Is There A Penalty For Not Paying Employees On Time In California?

California law dictates that all employers have a The legal obligation to pay wages to employees when due.

This law also covers overtime pay and final paychecks.

Employers who fail to pay on time are in violation of California’s labor laws. They must be held responsible for any adverse consequences.

When should wages be paid?

  • Your employer may pay you wages either by hourly or salary, depending on the nature of your employment relationship.
  • You may owe them wages at the end or the end of each day, or every two weeks, depending on how long it takes. They may owe wages to you at a different date than what is stated in the employment contract.
  • Employers must pay eligible overtime workers “regular” pay at least once per pay period on each elected payday. Your “regular” pay will depend on the employment relationship you have with your employer.

What if my employer doesn’t pay me on time?

  • You might be wondering if my employer can pay me late in California. You can sue to recover damages if your employer fails to pay wages on time in California.
  • You can file a claim against an employer for unpaid wages. This will allow you to seek damages for the losses you suffered because your employer did not pay you.

However, penalties are different from damages. California can impose additional penalties on an employer who violates your rights as an employee.

Penalties are used to correct your employer and discourage them from withholding future wages.

Late Paycheck Damages

  • Back pay, also known as lost wages, is the amount you earn for work that wasn’t paid. A court can award you back pay if your employer fails to pay you for all your work hours.
  • Your unpaid hours divided by your hourly wage is your back pay. If your hourly wage was $15 per hour, and you worked 30 hours unpaid, you will receive $450 back pay.

Late Paycheck Penalties

  • California Labor Code 221 requires that employers pay $100 penalty if you are late with your paycheck.
  • The penalty for subsequent offenses is $200 plus 25% of any amount your employer illegally withheld. If the violation was intentional, this penalty could also be applied to subsequent offenses.
  • If your employer is violating multiple employees, you might consider filing a claim under California’s Private Attorney General Act.

This Act permits employees in California to enforce the Labor Code for themselves, their employees and the State of California.

If you decide to take this action, you can recover some of the penalties imposed by California.

An attorney can help determine the best course of action for you.

Summarized from an article by Ottinger Employment Lawyers.