EmploymentQuestion 563 of 1632

A contractor willfully fails to pay a discharged employee's final wages on time. The employee's daily wage was $240. Final wages are paid 12 days late. What is the maximum waiting-time penalty under §203?

a.$240 (one day of wages)
b.$7,200 (thirty days of wages)
c.$2,640 (eleven days of wages)
d.$2,880 (twelve days of wages)

Explanation

Labor Code §203 continues the employee's wages as a penalty for each day final wages go unpaid, to a maximum of 30 days: 12 days × $240 = $2,880. One day's wage treats the penalty as a flat fee rather than a daily one. The $7,200 figure applies the 30-day cap even though only 12 days ran. $2,640 counts eleven days, dropping the first day the wages were late.

Law Reference: Labor Code §203

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