What to Know

Payment and Protection of Wages

Paycheck protection in Los Angeles, California.

These are your wages - you should collect every dollar.

If you pay a fee to cash your paycheck or withdraw your wages with a payroll card or payroll debit card, or your paycheck bounces, call us at 888-762-0297 to discuss your case.

We do not charge for consultations.

We can help clients in Los Angeles and throughout California who have paid a fee to cash their paychecks, get their wages with a payroll card or have been paid with a bad check.

Paycheck Laws in California

While employers have some flexibility in how they pay employees, state and federal laws govern how wages are paid. When it comes to employee rights, especially the right to be paid on time and in full, California may be the most protective state. When and how you must be paid while employed or when you quit or are terminated, and your right to collect your wages without paying a fee is covered by California laws.

Paying a Fee to Cash Your Paycheck

Section 212 of the California Labor Code requires employers to make arrangements for employees to get their wages in full (without paying a fee). Suppose a bank normally imposes a fee to cash paychecks from non-customers. In that case, the Labor Code states that the employer must make some arrangements to comply with the law, such as arranging for the checks to be cashed without charge by the bank or by designating a location in California where the check can be cashed for free and stating the name and address of that facility on the check.

Section 212 protections extend to any wages paid or advanced by “instant pay” or “earned wage access” applications. These types of applications offer people the chance to cash their wages before the actual pay date. Even though the fees associated with such applications are nominal, they are still prohibited under California’s state labor code. For some businesses, the solution is to pay the fees on behalf of their employees, effectively eliminating the problem.

It is important to note that the statutes governing paychecks and pay stubs do not prohibit the use of an out-of-state bank so long as the employer provides their employees with a location in California where they can cash their paycheck without delay and without paying a fee. This requirement allows companies to use peer-to-peer payment applications so long as they adhere to the laws surrounding fees and wage statements.

Penalties Against Employers for Paycheck Fees

In regard to an employee’s wages, an employee cannot delay, withhold, or restrict pay in any manner—this includes requiring a fee to collect a paycheck. The state of California specifies that if an employer withholds pay from an employee without justification, the penalty is $100 per day for the first infraction and $200 per day for any subsequent violations. The employer may be charged additional fees. Furthermore, even if you and your employer disagree on the amount of compensation you are owed, your business still has a legal obligation to pay you on time or face penalties.

If you pay a fee to cash your paycheck or to get your wages with your Payroll Card, call 888-762-0297.

What Happens If My Paycheck Bounces?

In the occurrence of a bounced paycheck, California state laws have a few solutions that govern. According to the California Labor Code, if you deposit your paycheck, and it bounces, wages and benefits will continue until the check is made good. Penalties can continue up to 30 days or until an action is filed against the employer.

Direct Deposits and Pay Cards

Employers must generally pay their employees in a negotiable and cash-payable form. Employers can offer employees payment of wages by payroll card or direct deposit, under California Labor Code section 213, but cannot require it. For example, checks are a cash-paying type of payment because they can directly be deposited for cash at a bank. However, an employer may not use a payment method that forces the employee to pay a fee to cash or collect your wages. As a result, an employer cannot issue a check from a bank that charges a fee to cash it unless they make arrangements to cover the fees. Similarly, if an employee is paid by a payroll card, they must be able to collect all of their wages without paying a fee at least once per pay period.

Developments in California Paycheck Laws

Over the last couple of decades, California has released various regulations governing how employers pay their employees. The main takeaway from these laws is the word “voluntary.” An employer cannot force an employee into any form of payment without their consent. Employees must voluntarily elect to receive their wages by direct deposit, payroll card, or payment through any specific application.

Payroll and Wage Statement Requirements

Moreover, if employers do not adhere to the payroll and wage statement requirements under the California Labor Code, they will be subject to strict fines and penalties that will endure until they change their payment structure.

For more information

If you’ve been forced to pay a fee to get all of your wages by direct deposit, payroll card, you’ve been forced to pay a fee to get your wages or cash your paycheck, or your paycheck has bounced, you should reach out to an employment attorney to discuss your case. Contact the Sempers Law Firm at 888-762-0297.

We work on a contingency basis, so there are no fees unless we negotiate a settlement or there is a verdict in your favor. We also advance the costs involved, which are only reimbursed after a successful recovery on your behalf.

We can help clients in Los Angeles, Sacramento, Santa Barbara, San Diego, San Bernardino, Santa Clara, San Francisco, San Jose, Oakland, Orange County, and everywhere else in California. California.

Last updated on October 15, 2021.

Related Articles

• California California Department of Industrial Relations on Payment of Wages with Payroll and Debit Cards.

• California Labor Code 212 - Payment of Wages.

• California Labor Code 213 - Payment of Wages.