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Disclaimer
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site
creates an express or implied contract. While efforts are made to present only accurate and current
information, laws can and do change and interpretations vary among jurisdictions, so all information is
presented on an “as-is” basis. This site is for informational purposes only.
If you do not find the answer to your question through these summaries or
related links, feel free to contact us with your question. We'll do our best to help
you find the answer you are looking for.
related links, feel free to contact us with your question. We'll do our best to help
you find the answer you are looking for.
Payment upon Separation from Employment
Employees who are fired, discharged, or terminated
When an employee is discharged from employment by the employer, the employer must
pay the employee all wages due at the time of termination. CA Labor Code Section 201
Employees who quit or resign
If an employee quits and gives their employer at least 72 hours notice, the employer must
pay the employee all wages due at the time of quitting. If the employee fails to provide their
employer with at least 72 hours notice prior to quitting, the employer must pay the
employee all wages due within 72 hours after the time of quitting. An employee may
request that their final wages be mailed to a designated address. The date of the mailing
is considered the date of payment. CA Labor Code Section 202
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee leaves employment as a result of a labor dispute, the employer must
pay the employee by the next regular pay day. CA Labor Code Section 209
Employees who are laid off
A group of employees who are laid off by reason of the termination of seasonal
employment in the curing, canning, or drying of any variety of perishable fruit, fish or
vegetables, must be paid within 72 hours after the layoff. Payment shall be made by mail to
any such employee who so requests and designates a mailing address therefor. CA Labor
Code Section 201
An employee engaged in the business of oil drilling who is laid off must be paid within 24
hours after discharge, excluding Saturdays, Sundays, and holidays. CA Labor Code
Section 201.7
Special Motion Picture Industry Payment Requirements
An employee engaged in the production of motion pictures who is discharged, laid off,
resigns, completes employment of a specified term, or is otherwise separated from
employment and whose unusual or uncertain terms of employment require special
computation in order to ascertain the amount due, must be paid by the next regular payday.
The payment of wages to employees covered by this section may be mailed to the
employee or made available to the employee at a location specified by the employer in the
county where the employee was hired or performed labor. CA Labor Code Section 201.5
Wages in Dispute
In case of a dispute over wages between an employer and employee, the employer must
timely pay, without condition, all wages, or parts thereof, conceded by him to be due to the
employee, leaving to the employee all remedies he might otherwise be entitled to as to any
balance claimed. The employer may retain the disputed amount until the matter is
resolved. CA Labor Code Section 206
Employees who are fired, discharged, or terminated
When an employee is discharged from employment by the employer, the employer must
pay the employee all wages due at the time of termination. CA Labor Code Section 201
Employees who quit or resign
If an employee quits and gives their employer at least 72 hours notice, the employer must
pay the employee all wages due at the time of quitting. If the employee fails to provide their
employer with at least 72 hours notice prior to quitting, the employer must pay the
employee all wages due within 72 hours after the time of quitting. An employee may
request that their final wages be mailed to a designated address. The date of the mailing
is considered the date of payment. CA Labor Code Section 202
Employees who are suspended or resigns due to a labor dispute (strike)
When an employee leaves employment as a result of a labor dispute, the employer must
pay the employee by the next regular pay day. CA Labor Code Section 209
Employees who are laid off
A group of employees who are laid off by reason of the termination of seasonal
employment in the curing, canning, or drying of any variety of perishable fruit, fish or
vegetables, must be paid within 72 hours after the layoff. Payment shall be made by mail to
any such employee who so requests and designates a mailing address therefor. CA Labor
Code Section 201
An employee engaged in the business of oil drilling who is laid off must be paid within 24
hours after discharge, excluding Saturdays, Sundays, and holidays. CA Labor Code
Section 201.7
Special Motion Picture Industry Payment Requirements
An employee engaged in the production of motion pictures who is discharged, laid off,
resigns, completes employment of a specified term, or is otherwise separated from
employment and whose unusual or uncertain terms of employment require special
computation in order to ascertain the amount due, must be paid by the next regular payday.
