California — Termination

California employment is presumed to be at-will. Labor Code § 2922 provides: "An employment, having no specified term, may be terminated at the will of either party on notice to the other." A "specified term" under the statute means employment for a period greater than one month. This establishes the baseline rule that either employer or employee may end the relationship at any time, for any lawful reason or no reason, with or without advance notice. The at-will presumption can be displaced by an express or implied contract or by statute. While § 2922 itself does not enumerate exceptions, other California and federal statutes and case law prohibit termination for unlawful reasons—including discrimination, retaliation for protected activity, and violation of public policy.

Source: Cal. Lab. Code § 2922

California imposes strict, immediate deadlines for final wage payments that vary based on whether the employment separation is involuntary (discharge or layoff) or voluntary (resignation). The timelines are prescribed by Labor Code §§ 201–202, and non-compliance triggers substantial waiting-time penalties under § 203.

## Involuntary termination — immediate payment required

When an employer discharges or lays off an employee, all wages earned and unpaid at the time of discharge are due and payable immediately. Cal. Lab. Code § 201. "Immediately" means at the moment of termination; the employer must tender the final paycheck at the time and place the employee is notified of discharge. The statute does not permit the employer to defer payment until the next regular payday or until the final hours worked can be verified through the payroll cycle.

Final wages include regular pay for all hours worked through the last moment of employment, any accrued and unused vacation or paid time off (California treats accrued vacation as vested wages that cannot be forfeited), overtime pay, and any earned commissions or non-discretionary bonuses that are readily calculable at the time of separation.

Seasonal exception: An employer who lays off a group of employees by reason of the termination of seasonal employment in the curing, canning, or drying of perishable fruit, fish, or vegetables is deemed to have made immediate payment when wages are paid within 72 hours, provided payment is made by mail to any employee who requests it and designates a mailing address. Cal. Lab. Code § 201.

## Voluntary resignation — 72-hour rule with notice exception

When an employee voluntarily quits, the final-paycheck deadline depends on whether the employee gave advance notice. Cal. Lab. Code § 202.

• At least 72 hours of advance notice: If the employee provides at least 72 hours' notice of the intent to quit, the employer must pay all final wages immediately on the employee's last day of work.
• Less than 72 hours' notice or no notice: If the employee quits without providing 72 hours of advance notice, the employer has 72 hours from the time of the employee's separation to issue final wages. The 72-hour period comprises calendar days, not business days, and includes weekends and holidays.

The employee may request that the final paycheck be mailed to a designated address; in that case, the date of mailing constitutes the date of payment for compliance purposes.

## Waiting-time penalties for late payment — § 203

An employer who willfully fails to pay final wages within the deadlines established by §§ 201 or 202 becomes liable for waiting-time penalties under Labor Code § 203. The penalty equals the employee's daily rate of pay for each calendar day the payment is late, up to a maximum of 30 days.

"Willful" in this context means the employer knew the wages were due and failed to pay them; malicious intent is not required, but a good-faith dispute over the amount owed may provide a defense. The daily rate is calculated by dividing the employee's total wages in the most recent pay period by the number of days worked during that period.

Example: An employee earning $200 per day is terminated on June 1 but does not receive the final paycheck until June 16 (15 calendar days late). The employer owes $3,000 in waiting-time penalties ($200 × 15 days) in addition to the unpaid wages themselves.

Employees cannot trigger penalties by secreting themselves to avoid payment or by refusing a full and proper tender of final wages. Cal. Lab. Code § 203.

## Enforcement and remedies

Employees may file a wage claim with the California Division of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner's Office, or may pursue a civil action. Suit for waiting-time penalties may be filed at any time before the expiration of the statute of limitations on an action for the underlying wages. Cal. Lab. Code § 203.

