California employees have the benefit of some of the most protective labor laws in the country. Many facets of employee benefits and pay are covered by state laws. One that some people may not know about is how final paychecks must be handled.
The conditions of the employee’s departure from the company play a key role in how pay should be handled. Understanding the requirements may be beneficial for all employees, particularly if they’re leaving their employer.
Contents of the final paycheck
A final paycheck in California must include all unpaid wages, including the time worked on the final day. It must also include all accrued but not yet used vacation time. Commissions, bonuses and other compensation should also be included. In most cases, sick leave isn’t required to be paid out if an employee and employer part ways.
Timing of the final check
If an employee is laid off or terminated, they must receive their final paycheck on the last day. The full amount due must be given to them before they leave.
If the employee quits with at least a 72-hour notice, they should receive their full pay on the final day. If that 72-hour notice isn’t given, the employer can take up to 72 hours to pay the employee. If the employee asks for the wages to be mailed, the employer has 72 hours to get the check in the mail.
Employers should ensure they comply with these requirements, but that’s not always the case. Employees who don’t receive their final paycheck or have other wage and hour issues they can’t resolve with the employer should learn about their options. Getting experienced legal guidance can help get a suitable resolution.