California Payday Laws 2026: Pay Frequency, Timing, and Final Pay Rules

California has some of the strictest payday and final pay rules in the country. Unlike many states that give employers broad flexibility on when and how to pay employees, California mandates specific pay frequencies, imposes tight deadlines on when earned wages must be delivered, and enforces severe penalties when employers miss those deadlines — especially at termination. A single late final paycheck can cost you up to 30 days of the employee's wages in penalties, on top of the wages themselves. This guide covers every payday rule California employers need to understand, from regular pay schedules to final paycheck timing, pay stub requirements, and direct deposit regulations.

Pay Frequency Requirements

Under California Labor Code Sections 204 and 204b, most employees must be paid at least twice per month on designated paydays. This is the semi-monthly pay schedule, which is the minimum frequency required by law. Employers may choose to pay more frequently — weekly or biweekly schedules are common and fully permitted — but paying less frequently than semi-monthly is generally not allowed for most employees.

The permitted pay frequency options are:

• Semi-monthly: Twice per month (e.g., the 15th and the last day of the month). This is the minimum frequency required by California law for most employees.
• Biweekly: Every two weeks (26 pay periods per year). Very common and fully compliant.
• Weekly: Every week (52 pay periods per year). Also common and compliant.
• Monthly: Once per month. This is only permitted for certain exempt executive, administrative, and professional employees under Labor Code Section 204(a). Non-exempt (hourly) employees cannot be paid monthly.

Pay Timing Rules: When Wages Must Be Paid

California does not just require that you pay employees twice a month — it also specifies when those payments must be delivered. Under Labor Code Section 204:

• Wages earned between the 1st and 15th of the month: Must be paid no later than the 26th of that same month.
• Wages earned between the 16th and the last day of the month: Must be paid no later than the 10th of the following month.

This means there is a maximum lag of 11 days between the end of a pay period and the date wages must be in the employee's hands (not just mailed — actually received). For example, wages earned during January 1-15 must be paid by January 26. Wages earned during January 16-31 must be paid by February 10.

Overtime wages have a separate deadline. While regular wages must follow the timing rules above, overtime wages may be paid by the payday for the next regular payroll period. This gives employers slightly more time to calculate overtime, which can be complex. For example, if an employee works overtime during the January 1-15 pay period, the regular wages are due by January 26, but the overtime wages can be paid by the next regular payday (February 10).

Final Paycheck Rules

This is where California law is most unforgiving, and where employers most frequently incur penalties. The rules depend on whether the employee was terminated by the employer or resigned voluntarily.

Employee Is Terminated (Fired, Laid Off, or Discharged)

Under Labor Code Section 201, if you terminate an employee — for any reason, including poor performance, layoff, or restructuring — the final paycheck is due immediately at the time of termination. Not the next payday. Not within 24 hours. Immediately.

This means you must have the final paycheck ready to hand to the employee on the same day you terminate them. The check must include all wages earned through the final day, plus all accrued, unused vacation or PTO (since California treats accrued vacation as earned wages under Labor Code Section 227.3).

Employee Resigns Voluntarily

The deadline depends on whether the employee gave advance notice:

• Employee gives 72 hours or more notice: Final paycheck is due on the employee's last day of work (Labor Code Section 202).
• Employee gives less than 72 hours notice (or no notice): Final paycheck is due within 72 hours of the resignation (Labor Code Section 202). The employee may request the final check be mailed to a designated address.

Waiting Time Penalties (Labor Code Section 203)

If you fail to pay an employee's final wages on time, Labor Code Section 203 imposes waiting time penalties. The penalty is calculated as the employee's daily rate of pay for each day the wages remain unpaid, up to a maximum of 30 calendar days.

Here is how the math works. Suppose an employee earned $25 per hour and worked 8-hour days. Their daily rate is $200. If the final paycheck is 30 or more days late, the penalty is:

• $200/day x 30 days = $6,000 in waiting time penalties

This penalty is in addition to the actual wages owed. For a higher-paid employee — say, someone earning $60/hr with a daily rate of $480 — the maximum penalty reaches $14,400. And if the case involves multiple employees (as in a layoff), the total exposure adds up fast.

The penalty continues to accrue from the date the wages were due until the date the employee is fully paid, or until 30 days have passed — whichever comes first. Courts have held that a good-faith dispute about the amount owed can be a defense, but simply forgetting or having a slow payroll process does not qualify as good faith.

