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What is a Waiting Time Penalty?

Apr 23, 2024

Sometimes, an employer is asked to pay what is called a waiting time penalty. A waiting time penalty is based upon California Labor Code Section 203 as to the amount. The waiting time penalty is authorized if California Labor Code 202 is violated.

When does an employer owe a Waiting Time Penalty?

A Waiting Time Penalty applies when an employer willfully fails to page all wages on the last day of an employee. It should be noted that an employer that reduces the wages owed by some improper deduction from the wages would owe the employee wages and trigger the Waiting Time Penalty. Additionally, familiarize yourself with overtime entitlements to ensure compliance with all compensation regulations.

When is a Waiting Time Penalty Owed by an Employer?

When there are earned wages that are unpaid on an employee’s final day. If there is any doubt about whether a wage is earned, it is better to either consult an attorney to be sure or pay the amount to avoid the potential penalty. To understand what deductions may legally be made from a paycheck, thus avoiding additional penalties, read our comprehensive guide on proper paycheck deductions.

How do you calculate the Waiting Time Penalty amount?

The Waiting Time Penalty requires you to know at least two things to calculate the amount.

First, what is the employee’s daily rate of pay? If a person only receives an hourly wage, then the regular hours worked times the hourly rate. So, if a person is paid $20/hr and works 8 hours a day, then the daily rate of pay is $160. Please note that the daily rate is determined by a working day, so it is not reduced for the days you may not work in a month. Thus, even if one usually has the weekends off, those are still counted as working days for the penalty.

Since it is a penalty, no deductions are withheld from the Waiting Time Penalty.

Second, how many dates late was the pay (up to 30 days maximum)? If the Employer was, say 31 days late, then the maximum of 30 days would be due from the Employer. Given the above example, $160*30 days is $4,800. For further assistance with wage disputes and other business-related conflicts, don’t hesitate to contact Nick Heimlich Law today for business contract disputes.

Tracy Giles
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Nick was excellent! Very knowledgeable, asks great questions, and quickly understood the situation and was able to give great advice. I so appreciated his time, insight, and expertise in assisting with our situation. Highly recommend!
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Nick Heimlich was very professional and knowledgeable in my case. He left a lot of the worrisome I had in my case to the expert and was very good at what he does. I will recommend Nick to anyone who needs council!Much appreciative,Mario
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This was the first time ever needing a lawyer for something, I was a bit frantic and overwhelmed with everything going on, but Nick and his team were very professional and honest, and made me feel at ease about my case. They were even professional and cool with the opposing attorney even though she was being unprofessional at times. In the end, they were able to settle my case and bring me a satisfying outcome. If you're ever in a bind and need a business lawyer, I highly recommend Nick and his team.
Rami Gideoni
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I needed some legal consultation and per recommendation I received, I have approached Nicholas. He got back to me quickly and provided great service, he was patient, professional and knowledgeable. His advise is much appreciated, it cleared the situation, draw the next steps to follow and placed my mind to peace .I would definitely recommend his service.
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Abe Honest
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Mr Heimlich was very professional kind and knowledgeable when I give him a call. I was calling to hire an attorney for an tenant and landlord dispute. I had a particular issue that Mr Heimlich took time to completely listen to me. unfortunately the area I needed help was not an area that Mr Nick practiced. but he was not hesitant to give me some leads and direct me to the right place. he's a man of character and cares about what he does, I can only imagine his level of excellence in his area of expertise. he's a man of great character and I would recommend him for anyone to give him a call and talk to him. thank you very much Nick. thank you for caring .
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Andyn79 Nguyen
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He wasn't able to take me as a client but had about 10 mins so he told me tell me and just from that i was able to be clear and did win from really dishonest people. So i am thank you telling the truth gets it's own reward
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I entered into a membership contract that had unreasonable cancellation requirements. I went to Nick through my company’s employee assistance program. Nick did thorough research and found that the contract term exceeded term limits allowed by California law. As a result, I was able to cancel the contract without any penalty. I was very satisfied with the outcome.
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Nick was very helpful when I needed assistance dissolving an LLC. Not only did he create the appropriate documentation, but he educated me on the process. His guidance was invaluable, and everything resolved smoothly. I would certainly use his services again in the future.
Bonnie Nevitt
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My family cannot thank Nick enough. We needed a business litigation attorney for a lawsuit that was going to trial, he not only took the time to understand the complexities of the case but was able to convey that to the judge. He was able to get us amazing results. Hands down the best attorney we have ever worked with.
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