Source: Cal. Lab. Code § 201 Source: Cal. Lab. Code § 202 Source: Cal. Lab. Code § 203

California Labor Code § 2802 requires employers to reimburse employees for all necessary expenditures or losses incurred as a direct consequence of their employment. This obligation is distinct from the final wage payment rules established by Labor Code §§ 201–202. While §§ 201 and 202 impose immediate or 72-hour deadlines for all wages owed at the end of employment, § 2802 does not impose a statutorily fixed deadline for reimbursing expense claims at or after termination.

No set statutory deadline tied to termination

Section 2802(a) provides that employers must indemnify employees “for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” However, the text does not dictate a specific timeframe for payment of such reimbursements, whether during employment or after separation. Unlike wage statutes, § 2802 is silent as to whether expense claims must be paid with the final paycheck or on a set calendar schedule after an employee leaves.

Remedies for delayed reimbursement

If an employer fails to reimburse a valid business expense, the employee may recover the amount due, plus interest from the date the expense was incurred (subsection (b)), and reasonable attorneys’ fees if they prevail in litigation (subsection (c)). Again, no provision in § 2802 addresses a waiting-time penalty or an “immediate” deadline analogous to § 201 for wages.

Statutory silence and absence of regulatory interpretation

As of this writing, there is no published regulation, DLSE opinion letter, or appellate decision setting a universal deadline for the timing of business expense reimbursement at separation. The obligation is triggered once the employer “knows or has reason to know” that an employee incurred a necessary expense (which can arise after employment ends if a claim is submitted post-separation), but the law and regulatory guidance are silent on a mandatory payout schedule pegged to termination. If new DLSE guidance or case law addresses this issue, it should be monitored separately.

In summary: There is no explicit statutory, regulatory, or judicial rule requiring payment of expense reimbursements on the same timeline as final wages under §§ 201–202. Employers remain liable to reimburse necessary business expenses within a reasonable period but are not held to an “immediate” deadline by the text of § 2802.

Source: Cal. Lab. Code § 2802

California employers are not required to pay out accrued, unused paid sick leave under the Healthy Workplaces, Healthy Families Act (HWHFA) at termination, resignation, or other separation from employment.

Statutory rule (Labor Code § 246)

Labor Code § 246(g)(1) sets the rule: “An employer is not required to provide compensation to an employee for accrued, unused paid sick days upon termination, resignation, retirement, or other separation from employment.” This policy is a major departure from the California rule for accrued vacation or paid time off (PTO), which are considered vested wages and must be paid out at separation under Labor Code § 227.3. But the Legislature drew a sharp line for sick leave under HWHFA: sick leave does not vest, and payout at separation is not required.

Exception for rehire within 12 months

Labor Code § 246(f)(2) provides a limited exception: if an employee separates and is re-hired by the same employer within 12 months, any accrued and unused paid sick days must be restored (but still need not be paid in cash at separation). This ensures continuity for employees who return after a short break in service but does not turn the sick leave into a cash entitlement at exit.

DLSE guidance and enforcement

The Division of Labor Standards Enforcement (DLSE) enforces this no-payout rule in published FAQs and enforcement materials, reiterating that unused paid sick leave does not need to be paid out as part of final wages. This makes California relatively unusual: some local ordinances in other states (but not California state law) require payout of sick leave — check those overlays where relevant, but California’s state HWHFA does not.

Takeaway:

• Accrued but unused paid sick leave under the HWHFA is not treated as a vested wage and does not have to be paid at separation.
• If rehired within 12 months, restore the sick leave balance, but no cash payout is required at the time of separation.

Source: Cal. Lab. Code § 246

California law requires immediate payment of all wages due at termination, but what if earned commissions or bonuses are not “readily calculable” (that is, not yet fully ascertainable) at the time the employment relationship ends? The rule—and its exceptions—are clarified by statute, DLSE enforcement guidance, and agency FAQs.