The payment of wages to employees covered by this section may be mailed to the
employee or made available to the employee at a location specified by the employer in the
county where the employee was hired or performed labor. CA Labor Code Section 201.5
Wages in Dispute
In case of a dispute over wages between an employer and employee, the employer must
timely pay, without condition, all wages, or parts thereof, conceded by him to be due to the
employee, leaving to the employee all remedies he might otherwise be entitled to as to any
balance claimed. The employer may retain the disputed amount until the matter is
resolved. CA Labor Code Section 206
Deductions from Wages
Labor Code Sections 221 and 224: An employer may not withhold or deduction wages from
an employees paycheck, unless:
1) required or empowered to do so by state or federal law,
2) a deduction is expressly authorized in writing by the employee to cover insurance
premiums, benefit plan contributions or other deductions not amounting to a rebate on the
employee’s wages, or
3)a deduction to cover health, welfare, or pension contributions is expressly authorized by a
wage or collective bargaining agreement.
An employer may not deduct any of the following from an employee's wages:
1. any portion of an employee's gratuities. CA Labor Code Section 351;
2. the cost of any photograph of an applicant or employee required by the employer. CA
Labor Code Section 401;
3. the cost of a bond required of an applicant or employee by an employer. CA Labor Code
Section 401;
4. the cost of a uniform required to be worn by the employee, unless the employee has
consented in writing to have the cost of the uniform deducted from their last paycheck if not
returned to the employer. CA Labor Code Section 2802, Industrial Welfare Commission
Orders, Section 9. The term "uniform" includes wearing apparel and accessories of
distinctive design and color.
5. the cost of tools or equipment required to be used by an employee, except employees
who earn two time (2X) the minimum wage may be required to purchase hand tools and
equipment customarily used in a particular industry. CA Labor Code Section 2802,
Industrial Welfare Commission Orders, Section 9;
5. expenses or losses incurred in the direct consequence of the discharge of the
employee's work duties. CA Labor Code Section 2802;
6. the cost of any pre-employment medical or physical examination taken as a condition of
employment or any medical or physical examination required by any federal or state law or
regulation, or local ordinance. CA Labor Code Section 222.5
Cash Shortages, Property Breakage or Loss, Dishonored Checks
An employer may not deduct amounts from an employee’s wages due to a cash shortage,
breakage or loss of property, or a dishonored check, unless it can be shown that the
shortage, breakage, or loss is caused by a dishonest or willful act, or by the gross
negligence of the employee. Industrial Welfare Commission Orders, Section 8; see also
Kerr’s Catering v. Department of Industrial Relations (1962) 56 Cal.2d 319.
California courts have also significantly restricted an employer’s ability to take an offset
against an employee’s wages. Barnhill v. Sanders (1981) 125 Cal.App.3d 1, (it is unlawful
for an employer to deduct from an employee's final paycheck a balloon payment to repay
the employee’s debt to employer even when the employee has authorized the payment in
writing); CSEA v. State of California (1988) 198 Cal.App.3d 374 (it is unlawful to deduct past
salary advances that were in error from an employee's wages); Hudgins v. Nieman Marcus
(1995) 34 Cal.App.4th 1109 (it is unlawful to deduct unidentified returns from commission
sales from an employee's wages.)
Uniforms, Tools, and Other Equipment Necessary for Employment
An employer may not require an employee to purchase a uniform or equipment required to
be worn by the employee. The term "uniform" includes wearing apparel and accessories of
distinctive design and color. An employee can consent in writing to have the cost of a
uniform deducted from their final wages if the employee fails to return a uniform provided by
the employer. CA Labor Code Section 2802, Industrial Welfare Commission Orders,
Section 9.
An employer may not require an employee to pay the cost of tools or equipment required to
be used by an employee, except employees who earn two time (2X) the minimum wage
may be required to purchase hand tools and equipment customarily used in a particular
industry. CA Labor Code Section 2802, Industrial Welfare Commission Orders, Section 9.
