If we pay our employees seven days after their regular payday, what do we owe as a penalty for the late payment of their wages?

If an employer fails to pay wages on time, California Labor Code section 210 imposes a penalty of $100 per employee for the first violation and $200 plus 25% of the wages withheld per employee for each subsequent violation.

Before 2020, only the state could collect these penalties (or employees could pursue them via a PAGA claim). Since 2020, employees may file a claim under Labor Code Section 98 with the California Labor Commissioner to recover these penalties directly.

Even if the $100 penalty is affordable, subsequent violations increase penalties, with the state or employee allowed to recover a percentage of withheld wages.

Employers should take steps to prevent further penalties for late wage payments.

Read more about "Penalty for Failure to Comply” in Form of Wage Payment in the HR Library.