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What Are My Rights When My Employer Doesn't Pay On Time?

Posted by Eric Kingsley | Oct 10, 2024 | 0 Comments

Employer paying employees late

What are my rights if my employer doesn't pay me on time in California? If your employer consistently fails to pay you on time, you're not alone—and your concerns are valid. Timely wages are crucial for covering essential expenses, and delays can lead to unnecessary financial strain.

In California, strong legal protections ensure that employees are paid on time, every time. State labor laws provide clear rights and recourse for those who face delayed payments, holding employers accountable and offering you the tools to address late wages effectively.

Table of Contents:

Understanding California's Strict Payday Laws

California has some of the strictest wage and hour laws in the entire nation. This is to protect employees from unfair employment practices, including late or missing payments. The law clearly states when employers are required to issue paychecks, outlining the maximum intervals allowed between pay periods.

Regular Payday Requirements

Under California Labor Code Section 204, employers must pay their employees at least twice a month. There are specific requirements on the timing, depending on whether a company uses semi-monthly or weekly/biweekly payroll:

Payroll Cycle Payday Requirements

Semi-Monthly (e.g., 1st and 15th)

Work performed between the 1st and 15th must be paid between the 16th and 26th of the same month.


Work performed between the 16th and last day must be paid between the 1st and 10th of the following month.

Weekly or Biweekly

Payday should be no later than 7 days after the end of the pay period.

Any deviation from these timelines could result in a violation. This could mean your employer may owe you penalty pay. If your employer fails to pay you minimum wage or pay wages on time, they may be subject to additional penalties.

What are Waiting Time Penalties?

When an employer in California doesn't meet the state's strict payday requirements, waiting time penalties come into play. These penalties provide financial relief to employees who have experienced late payment of wages. Waiting time penalties can be substantial, especially in cases of repeat violations.

How Much Are Waiting Time Penalties?

If you win a wage claim for late pay, here's what California law dictates you are entitled to in terms of penalties:

  • First Violation: $100 for each employee and each payday missed.
  • Subsequent Violations/Willful Violation: $200 for each employee and each payday missed, PLUS 25% of the unpaid wages.

The law is designed to deter employers from engaging in these practices. California law considers it a willful violation when your employer was aware of their legal obligation but still chose not to pay you on time. It's important to note: 'ignorance of the law' is NOT a valid defense for employers.

Additional Penalties and Remedies

Waiting time penalties are just one tool available to you. The state also has additional ways to enforce compliance and provide relief:

  • Labor Code 204 Penalties: If you are discharged (fired or laid off) and not paid all wages owed immediately, Labor Code Section 204 can apply. This means that you are entitled to penalties for unpaid wages, including paid vacation. These penalties accrue daily, for up to 30 days.
  • Private Attorney General Act (PAGA): You can file a lawsuit under the Private Attorney General Act (PAGA) for violations like late wages. This act allows employees to file lawsuits on behalf of themselves and other current or former employees. There are specific procedures involved in filing a PAGA claim, which is best discussed with an experienced California employment lawyer. To get started, you'll find important information within the Labor Code sections 2698 through 2699.5.

What Should I Do If My Paycheck Is Consistently Late?

Getting your paycheck late, even just once, can be alarming. If this happens, these steps may help you resolve the issue:

  1. Document Everything: Keep thorough records of your hours worked, pay rates, the designated paydays, and any instances of late payments. Note any instances of unpaid wages. This documentation will prove invaluable should you need to file a wage claim.
  2. Communicate with Your Employer: It might feel uncomfortable, but start by having a calm conversation with your HR or payroll department. It could be a genuine mistake, like a simple administrative error. By being upfront, you might resolve it quickly.
  3. Send a Written Demand for Payment: If a simple conversation doesn't produce a solution, formalize the situation with a written notice requesting payment. Be sure to include the total amount of wages owed. Deliver it to both your employer and keep a copy for your records.
  4. File a Wage Claim: If an employer refuses to rectify the situation, you can take legal action. You'll start this process by filing a wage claim with the California Labor Commissioner. The agency investigates these situations to ensure your employer follows the law.
  5. Consult an Attorney: If you are experiencing significant financial strain from continual late payments or are uncomfortable navigating the claims process alone, speak to our unpaid wage lawyers who focus on wage and hour disputes in California. We can help guide you through the next steps and understand how the waiting time penalty applies to your case.

Seek Help from the Labor Commissioner

You can find support and get your questions answered directly through the California Labor Commissioner's Office. They have helpful resources if you are experiencing late payment of wages, including information on how to file a wage claim, understand time penalties, and calculate the correct amount of wages owed to you.

If the late paycheck issues persist after trying to resolve them with your employer, you have the right to file a formal wage claim with the California Labor Commissioner's Office. They are the designated agency to handle these types of complaints and ensure your employer pays you on time. This process starts by submitting a DLSE Form 1 which you can file online or deliver in person at the nearest DLSE office.

California has a one-year statute of limitations on filing claims for unpaid wages. The California Labor Commissioner's Office enforces these labor laws and is there to protect your rights. It is also within your rights to seek additional guidance through the California Department of Industrial Relations and California Department of Labor. Both these agencies are great resources with dedicated websites that offer a wealth of information about California labor law and employee rights. Their websites have detailed information about various aspects of employment law, including rest periods, rest break laws, final paycheck rules, payment penalties that apply in different situations, and what constitutes an intentional violation of the law.

Conclusion

What are my rights if my employer doesn't pay me on time in California? The simple answer is you have significant legal recourse and are strongly protected in California. You have a right to be paid the correct amount, on time. Understanding these regulations empowers you to stand up for yourself and demand fair treatment in your workplace. Remember, the California Labor Commissioner's office and the state's labor laws are there to protect you.

For those who would like to pursue a wage claim in California, consider giving us a call or engaging with our chat. We offer free consultations and case evaluations. We do not charge our clients a cent unless their case is won.

About the Author

Eric Kingsley

Eric B. Kingsley is a 2024 "Best In Law" Award winner, 2024 Consumer Attorneys of California Presidential Award of Merit recipient, and has litigated over 150 class actions. He is an AV peer rated attorney and a prolific speaker at various seminars on employment law.

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