Labor/Employment
Jan. 7, 2011
New Developments in Waiting Time Penalties
Longer limitations period for waiting time penalties promotes prompt payment by employers. By Grace Chan of Liebert Cassidy Whitmore.
The California Labor Code mandates that, when an employee is terminated or resigns from employment, his or her final wages are generally due and payable immediately. Labor Code Section 203 also provides that, if an employer willfully fails to pay timely final wages, those wages continue as a penalty from the due date until they are paid or until an action is commenced to recover the wages, but shall not continue for more than 30 days. As such, if an...
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