My boss didn’t pay my last paycheck! What should I do?
What are the laws about final paychecks?
Many states outline their own final paycheck deadlines for employees who quit or are fired. Many employers who break these rules do so by being unaware, but this does excuse them from the penalties that will be imposed for noncompliance.
The federal law that governs wages and hours is the Fair Labor Standards Act (FLSA). This law, which is enforced by the U.S. Department of Labor (DOL), governs issues with employee pay. The FLSA offers protection to most American workers according to the three criteria below:
You work for a company that has annual sales of $500,000 or more
You work for a company in the healthcare or education sector
Your work involves interstate commerce.
Even if you don’t meet the first two qualifications, you likely satisfy the third one as it is difficult to find a business that does not engage in interstate commerce today.
When can I expect my last paycheck?
Most states have laws mandating how soon a departing employee must receive their final wages. In states without these laws, federal law requires employers to issue the final paycheck before the next regular payday for the final pay period.
Other states have laws requiring companies to pay unpaid wages to departing employees on the next payday. Some states mandate that companies issue an employee’s final pay upon discharge (or on the next business day).
For example, California Labor Code Section 201 states that employees who are discharged or laid off, a.k.a involuntarily terminated, must be paid their final wages immediately. Employees that are voluntarily terminated, if they provided at least 72 hours’ notice for resigning, also must receive their paycheck on their last day at the latest. If an employee resigns with less than 72 hours’ notice, the employer has 72 hours to send their final paycheck.
Where do I pick up my last paycheck?
Different states have rules about the location and method for final pay. For example, in California, the employee must receive their final pay at the location of discharge in the case of an involuntary termination. When an employee resigns or retires, California requires that employees receive their final pay at the office of the employer in the county they had been performing labor.
Employees who quit or retire without a 72-hour prior notice are entitled to receive payment via mail if they request and designate a mailing address; the date that the payment is mailed out will serve as the date of payment regarding the rule of providing payment within 72 hours of the notice of resignation or retirement.
In California, employees who authorized final pay via direct deposit may receive their final wages in this manner, provided the other final pay requirements are met, regardless of involuntary or voluntary termination.
My employer says I need to return something before I can have my final paycheck!
As a general rule, employers may not withhold final pay until an employee returns company equipment; they must still meet the relevant final pay deadline even if the employee hasn’t returned company property.
My employer made a deduction from my final paycheck!
The federal Fair Standards Labor Act (FLSA) does not permit most deductions from exempt employees’ pay. For non-exempt employees (those entitled to minimum wage and overtime), the FLSA permits employers to make deductions from employees’ final paycheck for lost, stolen, or unreturned equipment, provided it does not reduce the employee’s pay below the minimum wage and does not cut into any overtime pay. Some states prohibit this practice or have additional requirements.
In California, your employer can make deductions under the following circumstances:
Legally required deductions. Employers may withhold part of your final paycheck for taxes, Social Security withholding, or due to a court order.
Employer-authorized deductions. Paycheck withholdings may be done to contribute to a health insurance plan, a 401(k) retirement plan, or any other plan in your contract.
Advances and loans. Employers can deduct advances or loans with written authorization specifying the amount for each apy period. However, they cannot make a “ballon payment”, as in a large one-time deduction, from the final paycheck to recover the entire balance unless you sign a new, valid agreement authorizing this before or during termination.
Damage to company property. Employers may deduct the repair or replacement costs from your final paycheck for any company property that you damaged prior to your termination. However, the damage must have occurred due to an intentional act or gross negligence.
Deductions for loans or property damage must follow specific legal guidelines.
Did your last paycheck arrive too late? Is it missing?
Consult with an experienced wage-theft and employment law attorney such as the attorneys of Win Nguyen Law Firm now! In many states, you must take action in order to protect and invoke your rights as protect and invoke your rights as an employee and bring justice to an irresponsible employer that dealt financial harm to you.
For example, you should file a claim with the California Labor Commissioner’s Office to hold your employer accountable, and consult with an attorney for help in getting the compensation you deserve. You can file a complaint of unpaid wages with the Labor Commissioner’s office online, by email, mail, or in-person. You’ll want to bring along detailed information such as pay stubs and work hours.
