https://www.ottingerlaw.com/blog/wages-hours/employer-not-pa...
https://www.ottingerlaw.com/blog/wages-hours/employer-not-pa...
Severely is overselling it.
(And if any terminal paychecks are late, there are greater penalties – waiting time penalties equal to an average days pay for each day of delay up to 30 days – though I don’t recall if there is a wilfullness condition or modification to that.)
2) What on earth does this have to do with running payroll late?
“Established precedent” is…not a fair description of action which is being challenged in the courts, where no precedential legal decision has been made.
Also, firing employees would just make the California rule requiring immediate payment of final paychecks, with waiting penalties of 1 days pay for day of delay up to 30 days, applicable, as well as triggering other time-sensitive legal obligations that a company without access to cash might not want.
Plus, it means that once you get access to your cash again, you don’t have the employees (and might have a lot less positive image in the community you would want to hire from to replace them.)