One Minute Legal Update – Adam Treiger – January 2023
At the end of December, 2022, the California Court of Appeal, in Parsons v. Estenson Logistics, LLC, held that for employees who are paid weekly, when the seventh calendar day following the close of the payroll period falls on a Saturday, wages may be paid the following Monday.
Why was this case brought in the first place? Because CA
Labor Code section 204(d) provides that wages for employees who are paid weekly must be paid “not more than seven calendar days following the close of the payroll period.” In this case, that was a Saturday, and the plaintiffs believed they were therefore paid 2 days late when they got their paychecks on Monday. This may sound like minutia, and it is. But Estenson Logistics had to fight a lawsuit over the issue. The lessons here are that paying attention to the minutia in the Labor Code is important for every employer, and that acting reasonably in the face of ambiguity sometimes can avoid liability.