California Labor Code 204

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11 Dec, 2024
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Your employer demands that you’re on time. California Labor Code 204 requires your paycheck to be on time, too!

California Labor Code Section 204 ensures timely wages for California workers. This article discusses your rights, what to do if your employer isn’t paying you on schedule, and how we can help.

Every paycheck counts, California workers deserve to be paid fairly and on time. You work hard. You keep your promises to your employer. They should keep their promises to you, right?
Yet, far too many California employees find themselves dealing with delays, unpaid wages, or unclear pay schedules that leave them in a difficult financial spot. If this sounds familiar, you’re not alone. California’s labor laws are meant to protect workers, but navigating them can be confusing. This is where California Labor Code Section 204 comes in.

Let’s break down what California Labor Code 204 is all about, how it affects your paycheck, and what you can do if your employer violates your rights. By the end of this article, you’ll understand your rights better and know when it’s time to contact a California employment attorney at Consumer Attorneys for support, for a free consultation, for someone to listen to you, and for some help.

What Is California Labor Code Section 204?

California Labor Code 204 is a key state law that governs when and how often employees must be paid. Simply put, employers must pay their employees regularly to ensure that workers are not left waiting for the money they've earned.

Under Labor Code Section 204, most employees in California are entitled to receive their wages at least twice a month. This applies to hourly, salaried, and even commission-based employees. The law creates clear guidelines on how frequently you should get paid, helping to prevent employers from delaying payments indefinitely.

Key Points of California Labor Code 204:

  1. Semi-monthly paydays. Most employees must be paid at least twice a month, usually on the 1st and 15th of each month or on a bi-weekly schedule.
  2. Wages earned in one pay period must be paid promptly. For work you do between the 1st and 15th of any given month, your employer must give you your wages no later than the 26th of that same month. For work you do between the 16th and the end of any given month, your employer must pay you by the 10th of the following month.
  3. Exempt employees. Salaried workers exempt from overtime requirements might be paid only once a month.

This law ensures that workers have access to their hard-earned money when they need it. Unfortunately, not all employers follow the rules, leaving workers short-changed or waiting for weeks to get paid.

Why Does Labor Code 204 Matter?

Let’s face it: Waiting for your paycheck isn’t just an inconvenience—it can be a serious financial burden. Whether it’s paying rent, buying groceries, or covering unexpected expenses, your paycheck is your lifeline. California Labor Code Section 204 exists to prevent employers from exploiting workers by holding back wages or creating unnecessary delays.

When employers don’t comply with this law, employees find themselves scrambling to cover their bills. For lower-income workers especially, paycheck delays can be devastating, leading to late fees, overdrafts, and even the risk of eviction. The financial stress caused by wage issues can take a toll on one's well-being, and that's something no worker should have to endure.

If you’re experiencing paycheck delays, your employer might be violating California Labor Code 204. In these situations, contacting a consumer lawyer can help you hold them accountable.

Common Violations of California Labor Code 204

While the law is clear, some employers still find ways to bend the rules. Here are a few common violations of Labor Code Section 204 that you should watch out for:

  1. Irregular paydays: If your employer consistently pays your wages late or changes pay schedules without notice, that’s a red flag.
  2. Unpaid wages for terminated employees: If you quit or are fired, your final paycheck should be ready immediately if you gave notice or within 72 hours if you did not.
  3. Failure to pay commissions promptly: For commission-based workers, commissions must be paid according to the terms of the agreement. If not, that’s a violation of California Labor Code Section 204.
  4. Deductions without explanation: Unlawful deductions from your paycheck can also indicate non-compliance with labor laws.

How to Know If Your Employer Is Breaking the Law

If you’re unsure whether your employer is following California Labor Code 204, there are a few steps you can take to protect yourself:

  • Keep records of your hours worked. Always document the hours you’ve worked, including overtime. This evidence can be crucial if you decide to file a complaint.
  • Review your paystubs. California law requires that your paystub includes specific information like hours worked, deductions, and pay period dates. Any missing details could signal a problem.
  • Consult a California employment attorney. If you suspect your employer is not complying with labor laws, a consumer lawyer can review your case and help you understand your rights.

What Are Your Options if Labor Code 204 Is Violated?

If you believe your employer is violating California Labor Code Section 204, you have the right to take action. Here are some steps to consider:

  1. Talk to your employer. Sometimes, a simple conversation can resolve a misunderstanding. It’s worth asking your employer to clarify their pay schedule and correct any mistakes.
  2. File a complaint with the California Labor Commissioner. If your employer refuses to pay you properly, you can file a claim with the California Division of Labor Standards Enforcement (DLSE). The Labor Commissioner’s Office will investigate your claim and may order your employer to pay what you’re owed.
  3. Work with a California employment attorney. Navigating a legal claim can be daunting, especially if your employer is unwilling to cooperate. A consumer lawyer can represent your interests, gather evidence, and fight for the compensation you deserve.

The Importance of Hiring a California Employment Attorney

Dealing with wage issues can be frustrating and overwhelming. Employers often have legal teams on their side, so why shouldn’t you? Working with a California employment attorney ensures you have a skilled advocate who understands the complexities of Labor Code Section 204 and can help you get the wages you’re owed.

