California law requires final pay to include "all wages and accrued vacation earned but unpaid."
For purposes of final pay, "accrued vacation" includes traditional vacation pay as well as paid time off (PTO).
An employer may have to issue a final paycheck very quickly, if an employee resigns.
The amount of notice the employee gives determines the due date for the final paycheck.
If an employee gives less than 72 hours notice (clock hours, not business hours), the employer has 72 hours from the time of notice to issue the final check.
Paydays, pay periods, and the final wages
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When an employee gives more than 72 hours notice, the final paycheck is due on the employee's last day of work.
California Law on Pay When You Quit
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Per several California Labor Code sections and the state's labor laws, an employer is subject to penalties if the employer fails to pay an employee on time. For example, as to regular pay, employers are subject to a $100 penalty if they fail to pay an employee on his/her regular payday.
As to overtime pay, an employer is subject to penalties if payment is paid after the date when the employee's wages are normally due.
When it comes to payment for a final paycheck, California law says that payment must occur:
on the same day as the employee's final day of work if he/she is fired or laid off, or
within 72 hours of the employee giving notice of terminating the employment relationship.
Note that if an employee is not paid on time, the worker can:
file a complaint with the DLSE (or the California Division of Labor Standards Enforcement), or
file a lawsuit against the employer.
Note, too, that employers are not always penalized if they fail to pay an employee on time. For example, they can avoid a fine if they were not the true cause of a delay of payment (for instance, maybe the employer's bank was to blame for the delay).
Note that if an employee is not paid on time, the worker can:
file a complaint with the DLSE (or the California Division of Labor Standards Enforcement),
Division of Labor Standards Enforcement - District offices
or file a lawsuit against the employer.
Note, too, that employers are not always penalized if they fail to pay an employee on time. For example, they can avoid a fine if they were not the true cause of a delay of payment (for instance, maybe the employer's bank was to blame for the delay).
