California sets the paydays, not just the pay. Labor Code section 204 requires most wages to be paid at least twice a month on fixed dates, and section 210 adds a penalty of $100 per employee for a first late payment and more after that. A payroll vendor’s mistake or a holiday-week delay can create the claim. For a large workforce, one late payroll can multiply quickly.
When does California require employers to pay current employees?
At least twice a month, on regular paydays the employer sets in advance. The statute says wages “are due and payable twice during each calendar month, on days designated in advance by the employer as the regular paydays.”
For a semimonthly payroll, the windows are fixed. Work “performed between the 1st and 15th days, inclusive, of any calendar month shall be paid for between the 16th and the 26th day of the month during which the labor was performed.” Under the same subdivision, work performed from the 16th through the end of the month must be paid “between the 1st and 10th day of the following month.”
Weekly and biweekly payrolls use a simpler test. Under subdivision (d), the payday rules “shall be deemed satisfied by the payment of wages for weekly, biweekly, or semimonthly payroll if the wages are paid not more than seven calendar days following the close of the payroll period.” Many employers rely on this seven-day rule, and late-pay claims often involve a payroll that slipped past it.
Are there exceptions to the twice-a-month rule?
A few, and employers sometimes read them too broadly. The main one covers salaried exempt employees. Under the statute, salaries of executive, administrative, and professional employees “may be paid once a month on or before the 26th day of the month during which the labor was performed if the entire month’s salaries, including the unearned portion between the date of payment and the last day of the month, are paid at that time.”
That exception only works for employees who are actually exempt. If an employee paid monthly is later found to be misclassified, the monthly schedule becomes a section 204 violation on top of the overtime claim. Monthly payroll also requires paying the full month by the 26th, including days not yet worked.
Union contracts can set their own schedules. Under subdivision (c), when employees are covered by a collective bargaining agreement “that provides different pay arrangements, those arrangements shall apply to the covered employees.”
When does overtime have to be paid?
By the next regular payday. The statute says “all wages earned for labor in excess of the normal work period shall be paid no later than the payday for the next regular payroll period.”
That gives payroll a short grace period for overtime that comes in after the cutoff. An employer can correct the hours on the next wage statement, and the statute says it complies with the hours-reporting rule “if hours worked in excess of the normal work period during the current pay period are itemized as corrections on the paystub for the next regular pay period.” The correction must “state the inclusive dates of the pay period for which the employer is correcting its initial report of hours worked.” Overtime that slips past the next payday doesn’t get that protection.
What is the penalty for a late paycheck?
A per-employee, per-failure penalty under section 210. It provides “For any initial violation, one hundred dollars ($100) for each failure to pay each employee,” and for “each subsequent violation, or any willful or intentional violation, two hundred dollars ($200) for each failure to pay each employee, plus 25 percent of the amount unlawfully withheld.”
The penalty is “entirely independent and apart from, any other penalty” in that part of the Labor Code. It can be pursued two ways. The statute says it “shall either be recovered by the employee as a statutory penalty pursuant to Section 98 or by the Labor Commissioner as a civil penalty through the issuance of a citation.” Section 98 is the Labor Commissioner’s wage claim process, so an individual employee can seek the penalty in a Berman hearing.
There’s a limit on double recovery. Subdivision (c) says, “An employee is only entitled to either recover the statutory penalty provided for in this section or to enforce a civil penalty as set forth in subdivision (a) of Section 2699, but not both, for the same violation.” For an employer facing both a wage claim and a PAGA notice over the same late payroll, that sentence matters.
What defenses does an employer have?
The strongest is the calendar. Many late-pay claims fall apart once the payroll period’s closing date is checked against the actual pay date, because the seven-day rule under subdivision (d) gives more room than employees often think.
The second is the difference between a first violation and a willful one. The $200-plus-25-percent tier applies to “each subsequent violation, or any willful or intentional violation.” A one-time processing error that payroll fixed quickly is a first violation in most cases. A pattern, or a decision to hold paychecks during a cash crunch, is not.
