California Waiting Time Penalty Calculator

The California Waiting Time Penalty law, established under California Labor Code Section 203, is designed to ensure that employers pay their employees all due wages promptly upon the termination of employment.

Here’s a brief overview:

• Immediate Payment Requirement: If an employee is discharged, their final wages must be paid immediately at the time of termination. For employees who resign, the employer must pay all wages within 72 hours if the employee provided less than 72 hours’ notice of resignation. If the employee gives at least 72 hours’ notice, the final paycheck must be issued on their last day of work.
• Penalty for Delay: If an employer willfully fails to pay these final wages on time, they are subject to a waiting time penalty. This penalty equals the employee’s daily wage for each day the wages remain unpaid, up to a maximum of 30 days.
• Definition of “Willful”: The term “willful” in this context does not necessitate malice or intent to defraud but simply refers to an employer’s knowing failure to pay wages when due. However, if there’s a good faith dispute over the wages owed, penalties might not be imposed.
• Scope of Wages: The law applies to all forms of wages including regular pay, overtime, vacation pay, and other compensation that constitutes wages under California law.
• Exceptions: Certain industries, like the motion picture industry or workers under specific collective bargaining agreements, might have different rules. Additionally, if an employee avoids or refuses to receive their payment, they might not be entitled to the penalty.
• Legal Recourse: Employees can file a wage claim with the California Division of Labor Standards Enforcement (DLSE) or pursue a lawsuit to recover waiting time penalties along with their unpaid wages.

This law underscores California’s commitment to protecting worker rights by ensuring timely payment of wages, serving as both a deterrent to employers and a form of compensation for employees for delays in wage payments.