As all of us know, there are a number of rules and laws that a business needs to abide by while in operation and also before its commencement of operations. It has to be done meticulously step-by-step so that the operations go on smoothly without any troubles or hurdles. Now, it is not just these laws that instruct and expect the business to be in a certain way but there are also laws that govern and dictate the payment of wages and issues related to it for a business.
These rules and laws are strictly followed in California where the employee is given the utmost importance and consideration. It covers not just the payment but also other payment related issues and there are many sections separately for each different problem. The California labor code section 203 talks about the final paychecks and the rights the employees have on their employers.
Final paycheck is something that is paid to an employee at the time of his voluntary or forced quitting of his job. Now, this law says that the employer will have to make this final payment on the same day when the employee leaves or within the time period given by the employee. This pay includes salary for even the extra days the business takes to make the final settlement. So the longer it is prolonged, the fatter becomes the compensation to the employee. But on the other hand, if the employee denies or avoids to collect this final payment that has already been dispatched by the company, then he will not be eligible for any extra payment for the number of days he delays.
In such cases, the company has the right to even file a suit against the employee within the statute of limitations, for keeping it on pending or for denying to accept it.