owed: $8,000 (commissions) + $3,077 (penalty) = $11,077
The employer’s delay in calculating commissions cost them $3,077 in penalties. They should have paid the commissions immediately or faced these penalties.
What to Do If Your Final Paycheck Is Late
Step 1: Document the Timing
Write down the exact date and time your employment ended. Calculate the deadline for your final paycheck based on whether you were terminated or quit. Document each day that passes after the deadline without payment.
Step 2: Request Payment in Writing
Send a written request (email preferred for documentation) to your employer’s HR or payroll department. State:
- Your termination or resignation date
- The legal deadline for your final paycheck
- That the deadline has passed
- Request immediate payment
- Keep copies of all communications
Step 3: Calculate Waiting Time Penalties
Determine your daily rate of pay. Count the days between the deadline and when you expect payment. Calculate the penalty (days × daily rate). Know this number before contacting your employer or filing a claim.
Step 4: File a Wage Claim
If your employer doesn’t immediately provide your final paycheck after your written request, file a wage claim with California’s Division of Labor Standards Enforcement (DLSE):
- File online at dir.ca.gov or by mail
- Include documentation of termination date, deadline, and all communications
- Request unpaid wages plus waiting time penalties
- The process is free
Step 5: Consider Legal Representation
Employment attorneys often handle final paycheck cases on contingency. If your employer willfully withheld your paycheck and you’re entitled to significant waiting time penalties, an attorney can help you maximize recovery and may be entitled to attorney’s fees from your employer.
Step 6: Act Quickly
File your wage claim as soon as possible. While you have three years for most wage claims, waiting time penalties accrue for only 30 days. File within that window to maximize your recovery.
Frequently Asked Questions
Can my employer mail my final paycheck instead of giving it to me immediately?
If you’re terminated, your employer can mail your final paycheck if it’s postmarked on the termination date and sent to your last known address. However, you still have the right to pick it up immediately at the workplace if you prefer. If you quit, your employer can mail the check within the 72-hour deadline.
What if my employer claims I owe them money for damaged equipment?
Your employer cannot withhold or deduct from your final paycheck for damaged equipment, cash register shortages, or similar claims unless you specifically authorized these deductions in writing and they’re legal. They must pay your final wages on time and pursue their claims against you separately.
Do waiting time penalties apply if I’m still owed wages but received a partial final paycheck?
Yes. If your employer provided a partial payment but still owes you wages, waiting time penalties apply to the unpaid portion. Your employer cannot avoid penalties by making partial payments. They must pay the full amount owed by the deadline.
What if my employer says they’ll pay me on the next regular payday?
That’s not legal for final paychecks. Final paychecks have specific, shorter deadlines. Tell your employer the correct deadline (immediate if terminated, 72 hours if you quit without notice, or last day if you gave 72+ hours notice). If they refuse, file a wage claim immediately.
Can my employer deduct the cost of uniforms or training from my final paycheck?
Generally no. California prohibits most deductions that reduce your wages below minimum wage or that you didn’t specifically authorize. Even authorized deductions for uniforms and training costs are often illegal if they’re required for the job. Your employer must pay your final wages without these deductions.
Connecting Your Final Paycheck Rights to Broader Wage Protections
Your final paycheck rights are part of California’s comprehensive wage and hour protections. If you’ve experienced unpaid wages throughout your employment—not just at termination—you may have additional claims. Similarly, if your termination was retaliatory or unlawful, that’s a separate claim that can complement a wage dispute.
Learn more in our complete guide to California wages and hours, explore remedies in our unpaid wages resource, and review your options if your termination may have been unlawful in our wrongful termination guide.
Key Takeaways
- Immediate payment is required if you’re fired or laid off
- Your final paycheck deadline is your last day if you quit with 72+ hours notice
- Employers have 72 hours if you quit without advance notice
- Accrued vacation must be paid as part of your final check
- Waiting time penalties apply (up to 30 days’ pay) if your employer is late
- You have three years to file a claim for unpaid wages
Demand Timely Payment of Your Final Wages
California’s final paycheck laws protect you from employers who try to delay your earned wages. Whether you were fired or quit, you have a legal right to prompt payment of all wages, including accrued vacation.
If your employer misses the deadline, even by one day, they owe you penalty wages. Don’t let this slide. Document the timing, calculate your penalties, and file a claim. These penalties exist to punish employers who withhold your money and to compensate you for the delay.
Legal Disclaimer: This information is for educational purposes only and does not constitute legal advice. Employment law is complex and fact-specific. If you have questions about your specific situation, consult with a qualified California employment attorney who can evaluate your case and provide personalized guidance.
Source: California Department of Industrial Relations (DIR), Division of Labor Standards Enforcement (DLSE), California Labor Code § 201, § 202, § 203, § 227.3