Skilled California Lawyers
One of the biggest challenges that employers and employees grapple with on a constant basis is the payment of wages. Employees expect to get paid in a prompt and timely basis for the work that they perform. Employers must navigate the administrative complexities of making sure payroll happens in a consistent fashion. When something goes wrong, anger and frustration can arise on both sides.
California law requires employers to properly pay wages to employees and threatens them with penalties and fines if they fail to do so. For this reason, it is important for both parties to understand how California’s wage laws work.
What Are an Employer’s Requirements in Rancho Cucamonga?
In California, most employers are required to pay their employees at least twice a month. When an employee receives his or her paycheck, it must be provided in a timely fashion and must be for all work that has been performed. This means that an employer can’t forget to conduct payroll one week and simply decide to put those wages on the next paycheck.
California’s requirement that an employee be paid timely does not extend to circumstances where it is the employee’s own fault that he or she did not get paid. For example, if an employee fails to provide an address to an employer, or provides the wrong address, the employer will not face any punishment for failing to pay the employee on time.
California also has special laws that apply when an employee leaves a job and receives a final paycheck. If the employee is being fired or terminated, the employee must receive their final paycheck immediately – on their last day or at the time of termination.
If an employee quits and gives more than 72 hours notice, he or she is also entitled to a paycheck immediately, usually on the last day. If the employee quits without any advance notice, the employer must provide the paycheck within 72 hours of receiving notice that the employee has quit.
What Happens When Employers Don’t Abide by These Requirements?
If an employer fails to pay their employees according to the requirements of California law, various penalties may be imposed. For example, if an employer does not timely pay an employee their regular wages, or withholds a portion of the wages, they are immediately in violation of the California Labor Code and can be fined $100 for the first violation and an additional $200 for each subsequent violation.
In certain circumstances, the employer may also be required to pay the employee an additional 25% of the money that was withheld from the employee.
The penalties are even more severe when a final paycheck is not provided on time. For each day that a final paycheck is not provided by an employer, the employee is entitled to their average daily wage. This can continue to accrue for up to 30 days. So, for example, if an employer takes 28 days to provide an employee with their final paycheck, they will have to pay the employee for those 28 extra days in that final paycheck.
California Attorneys Helping You Comply with Wage Requirements
Providing payroll to employees in growing companies can be a complicated endeavor and when cash is tight it can be difficult to get checks out in a timely manner. Although companies may be inclined to try to get away with paying employees late, the potential penalties can quickly outweigh any benefits.
At CKB Vienna, LLP, our attorneys can work with you to develop systems and strategies to ensure timely payment for your staff, and can assist you in defending against unwarranted late wage claims. For more information, contact us online or at (909) 980-1040.