What is the penalty for late final wages in California?

Under California Labor Code Section 203, the penalty is your daily average wage multiplied by the number of days the payment is late, up to a maximum of 30 days. This includes weekends and holidays.

Does the 30-day penalty include weekends?

Yes. Waiting time penalties accrue for every calendar day the wages are unpaid, including Saturdays, Sundays, and legal holidays.

What constitutes a 'willful' failure to pay?

A willful failure means the employer intentionally failed to pay wages without a good faith dispute. It does not require malicious intent, only that the employer knew wages were due and failed to pay them.

How do I file a claim for waiting time penalties?

You can file a wage claim with the California Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner's Office, or file a lawsuit in civil court.

California Waiting Time Penalty Calculator (2026)

Guide to Section 203 Penalties

California has some of the strongest worker protection laws in the United States. Under Labor Code Section 203, employers must pay separating employees promptly or face daily penalties for every day the payment is late (up to 30 days).

1. When Your Final Paycheck is Due

The deadline for your employer to pay you depends on how your employment ended:

If You Are Fired or Laid Off: Your final wages are due immediately at the time of termination.
If You Quit (with 72+ hours notice): Your wages are due on your last day of work.
If You Quit (with <72 hours notice): Your wages are due within 72 hours of your last shift.

2. The "Good Faith Dispute" Defense

Penalties only apply if the employer "willfully" failed to pay. However, employers can avoid penalties if there is a "good faith dispute" about whether the wages are owed.

A good faith dispute exists if the employer has a reasonable belief that the wages are not owed. For example, if there is a confusing legal question or a clerical error that was not intentional. However, simply "not having the money" is not a valid defense.

3. Calculating Your Daily Rate Correctly

Most people assume the "daily rate" is just their hourly wage × 8 hours. While this is often true, it can be higher. Your daily rate should include:

Base Wages: Your standard hourly pay.
Commissions & Bonuses: If earned and computable at the time of termination.
Shift Differentials: Extra pay for night shifts, etc.

Pro Tip: If you regularly worked overtime, your daily rate might need to be calculated by averaging your earnings over a representative period.

4. Statute of Limitations

You generally have three years from the date the wages were due to file a claim for waiting time penalties. In some cases involving a written contract, this may extend to four years. However, it is best to act as soon as possible.

5. How to File a Claim

If you are owed penalties, you have two main options:

File a Wage Claim with the Labor Commissioner: This is the most common method. You submit a claim to the DSLE (Division of Labor Standards Enforcement). It is free and you do not need a lawyer.
File a Lawsuit: For larger amounts or complex cases, you can sue in civil court. This often requires an employment attorney but can result in faster settlements if the employer wants to avoid litigation.

Frequently Asked Questions

Do weekends and holidays count?: Yes. The penalty accrues for every calendar day the wages are unpaid, including Saturdays, Sundays, and legal holidays.
Can the penalty go over 30 days?: No. The law caps the penalty at a maximum of 30 days of wages, even if payment is 6 months late.
I was an independent contractor. Do I qualify?: Generally, no. Section 203 applies to employees. However, many workers are misclassified. If you were misclassified as a contractor but were actually an employee, you may be entitled to these penalties.