Medical or Physical Exams, including Drug Tests, Required for Employment
An employer may not require an employee to pay the cost of any pre-employment medical
or physical examination, including a drug test, taken as a condition of employment or any
medical or physical examination required by any federal or state law or regulation, or local
ordinance. CA Labor Code Section 222.5
Labor Code Sections 221 and 224: An employer may not withhold or deduction wages from
an employees paycheck, unless:
1) required or empowered to do so by state or federal law,
2) a deduction is expressly authorized in writing by the employee to cover insurance
premiums, benefit plan contributions or other deductions not amounting to a rebate on the
employee’s wages, or
3)a deduction to cover health, welfare, or pension contributions is expressly authorized by a
wage or collective bargaining agreement.
An employer may not deduct any of the following from an employee's wages:
1. any portion of an employee's gratuities. CA Labor Code Section 351;
2. the cost of any photograph of an applicant or employee required by the employer. CA
Labor Code Section 401;
3. the cost of a bond required of an applicant or employee by an employer. CA Labor Code
Section 401;
4. the cost of a uniform required to be worn by the employee, unless the employee has
consented in writing to have the cost of the uniform deducted from their last paycheck if not
returned to the employer. CA Labor Code Section 2802, Industrial Welfare Commission
Orders, Section 9. The term "uniform" includes wearing apparel and accessories of
distinctive design and color.
5. the cost of tools or equipment required to be used by an employee, except employees
who earn two time (2X) the minimum wage may be required to purchase hand tools and
equipment customarily used in a particular industry. CA Labor Code Section 2802,
Industrial Welfare Commission Orders, Section 9;
5. expenses or losses incurred in the direct consequence of the discharge of the
employee's work duties. CA Labor Code Section 2802;
6. the cost of any pre-employment medical or physical examination taken as a condition of
employment or any medical or physical examination required by any federal or state law or
regulation, or local ordinance. CA Labor Code Section 222.5
Cash Shortages, Property Breakage or Loss, Dishonored Checks
An employer may not deduct amounts from an employee’s wages due to a cash shortage,
breakage or loss of property, or a dishonored check, unless it can be shown that the
shortage, breakage, or loss is caused by a dishonest or willful act, or by the gross
negligence of the employee. Industrial Welfare Commission Orders, Section 8; see also
Kerr’s Catering v. Department of Industrial Relations (1962) 56 Cal.2d 319.
California courts have also significantly restricted an employer’s ability to take an offset
against an employee’s wages. Barnhill v. Sanders (1981) 125 Cal.App.3d 1, (it is unlawful
for an employer to deduct from an employee's final paycheck a balloon payment to repay
the employee’s debt to employer even when the employee has authorized the payment in
writing); CSEA v. State of California (1988) 198 Cal.App.3d 374 (it is unlawful to deduct past
salary advances that were in error from an employee's wages); Hudgins v. Nieman Marcus
(1995) 34 Cal.App.4th 1109 (it is unlawful to deduct unidentified returns from commission
sales from an employee's wages.)
Uniforms, Tools, and Other Equipment Necessary for Employment
An employer may not require an employee to purchase a uniform or equipment required to
be worn by the employee. The term "uniform" includes wearing apparel and accessories of
distinctive design and color. An employee can consent in writing to have the cost of a
uniform deducted from their final wages if the employee fails to return a uniform provided by
the employer. CA Labor Code Section 2802, Industrial Welfare Commission Orders,
Section 9.
An employer may not require an employee to pay the cost of tools or equipment required to
be used by an employee, except employees who earn two time (2X) the minimum wage
may be required to purchase hand tools and equipment customarily used in a particular
industry. CA Labor Code Section 2802, Industrial Welfare Commission Orders, Section 9.
