When exactly must I deliver a final paycheck to an employee who quits versus one who is fired in California?
In California, you must provide a final paycheck immediately if you fire an employee, but you have 72 hours if they quit without notice. Here is how to determine the exact deadline.
Step 1: Determine the Reason for Separation
First, confirm whether the employee was terminated (fired, laid off) or resigned (quit). The deadline depends entirely on this distinction.
Step 2: Provide Paycheck for a Fired Employee
If you terminate an employee, you must provide their final paycheck, including all wages owed, at the time of termination. "Immediately" means you should have the check ready and give it to them during the same conversation in which you notify them of their termination.
Step 3: Provide Paycheck for an Employee Who Quits Without Notice
If an employee quits without giving any advance notice, you must provide their final paycheck within 72 hours of their quitting. This 72-hour period includes weekends and holidays. The employee can request that the check be mailed to them.
Step 4: Provide Paycheck for an Employee Who Quits With Notice
If an employee gives at least 72 hours of notice before quitting, you must provide their final paycheck on their last day of work.
Important Details and Nuances:
The final paycheck must include all earned wages plus any accrued, unused vacation time or paid time off (PTO). It generally does not need to include accrued sick leave unless your company policy states otherwise. The paycheck should be provided at the place of employment. For an employee who quits, if they request in writing that their check be mailed, you must mail it to the address they provide.
Warnings and Limitations:
Failure to pay on time results in significant "waiting time penalties" under California Labor Code Section 203. The penalty is the employee's full daily wage for each day you are late, continuing for up to 30 days. These penalties can be substantial, so strict compliance is critical.
This is general information and does not constitute legal advice. For complex situations, such as a dispute over final wages or a commission-based employee, consult with a qualified California attorney.
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Disclaimer:
This information is for general guidance only and should not be considered as legal advice. Please consult with a qualified attorney for specific legal matters.
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Updated: August 13, 2025
Business Law
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