EmploymentQuestion 232 of 1632

A contractor lays off a worker at the end of a project. With respect to final pay, a layoff is treated the same as:

a.A discharge, with final wages due immediately
b.A voluntary quit, with wages due in 72 hours
c.A leave of absence, with no final pay due
d.A resignation with 72 hours' notice, paid that day

Explanation

A layoff is a separation the employer initiates, so Labor Code §201 treats it as a discharge and all earned unpaid wages, including vested vacation under §227.3, are due at the time of the layoff. The 72-hour rule in §202 belongs to an employee who quits without notice, and an employee who gives at least 72 hours' notice is paid on the last day - both true rules about quitting, neither the rule for a layoff. A leave of absence is not a separation at all, so no final pay is triggered.

Law Reference: Labor Code §201; §202; §227.3

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