Medical or Physical Exams, including Drug Tests, Required for Employment
An employer may not require an employee to pay the cost of any pre-employment medical
or physical examination, including a drug test, taken as a condition of employment or any
medical or physical examination required by any federal or state law or regulation, or local
ordinance. CA Labor Code Section 222.5
Notice of Wage Reduction
California does not have a law addressing when or how an employer may reduce an
employees wages or whether an employer must provide employees notice prior to
instituting a wage reduction. However, the California Dept. of Industrial Relations states
that an employer must give an employee prior notice of a change in pay periods.
Presumably, this notice requirement would apply to any reduction in wage rates as well. CA
DIR FAQ. Moreover, a wage reduction can only be applied to hours worked after the
change and cannot be applied to hours already worked.
California does not have a law addressing when or how an employer may reduce an
employees wages or whether an employer must provide employees notice prior to
instituting a wage reduction. However, the California Dept. of Industrial Relations states
that an employer must give an employee prior notice of a change in pay periods.
Presumably, this notice requirement would apply to any reduction in wage rates as well. CA
DIR FAQ. Moreover, a wage reduction can only be applied to hours worked after the
change and cannot be applied to hours already worked.
Statement of Wages (Pay Stub)
An employer must provide employees on each pay day an itemized statement of earnings
and deductions which includes:
(1) gross wages earned,
(2) total hours worked by the employee, except for any employee whose compensation is
solely based on a salary and who is exempt from payment of overtime,
(3) the number of piece-rate units earned and any applicable piece rate if the employee is
paid on a piece-rate basis,
(4) all deductions, provided that all deductions made on written orders of the employee
may be aggregated and shown as one item,
(5) net wages earned,
(6) the inclusive dates of the period for which the employee is paid,
(7) the name of the employee and his or her social security number, (an employer is only
required to show the last four digits of the employee's social security number or an
employee identification number on the itemized statement),
(8) the name and address of the legal entity that is the employer, and
(9) all applicable hourly rates in effect during the pay period and the corresponding number
of hours worked at each hourly rate by the employee.
CA Labor Code Section 226
An employer must provide employees on each pay day an itemized statement of earnings
and deductions which includes:
(1) gross wages earned,
(2) total hours worked by the employee, except for any employee whose compensation is
solely based on a salary and who is exempt from payment of overtime,
(3) the number of piece-rate units earned and any applicable piece rate if the employee is
paid on a piece-rate basis,
(4) all deductions, provided that all deductions made on written orders of the employee
may be aggregated and shown as one item,
(5) net wages earned,
(6) the inclusive dates of the period for which the employee is paid,
(7) the name of the employee and his or her social security number, (an employer is only
required to show the last four digits of the employee's social security number or an
employee identification number on the itemized statement),
(8) the name and address of the legal entity that is the employer, and
(9) all applicable hourly rates in effect during the pay period and the corresponding number
of hours worked at each hourly rate by the employee.
CA Labor Code Section 226
Record Keeping Requirements
An employer must keep accurate payroll records, including wage deductions, on each
employee for a minimum of three years, and such records must be made readily available
for inspection by the employee upon reasonable request. The employer must maintain
accurate production records. CA Labor Code Section 226
An employer must keep accurate payroll records, including wage deductions, on each
employee for a minimum of three years, and such records must be made readily available
for inspection by the employee upon reasonable request. The employer must maintain
accurate production records. CA Labor Code Section 226
Frequency of Wage Payments
In California, most employers must pay employees their regular wages, with some
exceptions, at least twice during each calendar month on the days designated in advance
as regular paydays. The employer must establish a regular payday and is required to post
a notice that shows the day, time and location of payment. CA Labor Code Section 207
Wages earned between the 1st and 15th days of any calendar month must be paid no later
than the 26th day of the month during which the labor was performed. Wages earned
between the 16th and last day of the month must be paid by the 10th day of the following
month. Other payroll periods such as weekly, biweekly (every two weeks) or semimonthly
(twice per month) when the earning period is something other than between the 1st and
15th, and 16th and last day of the month, must be paid within seven calendar days of the
end of the payroll period within which the wages were earned. CA Labor Code Section 204
An employer must pay overtime wages no later than the payday for the next regular payroll
period following the payroll period in which the overtime wages were earned. An employer
must comply with CA Labor Code Section 226(a) relating to total hours worked by the
employee if the overtime hours are recorded as a correction on the itemized statement for
the next regular pay period and include the dates of the pay period for which the correction
is being made. CA Labor Code Section 204(b)(2)
Some exceptions apply to these requirements. For more information visit the California
Department of Industrial Relation website.