General rule — Immediate payment if calculable

Under Labor Code §§ 201 (termination) and 202 (resignation), all wages—defined broadly to include earned commissions and non-discretionary bonuses—must be paid at the time of separation if the amount can be calculated. If a commission has been fully earned (no condition precedent remains) and its amount can be determined, it must be included in the final paycheck on the separation date (immediately if discharged, or within the 72/next-day rule if resigned, per the usual deadlines).

Exception: Not readily calculable at separation

When a commission or bonus has been earned (i.e., all conditions for earning it are met) but its exact amount cannot be readily calculated at the moment of termination, the employer is not permitted to simply delay payment to the next regular payday under usual payroll schedules. Instead, California DLSE guidance is explicit: payment must be made "immediately upon ascertainment, regardless of the employer's normal payroll practices." (DLSE Enforcement Manual, § 6.3.2; see also DLSE Final Paycheck FAQ.)

• Example: Sales commission is earned but math requires a post-termination deduction (e.g., returned products) that isn't clear yet. As soon as the final amount is known, payment is due—do NOT wait for next pay cycle.

Commissions not yet earned

If the right to a commission depends on a condition precedent (for example, the employer must receive customer payment before the commission is "earned"), then it's not yet due at termination. But once the condition is satisfied post-separation, the commission immediately becomes "wages" and must be paid at that time—again, not simply on the next regular pay date.

Enforcement and penalties

The rule is strict: delay beyond immediate availability (either at separation or, if not calculable, upon ascertainment) triggers waiting time penalties under Labor Code § 203, calculated up to 30 days’ pay.

DLSE and case law

This immediate-upon-ascertainment rule is repeatedly affirmed in DLSE guidance and reflected in case law (see e.g. DLSE Enforcement Manual, § 6.3.2).

Key takeaway: California does not allow employers to defer post-termination payment of commissions or bonus wages until the next scheduled payday if the amount is known sooner.

Source: Cal. Lab. Code § 201 Source: Cal. Lab. Code § 202 Source: DLSE Final Paycheck FAQ Source: DLSE Enforcement Manual § 6.3.2

California overlays federal WARN requirements with its own version, codified at Labor Code §§ 1400–1408 (the "Cal-WARN Act"). Cal-WARN applies to private businesses with 75 or more employees (counting both part-time and full-time employees, including those employed in the preceding 12 months), who conduct a mass layoff, relocation, or termination as those terms are defined by statute.

Who is covered: Cal-WARN governs private employers with 75+ employees (excluding some government and nonprofit entities). Events triggering coverage include:

• "Mass layoff": 50 or more employees laid off at a single site within any 30-day period.
• "Relocation": moving all or substantially all operations 100+ miles.
• "Termination": cessation of all operations at a facility.

Notice requirements:

• Employers must give at least 60 days’ written notice before a covered mass layoff, relocation, or termination.
• Notice must be provided to affected employees, the state Employment Development Department (EDD), the local workforce development board, and the chief elected official of the local government where the site is located.

Content of notice:

• Until December 31, 2025, the written notice elements are set by Labor Code § 1401.
• Effective January 1, 2026, SB 617 amends § 1401(b): Each WARN notice must newly state whether the employer will coordinate Rapid Response services, provide information about the availability of services (including CalFresh and EDD programs), and must furnish specific contact information for those services. The required content list is expanded and more detailed—review the amended § 1401(b) and EDD Information Notice WSIN25-14 for implementation guidance. Employers contemplating layoffs or closures in 2025–2026 should update their WARN protocols now to ensure full compliance by the 2026 effective date.

Exceptions and emergencies: Emergency and faltering-company exceptions (Labor Code § 1402.5) are narrower than their federal WARN counterparts. The temporary COVID-19 suspension of advance notice, authorized by Executive Order N-31-20, is no longer operative as of mid-2023.

Remedies: An employer who fails to provide timely and compliant notice is liable for up to 60 days’ back pay and benefits for each affected employee, plus civil penalties (Labor Code § 1402).

Recent change summary:

• SB 617 (2023), effective January 1, 2026, expands the content requirements for Cal-WARN notices; employers should closely follow amended § 1401(b) and EDD administrative guidance.

