Farm Labor Contractor Practice Test

What is the penalty for not paying wages on time to an employee who quits or is fired?

1. A fine of $100 per day

2. The employee's wage for each day late

3. Termination of your business license

4. Legal fees incurred by the employee

The correct answer is: The employee's wage for each day late

The correct answer highlights that an employer is required to pay employees their wages for each day that payment is delayed after the employee has quit or been terminated. This reflects the legal obligation to ensure that employees are compensated fairly and promptly for their work. Delaying wages is not only damaging to the employee's finances but also contradicts labor laws, which mandate timely payment. In this context, the penalties exist to protect employees' rights and ensure they are not left in a financially vulnerable position due to an employer's oversight or negligence in processing their final compensation. It underscores the importance of adherence to labor regulations in maintaining trust and upholding the law within the employer-employee relationship. The other choices would lead to penalties that are not stipulated by labor laws regarding wage payment. While fines, business license revocation, and legal fees might occur under different circumstances, they do not directly address the specific consequence for delayed wage payments post-termination. Thus, option B stands out as the most accurate reflection of the legal ramifications tied directly to late wage payments.