Waiting Time Penalty Formula:
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The Waiting Time Penalty in California is a penalty imposed on employers who willfully fail to pay wages of an employee who is discharged or quits. For disability cases, this penalty equals the employee's daily wage multiplied by the number of days the wages remain unpaid (up to 30 days maximum).
The calculator uses the Waiting Time Penalty formula:
Where:
Explanation: The penalty is calculated by multiplying the employee's daily wage by the number of days the final wages were not paid, with a maximum of 30 days.
Details: Accurate penalty calculation is crucial for ensuring employees receive proper compensation when employers fail to pay final wages on time, especially in disability cases where timely payment is critical.
Tips: Enter the employee's daily wage in USD and the number of days wages were unpaid. The calculator will automatically cap the days at 30 as per California law.
Q1: What constitutes "willful" failure to pay?
A: Willful means the employer intentionally failed to pay wages when due, knowing they were owed.
Q2: Is there a maximum penalty amount?
A: Yes, the penalty cannot exceed 30 days' wages regardless of how long the wages went unpaid.
Q3: Does this apply to all employees?
A: This applies to most employees in California, including those on disability leave.
Q4: When does the penalty period start?
A: For discharged employees, immediately upon termination. For employees who quit, 72 hours after giving notice.
Q5: Are there additional penalties for disability cases?
A: In some disability cases, additional penalties may apply under other California labor laws.