How Is the Daily Rate of Pay Calculated and the Waiting Time Penalty Computed?
The following are examples of calculations of the daily rate of pay and computations of the waiting time penalty. In each instance, these examples assume all of the conditions for imposition of the penalty exist and that there is no good faith dispute that any wages are due. Example 1A security guard is discharged on Friday, July 12, 2002, and not paid all of her earned wages due until Monday, July 22, 2002, ten days later. She regularly worked 35 hours per week, Monday through Friday, and was making $8.00 per hour at the time of her termination. Daily Rate of Pay Calculation 35 hours/week , 5 days/week = 7 hours/day 7 hours/day x $8.00/hour = $56.00/day (daily rate of pay) Waiting Time Penalty Calculation 10 days, the number of days between the date the employer was obligated to pay the employee, July 12, 2002, and July 22, 2002, the date she is paid all of her wages. (See Labor Code Section 201, discharge of employee; immediate payment) 10 days x $56.00/day = $560.00 waiting time pen
