If we pay our employees seven days after their regular payday, what do we owe as a penalty for the late payment of their wages?

If an employer fails to pay wages on time, California Labor Code section 210 imposes a penalty of $100 per employee for the first violation and $200 plus 25% of the wages withheld per employee for each subsequent violation.

Before 2020, only the state could collect these penalties (or employees could pursue them via a PAGA claim). Since 2020, employees may file a claim under Labor Code Section 98 with the California Labor Commissioner to recover these penalties directly.

Even if the $100 penalty is affordable, subsequent violations increase penalties, with the state or employee allowed to recover a percentage of withheld wages.