In this edition of California Employment News, Meagan Bainbridge and Nikki Mahmoudi break down the basics of California paydays — from the timing of wage payments, payday considerations, and posting obligations. Whether you're an HR pro or a business owner, this is a must-know compliance topic.

Watch this episode on the Weintraub YouTube channel.

 


Show Notes:
Meagan: Hello, everyone. Thank you for joining us for this installment at the California Employment News, an informative video and podcast resource offered by the Labor and Employment Group at Weintraub Tobin.

My name is Meagan Bainbridge, and I'm a shareholder in the firm's labor and employment group. Today, I'm joined by my associate, Nikki Mahmoudi. Today, we'll be talking about the basics of employed paydays. Nikki, can you start us off?

Nikki: Of course. The California Labor Code is specific about the timing of wage payments and the regularity of paydays. All wages, with some exceptions, earned by an employee are due and payable twice during each calendar month on days designated advanced by the employer as regular paydays. So generally, labor performed between the first and 15th of the month is going to be paid for between the 16th and the 26th day of the month during which the labor was performed. Then labor performed between the 16th and last day of the month of any calendar month will be paid for between the first and the 10th day of that following month. With that said, employers don't have to use that twice a monthly schedule. They can choose to pay employees weekly, bi weekly, or even semi monthly. By designating a regularly scheduled payday with payment within seven calendar days of the end of the pay period during which wages were earned. When it comes to exempt employees, and we're talking about executive, administrative, and professional employees of employers covered by the Fair Labor and Standards Act, their salaries may be paid once a month on or before the 26th day of the month during which the labor was performed.

Meagan: If that entire month's salary, including any unearned portion between the payment and the last day of the month are paid at that time. Then when it comes to overtime payments, and here we're talking about your non-exempt employees, generally, with some exceptions, payment of overtime wages earned in one pay pay period can be delayed until no later than that next pay period. Note, this is only going to be for the payment of overtime wages. So straight time wages must be paid within the times we discussed. If an employer chooses to pay overtime in this manner, they have to make sure on the wage statement to, one, itemize that overtime payment as a correction, and two, the correction is going to state the inclusive dates of the pay period for which the employer is correcting its initial report of how the payday has worked. Megan, can you give us a quick overview on other considerations employers should keep in mind with paydays?

Nikki: Yeah, sure. Let's start with circumstances in which a payday falls on a holiday or a weekend. Generally, if an employer is closed on a payday that falls on a Saturday or Sunday or a holiday listed in the California Government Code, that employer can pay wages the next business day. For example, if a regularly scheduled payday falls on the 20th of the month, and that happens to be a Sunday, the wages for payroll period may be paid that Monday. With that said, it's always helpful to talk to your counsel to ensure you're timely paying your employees. Another question I get a lot from employers is whether they can change their paydays. The answer is generally yes. As long as you're still complying with the labor code requirements and you do provide advanced notice. But at any point you're considering to change the pay date schedule, there's not necessarily a specific law requiring a part...