Pay Stub Requirements (Labor Code Section 226)

California requires employers to provide a detailed, itemized wage statement (pay stub) with every paycheck. Under Labor Code Section 226, the pay stub must include all of the following:

• Gross wages earned during the pay period
• Total hours worked (for non-exempt employees)
• Number of piece-rate units earned and the applicable piece rate, if the employee is paid on a piece-rate basis
• All deductions itemized (federal tax, state tax, SDI, Social Security, Medicare, any voluntary deductions)
• Net wages earned (take-home pay)
• Inclusive dates of the pay period
• Employee name and the last four digits of the employee's Social Security number (or a full employee ID number)
• Employer's legal name and address
• All applicable hourly rates in effect during the pay period and the corresponding number of hours worked at each rate

If any required information is missing or inaccurate, employees can seek penalties of $50 for the first violation and $100 for each subsequent violation, up to a maximum of $4,000 per employee, plus attorney's fees. This is a per-pay-period penalty, so a missing element on 24 biweekly pay stubs can result in a significant claim.

Direct Deposit Rules

Employers may pay employees by direct deposit, but California law imposes specific requirements:

• Written authorization required. The employee must provide written (or electronic) consent to receive wages by direct deposit. You cannot make direct deposit mandatory as a condition of employment.
• Employee can revoke at any time. The employee has the right to stop direct deposit and receive a physical paycheck at any time, with reasonable notice.
• Wages must be available on payday. The funds must be available in the employee's bank account by the start of business on the designated payday — not initiated on payday, but available on payday.
• Final paycheck exception. Some employers switch to a physical check for the final paycheck to ensure immediate availability, since direct deposit can take 1-2 business days to process. Given the immediate-payment requirement for terminated employees, a physical check is often the safest approach for final pay.

Payroll cards (prepaid debit cards onto which wages are loaded) are also permitted in California, subject to similar consent requirements and restrictions. Employees cannot be charged fees to access their full wages, and they must be given the option of direct deposit or check instead.

Expense Reimbursement

California Labor Code Section 2802 requires employers to reimburse employees for all necessary business expenses incurred in the course of their job duties. This includes mileage, cell phone usage (if required for work), tools, uniforms, and other out-of-pocket costs.

The timing requirement: expense reimbursements should be paid promptly — at the time of the expenditure or, at latest, by the next regular payday. While Section 2802 does not specify an exact deadline as precisely as the wage payment rules, the California Division of Labor Standards Enforcement (DLSE) has indicated that reimbursement should not be unreasonably delayed.

Upon termination, any outstanding expense reimbursements should be included with the final paycheck. Unreimbursed business expenses can form the basis of a separate legal claim, including class-action claims if the issue is systemic (such as failing to reimburse all remote workers for home internet costs).

Special Situations

Seasonal and Temporary Workers

Seasonal and temporary workers are subject to the same payday rules as permanent employees. When a temporary assignment ends, the final paycheck is due immediately if the employer terminates the assignment, or within 72 hours if the worker resigns.

Commission-Based Employees

Employees paid on commission must receive their earned commissions in a timely manner. Under Labor Code Section 204.1, commissions are considered wages. If the commission amount cannot be calculated by the regular payday (for example, because a sale has not yet closed), the employer must pay it as soon as the amount is determinable. Upon termination, all earned and calculable commissions must be included in the final paycheck.

Deceased Employee

If an employee passes away, all wages due (up to $18,552 as of 2025, adjusted annually) may be paid to the surviving spouse or certain other relatives without requiring probate, upon presentation of an affidavit. Any amount over this limit must go through the estate.

Compliance Checklist for California Employers

Use this checklist to ensure your business is fully compliant with California payday laws:

• Pay frequency: Non-exempt employees are paid at least semi-monthly. Monthly pay is only for qualifying exempt employees.
• Pay timing: Wages earned 1st-15th are paid by the 26th. Wages earned 16th-last day are paid by the 10th of the following month.
• Termination paycheck: Final paycheck is ready and delivered immediately on the day of termination, including accrued vacation/PTO.
• Resignation paycheck: If 72+ hours notice given, paycheck is ready on last day. If less than 72 hours notice, paycheck is delivered within 72 hours.
• Pay stubs: Every paycheck includes a compliant itemized wage statement with all 9+ required elements under Section 226.
• Direct deposit: Written authorization is on file for every employee paid by direct deposit. Employees know they can opt out at any time.
• Overtime wages: Paid no later than the next regular payday following the pay period in which overtime was worked.
• Expense reimbursement: Business expenses are reimbursed promptly, no later than the next regular payday.
• Record retention: Payroll records are maintained for at least 4 years (3 years minimum, 4 years recommended for Unfair Competition Law coverage).