In California, if an employee separates from a company for any reason, the company has a limited time (24 hours for those discharged and 72 hours for those who quit without prior notice) to get their final paycheck. This is part of the state’s “Final Paycheck Law” and involves regulatory nuances that can be addressed and supported using remote check printing services.
This is very important when working with a payroll producer or a California PEO service provider. Remote check print is a streamlining convenience to ensure your staffing business remains compliant. Read on to learn more about the CA Final Paycheck Law and how SPLI remote check printing services can help.
According to the California Labor Code (sections 201, 202, 208, and 227.3), any employee discharged from a company must be paid any wages due at the time of termination. This includes vacation pay that has been earned but not used. The law does not require that accrued sick leave be paid out. The employer must issue payment at the place of discharge.
On the other hand, if an employee quits without notice and does not have a written agreement for their employment, the final paycheck must be delivered within 72 hours. As stated above, employees who give at least 72 hours' notice are due wages when they quit. In this case, the employee may request that their final paychecks be mailed to an address of their choosing, and the postmark date will be considered the date of final payment.
When an employer fails to pay within the designated period, they may be assessed a penalty for waiting time equal to the employee’s daily pay rate per day the wages remain unpaid. These penalties will continue to accrue to a maximum of 30 calendar days. If, however, the employer can show that a good-faith dispute occurred concerning whether wages were due, these penalties may be avoided. A good-faith dispute means that the employer must provide a legitimate defense that potentially precludes the employee from recovering any part of the wages due.
The final paycheck must include all hours the employee worked, including double time and overtime, as well as vacation or PTO hours. The compensation must be issued with no strings attached—you cannot force the employee to sign the paperwork, hold the paycheck against the return of the property, loans, damage to company property, or even pending discussion with company lawyers.
While the paycheck is required to be issued at the place of employment, if the employee requests mailing the check, you must comply. You cannot force the employee to return to the office to pick up the check if they do not wish to.
SPLI’s payroll administration services can vastly streamline your payroll and provide risk management against recession and other economic difficulties. With our services, you can instantly have a paycheck generated and sent wherever it needs to go. Our integrated services can provide efficiency, speed, and accuracy whenever required. Your payroll technician can facilitate every need and keep you compliant with all payroll laws, including California’s final pay laws.
If you would like more information about SPLI’s payroll administration and remote check printing services, we are ready to help. Contact us today for more information or to discuss your company’s needs.
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