1. What Are Waiting Time Penalties?

Waiting time penalties are wages owed to employees when an employer willfully fails to pay all wages due to an employee who is discharged or quits. Under California Labor Code Section 203, these penalties equal the employee's daily wage for each day the wages remain unpaid, up to a maximum of 30 days.

2. How Penalties Are Calculated

The penalty calculation follows this formula:

Where:

• \( Wage \) — Employee's daily wage rate at time of termination
• \( Days \) — Number of days wages were unpaid (maximum 30)

Note: The penalty is calculated based on the employee's regular rate of pay, not overtime or other premium rates.

3. California Labor Law Requirements

Key Points: Employers must pay all final wages immediately if the employee is fired, or within 72 hours if the employee quits without notice. Willful failure to pay triggers penalties.

4. Using the Calculator

Instructions: Enter the employee's daily wage in USD and the number of days wages were unpaid. The calculator will automatically apply the 30-day cap required by California law.

5. Frequently Asked Questions (FAQ)

Q1: What constitutes "willful" failure to pay?
A: The employer intentionally fails to pay knowing the wages are due, or shows reckless disregard for whether payment was required.

Q2: Are there exceptions to the 30-day cap?
A: No, California law specifically caps waiting time penalties at 30 days' wages.

Q3: How is daily wage calculated for salaried employees?
A: Divide annual salary by 365, or weekly salary by number of days normally worked per week.

Q4: Can penalties be awarded for partial wage payments?
A: Yes, if any portion of wages remains unpaid, penalties may apply to the unpaid amount.

Q5: What other penalties might apply?
A: Employees may also recover interest, attorney fees, and potentially additional penalties under PAGA.