Under California Labor Code Section 203, employees who are terminated or voluntarily resign and do not receive their final wages on time may be entitled to “waiting time penalties.” These penalties are designed to compensate employees for the delay and encourage employers to pay final wages promptly and in full.

When Are Final Wages Due?

The timing of final wage payments depends on how your employment ended:

• If you are terminated or laid off, your employer must provide your final paycheck immediately at the time of separation.
• If you resign and give at least 72 hours of notice, your final wages are due at the time of resignation.
• If you resign without giving 72 hours of notice, your employer has 72 hours to provide your final paycheck.

What Is a Waiting Time Penalty?

If your employer fails to pay your final wages on time, you may be entitled to a penalty equal to your daily wage for each day the payment is late, up to a maximum of 30 calendar days. This penalty applies to all unpaid final wages, including earned vacation time.

How Is the Penalty Calculated?

To calculate the waiting time penalty, multiply your average daily wage by the number of days your final paycheck was late, up to 30 days. For example, if you earn $200 per day and your employer was 10 days late, you may be owed $2,000 in waiting time penalties.

Who Qualifies for Waiting Time Penalties?

You may qualify for waiting time penalties if:

• You were an employee (not an independent contractor).
• You were owed final wages, including unpaid regular wages, overtime, or vacation pay.
• Your employer willfully failed to pay you on time.

What Does “Willfully” Mean?

In this context, “willful” means your employer had the ability to pay but deliberately failed to do so. Honest mistakes or payroll system errors may not always result in penalties, but each situation is evaluated on a case-by-case basis.

How Do I Claim Waiting Time Penalties?

You can file a wage claim with the California Labor Commissioner or pursue a lawsuit in civil court. You will need documentation such as your final wage statement, time records, and any written communications with your employer.

Deadline to File a Claim

Claims for waiting time penalties must typically be filed within three years from the date the violation occurred. It’s important to act promptly to preserve your rights and potential compensation.

Speak to a Labor Law Attorney

If your employer failed to pay you on time after separation, you may be entitled to waiting time penalties and other damages. A qualified employment attorney can help assess your claim, gather evidence, and represent your best interests in recovering what you’re owed.