What are waiting time penalties? Well, California law gives employers a short period to make payment of wages due to an employee after quitting or being fired. The employee is entitled to a waiting time penalty if there is a good employee-employer relationship.
However, the wages do not include expenses. The time limit depends on whether the employee was fired or decided to quit. If an employee quits, he or she must give a 72-hour notice to be entitled to the final paycheck.
If the employer fires the employee, he or she is entitled to the paycheck immediately. The employer gets waiting time penalties of up to a maximum of 30 days if they fail to comply.
This penalty is not part of the wage owed.
FAQ’s About Waiting Time Penalties
What happens when your employer fires you and pays all the wages due within 72 hours, but fails to reimburse business related expenses?
You’re not entitled to waiting time penalties. According to California labor law, business expenses are not considered as a wage. The penalty only applies when an employee quits after giving a 72-hour notice or when the employer fires an employee and fails to pay the due wages within 72 hours.
Likewise, if an employee worked for an extra hour without the consent of the employer, it cannot be used to calculate the penalty.
How are waiting time penalties computed?
If you are a regular employee, the penalty will be based on the day’s work. For example, if an employee works 5 hours a day, 5 days a week, and earns $10 an hour, he is entitled to a waiting time penalty of $50 a day. However, if your employer paid half your due wages then pays the rest two weeks later, you’re entitled to a penalty for the remaining balance.
I gave my employer a 72-hour notice and they called me to pick the check after 3 days. I picked the check 10 days later. Am I entitled to the waiting time penalties?
No. You could have purposely failed to pick your check since you were informed it was available. According to labor code section 203, the law requires that any employee who refuses to pick the payment when fully tendered to him is not entitled to any benefit for that particular time he or she avoided the payment.
What happens if I quit without giving notice, then return later after 72 hours for my due wages?
In this case, the waiting penalties may apply. If the employer notified you the wages will not be available when you return, you are entitled to waiting time penalties.
If an employee is not paid on time or receives part of the wages, he or she is entitled to waiting time penalties. However, if there is a dispute whether the employer owes the employee, he may not be entitled to pay the waiting time penalty.
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