The California Supreme Court recently confirmed that California Labor Code Section 204 requires employees to be paid on weekends.
In the case Parsons v. Estenson Logistics, an employee sought to pursue claims under California’s Private Attorneys General Act (PAGA), alleging he was consistently paid two days late each week because his employer paid wages due on Saturday on the following Monday, which violated California Labor Code section 204, requiring that weekly-paid employees get paid within seven calendar days after the end of each weekly payroll period.
The Company used a standard Sunday-through-Saturday workweek and paid its California employees every week, meaning the seventh day following a workweek fell on Saturday. Because the Company’s administrative offices were closed, and banks were not open on weekends, the company issued paychecks the following Monday.
The Company argued that this schedule is consistent with the State of California’s longstanding position on the subject. The Division of Labor Standards Enforcement’s (DLSE) published guidelines have explained for nearly 20 years that wages due on a weekend or holiday may be paid on the next business day.
A trial court judge held that, while the DLSE Manual is not binding on the court, it is a reasonable interpretation of California’s law. On appeal, the Third District Court of Appeal also sided with the Company, but stated that it “cannot … adopt an interpretation of section 204(d) that wholly ignores section 12a, and must instead adopt an interpretation that gives effect to both.” Since 12a extends deadlines for “all … provisions of law,” the deadline to pay wages may also be extended.
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The published Third District Court of Appeal decision means that wages that would be due on a weekend under California labor law may be paid on the next day that is not a weekend or holiday (i.e., the next Monday, or the next Tuesday if that Monday is a state-recognized holiday).
While this previously was how the law was being interpreted and applied, it was technically an unanswered question of law. The decision by the Third District Court of Appeal now provides clear guidance for all California employers that wage payment deadlines follow the same procedural rules as any other legal deadline.
