Final paychecks are subject to a variety of rules regarding due date, delivery methods and penalties for late payment.
If final wages are not available within the legal time limits, your former employee may file a claim with the Division of Labor Standards Enforcement for waiting time penalties.
The waiting time penalty is an amount equal to the employee's daily rate of pay for each day the wages remain unpaid, up to a maximum of 30 calendar days. Penalties accrue not only on the days that the employee might have worked, but also on non-workdays.
If the employee quits with less than 72-hours notice and asks for her/his check to be mailed, the California Labor Code says the date of mailing is considered the date of payment. As long as the check is mailed on time, a delay in the mail system would not cause waiting time penalties to accrue.
There is no such protection for employers who choose to mail checks to employees who quit with more than 72-hours notice. Because the Labor Code does not entitle these employees to receive their checks by mail, it is silent on whether the date of payment is the date of mailing or the date the check is received. You therefore should use caution if you decide to put a final paycheck in the mail in this situation.
An individual acting on behalf of the employer (owner, director, officer, managing agent) can be held personally liable for failure to timely pay wages.