Is it illegal to withhold a paycheck in California?

Asked by: Felipa Boehm  |  Last update: April 1, 2025
Score: 4.3/5 (58 votes)

In California, employers are prohibited from withholding an entire paycheck for any reason. However, they may withhold certain amounts for valid reasons.

Can an employer withhold a paycheck in California?

There is no justification under the law for withholding pay that has been validly earned. An employer may withhold a paycheck or fail to issue a paycheck to an employee as required by law. If so, an employee can file a wage claim with the California State Department of Industrial Relations.

Is it legal for an employer to withhold a paycheck?

No, a company cannot withhold your paycheck if you quit. California law requires employers to issue the final paycheck immediately for employees who get terminated or resign with at least 72 hours' notice. If you do not provide notice before your resignation, the employer must issue the final paycheck within 72 hours.

What happens if your employer doesn't pay you on time in California?

For any initial violation the penalty is one hundred dollars ($100) for each failure to pay each employee. For each subsequent violation or any willful or intentional violation the penalty is two hundred dollars ($200) for each failure to pay each employee, plus 25% of the amount of wages unlawfully withheld.

What happens if I don't get paid on payday?

What Happens If My Employer Is Late With My Paycheck in California? If your employer fails to pay you on payday, you may have recourse by filing a wage claim to recover unpaid wages. In California, if your employer misses a scheduled payday, you can take action by sending a written notice to request payment.

Can my employer hold my paycheck?

26 related questions found

What happens if a company doesn't give you your paycheck?

If the regular payday for the last pay period an employee worked has passed and the employee has not been paid, contact the Department of Labor's Wage and Hour Division or the state labor department. The Department also has mechanisms in place for the recovery of back wages.

How long does an employer have to pay you after payday in California?

California Payday Laws

Compensation earned between the 1st and the 15th of the month must be paid no later than the 26th day of the same month. Compensation earned from the 16th of the month through the end of the month must be paid no later than the 10th day of the following month.

Can I sue my employer for paying me late in California?

Workers in California have the right to file a wage claim when their employers do not pay them the wages or benefits they are owed. A wage claim starts the process to collect on those unpaid wages or benefits. California's labor laws protect all workers, regardless of immigration status.

What is California payroll law?

In California, wages, with some exceptions (see table below), must be paid at least twice during each calendar month on the days designated in advance as regular paydays. The employer must establish a regular payday and is required to post a notice that shows the day, time and location of payment.

Can you refuse to work if you haven't been paid?

Legally, you may have the right to refuse work if your employer hasn't paid you, but this can vary by state. Always seek legal advice before taking such actions.

What to do if your boss doesn't pay you?

What to Do if Your Boss Doesn't Pay You What They Owe You
  1. Talk to Your Boss. The first step to recovering unpaid wages is to ask your employer. ...
  2. Hire a Lawyer. Contact an employment lawyer if informal requests don't succeed. ...
  3. Report Unpaid Wages. ...
  4. File a Lawsuit.

Can an employer cut your pay without notice in California?

California law requires that for non-exempt employees (except those covered by a collective bargaining agreement), notice must be signed by the employee at the time of hire AND upon any change, providing the worker with applicable rates of pay and any changes.

What happens if I don't get paid after I quit?

If your former employer hasn't paid your outstanding wages on your regular payday after leaving a job, and you've failed to remedy the situation with your former employer, contact your local Department of Labor (DOL) Wage and Hour Division office to file a complaint. A DOL official will assist you with the process.

What is the 2 hour minimum law in California?

Your employer is required to pay you two hours of reporting time pay. Since you worked only one hour, which is less than half your scheduled day's work, your employer is required to pay you for half the usual or scheduled day's work, but in no event for less than two hours nor more than four hours.

What is the Labor Code 213 in California?

Under California Labor Code section 213, employers cannot require an employee to receive payment of wages by direct deposit. A California employer can pay an employee by direct deposit only if the employee expressly consents.

What is the 4-hour rule in California?

According to California's 4-hour minimum pay rule, also known as the reporting time pay law, if an employee is scheduled to work a shift and reports to work as scheduled, they are entitled to receive compensation for at least half of their scheduled shift, or for two hours, whichever is greater.

What is the 7 minute rule for payroll in California?

Some California wage laws also closely follow federal law. Under federal law, an employer can round down working time lasting seven minutes or less. This can be disappointing, but the California Court of Appeals indicates that employees should at least break even in a rounding system if they work long enough.

How do I file a complaint against my employer in California?

If you wish to report a widespread violation of labor law by your employer or a violation affecting multiple employees, please contact LETF via phone, online lead referral form or email: Call the LETF Public hotline anytime: 855 297 5322. Complete the Online Form / Spanish Form. Email us at letf@dir.ca.gov.

Can an employer withhold a paycheck for any reason in California?

In California, employers are prohibited from withholding an entire paycheck for any reason. However, they may withhold certain amounts for valid reasons.

What happens if my employer doesn't pay me on payday in California?

You can either file a wage claim with the Division of Labor Standards Enforcement (the Labor Commissioner's Office), or bring an action in court against your former employer to recover the wages if they are still due you, and to claim the waiting time penalty.

Is it illegal to not pay employees on time in California?

In most jurisdictions, including California, employers are legally required to pay their employees on the scheduled payday – late payment of wages can result in waiting time penalties. Failure to pay in a timely manner may also be a violation of state or federal wage and hour laws.

Do you get paid for unused sick days when you quit in California?

No, not unless your employer's policy provides for a payout. If you leave your job and get rehired by the same employer within 12 months, you can reclaim (restore) what you had accrued in paid sick leave, provided it was not paid out pursuant to a paid time off policy at termination.

What can I do if my employer keeps paying me late?

If your employer is paying you unreasonably late or not paying regularly, you may need legal help. An attorney can inform you of your rights under state payday laws and assist you in pursuing what you are owed. To learn about your options, contact an experienced employment law attorney in your state.