EmploymentQuestion 561 of 1632

A contractor lays off three carpenters on Wednesday at the end of a framing project. Their final wages must be paid:

a.Immediately, at the moment the layoff takes effect Wednesday
b.Within 72 hours, as for an employee who quits without notice
c.On the next regular payday, since the layoff was not for cause
d.Within 30 days, before the waiting-time penalty starts to run

Explanation

Labor Code §201(a): when an employer discharges an employee - a layoff is a discharge - the wages earned and unpaid are due and payable immediately, at the layoff itself. The 72-hour rule belongs to §202(a) and applies to an employee who QUITS without giving 72 hours' notice. There is no next-payday grace period for a layoff, whatever its reason. And 30 days is not a deadline to pay at all: §203 continues the unpaid wages as a penalty for up to 30 days, which is what a late employer owes on top of the wages.

Law Reference: Labor Code §201(a); §202(a); §203

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