Source: Cal. Lab. Code §§ 1400–1408 Source: Cal. Lab. Code § 1401 Source: SB 617, 2023–2024 Regular Session Source: EDD Information Notice WSIN25-14

California's Worker Adjustment and Retraining Notification (Cal-WARN) Act overlays the federal WARN Act (29 U.S.C. § 2101 et seq.), requiring stricter notice and broader coverage for mass layoffs, plant closings, and relocations.

Cal-WARN core requirements:

• Cal-WARN applies to employers with 75 or more employees (full- or part-time) within the previous 12-month period (Cal. Lab. Code § 1400(a)).
• "Mass layoff" under Cal-WARN means a layoff of 50 or more employees within a 30-day period at a covered establishment (Cal. Lab. Code § 1400(d), § 1401(a)).
• Employers must provide at least 60 calendar days' advance written notice for mass layoffs, a relocation (movement of operations 100+ miles), or a termination (cessation of all or substantially all operations at a facility).
• Notice must be sent to employees (or their representatives), the California Employment Development Department (EDD), the local workforce development board, and the chief elected official of each city and county where the site is located (Cal. Lab. Code § 1401(a)-(b)).

Recent material change (SB 617, effective Jan. 1, 2026): - Effective January 1, 2026, Cal-WARN requires substantially expanded content in mass-layoff and closing notices:

• Notices must state if Rapid Response services for affected workers will be coordinated with the local workforce board, another entity, or not at all. If coordinated, arrangements must be made within 30 days.
• Notices must include a verbatim description of Rapid Response services, information about CalFresh benefits (including a program description, helpline, and website URL), and employer contact email/phone.
• Specific requirements for this expanded content are detailed in amended Cal. Lab. Code § 1401(b), and further explained in EDD Information Notice WSIN25-14.
• Employers should update their WARN templates and protocols now to ensure compliance for any layoff or closure event occurring on or after the January 1, 2026 effective date.

Federal WARN vs. Cal-WARN:

• The federal WARN Act also requires 60 days' notice for qualifying mass layoffs and plant closings, but it:
• Covers employers with 100+ full-time employees.
• Triggers only if at least 50 employees are laid off and that number is at least 33% of the workforce (the "33% rule").
• Includes broader statutory exceptions (e.g., for business circumstances or natural disasters, see 29 U.S.C. § 2102(b)).
• Cal-WARN has a lower coverage threshold, includes both full- and part-time employees in its computation, and has fewer exceptions (primarily for "physical calamity or act of war").

Remedies: Failure to comply with either act makes the employer liable for up to 60 days of back pay and benefits for each affected employee (Cal. Lab. Code § 1402; 29 U.S.C. § 2104).

Bottom line: California employers conducting mass layoffs, plant closings, or relocations should:

• Review both federal and state WARN coverage for all events, and
• Ensure notices issued on or after January 1, 2026 comply with all SB 617 requirements and EDD guidance—but continue to comply with existing rules for layoffs before 2026.

Source: Cal. Lab. Code §§ 1400–1403 Source: Cal. Lab. Code § 1401 Source: SB 617, 2023–2024 Regular Session Source: EDD Information Notice WSIN25-14 Source: 29 U.S.C. § 2101 et seq.

Is unreimbursed business expense included in “final wages”—and does failure to reimburse trigger waiting-time penalties?

Under California Labor Code § 2802, employers must reimburse employees for all necessary business expenditures or losses incurred in direct consequence of job duties—think mileage, travel, equipment, or tools required for work. But § 2802 claims are not treated as “wages” for purposes of California’s strict timing statutes on final pay (Labor Code §§ 201–202) and the associated waiting-time penalty (Labor Code § 203).

