Losing your job or quitting creates enough stress. The last thing you need is fighting with your former employer over your final paycheck. I've spent nearly three decades representing California workers, and final pay violations remain one of the most common wage issues I see.

Here's what matters most.

When you are terminated, fired, or laid off, your employer must pay you all wages owed immediately. The law does not allow employers to wait until the next payday, the end of the week, or the next payroll run. Payment is due at the time of termination.

If you quit and provide at least 72 hours' notice, your final paycheck must be ready on your last working day.

If you quit without giving advance notice, your employer has 72 hours from the time you resign to provide your final pay.

Your final pay includes all unused, accrued vacation time. Under California law, accrued vacation is treated as earned wages and cannot be forfeited.

When employers miss these deadlines or fail to pay everything owed, California law allows employees to recover waiting time penalties of up to 30 days of additional wages.

What Happens When Your Employer Terminates You

Labor Code section 201 is clear. When an employer ends the employment relationship for any reason, it must pay the employee all earned wages immediately.

Your final pay must include:

• All wages for hours worked through your last shift
• Overtime and double-time wages that have been earned
• Commissions that are earned and can be calculated at the time of separation
• All accrued and unused vacation or PTO
• Bonuses that are due and determinable

Payment is generally due at the place of termination. Employers may not require you to return later or wait for a mailed check unless you request mailing or have clearly authorized another lawful method.

Once the statutory deadline passes, waiting time penalties may begin to accrue.

Special Timing Rules for Certain Industries

Oil and Gas Workers

Employees engaged in oil drilling operations must receive final wages within 24 hours of separation, excluding weekends and holidays, whether they quit or were terminated. This rule is set by Labor Code section 201.7.

Entertainment and Production Workers

Employees in film, television, theatrical, or concert productions generally must receive final wages by the next regular payday permitted under Labor Code section 201.5, subject to the statute's specific payroll allowances. Employers may mail the final check or make it available at a designated location.

Seasonal Agricultural Workers

Agricultural workers employed in the processing of perishable crops who are laid off as a group at the end of a season must generally be paid within 72 hours. Payment may be mailed if requested and an address is provided.

Union Employees

A valid collective bargaining agreement may modify final pay timing, but it cannot eliminate fundamental wage protections required by law.

Resigning From Your Job: Know the Timeline

Labor Code section 202 governs voluntary resignations.

Resignation With 72 Hours' Notice

If you give at least 72 hours' notice before quitting, your employer must provide your complete final paycheck on your last working day.

The 72-hour period is literal. If notice is given at 2:00 p.m. on Monday, payment must be ready by 2:00 p.m. on Thursday if that is your final day.

Resignation Without Notice

If you quit without giving 72 hours' notice, your employer has 72 hours from the time of resignation to provide your final pay. You may pick it up, receive it by hand delivery, or request in writing that it be mailed.

When final wages are mailed at the employee's written request, payment is considered made on the date of mailing, not the date of receipt.

What Must Be Included in a Final Paycheck

Regular Wages

All earned wages through the last day of work must be paid, regardless of normal payroll schedules. Regular semi-monthly pay rules no longer apply once employment ends.

Overtime and Double Time

Earned overtime and double time must be included in final pay. Employers may not delay payment by claiming additional time is needed to calculate overtime. Payroll inconvenience is not a legal excuse.

Accrued Vacation or PTO

Labor Code section 227.3 treats accrued vacation as earned wages. California prohibits “use it or lose it” vacation policies.

Accrued vacation must be paid out at the employee's final rate of pay, even if the vacation was earned when the employee earned less.

Unused sick leave does not have to be paid unless the employer's policy or contract provides otherwise.

How Final Payment Must Be Made

Location of Payment

When an employee is terminated, final wages are generally due at the place of termination. When an employee resigns with notice, payment is due at the workplace on the last day. Employees who quit without notice may receive payment at the employer's office or by mail upon written request.

These rules are governed by Labor Code section 208.

Direct Deposit and Final Wages

Employers may not assume that a standard payroll direct deposit authorization automatically applies to final wages. Final pay may be delivered by direct deposit only if the employee has clearly and voluntarily authorized that method for final wages. Without such authorization, employers should provide payment by check or another lawful method.

Waiting Time Penalties for Late Final Pay

Labor Code section 203 imposes waiting time penalties when an employer willfully fails to pay final wages on time and there is no good-faith dispute over what is owed.

The penalty equals one full day of the employee's regular wages for each calendar day payment is late, up to a maximum of 30 calendar days. Weekends and holidays count.

For example, an employee earning $30 per hour for an eight-hour day earns $240 per day. A 30-day delay can result in $7,200 in penalties on top of unpaid wages.

The California Supreme Court has confirmed that unpaid meal and rest break premiums also trigger waiting time penalties when not paid with final wages, as held in Naranjo v. Spectrum Security Services.

Common Final Pay Violations I See

• Paying regular wages but delaying overtime
• Refusing to pay accrued vacation
• Withholding commissions without a valid good-faith dispute
• Waiting until the next regular payday
• Holding final pay hostage pending return of company property
• Claiming payroll or accounting delays
• Misclassifying employees as independent contractors

None of these excuses relieve an employer of its obligations under California law.

What You Can Do If Your Employer Violates the Law

File a Wage Claim with the DLSE

You may file a claim with the Labor Commissioner at no cost. The DLSE can recover unpaid wages, penalties, interest, and in some cases attorney's fees.

File a Lawsuit

When larger sums are involved or violations are widespread, filing a civil lawsuit may be appropriate. Successful employees may recover wages, penalties, interest, and attorney's fees.

PAGA Actions

Under the Private Attorneys General Act, employees may pursue civil penalties for Labor Code violations affecting multiple workers, with a portion paid to employees and a portion to the state.

How Kingsley Szamet Employment Lawyers Can Help

For nearly 30 years, our firm has represented California workers in wage and hour disputes, including final pay violations. We have recovered hundreds of millions of dollars for employees across the state.

If your employer delayed your final paycheck or failed to pay everything owed, you may be entitled to unpaid wages, waiting time penalties, interest, attorney's fees, and additional civil penalties.