California Waiting Time Penalty Calculator
Labor Code 203 Penalty Assessment
Calculation Summary
Daily Wage Rate:
Penalty Days Applied:
Understanding the Waiting Time Penalty
In California, Labor Code Section 203 establishes a "waiting time penalty" for employers who willfully fail to pay all wages due to an employee immediately upon discharge or within 72 hours of an employee quitting. This penalty is designed to ensure that workers receive their final compensation in a timely manner.
How the Penalty is Calculated
The penalty is calculated based on the employee's daily wage rate. This rate is multiplied by the number of days the employee remained unpaid, up to a strict maximum of 30 calendar days. Even if the employer is 60 days late, the legal penalty is capped at the 30-day mark.
- Daily Rate: Regular hourly rate multiplied by the standard hours worked per day.
- Calendar Days: The penalty accrues for every day unpaid, including weekends and holidays.
- Willfulness: The penalty applies if the failure to pay was "willful," meaning the employer intentionally failed to pay wages that were not in dispute.
Practical Examples
Example 1: An employee earning $20/hour working 8 hours a day is fired. The employer waits 10 days to provide the final paycheck. The penalty is $20 × 8 hours = $160/day. $160 × 10 days = $1,600 penalty.
Example 2: An employee earning $30/hour working 8 hours a day quits. The employer waits 45 days to pay. Since the penalty caps at 30 days, the calculation is $30 × 8 hours = $240/day. $240 × 30 days = $7,200 penalty.
Important Legal Considerations
This calculator provides an estimate based on standard labor law interpretations. However, complex factors like commissions, bonuses, and "good faith disputes" can affect the final amount. If an employer has a legitimate "good faith" belief that the wages are not owed, the penalty might not apply. It is always recommended to consult with an employment attorney for specific legal advice regarding Labor Code 203 claims.