When the Employer Terminates the Employee
If the employment relationship ends because the employer terminates the employee, lays them off, or otherwise lets them go, the employee's final paycheck must be provided to them on their last day of work. (Labor Code § 201.) The employer is subject to various penalties if it waits until the next regularly scheduled payday to pay the employee their final wages. (Labor Code § 203.)
When the Employee Quits
If the employee voluntarily quits, and provides at least 72 hours notice, their final paycheck is due on their last day of work. If the employee voluntarily quits and provides less than 72 hours notice, the final paycheck is due not later than 72 hours after notice is provided. Additionally, the employee can request that their final paycheck be mailed to them, and the mailing must occur within the 72 hour period. (Labor Code § 202.)
What Must be Paid
All earned wages and accrued but unpaid vacation time must be paid to the employee. Expenses, however, do not need to be reimbursed until the normal time for reimbursement occurs.
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