What is considered a "good faith" argument for an employer for a late payment of a last paycheck?

Question

Normally the law states that if you resign, your employer must pay you within 72 hours (in California). I am going to file a wage claim with the DLSE but I was curious as to what a "good faith" argument consists of?

Answer 1

A good faith argument might be that all of the payroll functions are handled by a third party entity (an outside company or accountant), and that party could not issue the check in a timely manner for some reason. Another argument might be that there was some documentation that they gave you to complete that you failed to complete (or complete totally) on which they are dependent to issue you a paycheck.

I've seen a lot of these cases over the years and haven't yet seen a case where an employer claimed a good faith argument that the court accepted. I don't know California law, but there may be additional penalties added because the employer did not issue the final check in a timely manner.

Good luck to you.

P.S. - quick response to the questioner regarding the answer saying that the employer usually has until the next payroll cycle to issue the check - this is NOT true for most states, although employers would like you to think so.

Answer 2

In Ca. they have to have the money ready for you at the time of separation, or no later then 24 hours I think. It is not the normal time. A good faith argument would be if they are investigating any of the former employees actions. Possible fraud, embezzlement, or theft charges that are pending might be a reason money is not given. They can also hold a check if they are waiting on items to be returned to them. A uniform, paper work, keys to the office, stuff like that.
It will look better for you if there is a hearing if you let the employer know what you are doing. The judge is going to ask you what steps did you take to get the money. If you just say. "well, I waited home all day and they did not bring it to me, so I am here" they will not be to supportive of that. But if you are past one week, and they are not asking you for anything, and you have notified them, then use the DLSE, they are there for you..
b

Answer 3

Usually an employer can wait until the next normally scheduled pay day to give you your last paycheck. If they make you wait longer than that then you would definitely have a case.