Under various employment laws, departing employees are entitled to receive their final paycheck within certain strict deadlines.
For example, under California labor law, employees who are fired or terminated must be paid all of their wages, including accrued paid-time-off (PTO), immediately at the time of termination. Employees who quit without giving prior notice must be paid their wages within 72 hours. Employees who provide at least 72 hours notice of their intention to quit must be paid their wages on their final workday.
If the employer does not comply with final pay check law, former employees may be eligible for compensation in the form of penalties paid by the employer. Under California final paycheck law, for every day that final wages are not completely paid, the employer is liable for penalty wages equivalent to the employee’s daily wage, up to a maximum of 30 days.
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