Here’s why hiring a consumer lawyer from Consumer Attorneys can make all the difference:

  • Legal knowledge. Understanding the nuances of California labor laws can be challenging. An experienced lawyer can help you navigate the legal system and ensure your case is handled correctly.
  • Protection from retaliation. Many workers fear that taking legal action will lead to retaliation from their employers. A lawyer can advise you on protecting yourself from wrongful termination or other forms of workplace discrimination.
  • Maximize your compensation. An attorney can help you recover unpaid wages and interest, penalties, and potentially even damages if your employer acted in bad faith.
  • You focus on work. Let us handle the deadlines, the calls with opposing counsel, the paperwork, and the legal issues so you can focus on work.  

When California Labor Code 204 Comes Into Play

Imagine this scenario: Maria, a single mother working as a server, relies on her bi-weekly paychecks to support her two children. Recently, her employer started delaying payments by several days each pay period, making it difficult for her to pay her rent on time. When she asked her manager about it, she was told to "be patient" and that the business was going through financial difficulties.

Maria began to fall behind on her bills, accruing late fees, and the stress of not being paid on time started affecting her health. That’s when she contacted a consumer lawyer who helped her file a complaint. With the help of a California employment attorney, Maria was able to recover her unpaid wages and penalties for her employer’s failure to comply with Labor Code 204.

Her story shows that standing up for your rights is possible—and you don’t have to do it alone.

You Deserve to Be Paid on Time

If your employer violates California Labor Code Section 204, you don’t have to accept it. You work hard for your paycheck and deserve to be paid on time and in full. When you know your rights, you can take action and protect yourself and your financial future.

Remember, the law is on your side, and so are we. If you’re struggling with paycheck delays or wage theft, it’s time to consult with a California employment attorney. Consumer Attorneys are here to help you fight back and get the justice you deserve.

Don’t wait—contact us today for a free consultation, and let us help you get what’s rightfully yours.

Frequently Asked Questions

Section 204.1 of the California Labor Code addresses the payment schedule for employees paid on a weekly, biweekly, or semi-monthly basis when they are working on commission. It ensures that commission-based employees are paid promptly for their earnings. According to this section, employers must pay employees at least once a month for commissions that have been earned and are calculable. However, 204.1 also acknowledges that commission payments might sometimes be delayed due to factors beyond the employer’s control (like the time needed to calculate commissions accurately). In those cases, the employer must still pay on a schedule that is as consistent as possible. You might need to consult a California employment attorney if your employer consistently and regularly delays your commission payments. 

Section 204.3 of the California Labor Code covers the payment of wages for employees with paid time off (PTO) or paid personal days. It allows employers to set up vacation, sick leave, or PTO plans following company policies but requires that any accrued PTO be paid out in full upon termination of employment. If you have earned PTO, it’s considered wages and must be paid to you when you leave a job. Employers are prohibited from withholding or delaying these payments. If your employer fails to pay out your accrued leave upon termination, it could violate California labor laws, and you may want to reach out to a consumer lawyer to recover what your employer owes you.

California Labor Code 204 covers the regular payment of wages but also impacts commission payments. For employees who earn commissions, this law requires employers to pay those commissions according to a set schedule outlined in the employment agreement. Commissions are considered wages, and they must be paid promptly once they are earned and calculable. Employers cannot arbitrarily delay payment, even with internal processing issues. However, if commissions cannot be immediately calculated, employers have some flexibility but must pay them as soon as reasonably possible. If your commission payments are regularly delayed without clear explanation, it might be time to consult with a California employment attorney to ensure you’re being paid fairly.

California Labor Code 204 applies to most employees, but there are exceptions. The law ensures timely payment of wages, generally requiring employers to pay wages twice a month. However, specific categories of employees, such as executives, administrative staff, or those classified as exempt under wage and hour laws, may have different payment schedules, often being paid monthly. Independent contractors and freelance workers also typically fall outside the scope of Labor Code 204. If you’re unsure whether you fall under this law’s protections, it’s important to check your classification and consult with a consumer lawyer. Misclassification is a common issue, and you could be entitled to back pay if your employer has incorrectly categorized you.

No, your employer cannot legally fire you for filing a complaint regarding wage violations under California Labor Code Section 204. Retaliation is strictly prohibited by California labor laws. This means that if you report unpaid wages, irregular payment schedules, or any other violations, your employer cannot punish you by terminating your employment, cutting your hours, or otherwise retaliating against you. If your employer does retaliate, you may be entitled to compensation, reinstatement, and even punitive damages. If you believe you’ve been wrongfully terminated after asserting your rights, you must speak with a California employment attorney who can help you navigate the legal process and protect your rights.

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Daniel Cohen is the Founder of Consumer Attorneys. Daniel manages the firm’s branding, marketing, client intake and business development efforts. Since 2017, he is a member of the National Association of Consumer Advocates and the National Consumer Law Center. Mr. Cohen is a nationally-recognized practitioner of consumer protection law. He has a we... Read more

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