As a business owner looking forward and sees that costs are going up as another year (or years) go by, and may need to lay off, or even let some employees go, or many have other reasons to conclude the employment relations with some current employees, or even the employee voluntarily.  The employer having California employees, must bear in mind of when to issue the final paycheck, or else the disgruntled former employee may file a complaint against the employer before a California Labor Commissioner, and be subject to huge penalties for not being in compliance with these final paycheck rules.

First of all, if a California employee voluntarily decides to conclude the employment relationship (and there is no formal written employment contract), then the employer must issue the former employee’s final paycheck within 72 hours.   However, if the former employee, who is voluntarily quitting, gives at least 72 hours’ notice, then the employer could issue the final paycheck on the day the employee actually concludes the employment relationship.

Now if the employer unilaterally concludes the employment relationship (and there is no formal written employment contract) the final paycheck must be issued immediately, so there cannot be any delay in issuing a former employee’s final pay check where the employer unilaterally ends and/or concludes the employment relationship.

So if you are think of letting some employees go, for whatever reason, and/or have a few employees to decide to voluntarily to quit, then let us know at [email protected], and we would be more than happy to assist in determine when the final paycheck issued be issued