EmploymentQuestion 275 of 1632

The waiting-time penalty for late final wages does NOT apply when:

a.The employer forgot to issue the check and pays it two weeks late
b.The employer's outside payroll service missed the pay run
c.The employee waited 20 days before asking about the final check
d.A good-faith dispute exists over whether wages are owed

Explanation

The §203(a) penalty reaches a WILLFUL failure to pay final wages, and DLSE states plainly that a good faith dispute that any wages are due will prevent imposition of the penalty. Willful does not mean blameworthy: it means the employer knew what it was doing, the act was within its control, and it failed to perform a required act. Forgetting the check meets that test, and so does a payroll vendor missing the run, because the employer stays responsible for its own payroll. Nothing conditions the penalty on the employee asking; final wages are due on the statutory deadline whether or not anyone chases them.

Law Reference: Labor Code §203(a)

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