Workman Law
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Payment of Wages at Termination

Given the importance of wages, there are several rules with which employers must comply. If an employer terminates an employee, all wages owed are due immediately on termination: meaning the day of termination. If an employee decides to leave the employment, the employer must pay all wages due within 72 hours of the date of termination.

When an employer pays wages, the method of payment must be in a manner that allows the employee to access all of the wages. While payment may be either by check or direct deposit, the employer cannot mandate a particular method of payment. It is the employee who makes the choice regarding method of payment. If the employer pays wages by check, the name of the bank, together with the address, must appear on the face of the check. The bank listed must be a bank with a location in California. The employee must be able to cash the check without charge.

Recently, employers have begun to request that employees receive their pay through a paycard. While these types of cards may be permissible, again, the employee must be able to access all of the employee's wages without charge. Other requirements apply to this type of payment of wages. The employer must comply with all of the stated requirements.