When must my employer pay me if I am fired?

What the Law Says

California law sets strict deadlines for final wage payments when an employee is terminated — with serious penalties for late payment.

Under California Labor Code § 201, if an employer discharges (fires) an employee, "the wages earned and unpaid at the time of discharge are due and payable immediately." This includes not only base pay but also accrued but unused vacation time, earned commissions, bonuses, and other vested compensation.

The law treats accrued vacation as wages that vest as they are earned — meaning employers cannot enforce 'use-it-or-lose-it' policies. Once vacation time is earned, it becomes a form of deferred wages and must be paid out upon termination.

Failure to pay wages immediately triggers waiting time penalties under Labor Code § 203: one day’s wages for each day the payment is delayed, up to a maximum of 30 days. These penalties accrue daily — even on weekends and holidays — and are calculated based on the employee’s average daily wage.

Statutory Text

If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately.

— Labor Code § 201 — Wages upon discharge

Statutory Text

In case of willful failure to pay, the employee is entitled to a penalty of one day’s wages for each day the wages remain unpaid, up to 30 days.

— Labor Code § 203 — Penalty for failure to pay wages

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