Terminated final pay questions

What is the name of your state?What is the name of your state? California
I have been given notice that my last day with this company is Dec. 31, 2004. They are eliminating my possition. My question is am I due all pay owe me on that day? We are paid a week in the rears, so my company thinks they can give me my last check in Jauary instead of paying me all owed me on my last day. Is this correct? Wont that actually give me a weeks pay in January for TAX purposes, when I actually worked it in Dec.? Thanks for all your help. Auntie

Yes, you are due all your pay on that day. CA statutes say that an employee who is involuntarily terminated must receive their final pay "at once" - which also must include payment for any vacation you have earned but not taken.

P.S. "We are paid a week in the rears" You mean a week in arrears.

Terminated

Beth3 said:

Yes, you are due all your pay on that day. CA statutes say that an employee who is involuntarily terminated must receive their final pay "at once" - which also must include payment for any vacation you have earned but not taken.

P.S. "We are paid a week in the rears" You mean a week in arrears.

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Yes I meant arrears. They are giving me a severence pay for 4 weeks and are going to be paying me a week at a time for that. I guess since severence is a gift, they are allowed to pay it out anyway they want????

Correct. They are NOT obligated to pay your severance in full on your last day of work; only your earned wages and your vacation pay.

Yes, they may pay your severance any way they wish to, including on a salary continuation basis. Besides, you don't want all that lumped into the same calendar year. Chances are you'll pay less in income taxes if they pay your severance out in 2005 rather than add it to your 2004 wages.

Thank you for all your help. You are correct, I did not want to take the severence in 2004. But I do want all my wages earned in 2004 to be reported in 2004, not the last week in 2005. Do you know where I would find this in the labor code? My corporate office is in CT and they dont always know the labor laws for CA.

Sorry - I can't give you the statute reference. Perhaps cbg can.

If not, then this is the web address of CA's DOL: http://www.dir.ca.gov/ It'll be in there somewhere.

Try this:

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=lab&group=00001-01000&file=200-243

Thank you cbg and Beth3 for all your help.
Have a great day.

You're very welcome.