## Not “wages” under Labor Code § 203 Business expense reimbursement is a statutory obligation distinct from wage payment. The California Division of Labor Standards Enforcement (DLSE)—the agency that enforces state wage and hour law—has repeatedly clarified: “Expense reimbursement claims are not considered ‘wages’ for purposes of Labor Code Section 203. Therefore, failure to reimburse does not subject the employer to the waiting time penalty.” (DLSE Waiting Time Penalty FAQ)

The waiting-time penalty is only triggered by the willful failure to timely pay “wages” as defined in the Labor Code. “Wages” include earned salary, overtime, accrued-but-unused vacation, bonuses, and commissions that are ascertainable at separation. Business expense reimbursement rights, while enforceable and compensatory, do not fall in this statutory box.

If an employer delays or fails to reimburse, the employee may recover the owed money, interest, and, if successful in litigation, attorneys’ fees under § 2802—but not the extra 30 days’ waiting-time penalty.

## Takeaway

• Final wage laws under §§ 201–203 do not require inclusion of unreimbursed business expenses in the final paycheck, nor do they trigger waiting-time penalties if outstanding.
• Employees owed business expense reimbursement should press their claim and, if necessary, bring a § 2802 action with statutory remedies—but the Labor Code treats these claims as distinct from late wage payment.

Source: DLSE Waiting Time Penalty FAQ Source: Cal. Lab. Code § 2802

California treats accrued but unused paid sick leave differently than accrued vacation time. Under the Healthy Workplaces, Healthy Families Act (HWHFA), employers are not required to pay employees for unused paid sick leave when the employment relationship ends—whether by resignation, discharge, retirement, or other separation.

Labor Code § 246(g)(1) states: “An employer is not required to provide compensation to an employee for accrued, unused paid sick days upon termination, resignation, retirement, or other separation from employment.” This is in sharp contrast to the rule for vacation or paid time off (PTO), which must be paid out at termination because it is treated as a vested wage under Labor Code § 227.3.

The Division of Labor Standards Enforcement (DLSE)—California’s administrative agency enforcing wage laws—restates this rule in its published guidance: “[T]here is no requirement under California law that an employer pay accrued sick leave upon termination.” DLSE also specifies in its Final Pay FAQ and factsheet that while all final wages and earned vacation must be paid, unused sick leave does not need to be included in the final paycheck.

Employers may lawfully maintain use-it-or-lose-it rules for sick leave, provided employees were able to use accrued sick time while employed. At separation, any unused sick leave balance can be forfeited. However, if the employer’s written policy is more generous than the statute and promises a payout for unused sick leave, the employer may be bound to honor that policy as a contractual obligation. For state-law compliance, though, there is no obligation to cash out sick time at separation, nor are employers prohibited from use-it-or-lose-it mechanisms for accrued sick leave.

Key points:

• No statutory right to payout of unused sick leave at termination (Labor Code § 246(g)(1)).
• Vacation and PTO must be paid out, but not sick leave.
• Policy-exceeding payouts are permitted, but not required.

Source: Cal. Lab. Code § 246 Source: DLSE Final Pay Sheet

California's Worker Adjustment and Retraining Notification Act (Cal‑WARN), codified at Labor Code §§ 1400–1408, overlays federal WARN and is more expansive in coverage and penalties. Cal‑WARN applies to private employers with 75 or more employees (counting full-time and part-time who worked at least 6 of the prior 12 months at a given site) undertaking a mass layoff, relocation, or termination (plant closure).

Notice requirements: Employers must give at least 60 days' advance written notice before (1) a layoff of 50 or more employees in any 30‑day period at a covered establishment, (2) a relocation of operations 100 or more miles, or (3) a termination, defined as the cessation or substantial cessation of industrial or commercial operations at a location. Notice must be provided to: affected employees (or their representative), the California Employment Development Department (EDD), the local workforce development board, and the chief elected official of the city/county where the establishment is located (Labor Code § 1401).

