May 4, 2023

California Supreme Court Confirms Next Business Day Pay Practice

A refusal by the California Supreme Court to review the case Parsons v. Estenson Logistics, LLC leaves in place a Third District Court of Appeals ruling confirming that where an employee’s “weekly paid wages are due on a weekend or holiday, they may be paid on the next day that is not a holiday.”

Parsons brought a Private Attorneys General Act (PAGA) action against his employer claiming its practice of paying weekly wages due on Saturday on the following Monday violated California labor laws allowing for the payment of weekly wages so long as “the wages are paid not more than seven calendar days following the close of the payroll period.”[i]

The Court reasoned that a strict reading of the Labor Code does not take into account or give effect to provisions of both the California Civil Code and Code of Civil Procedure which extend nearly all legal and contractual deadlines for performance – when the last day to perform falls on a weekend or holiday – to the next day that is not a holiday.

The Parsons ruling provides clarity on a previously assumed, but not established, pay practice. It also lends support to existing Division of Labor Standards Enforcement guidelines that have for many years advised that wages due on a weekend or holiday may be paid on the next business day.


[i] Cal. Lab. Code Section 204.