When should my last paycheck be ready for pick up due to the business closing?

UPDATED: Sep 30, 2022

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When should my last paycheck be ready for pick up due to the business closing?

The business where a friend worked closed without notice. He got up and went to work as usual but when he got there the place was locked up. He was notified by the manager on site, the place was closed for business and to come back next week for his final pay. Should they have had the final pay check ready when he showed up for work that morning?

Asked on July 26, 2016 under Employment Labor Law, California


M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Under CA law, an employe who has been laid off must be paid all of their wages, including accrued vacation time, immediately at the time of discharge. If the company does not follow the law, the worker is eligible to additional compensation via penalties paid by their employer. Such penalties are computed as follows: for each day that final wages are not paid, an employer is liable for penalty wages equal to the employee’s daily wage, up to a maximum of 30 days.

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