Waiting time penalties are a form of compensation available to employees in California when an employer willfully fails to pay all wages due upon termination or resignation.
These penalties are meant to encourage employers to promptly pay departing employees the full amount they are owed, ensuring workers are not left waiting indefinitely for their final paychecks.
Waiting time penalties can become particularly relevant in cases involving disputes over unpaid wages or wrongful termination. If your employer has refused to issue your final paycheck on time, an unlawful termination attorney can help you understand your rights and pursue the penalties you may be entitled to receive.
What Are Waiting Time Penalties?
Under California law, specifically Labor Code Section 203, waiting time penalties apply when an employer fails to pay a worker’s wages immediately upon termination or, in the case of resignation, within 72 hours unless proper notice was given.
The law ensures that employees receive their unpaid wages promptly, including any outstanding overtime, vacation pay, or other earned compensation. When an employer fails to meet these deadlines, waiting time penalties are imposed to deter non-compliance and compensate workers for the delay.
Key Points About Penalties:
- The penalty for late wages is calculated as the employee’s daily wage for every day the payment is delayed
- Penalties can accumulate for up to a maximum of 30 days
- The penalty applies even if the employee worked only a partial day before termination
- An unlawful termination attorney can help calculate the penalties and gather evidence proving employer non-compliance
When Do You Get Waiting Time Penalties?
Waiting time penalties are awarded when the delay in payment is deemed “willful.” This means the employer knew or should have known that wages were due and failed to act.
In many cases, employers may try to argue that the delay was due to a clerical mistake or misunderstanding, but these arguments are not always accepted by courts.
If your employer terminated you and failed to provide your final paycheck on the same day or did not issue your wages within 72 hours of your resignation, you may be entitled to waiting time penalties.
An unlawful termination attorney can help you determine whether your employer’s actions rise to the level of a “willful” violation. Even if your employer claims they misunderstood the amount owed, an attorney can argue that such delays are unjustifiable under the law.
How to Pursue Waiting Time Penalties
If you suspect that you are owed waiting time penalties, you have two main options:
1. File a claim with the California Division of Labor Standards Enforcement (DLSE)
- The DLSE investigates wage disputes
They hold hearings to resolve claims
2. Pursue a lawsuit with help from an unlawful termination attorney
- Attorneys can guide you through the legal process
- They gather documentation to prove your case
- They negotiate with the employer on your behalf
In cases involving wrongful termination, waiting time penalties may be part of a broader claim that also includes unpaid wages, lost benefits, and emotional distress damages. A skilled unlawful termination attorney can assess the full scope of your claim and ensure you pursue all available forms of compensation.
Why You Should Act Quickly
California law imposes strict time limits for pursuing waiting time penalties and other wage-related claims. Employees generally have a limited amount of time to file a claim.
It is important to act quickly, especially if your termination involved other legal violations, such as retaliation or discrimination. The sooner you consult with an unlawful termination attorney, the better your chances of recovering the compensation you are owed.
Conclusion
Waiting time penalties are a crucial protection for California workers, ensuring they receive timely payment of wages upon leaving a job. When employers fail to meet their legal obligations, the penalties can add up quickly, providing workers with additional compensation for the delay.
If your final paycheck has been withheld or delayed after an unjust firing or resignation, speaking with an unlawful termination attorney can help you understand your rights and take the necessary steps to recover what you are owed.
At Akopyan Law Firm, A.P.C., we are committed to helping employees navigate complex wage disputes and wrongful termination claims. If you believe your employer has withheld your final wages or wrongfully terminated you, consulting with an experienced unlawful termination attorney is essential. We are here to protect your rights, pursue the compensation you deserve, and hold employers accountable for violations of California’s labor laws.