Everyone waits in anticipation of receiving their paychecks. Read below to learn things you need to be aware of about pay periods, paydays, and final wages.
- Different Types of Pay Periods
Every state has different payday period requirements such as weekly, bi-weekly, semi-monthly, or even monthly (click here to see requirements for each state). However, most states, including California, require that employees are paid at least twice a month on the scheduled paydays. According to Labor Code Section 207, employers must post notice of these regular paydays with day, time, and place of payment.
- Seven Day Allowance of Wage Distribution
Work performed between the 1st and 15th days of the month should be paid no later than the 26th day of that same month. Pay earned between the 16th and the last day of the month should be paid by the 10th of the following month. For weekly, bi-weekly, and semi-monthly, wages should be distributed no later than seven days after the end of that payroll period (Labor Code Section 204).
- Overtime Wages
Everyone dreads staying a few hours later to finish up work. But they all put that aside when their paycheck comes a little more bigger than usual. When you work over 40 hours a week, you are entitled to overtime pay, which is half of your regular pay. These overtime earnings must be paid out no later than the next pay period. Click here to see if you are an employee entitled to earn overtime pay.
- Termination Wages
Employees dismissed from work have to be paid all their earned wages plus vacation days at the time of termination.
- Two Weeks Notice
Even though you gave your employer an advanced two weeks notice that you are quitting, your employer has the right to terminate your employment right then and there. Your employer would have to pay you all the hours you’ve worked plus vacation time, but you would not be paid for those two weeks.
For additional information, visit http://www.dir.ca.gov/.
To discuss payroll, contact us at firstname.lastname@example.org.