When Must an Employer Pay an Employee Who is Terminated Without Notice
Under California law, if an employer terminates an employee without providing any notice, then the final paycheck for all earned and unpaid wages, including any accrued but unused vacation or paid time off (PTO), is due and payable immediately upon termination. “Immediately” means that the employer must provide the final paycheck on the day of termination, or no later than the next business day if the termination occurs on a weekend or holiday.
California law defines wages to include all forms of compensation, such as commissions and bonuses, that the employee has earned and that are due at the time of termination. The employer may also be required to pay any applicable overtime, as well as any penalties for failing to timely provide the final paycheck.
If an employer fails to pay the terminated employee all wages owed on time, the employee may be entitled to additional remedies, including waiting time penalties. These penalties can amount to up to 30 days of the employee’s average daily pay, and they are in addition to any wages or other damages owed.
It’s important to note that there may be exceptions to the timing of final paycheck requirements in certain situations, such as when an employer has a regularly scheduled payday that is no later than a certain number of days after the end of the pay period. However, in most cases, an employer must provide the final paycheck immediately upon termination without notice.