Under California Labor Code section 201, when an employer terminates an employee, the employer must pay the employee his or her final paycheck (including all earned wages and all accrued but unused vacation) immediately upon termination.
Under California Labor Code section 202, if an employee quits without giving advance notice, the employer must pay the employee his or her final paycheck within 72 hours after the employee’s last day.
Many employers either miss these deadlines, or fail to pay the employee all of the wages that are due.
Under California Labor Code section 203, if an employer fails to pay the employee all of the wages that are due by the deadlines set forth in Sections 201 and 202, the employee is entitled to a penalty of an additional day of wages for each day the wages are delayed, up to a maximum of 30 days. These penalties could amount to several thousand dollars.