<em>Dale Louton, CalChamber's Alert Newsletter HR Adviser, reports on California labor code for choosing paydays:</em> Labor Code Section 204 provides that wages must be paid at least twice a month on pay days designated in advance. This section further provides that on semi-monthly periods ending on the 15th, the employer has until the 26th to pay wages.
On semi-monthly pay periods ending on the last day of the month, the employer has until the 10th to pay wages.
Pay Day Notice
Labor Code Section 207 requires that a pay day notice be posted conspicuously at the place of work, specifying the regular pay days and the time and place of payment.
This Pay Day Notice is included in the California Chamber of Commerce poster, 2012 California and Federal Employment Notices, which is part of the Required Notices Kit.
Labor Code Section 210 provides penalties for failure to pay wages on the designated pay day. This section provides for a civil penalty for any initial violation and $100 for each failure to pay each employee.
For subsequent violations, the amount is increased to $200 plus 25% of the amount unlawfully withheld.
Option to Change Pay Day
This practice of paying on the last day of the payroll period may work for firms with few employees, but as your firm grows and for larger companies, a problem area exists.
You have the option of changing pay days, giving you time to process payroll. You need to post a new pay day notice giving your employees at least one payroll notice of the change.
You can pick any date up to the 26th and 10th, giving you enough time to collect time records and prepare payroll.