California Labor Code 204 sets strict rules on pay schedules, ensuring employees receive wages on time with clear deadlines. It outlines payday requirements, exceptions, overtime rules, and penalties for employers who fail to meet legal payment obligations.
By Brad Nakase, Attorney
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The payment of workers in California is mostly covered under California Labor Code 204. Depending on the time of the month, it outlines the deadlines for paying employees. For instance, work completed from the first to the fifteenth of the month needs to be paid for between the sixteenth and the twenty-sixth.
California Labor Code 204’s primary goal is to give workers steady and predictable payment schedules. It stipulates that workers must be compensated twice per month for their labor. The employer has to determine and inform the dates of payment in advance. The payment should be received within a set period, i.e., between the sixteenth and the twenty-sixth of a month, for work done between the 1st and the 15th.
The payment should be made within the first ten days of the next month, for the work done between the sixteenth and the last day of the month. Workers in executive, professional, and administrative profiles in particular occupations are exempt from this code. They may get their paychecks once a month rather than twice.
Additionally, overtime must be compensated within two paydays, according to California Labor Code 204. This means that overtime generated between the first and fifteenth of a month is exempt from payment requirements and can be paid between the first and tenth of the following month. Workers who have varied payment arrangements within a contract of collective bargaining are subject to those arrangements. Finally, generally speaking, California Labor Code 204 is satisfied as long as salaries are paid within 7 days of the payroll period.
Companies are generally required to pay their workers twice a month on particular days (California Labor Code 204). These days have to fall within the previously specified/communicated time frames: either from the 16th to the 26th or from the 1st to the 10th, based on when the job was completed.
Pursuant to Labor Code 204, certain employees are granted special treatment. According to specific provisions of the Fair Labor Standards Act, these workers—which include executive, professional, and administrative staff—are only eligible for monthly compensation. Furthermore, workers covered by a collective bargaining contract who have chosen a different payment plan are entitled to it.
Employers are required to pay employees in two intervals, each of which relates to a certain working period. The payment should be received within a set period, i.e., between the sixteenth and the twenty-sixth of a month, for work done between the 1st and the 15th. The payment should be made within the first ten days of the next month, for the work done between the sixteenth and the last day of the month.
An employee, for instance, puts in 36 hours between 1st May and 15th May. His company is required to compensate him for the hours he worked on a day that falls between 16th May and 26th May. Most likely, throughout that period, the company will have announced a specific date (May 20th, for instance) on which the employee will get regular compensation.
The twice-monthly payment norm does have some exceptions, as was previously indicated. The compensation of professional, administrative, and executive staff comes first. These workers must be paid a minimum of once a month, even though their contracts of employment may specify alternative pay periods.
The second exclusion pertains to workers who get their pay on a basis of weekly, bimonthly, or semi-monthly periods. If these workers receive their paychecks within 7 days of the payroll period ending, they meet the requirements of California Labor Code 204. A worker paid weekly, for instance, who works from the first to the fifth and whose pay period ends on the seventh, needs to be paid by the fourteenth (7th + seven days).
When employers fail to pay their workers on time, they usually suffer the repercussions. Employers who fail to pay their workers on time are subject to a “waiting time fine” under California Labor Code 203. This penalty has a 30-day maximum. It is equivalent to one day’s earnings for every day that the payment is delayed. This implies that if a worker is paid 4 days past due, the employer will be penalized 4 days’ worth of wages. The employee will receive the penalty at the time of payment.
Employees may submit a wage claim to the Division of Labor Standards Enforcement, or DLSE, if their employer does not pay them on time. The address and name of the company being sued, as well as the employee’s payment details, such as hours performed and breaks taken, are among the details that must be included in the worker’s filing for these claims. Wage claims may be submitted by email, mail, in person, or online.
Example 1: The employer does not pay the employee within the allotted pay period.
Situation: A recently employed worker at an organization is not informed of the day he will be paid for his labor. He starts working on the fifth of the month but doesn’t get paid until the third.
Violation: The employer failed to make payment within the allotted time and failed to select a payday.
The Protections of Labor Code 204: According to California Labor Code 204, companies must specify the day on which workers will receive their paychecks. Furthermore, the company in this case did not pay the worker within the allotted time. The employee should have received payment between the sixteenth and the twenty-sixth for work completed between the first and the fifteenth.
Example 2: The Company disregards the collective bargaining agreement
In this scenario, a teacher’s union is successful in securing a specific payment plan for the district’s instructors. Within that district, teachers are not paid according to the agreed-upon plan.
Employer’s disregard for the collective bargaining agreement is a violation.
The Protections of Labor Code 204: Employers are required by California Labor Code 204 to adhere to the schedules established via collective bargaining.
Example 3: Late Payment of Overtime Hours by the Employer
Scenario: Per her company’s orders, a fast-food employee puts in ten hours of overtime in a single week. It takes three pay cycles for her employer to cover the overtime.
Violation: Inappropriate postponement of overtime compensation.
The Protections of Labor Code 204: Employees must get their overtime pay within 2 paydays of the number of hours they worked. In this instance, the worker would have been entitled to payment for the overtime hours on the following payday or the one that follows.
One of the easiest methods for a worker to hold the company responsible when they breach payment labor rules is to remain on top of their pay. There are several ways to accomplish this. To ensure they are paid correctly, workers should maintain a record of their work hours and pay stubs. In the same manner, workers should become acquainted with their payment plan and understand which days they are expected to receive their paychecks. Lastly, in order for the payment error to be fixed, an employee must speak up and inform their employer if they believe they were paid late.
You might be able to make a claim according to California Labor Code 204 if you are a worker who has had your wages paid after the deadline or if the company has not specified a specific day for your earnings to be paid. Although California’s labor laws are intended to protect employees from misconduct by their employers, their implementation is dependent on employees bringing claims against their companies. The next course of action for an employee in such a circumstance is to seek legal counsel.
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