Recent change—SB 617 (2023): Effective January 1, 2026, Senate Bill 617 amends Labor Code § 1401 to expand the content required in WARN notices. For layoff, relocation, or plant closure events occurring on or after January 1, 2026, each notice must state:

• Whether the employer will coordinate with the local workforce development board to provide Rapid Response services,
• Information about the availability of EDD and CalFresh assistance programs,
• Specified contact information for local workforce board and EDD resources,
• Employer contact email and phone number for further information,
• Additional details set in the revised statute and summarized in EDD Information Notice WSIN25-14.

Cal‑WARN notice forms and templates must be updated by employers for compliance by the January 2026 effective date.

Penalties for non-compliance: An employer failing to provide timely, compliant notice is liable to each affected employee for up to 60 days' back pay and benefits (including medical expenses lost due to coverage interruption), plus a civil penalty of $500 per day of violation (penalty may be waived if back pay and benefits are fully paid within three weeks) (Labor Code § 1402).

Key differences vs. federal WARN: Cal‑WARN applies at lower employer- and layoff-size thresholds, includes more employees in layoff counts, and has stricter exceptions than federal WARN. Employers should comply with both statutes if either applies but must meet the stricter or broader California requirements when conducting layoffs, relocations, or site closures.

Summary: Cal‑WARN requires:

• 60 days' notice before covered layoff, relocation, or termination—including for events after January 1, 2026, new content requirements per SB 617 and amended § 1401.
• Notice to EDD, affected employees, local board(s), and chief local official(s).
• Strict liability for noncompliance, including back pay and per-day penalties.

Source: Cal. Lab. Code §§ 1400–1408 Source: Cal. Lab. Code § 1401 Source: Cal. Lab. Code § 1402 Source: EDD Information Notice WSIN25-14

When an employee resigns under such intolerable conditions that a reasonable person would feel forced to quit, California law treats that resignation as a constructive discharge. That means the resignation is treated like a termination by the employer—so Labor Code § 201 (immediate final pay due upon discharge) applies, instead of the 72‑hour timeline under Section 202.

Constructive discharge standard Under California Supreme Court precedent (Turner v. Anheuser‑Busch, Inc., 7 Cal.4th 1238 (1994)), an employee must show that the employer either:

• intentionally created, or knowingly allowed, working conditions that were so aggravated or intolerable that a reasonable person in the employee’s position would have no choice but to resign; and
• that the employee resigned because of those conditions.

These intolerable conditions generally reflect a sustained or unusually aggravated pattern—single minor incidents typically do not suffice, unless exceptionally severe.

California jury instructions (CACI No. 2510) echo this standard and confirm that a constructive discharge is legally regarded as a firing rather than a resignation.

What does that mean for final‑pay timing?

• Section 201 requires that when an employee is “discharged,” all wages earned and unpaid must be paid immediately at termination.
• Section 202 generally applies to resignations: final wages become due within 72 hours unless 72 hours’ advance notice was given, in which case they are due at the time of quitting.

Because a constructive discharge is treated as a discharge, California law requires final wages to be paid immediately, just as though the employer had terminated the employee.

Practical example Consider an employee who resigns after enduring an ongoing pattern of employer‑condoned ostracism or harassment so severe that any reasonable person would have felt compelled to quit. Even if the employee labels it a resignation, courts may deem it a constructive discharge. That means Section 201 applies—final wages must be issued immediately—not within the 72‑hour window of Section 202.

Takeaway for practitioners If there is any risk that a resignation might later be characterized as a constructive discharge, err on the side of caution. Issue final pay immediately, as if the employee were involuntarily terminated, to avoid violating Section 201 and triggering waiting‑time penalties under Section 203.

Source: CACI No. 2510 Source: Cal. Labor Code § 201 Source: Cal. Labor Code § 202 Source: Cal. Labor Code § 203

California law draws a sharp distinction between accrued paid sick leave and vacation or paid time off (PTO) when it comes to final paychecks at separation (termination, layoff, resignation, or retirement).

