Waiting Time Penalty Formula:
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The Waiting Time Penalty is a California labor law provision that requires employers to pay employees a penalty equal to their daily wage for each day their final wages are late, up to 30 days.
The calculator uses the simple formula:
Where:
Explanation: The penalty equals one day's wages for each day payment is late, starting immediately after termination or resignation.
Details: Accurate penalty calculation ensures compliance with California Labor Code Section 203, which protects workers' rights to timely payment of final wages.
Tips: Enter the employee's daily wage in USD and the number of days wages were late. The calculator will compute the total penalty amount.
Q1: When does the waiting time penalty apply?
A: It applies when an employer willfully fails to pay final wages on time after an employee quits or is terminated.
Q2: What's the maximum penalty amount?
A: The maximum is 30 days' wages, as penalties stop accruing after 30 days.
Q3: How is daily wage calculated?
A: For salaried employees, divide annual salary by 260. For hourly, multiply regular hourly rate by typical daily hours.
Q4: Are there exceptions to this penalty?
A: Yes, if there's a good faith dispute about wages owed, penalties may not apply.
Q5: Can employees recover these penalties?
A: Yes, through the Labor Commissioner's office or civil lawsuit within 3 years.