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What is a waiting time penalty?

| Sep 8, 2017 | Uncategorized |

When you leave your job in California, it is with the understanding that you will receive compensation for the last hours you put in. There may be times, though, when you do not receive your full wages for these hours. In these cases, your company may be subject to a waiting time penalty.

If your employer intentionally has not paid your remaining wages, the company may be penalized. The State of California says that this does not apply in all cases; typically, you must have been either laid off or discharged or have quit your job. Additionally, you usually need to have a clear employer-employee relationship for a company to be penalized for withholding wages. While you may think that your boss needs to have done something worthy of blame, this is usually not the case. All that is usually required for this penalty to apply is that your boss realizes your wages have been left unpaid.

When this waiting time penalty applies to your employer, you may receive the monetary amount of a month’s wages. This is because your daily pay rate determines the amount of the penalty. The amount of time your wages were unpaid is typically combined with your pay rate, and the penalty may increase to cover 30 working days at most. If you frequently worked overtime, these wages may also be added to the penalty. However, any expenses you incurred for your company are usually excluded.

Your chosen course of action usually determines when the penalty stops increasing. It can usually continue to grow if you choose to file a claim against your employer. A court complaint may stop this penalty from growing, though, and it also typically stops when your employers pays your wages.