The third is the posting. Labor Code section 207 requires a notice “specifying the regular pay days and the time and place of payment.” A posted schedule establishes what the regular payday was, and it’s the first document an employer should find when a claim arrives.
How do the payday rules compare?
| Situation | Deadline | Source |
|---|---|---|
| Semimonthly, work from the 1st to the 15th | Between the 16th and the 26th of the same month | Lab. Code § 204(a) |
| Semimonthly, work from the 16th to month end | Between the 1st and 10th of the next month | Lab. Code § 204(a) |
| Weekly or biweekly payroll | Within seven calendar days after the period closes | Lab. Code § 204(d) |
| Exempt salaried employees paid monthly | By the 26th, including the rest of the month | Lab. Code § 204(a) |
| Overtime worked after the normal period | By the next regular payday | Lab. Code § 204(b)(1) |
| Penalty for a first late payment | $100 per failure, per employee | Lab. Code § 210(a)(1) |
| Penalty for a later or willful late payment | $200 per failure, per employee, plus 25 percent of the amount withheld | Lab. Code § 210(a)(2) |
What should an employer do once a late-pay claim arrives?
Payroll data decides these claims. Pull it before responding.
- Preserve the payroll registers, bank and direct deposit records, pay period schedules, timekeeping data, the posted payday notice, and any messages with the payroll vendor about the delayed run.
- Calendar the response deadline on the wage claim, citation, PAGA notice, or complaint, and check for an arbitration agreement and an employment practices liability (EPLI) policy with notice requirements.
- Identify who in payroll and finance handled the late run and why it was late, and make sure no one takes action against the employees who complained.
- Compare each pay date with the close of its payroll period under the seven-day rule, and separate first-time errors from any repeat pattern.
- Talk to a lawyer before paying penalties or back wages, so any payment is structured to resolve the claim and doesn’t concede willfulness.
For employment claim defense for California businesses, the firm’s practice page describes how it handles wage claims.
Late paycheck questions from California employers
Is a direct deposit that posts a day late a violation?
It can be. The statute measures timeliness by when wages are “paid,” and a deposit that isn’t available on payday invites the argument that the wages weren’t paid on time. Employers should build processing time into payroll schedules around bank holidays so the deadline doesn’t depend on a same-day transfer.
Can we pay employees once a month?
Only exempt executive, administrative, and professional employees, and only if the full month’s salary is paid by the 26th. Nonexempt employees must be paid at least twice a month or under the weekly or biweekly rule in section 204. Paying hourly staff monthly is an easy violation for a claimant to prove, because the pay dates alone show it.
Does the section 210 penalty apply to final paychecks?
No. Final pay is governed by different statutes, and the remedy for late final pay is waiting time penalties under Labor Code section 203. Section 210 covers wages owed during employment under section 204 and several related payday statutes. An employer facing both kinds of claims should analyze them separately.
Can we change our paydays?
Yes, with advance notice and a new posting. The statute requires paydays “designated in advance,” and section 207 requires the schedule to be posted. Make sure the transition pay period still meets the deadlines, so the first check under the new schedule isn’t late.
If a late-pay claim reaches your company
If your company has received a wage claim, citation, or PAGA notice over late paychecks, the payroll calendar and the posted payday notice usually decide how much of the claim is real. Rosenberger + Kawabata represents employers defending employment lawsuits and claims through its business litigation practice, including claims involving late wage payments. Contact Rosenberger + Kawabata online for a confidential consultation, or call (310) 894-6921.
Sources
The statutes are Labor Code section 204, Labor Code section 210, Labor Code section 207, and Labor Code section 203.
This post is general information about California employment law as of November 7, 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Employment statutes, regulations, and court decisions change often, and the outcome of any claim depends on its facts. Past results do not guarantee future outcomes.