FIGHTING EFFECTIVELY, FIGHTING SMART

What if your final paycheck is late or incomplete?

A late or incomplete final paycheck can make leaving a job more stressful, especially when it omits overtime, vacation pay or commissions.

For most California employees, the deadline depends on how your employment ends. If your employer fires you, your wages are generally due immediately, while a resignation with at least 72 hours’ notice makes them due on your last day. With less notice, your employer generally has 72 hours after you quit.

What should your final paycheck include?

Your final paycheck may cover more than your regular wages. Compare it with your time, leave and compensation records to check for:

  • Regular wages and overtime that remain unpaid when your employment ends
  • Earned, unused vacation or PTO from a combined leave bank
  • Bonuses earned under the terms of your employer’s written plan
  • Commissions your employer can calculate from available sales and payment records

Unused sick leave generally does not require a payout, but if your employer combines sick leave and vacation into one PTO bank, they must generally pay the full unused balance when your employment ends. Whether bonuses and commissions are due may depend on the written compensation plan and when you satisfy its payment requirements.

What happens when your employer pays late?

If your employer intentionally fails to pay all wages when they are due, you may qualify for waiting time penalties. California considers this a “willful” failure, although you do not have to prove that your employer acted maliciously or intended to harm you. The penalty may equal your daily rate of pay for each calendar day the wages remain unpaid, up to 30 days, although a genuine disagreement over whether wages are owed may prevent it.

Check your payment and preserve your records

A final paycheck can arrive on time and still leave out wages you earned. Consider comparing the payment date and amount with your pay stubs, time records, unused vacation balance, bonus or commission plan and termination or resignation documents.

You can also request a written explanation of any difference and keep a copy of the response. If the company does not correct the payment, available options may include filing a wage claim with the California Labor Commissioner’s Office or speaking with an employment attorney about your circumstances.