Articles
Wage & Benefit Payment on Discharge/Resignation
Payment of ALL wages and benefits (i.e., this includes EVERYTHING - salary, overtime, comp. time, vacation, expense reimbursement, etc.) owed to a terminated or resigning private employee (i.e., not an independent contractor and not an employee of a public entity) without a written contract for a definite period of time must be made on the employee's last day of work. The only exception to this rule is when a resigning employee fails to give at least 72 hours notice. In this case, the wages and benefits owed must be payed within 72 hours of the employees last day of work.
Each day of delay in paying ALL monies owed results in a penalty of one day of the terminated or resigning employees wages. This penalty will continue to accrue, for a maximum of 30 work days, until ALL wages and benefits are paid or until the employee commences an action.
If the employee retains the services of an attorney, the employee is entitled to attorney's fees provided the attorney retained asks for attorney's fees when the action is initiated.
The pertinent California statutes are as follows:
California Labor Code Sections 201, 202, 203 and 218.5.
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