California Labor Code 204 Overview and Examples
Legally reviewed by: Jessica Anvar Stotz, JD, MBA
California Labor Code 204 primarily covers the payment of wages for employees in California. It describes timeframes within which employees must be paid, depending on which part of the month it is. For example, work done between the 1st and 15th must be paid for between the 16th and 26th of that month.
California Labor Code 204 Explained in 90 Seconds
The main purpose of California Labor Code 204 is to provide stable and predictable payment timelines for employees. It states that employees must be paid twice a month for the work they do, and the dates of their payment must be decided ahead of time by the employer. Work done between the 1st and 15th must be paid between the 16th and 26th of that month, and work done between the 16th and the end of the month must be paid between the 1st and 10th of the next month. California Labor Code 204 creates an exception for executive, administrative, and professional employees in specific types of employment, who can be paid once a month instead of twice.
California Labor Code 204 also states that any overtime earned must be paid within two paydays; in other words, overtime earned between the 1st and 15th of a month does not need to be paid until the 1st and 10th of the next month. Employees under a collective bargaining agreement with different payment arrangements have those arrangements applied. Finally, in general, so long as wages are paid within seven days of the closing of the payroll period, California Labor Code 204 is satisfied.
The Basics of Payday Frequency Under Labor Code 204
In general, employers must pay their employees twice a month on designated days under California Labor Code 204. These days must be within the timeframes already mentioned: either between the 16th and 26th or between the 1st and 10th, depending on when the work was done.
Some specific employees have exceptions carved out for them under Labor Code 204. These employees include executive, administrative, and professional employees under certain sections of the Fair Labor Standards Act can be paid only once per month. Additionally, employees who are under a collective bargaining agreement that have decided on some other payment arrangement are entitled to that arrangement.
How Often Should I Get Paid? Understanding the Two Pay Periods
There are two timeframes in which an employee should be paid by their employer, and each corresponds to a particular working period. For work done between the 1st and 15th, payment must take place between the 16th and 26th of that month, and work done between the 16th and the end of the month must be paid between the 1st and 10th of the next month.
For example, an employee works 35 hours between May 1st and May 15th. His employer must pay him for those hours between the 16th and 26th of May. Most likely, the employer will have declared a particular date within that timeframe (May 20th, for example) that the employee will regularly be paid on.
Exceptions to the Twice-Monthly Pay Rule
As mentioned, there are exceptions to the twice-a-month payment rule. The first of these is the paying of executive, administrative, and professional employees. These employees can have different pay periods outlined in their employment contracts but must still be paid once a month at least.
The second exception is employees paid weekly, biweekly (twice a week), or semi-monthly (twice a month). For these employees, so long as they are paid within seven days of the close of the payroll period, they satisfy California Labor Code 204’s standards. For example, an employee who is paid weekly and works from the 1st to the 5th, with his pay period closing on the 7th, must be paid by the 14th (7th plus seven days).
What Happens if My Employer Doesn’t Pay me on Time?
Employers typically face consequences for not paying their employees on time. California Labor Code 203 provides a “waiting time penalty” that employers face if they don’t pay their employees on time. This penalty is equal to a day’s worth of wages for each day the payment is late, capped at 30 days. This means if an employee is paid four days late, the employer is penalized by four days of that employee’s wages and the employee gets that penalty when they are paid.
When an employer fails to pay an employee on time, employees can file a wage claim with the California Division of Labor Standards Enforcement, or DLSE. These claims require some information from the employee filing, like the name and address of the employer being filed against and the employee’s payment information like hours worked and breaks taken. Wage claims can be filed through the mail, in person, online, or via e-mail.
Example Scenarios
Example 1: Employer Fails to Pay Employee Within the Designated Pay Period
- Scenario: A newly hired employee at a company is not told which day he will receive payment for his work. He begins work on the 5th of the month and is not paid until the 3rd of the following month.
- Violation: Employer did not designate a payday and failed to pay within the proper timeframe.
- How Labor Code 204 Protects: California Labor Code 204 requires that employers provide a specific date on which employees will be paid. Additionally, in this scenario, the employer failed to pay the employee within the necessary period. For work done between the 1st and the 15th, the employee should have been paid between the 16th and the 26th.
Example 2: Employer Refuses to Honor Collective Bargaining Agreement of Employee
- Scenario: A teacher’s union succeeds in establishing a particular payment schedule for the teachers in a school district. A teacher in that district is not paid on the schedule agreed upon in the agreement.
- Violation: Employer not honoring collective bargaining agreement.
- How Labor Code 204 Protects: Under California Labor Code 204, employers must honor the schedules decided on with a collective bargaining agreement.
Example 3: Employer Pays Overtime Hours Late
- Scenario: A fast-food worker works 10 hours of overtime one week under instructions from her employer. Her employer does not pay the overtime wages until three pay periods later.
- Violation: Improper delay in payment of overtime hours.
- How Labor Code 204 Protects: Overtime wages accrued by employees must be paid within two paydays of the hours being earned. In this case, the employee would have needed to be paid the overtime hours either on the immediately next payday or the one after that.
Tips for Keeping Track of Your Pay and Paydays
Staying on top of your pay is one of the best ways for an employee to hold their employer accountable when they violate payment labor codes. This can be done in a number of ways. Employees should keep records of their paystubs and work hours to make sure they receive proper payment. Similarly, employees should familiarize themselves with their payment schedule and be aware of the days they should be getting paid. Finally, if an employee suspects they have been paid late, they should speak up and mention it to their employer so that the defect in payment can be remedied.
Resources for Employers and Employees
- California Labor Code 203
- California Labor Code 204
- California Department of Industrial Regulations
- California Department of Industrial Regulations: How to File a Wage Claim
- California Department of Industrial Regulations: Required Documentation for a Wage Claim
- California Department of Industrial Regulations: Waiting Time Penalty
Contact a Qualified Attorney
If you are an employee who has had their wages paid late, or your employer has not designated a particular day for your wages to be paid on, you may have a claim under California Labor Code 204. The purpose of California’s labor laws is to safeguard workers against employer wrongdoing; however, their application is contingent upon workers filing claims against their employers. Seeking legal advice is the next step for an employee who finds themselves in such a situation. LawLinq can connect you with an experienced and skilled employment attorney who can help you navigate your claim and provide you with available options. Contact us today by calling (855) 997-2588 or fill out an online form here!
