In addition to paying the correct amount of compensation to employees, you are expected to pay it on time and in the manner required by law. Different rules apply to the routine payment of wages on regular paydays and the payment of wages when an employee resigns or is laid off or terminated. Adhere to these rules to avoid stiff penalties.
For payday requirements in specific industries, see Wage and Hour Requirements for Specific Industries.
For information regarding preparing final paychecks for employees see Final Pay.
This page contains the following information:
The California Labor Code is specific about the timing of wage payments and regularity of paydays.
You must post a notice informing employees of paydays.1
For nonexempt employees, all wages for the normal work period come due and are payable at least twice each calendar month on days you must designate in advance.2 For an explanation of exempt and nonexempt status, see Exempt/Nonexempt.
If you use a twice monthly schedule where wages are earned between the 1st and the 15th and the 16th and the end of the month, you must designate a regularly scheduled pay day and pay employees as follows: 3
For work performed between: |
Payment must be made by: |
|---|---|
|
1st and 15th days of the month |
26th day of the same month |
|
16th and last day of the month |
10th day of the next month |
If you don't use the twice monthly schedule above, you can instead pay employees weekly, biweekly or semimonthly. However, if you do, you must designate a regularly scheduled payday that is within seven calendar days of the end of the pay period during which wages were earned.4
For employees who work in an industry involving work for several employers in the same industry interchangeably, the employers can establish a plan for the payment of wages in a central place and at a single time.5
You must also pay exempt employees at least twice during each calendar month, on days designated in advance as the regular paydays, within the same time frames as nonexempt employees.
However, salaries of executive, administrative and professional employees of employers covered by the FLSA can be paid once a month on or before the 26th day of the month. The monthly paycheck must include all wages for the month, including the as yet unearned portion between the date of payment and the last day of the month.6
You must post the day, time and place of the regular payday in your workplace.7 As a convenience, the state provides a small form for this purpose. However, it is satisfactory to post this information in any understandable form. The payday notice is included as part of CalChamber’s California and Federal Labor Law Poster.
No specific law requires a particular amount of advance notice to employees if you change your payday schedule. However, to avoid potential violations of payday laws, notify employees of the planned change at least one full payroll cycle in advance of the new schedule.
Payment of overtime wages earned in one pay period can be delayed until no later than the payday for the next pay period. Only the payment of overtime wages can be delayed until the following pay period. Straight-time wages must be paid within the times set forth in the table located in “Paydays for Nonexempt Employees” in Timely Payment.8
If you delay payment of overtime wages to the following pay period, you can itemize the hours as corrections on the pay stub for the period in which they are paid, if you identify the date of the pay period to which they are attributable.
If you are closed on a payday that falls on a Saturday, Sunday or a holiday listed in the California Government Code, you can pay wages on the next business day.9
The following holidays are listed in the Government Code:10
Neither state nor federal law requires private employers to provide holidays. The payday exception applies only if the business is closed.12
Even when an employee fails to turn in a record of time worked, you remain legally obligated to pay the employee on the established payday. The law doesn’t allow you to require the employee to wait until the next payday or until they turn the timecard in to receive those wages.
You can still comply with this law even without a time record. Pay all wages due for the employee’s normal work period — for example, 40 hours for a full-time employee — and defer payment of any overtime worked until the next regular payday.13
Though you cannot withhold wages as a penalty for failing to turn in a timecard, you can discipline the employee in other ways. You can treat failure to turn in a timecard as a violation of a work rule and penalize the employee with suspension, demotion or termination. Follow your own established disciplinary procedures.
Some employers use positive methods to remind employees to turn in timecards, such as a small bonus or party if all department members turn in their timecards on time for a calendar quarter.
For more information, see Hours of Work and Recording Time Worked.
Specific requirements apply to paydays for employees of temporary services employers. Failure to follow the requirements can result in civil and criminal penalties.
Labor Code section 201.3 provides that:
Both requirements apply unless the employee is assigned for more than 90 days.14
Striking employees’ earned wages become payable in full on the next regularly scheduled payday.15
The California Supreme Court considered the circumstances in which certain provisions of the California Labor Code, including section 204 which governs timely payments, can apply to out-of-state employers with employees who only spend some of their time working in the state.16 The particular case involved an airline employer that employed flight crew employees performing most of their work in airspace outside California’s jurisdiction. The employees complained that the employer did not pay timely wages per Labor Code requirements.
The court concluded that California’s timing of pay requirements found in section 204 apply to any employees who, in any particular pay period, either:
As an example, if a pilot or flight attendant has a designated home-base airport in California, then section 204 would apply.
1. Lab. Code sec. 207
2. Lab. Code sec. 204
3. Lab. Code sec. 204
4. Lab. Code secs. 204
5. Lab. Code sec. 204(a)
6. Lab. Code sec. 204
7. Lab. Code sec. 207
8. Lab. Code sec. 204
9. DLSE Enforcement Policies and Interpretations Manual sec. 7.6; Govt. Code sec. 6700
10. Gov’t Code 6700
11. Gov’t. Code sec. 6701
12. DLSE Enforcement Policies and Interpretations Manual sec. 7.6.2
13. Lab. Code sec. 204; DLSE Enforcement Policies and Interpretations Manual sec. 5.2.1
14. DLSE Enforcement Policies and Interpretations Manual sec. 3.10
15. Lab. Code sec. 209
16. Oman v. Delta Air Lines, Inc., 9 Cal. 5th 762 (2020)