When it comes to employee rights, California is the most protective state. California Law for paychecks covers all the details including when the employee must be paid, what information the employer must provide to the employee with their paycheck, when the final paycheck must be received and what payments the final paycheck must include.
California employees are generally paid twice a month. The compensation earned in the first half of the month should not be paid later than 26th of the same month. The same way, compensation earned in the second half of the month should be paid no later than 10th of the following month.
If the employer pays on a weekly basis, or every two weeks, even then they must comply with the payday laws by providing the employees within 7 days after the end of each pay period. Employers must also notify their employees about the date, time, and place they will be paid.
There are few exceptions for some types of employees. As per California’s Overtime laws, executive, professional, and administrative employees will be paid only once a month but provided they are paid by 26th of every month and the paychecks include the entire salary of the respective months. Employees who work as labor contractor have to be paid every week.
The pay statement is a separate document that must be given along with every paycheck. It has the following information.
- The total gross wages earned during that period
- The total hours the employee had worked during that period
- The Net pay
- The dates that are part of the pay period
- Deductions, if any, from the pay
- The name of the employee and last 4 digits of his social security number
- The full name of the employer and address
- The number of hours worked and the hourly rate
California employee has the right to examine the payroll records within 21 days of the request date to the employer. If access is not granted by the employer, then the penalty is imposed on the employer. California law discourages employers from delaying final paychecks. That is why waiting time penalty is collected from the employer and paid to the employee.