Section 203.1 Of Article 1. General Occupations From California Labor Code >> Division 2. >> Part 1. >> Chapter 1. >> Article 1.
203.1
. If an employer pays an employee in the regular course of
employment or in accordance with Section 201, 201.3, 201.5, 201.7, or
202 any wages or fringe benefits, or both, by check, draft or
voucher, which check, draft or voucher is subsequently refused
payment because the employer or maker has no account with the bank,
institution, or person on which the instrument is drawn, or has
insufficient funds in the account upon which the instrument is drawn
at the time of its presentation, so long as the same is presented
within 30 days of receipt by the employee of the check, draft or
voucher, those wages or fringe benefits, or both, shall continue as a
penalty from the due date thereof at the same rate until paid or
until an action therefor is commenced. However, those wages and
fringe benefits shall not continue for more than 30 days and this
penalty shall not apply if the employer can establish to the
satisfaction of the Labor Commissioner or an appropriate court of law
that the violation of this section was unintentional. This penalty
also shall not apply in any case in which an employee recovers the
service charge authorized by Section 1719 of the Civil Code in an
action brought by the employee thereunder.