Sanctions like waiting time penalties are taken against employers who refuse to pay final wages on the due date. The fine is the payment of the worker’s average wage for the whole period the employer is late and this is calculated on a daily basis, up to a maximum of one month. According to data sourced from recover my wages employment law article, an employer that waits for 14 days before paying a fired worker’s final wages would be legally responsible for 2 weeks of wages as a waiting time penalty.
Waiting time penalties amount to the worker’s regular rate of pay, including the regular overtime work, and other commissions. Below are some rules and guides to follow when calculating the price rate:
If a worker works five days per week, eight hours per day, the worker’s waiting time penalty amounts to eight times the worker’s hourly rate. And it is calculated on a daily basis that the employer is late. For instance, if a worker earns $15 per hour, the employee would receive a payment of $120 for each day the employee failed to provide a final paycheck.
For normal part-time workers, the penalty is calculated based on a regular day’s work. For instance, if a worker works four hours per day, five days per week, and earns $20 per hour, the employee would receive a payment of $80 per day as a waiting time penalty.
Overtime is only added if it follows the regular schedule. Any rapid or irregular overtime is not added to the worker’s wages. If a worker occasionally worked for an extra period, for instance, that would not be included in the waiting time penalties.
If, however, the worker normal working period is 50 hours per week, the worker’s penalty will amount to ten-hour per day with the inclusion of the overtime premium. For instance, if the worker’s hourly wage was $20 per hour, the worker would be liable to receive a waiting time penalty of $220; a period of eight hours amounts to $20, plus two hours at the period and a percentage of overtime ($30).