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Reference: California Labor Code

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December 17th, 2001
To: [business owners full name]
CC: All [store locations] Staff
From: Marlene Bruce
Re: Paychecks and California Labor Laws

In light of the fact that pay dates and paycheck delivery seems to be inconsistent, I have researched California Labor Code and wish to share my findings. Hopefully this knowledge will assist all of us in understanding California law, and that it will be followed accordingly (i.e., we receive our paychecks on the dates stated below).

California Labor Code, Section 204 states:

All wages, other than those mentioned in Section 201, 202, 204.1, or 204.2, earned by any person in any employment are due and payable twice during each calendar month, on days designated in advance by the employer as the regular paydays.

[Deleted section on pay periods that don't apply to us.]

The requirements of this section 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.

If indeed our pay periods end on the 7th and 22nd (as I've been told), in order to meet Labor Code 204, we should be receiving our pay checks no later than the 14th and 29th respectively (or in the case of a non-leap year, March 1st for February's second pay period).

Delivering paychecks later than the 14th and 29th breaks California law.

Further, California Labor Code, Section 207 states:

Every employer shall keep posted conspicuously at the place of work, if practicable, or otherwise where it can be seen as employees come or go to their places of work, or at the office or nearest agency for payment kept by the employer, a notice specifying the regular pay days and the time and place of payment, in accordance with this article.

While it is practicable to have a note with pay dates, times and locations posted at the Palo Alto [store], no such document is present. Assuming there also is no document posted at "the office or nearest agency for payment kept by the employer," this too is a violation of California Labor Code. If such a document exists, I respectfully request that it be faxed to the Palo Alto [store] so that employees here may review the document.

The only document mentioning pay dates is one copy of an outdated (October 1995) "Personnel Policies and Procedures" manual. It states in Policy #003, "Hours of Work and Pay Dates," Section III. B.:

Paydays. Employees are paid semi-monthly. Pay period ends on the 15th of each month and the last working day of the month. It is each employees responsibility to deliver their time card to their manager by the end of the first working day after the end of the pay period. Employees are paid approximately six working days from when time sheets are due. Failure to properly submit time cards will result in pay being accumulated in the subsequent pay period.

As can be clearly seen, the document states pay period ending dates that conflict with what is currently in practice. Practice supercedes the written manual, so even that document cannot fulfill Section 207 of the California Labor Code. (Not that it would anyway, because despite the title of the section, Policy #003 doesn't actually state pay date, time or location.)

Regarding your memo, "Procedural Issues," dated December 15th, 2001, the document does nothing to address California Labor Code. Seven days to produce payroll checks is standard procedure for most businesses across the US (as reflected in the Labor Code), and does not constitute an extraordinary hardship or unreasonable difficulty on your part.

Finally I would like to express my unconditional disagreement with your stated $50-100/day penalty for late timesheets. Upon my hiring I signed nothing which agreed to such a penalty, and your assertion that I, as an employee, must agree to such terms is not legal. I would like to similarly assert that if my paycheck is not delivered to me on the 14th or 29th (their legal due dates), than I would fine you $50 for the first day late, and $100 per day for each day, including partial days, late thereafter. I would venture to guess that the California Labor Commission would find both assertions non-binding, and laughable to boot.

(I would recommend that all employees who disagree with your "timesheet penalty" assertions in the December 15th memo make that disagreement known in writing, so they are not in agreement by default.)

In closing, I would like to remind you, Tim, that our next pay date is by law December 29th, and not on January 1st, 2nd, or any day after December 29th.

I will expect to see my paycheck, appropriately submitted commissions included in full, on December 29th. My timesheet and all associated paperwork will be submitted on time.

Thanks,
Marlene Bruce