California employers must meet strict deadlines for issuing final paychecks or face penalties – up to 30 days of the employee’s daily wage for each day of delay. The deadlines vary depending on termination or resignation.
Final Pay After Termination or Layoff: When an employer terminates or lays off an employee without a specific return date, the employer must provide the final paycheck immediately at the place of employment. The payment must include all earned wages, accrued vacation, and any other compensation owed. Expense reimbursements may be paid on the regular schedule.
Final Pay for Voluntary Quit or Retirement: If an employee gives at least 72 hours’ notice before quitting or retiring, the employer must issue the final paycheck on the last day of work. If the employee leaves without such advance notice, the employer must deliver final wages within 72 clock-hours of departure.
Mailing and Direct Deposit: If an employee quits without notice and requests the paycheck by mail to a designated address, payment is considered made on the date of mailing. Employers may use direct deposit for final pay, whether resignation or termination, if the employee consents and the employer deposits the funds on time.
Industry-Specific Exceptions: Certain industries, including seasonal agriculture, the motion picture industry, and oil drilling, may follow alternative final pay timelines.
Individual Liability: Individuals acting on the employer’s behalf, i.e., owners, directors, officers, or managing agents, can be held personally liable for late wage payments.
Take-Aways:
California employers should comply with final pay rules to avoid unnecessary legal and financial exposure.
For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.
See also:
- Solid Foundations – Workplace Policy Handbook & Forms for 2025 (June 20, 2025)
- Paystub Purgatory – The PAGA Perils of Not Paying Attention (March 14, 2025)
- Nailing Goodbye – Employee Terminations Dos and Don’t (September 15, 2021)
Cindy Bamforth
July 25, 2025