California Final Paycheck Law (2023)

If you’ve been fired, California labor law requires your employer to pay you on the same day as your termination.

Typically, an employer or human resources (HR) person will hand you a check when they inform you that you’ve been let go. Companies will also sometimes give you a final check during an exit interview, when HR tells you what you need to do before leaving (turn in security badges, keys, etc.).

If you’re the one who decided to end the employment relationship, your employer must pay you within 72 hours of your giving notice that you quit.

What happened?	When is final paycheck due in California?
You’re fired	Same day as your termination
You quit	Within 72 hours of your giving notice that you’re quitting

If your employer doesn’t timely provide your final paycheck (on the same day as termination or within 72 hours of your quitting), the California labor code entitles you to a penalty equal to one-day’s wages for every late day.

These penalties are known as “waiting time penalties,” and employers in California are punished for making employees wait for their last check. Employees that are now jobless face a host of expenses, such as rent, electricity, and food costs. They need their final paycheck to live off.

Waiting time penalties can quickly add up, but are capped at 30 days. An employer that pays a former employee a month late will face the maximum penalty.

Example: John’s boss calls him into her office. She says, “John, I’ve never liked you, and you showed up late yesterday. You’re not worth the $120 a day we pay you, so I’m letting you go.” The company never gives John his final paycheck, and he sues. How much is he entitled to in waiting time penalties?

Answer: John can recover $120 per day in penalties up to a maximum of 30 days. Because 30 x $120 is $3600, John can receive a maximum of $3600 in penalties for the company’s failure to provide his final paycheck.

In addition to “waiting time” penalties, a California employee who never receives a final check is entitled to get the full amount that should have been on the check. Unused paid-time-off (PTO) is supposed to be reflected in the final paycheck. If an employee has unused vacation days at the time of termination, California PTO law requires an employer to provide a day’s worth of wages for each unused vacation day.

An employer can make standard deductions from a final paycheck (such as federal taxes, court-ordered child support), but generally cannot deduct costs for supposed damage or lost money that they say is the employee’s fault. Employers in California can only deduct costs from a final paycheck if the employee stole money or equipment, or damaged or lost it due to “gross negligence.”

Our California employment attorneys – with over 50 years of collective experience litigating under California employment law – know how to fight for employees’ rights and get them the money they deserve. We’ve recovered tens of millions of dollars for California employees and represent individuals as well as class actions in virtually every area of California employment and labor laws: California overtime law, off the clock violations in CA, breach of contract disputes, California independent contractor law, sexual harassment, employee misclassification, discrimination, as well as mass layoffs in violation of the California WARN Act. Our California employment lawyers are repeatedly recognized for their expertise litigating in California. Founding partner Eric Gibbs has been selected as one of the Top Plaintiff Lawyers in California. And seventeen of the firm’s attorneys were selected as Northern California Super Lawyers and Rising Stars, a distinction received by less than 5% of attorneys in Northern California.