California Employer Laws on Incorrect Payment Amounts
The California Department of Industrial Relations administers the state's wage and hour laws. In California, employers must pay their employees at least every two weeks on regularly established paydays. Employers who fail to pay their employees on their paydays, or fail to pay them adequately, face stiff monetary penalties. The California Labor Commissioner can impose waiting-time penalties against employers who fail to pay their employees their correct wages due and force them to wait for corrected paychecks.
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Paydays and Paycheck Frequency
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California employers must comply with the pay provisions within the California Labor Code. The California Labor Code requires employers to pay their employees for time worked at least twice per month. Employers must pay their employees for time worked between the first day of any month and the 15th day of that month by the 26th of the month. For wages earned between the 16th and the 30th or 31st, employers must pay them by the 10th day of the next month. California law requires employers to post their paydays, time of payment, and place of payment in conspicuous areas at work.
Last Paycheck Laws
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California law requires employers to pay their employees their last paychecks within 72 hours of termination if their employees voluntarily terminated employment without providing at least 72 hours of prior notice. Employers who terminate their employees must pay them on the last day of employment. Furthermore, when employees terminate employment after providing at least 72 hours of advance termination notice, their employers must pay them by the last day of their employment.
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Incorrect Paychecks
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Under California law, if an employer and his employee disagree on an amount payable during the pay period or disagree on the paycheck amount, the employer must pay his employee the amount the employer believes to be due. If the employee disagrees with the payment amount, he can file a claim for wages with the labor commissioner.
Labor Commissioner's Decision
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If the labor commissioner agrees with the employee's claim and amount due, his employer has 10 days to pay the amount properly due. If the employer fails to pay the amount due within 10 days of receiving notice, the employer may pay triple the amount due, plus any foreseeable consequential damages, such as bounced check fees and late fees resulting from late payment.
Willful Payment of Incorrect Wages or Refusal to Pay
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In addition to paying treble damages, California employers who willfully withhold an employee's paycheck or willfully refuse to pay the correct amount due face additional penalties, including criminal sanctions, daily fines, interest, attorney's fees and costs. For an employer's first paycheck violation, the California Labor Commissioner assesses a $100 per day penalty, and for each subsequent violation, the commissioner assesses a $200 daily penalty, plus another 25 percent penalty equal to the amount withheld. Furthermore, employers can pay interest, attorney's fees and legal court costs. The labor commissioner can also pursue misdemeanor criminal charges against employers.
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References
- California Department of Industrial Relations: Paydays, Pay Periods, and the Final Wages
- State Bar of California: What Are My Rights as an Employee?
- California Department of Industrial Relations: How to File a Wage Claim
- California Department of Industrial Relations: Employer Handbook of California’s Wages and Payment Laws
- State of California: Governor’s Termination Brief
