Waiting Time Penalty

If an employee is terminated or quits and you willfully fail to pay the employee in a timely fashion, you may face an expensive penalty. You may be required to continue the exiting employee’s wages on a day-to-day basis, up to a maximum of 30 days, until the final paycheck is ready.¹ This rule covers both exempt and nonexempt employees.²

The penalty is measured at the employee’s daily rate of pay, and is calculated by multiplying the daily wage by the number of days that the employee waits for a final paycheck — up to a maximum of 30 days. The 30-day period is calendar days, and includes weekends and holidays and any other days that the employee would not normally work.