Waiting time penalties

What they are

Waiting time penalties enforce California's final-pay rules. If an employer willfully fails to pay final wages on time, the employee's wages continue as a penalty, at the same rate, from the due date until paid or until suit is filed, for up to 30 days (Labor Code section 203).

The rule and its deadlines

A discharged employee's earned and unpaid wages are due immediately (Labor Code section 201). An employee without a written contract for a definite period who quits is owed final wages within 72 hours, or at the time of quitting if they gave 72 hours' notice (Labor Code section 202). Suit for the penalty may be filed any time before the statute of limitations on the underlying wages runs (Labor Code section 203(b)). An employee who hides to avoid payment or refuses a full tender loses the benefit for that time.

Why it matters to a plaintiff firm

Waiting time penalties attach to almost every wage case involving a former employee. Unpaid overtime, meal and rest premiums or final-paycheck errors left unpaid at separation can each support up to 30 days of daily wages. The math needs the client's daily rate, the separation date and the payment date. The same facts often support a PAGA claim. See the wage and hour damages guide and the unpaid overtime calculator.