Skip to content

Laws and Guidelines for Your Final Paycheck

In California, the regulations governing the payment of wages are clear and protective of employees' rights. Employers are mandated to follow a predetermined payment schedule, with at least two paydays per month. These regulations are in place to ensure that employees are treated fairly and compensated appropriately. Additionally, the content of the paycheck itself is subject to scrutiny under state law, further safeguarding workers' interests. When it comes to the final paycheck, there are specific guidelines in place to ensure fairness.

Learn more now!

Final Paychecks Under California Law

According to California employment law, final paychecks are of utmost importance and must be provided promptly. When an employee is terminated or involuntarily separated from their job, the employer is required to issue the final paycheck on the very same day as the termination. If the employee resigns, they should receive their final paycheck within 72 hours of providing notice. However, if an employee provides notice more than 72 hours before their final shift, they should receive their final paycheck on their last working day. In cases where no notice is given, the paycheck must be sent within 72 hours of the employee's last day.

The Contents of Your Final Paycheck

California law is specific about what should be included in your final paycheck to ensure that you are properly compensated. This includes:

  • All wages earned during your employment.
  • Reimbursement for any business expenses you may have incurred.
  • Commission payments, if applicable, and owed on top of your base pay.
  • The cash value of accrued benefits, such as vacation days, sick leave, and paid time off.

If your final paycheck encompasses these elements, your employer has fulfilled their obligation, and the professional relationship has come to an end. However, if any of these components are missing, it's advisable to consult with an employment attorney to address the issue.

Understanding Deductions from a Final Paycheck

Employers in California are permitted to make specific deductions from your final paycheck, but these deductions are subject to strict guidelines. Deductions can include:

  • Standard state and federal tax withholdings.
  • Court-mandated payments, such as child support, if applicable.
  • Compensation for any property or monetary loss caused directly by your actions or negligence.

Learn more now!

Importantly, there should be no unauthorized or excessive deductions from your final paycheck. Employers who fail to meet these standards may face penalties.

Penalties for Incomplete Final Paychecks

If your employer fails to provide your final paycheck on time or makes improper deductions, you are entitled to compensation under California labor laws. You can receive "waiting time penalties," which equate to a full day's wages for each day your final paycheck is delayed, up to a maximum of thirty days. This compensation is in addition to the full payment you should have received initially.

California Labor Laws in 2023

It's essential to stay informed about changes in labor laws, as they can impact your rights as an employee. In California, several new labor laws have been introduced in 2023, including:

  • Increased Minimum Wage: The state-wide minimum wage is now $15.50 per hour, applicable to both small and large employers. If a city or county has a higher minimum wage, employers must adhere to that rate.
  • Pay Transparency: Employers must provide a pay scale for job positions upon request from job applicants or employees. This is mandatory for employers with 15 or more employees and must be included in job postings.
  • Bereavement Leave: Employers with five or more employees must grant up to five unpaid days of bereavement leave for the death of a family member.
  • Emergency Condition Protections: Increased legal protections are in place to prevent employer retaliation against employees who believe their workplace is unsafe due to an emergency condition.
  • COVID-19 Exposure Notice Requirements: Specific requirements have been extended to address COVID-19 exposure in the workplace.
  • Expanded California Family Rights Act Leave: This now includes designated persons.
  • The Contraceptive Act of 2022: This act prevents discrimination against or forced disclosure of information regarding reproductive health.

In conclusion, understanding your rights and the legal framework surrounding final paychecks and labor laws is crucial for every employee in California.

By staying informed and seeking legal counsel, when necessary, you can ensure that you are compensated and protected under the law. If you wish to learn more, contact a TPG Payroll & HR Specialist today; Just call 909.466.7876!

We can help you with your different department's tasks like The Importance of Cost-of-Living Adjustments (COLAs) in Payroll. Also, do you know the Exemptions for ABC Testing and how important they are? For these and more valuable subjects visit our blogs/resources page.