Accrued sick leave is not paid out: Under the Healthy Workplaces, Healthy Families Act (HWHFA), employers are not required to pay out accrued, unused sick leave upon separation. California Labor Code § 246(g)(1) explicitly provides: “An employer is not required to provide compensation to an employee for accrued, unused paid sick days upon termination, resignation, retirement, or other separation from employment.” The law thus permits a “use-it-or-lose-it” approach for sick leave, unless an employer policy or contract is more generous.

Exception—rehire within 12 months: Employers must reinstate previously accrued and unused sick leave if the former employee is rehired within 12 months of separation by the same employer (§ 246(f)(2)). But no cash-out is due at the time of separation, only a restoration if rehired within that window.

Vacation and PTO are wages and must be paid out: By contrast, California law treats accrued vacation as a vested wage. Labor Code § 227.3 requires employers to pay all accrued, unused vacation or PTO at the final pay deadline. Policies that forfeit vacation ("use-it-or-lose-it") are not permitted. If an employer provides a combined PTO policy that covers both vacation and sick leave in a single bucket, DLSE treats the entire PTO balance as a wage and requires payout at termination.

Contractual or CBA override: If an employer’s contract or collective bargaining agreement (CBA) expressly provides for a more generous payout of sick leave, or converts sick leave into PTO that vests, the terms of the agreement control.

Summary: For most California employees, accrued sick leave is forfeited at separation, but accrued vacation/PTO is paid out. Review employer policy documents and CBAs for any more generous terms.

Source: Cal. Lab. Code § 246 Source: Cal. Lab. Code § 227.3 Source: DLSE Final Pay FAQ

When California employers terminate employees (or otherwise change their employment relationship), several specific documents and notices must be provided in writing, often immediately — this is separate from final pay.

1. “Notice to Employee as to Change in Relationship” (UIC § 1089 / 22 CCR § 1089‑1) California Unemployment Insurance Code § 1089(c) requires that employers "immediately notify each employee of any change in the employee’s relationship with that employer"—including discharge, layoff, leave of absence, or reclassification to independent contractor status. The implementing regulation, 22 CCR § 1089‑1, specifies that notice must include at least five data points: employer name, employee name, Social Security number, type of change, and effective date. Employers may use the EDD sample "Notice to Employee as to Change in Relationship" (DE 2063) or create a functional equivalent that includes the same elements. Failure is a misdemeanor under § 1089.

2. Unemployment‑insurance pamphlet (EDD DE 2320) Section 1089 also obligates employers, at the time the employee becomes unemployed, to supply printed (or, if the employee has opted in, electronic) materials about claims for benefits. The required pamphlet is "For Your Benefit: California’s Programs for the Unemployed" (DE 2320), which explains how to file for UI, disability insurance, and paid family leave. The EDD provides it free of charge. Delivery must be immediately at separation (i.e., “when they become unemployed”).

3. Itemized final wage statement (Labor Code § 226) At termination, employers must furnish a written, itemized wage statement (pay stub) that includes nine specific parameters: gross wages, total hours worked (for non-exempt employees), piece‑rate details (if applicable), all deductions, net wages, pay period dates, employee name and last four SSN digits (or ID number), employer name/address, and applicable hourly rates with corresponding hours. This applies not just at regular paydays but also for the final payment at separation. Employers must keep records for at least three years.

4. Summary of obligations:

• Change‑in‑relationship notice: must be in writing, with specific contents, delivered immediately; failure is a misdemeanor
• EDD pamphlet DE 2320: must be provided immediately at separation (electronic delivery only if employee opts in)
• Itemized wage statement: must accompany final pay, covering all legally required items

These notices are in addition to the timing and substance requirements for final wages (covered elsewhere under Labor Code § 201, § 202, § 227.3). Together, they ensure employees know their benefit rights and receive transparent documentation as employment ends.

Source: California Unemployment Insurance Code § 1089 and 22 CCR § 1089‑1 Source: EDD Required Notices and Pamphlets Source: California Labor Code § 226