Articles / After you sign or leave
Your final paycheck after a layoff in California
When final wages are due, what has to be included, what you are owed whether or not you sign, and the penalty for late payment.
Last reviewed November 6, 2026. General information about California law, not legal advice.
The short answer
If you are laid off or fired in California, your final wages are due immediately, including vested vacation. If they are late, a daily waiting-time penalty can apply for up to 30 days. Wages you are already owed cannot be held back until you sign a release. Severance, by contrast, is usually offered in exchange for one.
When it is due
Under Labor Code 201, wages owed to an employee who is discharged or laid off are due immediately. That includes vested, unused vacation, which Labor Code 227.3 treats as wages paid at your final rate.
Owed no matter what, or offered for a release
It helps to sort the money in two columns.
Owed regardless of any agreement
- Final wages for hours you worked.
- Vested, unused vacation.
- Reimbursement of necessary work expenses (Labor Code 2802). A waiver of this right is void under Labor Code 2804.
Usually offered in exchange for a release
- Severance pay.
- Extra weeks of pay beyond your last day.
- Employer-paid health premiums.
- A neutral reference or faster vesting.
Labor Code 206.5 bars an employer from requiring a release of wage claims unless those wages have been paid. A genuine dispute about whether wages are owed can be settled, but money that is plainly owed is not a bargaining chip.
If it is late
Labor Code 203 adds a waiting-time penalty equal to your daily rate for each day the final pay is late, capped at 30 days. The penalty is not automatic. People claim it through the Labor Commissioner.
Check the pay statement
California requires an itemized wage statement with each payment of wages. Put the agreement and the final statement side by side. The total can match while the categories tell a different story, which can matter for taxes and unemployment.
Common questions
Can my employer make me sign a release to get my final paycheck?
Not for wages already owed. Labor Code 206.5 bars requiring a release of wage claims unless those wages have been paid, and the Labor Commissioner says undisputed wages must be paid without a release.
Does my unused vacation have to be paid out?
Yes. Under Labor Code 227.3, vested vacation is paid as wages at your final rate.
What if my final paycheck is late?
Labor Code 203 provides a waiting-time penalty of your daily wage for each day it is late, up to 30 days. It is claimed through the Labor Commissioner.
Not legal advice
This article explains how California and federal rules generally work. It does not tell you what to do in your situation, and reading it does not create an attorney-client relationship. Every example on this site is a fictional story. For advice, seefree and low-cost help in California.