In California, most employers must pay employees their regular wages, with some
exceptions, at least twice during each calendar month on the days designated in advance
as regular paydays. The employer must establish a regular payday and is required to post
a notice that shows the day, time and location of payment. CA Labor Code Section 207
Wages earned between the 1st and 15th days of any calendar month must be paid no later
than the 26th day of the month during which the labor was performed. Wages earned
between the 16th and last day of the month must be paid by the 10th day of the following
month. Other payroll periods such as weekly, biweekly (every two weeks) or semimonthly
(twice per month) when the earning period is something other than between the 1st and
15th, and 16th and last day of the month, must be paid within seven calendar days of the
end of the payroll period within which the wages were earned. CA Labor Code Section 204
An employer must pay overtime wages no later than the payday for the next regular payroll
period following the payroll period in which the overtime wages were earned. An employer
must comply with CA Labor Code Section 226(a) relating to total hours worked by the
employee if the overtime hours are recorded as a correction on the itemized statement for
the next regular pay period and include the dates of the pay period for which the correction
is being made. CA Labor Code Section 204(b)(2)
Some exceptions apply to these requirements. For more information visit the California
Department of Industrial Relation website.
Manner of Payments
An employe may pay employees by cash, by check payable on demand without discount or
fee (CA Labor Code Section 212), or, with the employee's consent, by direct deposit into an
account at a financial institution of the employee's choosing (CA Labor Code Section 213)
Direct Deposit
An employer may pay wages by direct deposit, so long as the employee has voluntarily
consented to the deposit and the wages are deposited into a financial institution of the
employee's choosing. CA Labor Code Section 213 California employers cannot require an
employee to receive payment of wages by direct deposit.
An employe may pay employees by cash, by check payable on demand without discount or
fee (CA Labor Code Section 212), or, with the employee's consent, by direct deposit into an
account at a financial institution of the employee's choosing (CA Labor Code Section 213)
Direct Deposit
An employer may pay wages by direct deposit, so long as the employee has voluntarily
consented to the deposit and the wages are deposited into a financial institution of the
employee's choosing. CA Labor Code Section 213 California employers cannot require an
employee to receive payment of wages by direct deposit.
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| Your Employment and Labor Law Resource |
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Notice Requirements
An employer must post and keep posted in a conspicuous location at the place of work, if
practicable, or otherwise where it can be seen as employees come or go to their places of
work, or at the office or nearest agency for payment kept by the employer, a notice
specifying the regular pay days and the time and place of payment. CA Labor Code Section
207
An employer must post and keep posted in a conspicuous location at the place of work, if
practicable, or otherwise where it can be seen as employees come or go to their places of
work, or at the office or nearest agency for payment kept by the employer, a notice
specifying the regular pay days and the time and place of payment. CA Labor Code Section
207
| Wage Payment Laws for Private Sector Employers |
Topics Covered:
- Frequency of Wage Payments
- Manner of Payments
- - Direct Deposit
- Payment upon Separation from Employment
- - Employees who are fired, discharged, or terminated
- Employees who quit or resign
- Employees who is suspended or resigns due to a labor dispute (strike)
- Employees who are laid off
- Wages in Dispute
- Deductions from Wages
- - Cash shortages
- Damage, loss or destruction of employer property
- Dishonored or returned checks
- Uniforms
- Tools and other items necessary for employment
- Pre-hire medical, physical, or drug tests
- Notice of Wage Reduction
- Statement of Wages (Pay Stub)
- Record Keeping Requirements
- Notice Requirements
