When Must California Employers Pay Your Final Wages? A Sherman Oaks Guide to Final Paycheck Laws

Ending your employment, whether voluntary or involuntary, is already stressful enough. The last thing you want is to worry about when you’ll receive your final paycheck. Luckily, California law offers some of the strictest protections in the country when it comes to ensuring employees are paid all of their final wages on time. Whether you’re working in Sherman Oaks, Burbank, or elsewhere in the San Fernando Valley, here’s what you need to know about getting your final paycheck after leaving a job.

When Do Employers Have to Pay Your Final Wages in California?

If you’ve been terminated, laid off, or decided to resign, California Labor Code Section 201 sets clear deadlines for when employers must deliver your final paycheck. These rules apply to every employee, regardless of industry or job title.

What Happens If You’re Fired or Laid Off?

If your employer decides to terminate your employment, California law requires that they provide you with your final paycheck immediately, on the same day. This includes:

• All earned wages up until the date of termination.
• Unused vacation time and any accrued PTO.
• Commission earned but not yet paid.
• Bonus payments if applicable.
• Expense reimbursements for business-related costs you’ve already incurred.

If your employer fails to pay you right away, they could face waiting time penalties, which we’ll cover later.

What If You Voluntarily Resign?

The rules for receiving your final paycheck after resigning depend on how much notice you give:

• If you give 72 hours or more notice, your employer must provide your final paycheck on your last day of work.
• If you quit without giving notice, your employer has 72 hours from the moment you give notice to deliver your final paycheck. The 72 hours are counted in calendar days, which includes weekends and holidays. If the 72 hours fall on a weekend or holiday, they still must pay you on time, but employers are allowed to mail your final paycheck if you quit without notice. You can also request direct deposit if you previously used it for regular wages.

What Should Your Final Paycheck Include?

Your final paycheck should include everything you’re owed up until your last day of work. Here’s what must be included:

• All regular wages for hours worked.
• Overtime pay for any extra hours beyond your regular schedule.
• Meal and rest break penalties if your employer violated those rights during your employment.
• Unused vacation time (Note: California law requires employers to pay out all accrued vacation when you leave, regardless of the reason for separation).
• Commission and bonuses that you earned while still employed.
• Expense reimbursements for business-related expenses, including travel, mileage, and other costs you personally covered for work.

Local Tip:

In Sherman Oaks and across Los Angeles, many employees work in industries like entertainment, media, and tech, where commissions and bonuses are common. It’s essential to track exactly what you’re owed, especially if a large portion of your income comes from commission-based pay.

What Happens If Your Employer Delays Your Final Paycheck?

California takes late final paychecks seriously. If your employer delays payment, they could face severe waiting time penalties under California Labor Code Section 203.

What Are Waiting Time Penalties?

If your employer doesn’t provide your final paycheck by the legally required deadline, you are entitled to a full day’s wages for each day they are late, up to 30 days. This includes weekends and holidays, and there’s no cap on how much your employer could owe you for waiting time penalties.

For example, if your daily wage is $150 and your employer is late by 10 days, they would owe you $1,500 in waiting time penalties alone. These penalties can add up quickly, especially for higher-paid employees in the San Fernando Valley.

How Can You Take Action if You Don’t Receive Your Final Paycheck?

If your employer fails to provide your final paycheck on time, it’s important to take action immediately. Here are the steps you should follow:

What to Do If You Haven’t Been Paid on Time:

1. Document the termination date: Keep a clear record of your last day of work, including any written resignation notice or termination paperwork.
2. Calculate what you’re owed: Make sure you know the exact amount you should have been paid, including all wages, vacation time, commissions, and reimbursements.
3. Request payment in writing: Send a written request to your employer, clearly outlining the amount owed and the timeline for payment. This creates a paper trail for future legal action if needed.
4. Track waiting time: Note how many days have passed since your last day of work, as this will determine the waiting time penalties you’re entitled to.
5. Contact Fraigun Law Group: If your employer still hasn’t paid you after following these steps, legal action may be necessary. At Fraigun Law Group, we help employees in Sherman Oaks and across the San Fernando Valley fight for the wages they’re owed.

What Are the Common Mistakes Employers Make When Issuing Final Paychecks?

Even well-intentioned employers can make mistakes when it comes to final paychecks. Here are some of the common errors we see in Sherman Oaks and across Los Angeles:

• Failing to include vacation time: Some employers may overlook or intentionally leave out unused vacation or PTO when calculating your final pay.
• Missing overtime pay: Employers often fail to correctly calculate overtime worked during the last pay period.
• Incorrect commission calculation: If you work in sales or entertainment, it’s common for employers to underpay or delay commission payments.
• Forgetting expense reimbursements: If you incurred business expenses, such as travel or supplies, make sure your employer reimburses these costs with your final paycheck.

Don’t Let Your Final Paycheck Be Their Final Say

Working in Sherman Oaks or the greater San Fernando Valley and facing issues with your final paycheck? Fraigun Law Group is here to ensure employers follow California’s strict final paycheck laws. Whether you’ve been terminated, laid off, or you’ve resigned, your employer must pay you all of your wages on time. Contact us today to make sure your final paycheck is in your hands, and that your employer is held accountable for any delays.