California Final Paycheck Rules

• Termination or layoff (involuntary). Final wages are due immediately, at the time of termination (Labor Code §201).
• Resignation with at least 72 hours' notice. Final wages are due on the employee's last day (Labor Code §202).
• Resignation with less than 72 hours' notice. Final wages are due within 72 hours of the notice (and the employee can request mailing to a designated address).

The final check must include all earned, unpaid wages — regular and overtime pay, commissions and nondiscretionary bonuses that are earned and calculable, and all accrued, unused vacation/PTO, which California treats as earned wages that cannot be forfeited (Labor Code §227.3). Don't make employees wait until the next regular payday.

If you willfullyfail to pay final wages on time, the employee's wages continue as a penalty — at their daily rate — for up to 30 daysuntil paid (Labor Code §203). “Willful” is interpreted broadly; a good-faith dispute over the amount is a defense, but simply being late or disorganized is not.

• For planned terminations, have the final check (including vacation payout) ready in advance.
• Calculate accrued vacation through the last day — don't round it down.
• Provide the final wage statement with the check.
• If an amount is genuinely disputed, pay the undisputed portion on time and document the dispute.