California Labor Code Section 204: Semi-Monthly Paydays

If you’re an employer, you have to be continually aware of the fact that the general rule is that section 204 of the California Labor code requires that employees be paid at a minimum of every two weeks “on days designated in advance by the employer as regular paydays.” There are very few exceptions to this rule. “Labor performed between the 1^st and 15^th days, inclusive of any calendar month shall be paid between the shall be paid between the 16^th and 26^th day of the month during which the labor was performed, and labor which was performed between the 16th and the last day, inclusive of any calendar month shall be paid between the first and 10^th day of the following month.”

If this is confusing, it’s best to speak with an experienced attorney to understand your obligations.

Executive, Administrative and Professional Employees

Any of the above personnel who are covered by the Fair Labor Standards Act “may be paid once a month on or before the 26^th day of the month during which the labor was performed if the entire month’s salaries, of the unearned portion, between the date of payment and the last day of the month, are paid at that time.”

Overtime Hours

From an employer’s perspective, overtime hours may or may not be expected. When overtime hours are worked by employees, the employer is allowed to wait for two pay periods rather than a single pay period to pay overtime wages.

Penalties

Employers who fail to pay wages in accordance with section 204 are subject to penalties. For initial violations, pursuant to section 210 of the California Labor Code, the penalty is $100 for each failure to pay each employee. Subsequent or willful violations penalties are $200 for each failure to pay each employee, plus 25% of the amount of the amount that was unlawfully withheld. If an employee elects to be compensated in accordance with these penalties, he or she gives up their right to file an appropriate lawsuit.

Semi-monthly paydays might take some getting used to by new employees. If you are paid on a semi-monthly basis, and you believe that you are owed wages or overtime pay from your employer, contact our offices to speak with an experienced employment law attorney.

Contact our California Labor and Employment Lawyers today.