What Are the PTO California Laws? (w/Examples) + FAQs

Yes, California has some of the strongest paid time off (PTO) laws in the United States, and they protect nearly every worker in the state. California treats earned vacation as wages under Labor Code section 227.3, which means PTO you earn belongs to you the moment it vests. The California Supreme Court made this clear in Suastez v. Plastic Dress-Up Co., a 1982 case that still drives how courts decide PTO disputes today. On top of vacation, California guarantees paid sick leave under the Healthy Workplaces, Healthy Families Act, expanded in 2024 by SB 616 to at least 40 hours or 5 days per year. The state also layers bereavement leave under AB 1949, reproductive loss leave under SB 848, and family leave under the California Family Rights Act on top of any PTO bank.

A recent U.S. Bureau of Labor Statistics report shows that 79% of private-sector workers nationwide get some form of paid leave, yet California is one of only a handful of states that treats vacation PTO as a vested wage you can sue to recover. That single rule shifts the power balance between workers and employers in ways most people do not understand until payday.

Here is what you will learn in this guide:

• 📜 The exact statutes, agencies, and court cases that control PTO in California
• 💰 How vesting, accrual caps, and final paycheck payouts really work
• 🤒 The difference between vacation, paid sick leave, kin care, and CFRA leave
• ⚖️ The hidden risks of “unlimited PTO” policies after McPherson v. EF Intercultural Foundation
• 🧾 The penalties, PAGA claims, and waiting-time wages employers face when they break the rules

The Core Rule: PTO Is a Wage in California

California stands apart from most states because it does not let employers treat paid time off like a gift they can take back. Under Labor Code section 227.3, any vested vacation time counts as wages, just like your hourly pay or salary. That means your employer cannot erase it, reduce it without notice, or refuse to pay it when you leave the job. The California Division of Labor Standards Enforcement (DLSE) enforces this rule through its PTO and vacation FAQ page, which lays out worker rights in plain language.

The plain-English version is simple. The day you earn a PTO hour, that hour belongs to you. The consequence of breaking this rule is steep, because an employer who refuses to pay out vested PTO can owe the full balance plus waiting-time penalties under Labor Code section 203. Consider Maria, a graphic designer in San Jose who quits her job with 80 hours of accrued vacation on the books. Her employer must cut a final check including those 80 hours at her final rate of pay, or face up to 30 days of extra wages as a penalty. A common misconception is that employers can make PTO “forfeit” if you quit without notice, but California courts have rejected that logic for four decades.

Why California Treats PTO Differently

Most states follow federal common-law rules that let employers set PTO policies almost any way they want. California rejected that approach in Suastez v. Plastic Dress-Up Co., where the state Supreme Court ruled that vacation pay is deferred compensation for labor already performed. That ruling turned PTO into property protected by the Labor Code. Because PTO is now a wage, every protection that applies to your paycheck also applies to your vacation balance.

The consequence of this legal framing shows up in three big ways. First, “use-it-or-lose-it” policies are illegal in California, even though they are common in Texas, Florida, and most other states. Second, employers must pay out all unused, vested PTO when you leave. Third, employees can sue under the Private Attorneys General Act (PAGA) for PTO violations, which multiplies penalties across every pay period. A misconception is that these rules only apply to salaried workers, but they cover hourly, part-time, seasonal, and even many commissioned employees.

The Agencies That Enforce the Rules

The California Labor Commissioner’s Office is the main cop on the beat for PTO claims. Workers file wage claims with the DLSE, which can hold a hearing called a Berman hearing and issue a binding order. The Civil Rights Department handles leave-related discrimination claims, such as retaliation for taking CFRA or bereavement leave. The federal Department of Labor Wage and Hour Division plays a smaller role because California rules usually give workers more than federal law does.

Each agency has its own forms, deadlines, and appeal rights. For example, a DLSE wage claim must be filed within three years for unpaid vacation, but some PAGA claims carry a one-year notice window. The consequence of missing a deadline is harsh, because courts will dismiss late claims even if the underlying violation is clear. Consider David, a warehouse worker in Fresno who waits four years to file a claim for 120 hours of unpaid vacation and learns that part of his claim is now time-barred. A misconception is that talking to HR “tolls” the deadline, but only a formal filing stops the clock.

How Federal Law Interacts With State Law

Federal law sets a floor, and California builds a much higher ceiling on top of it. The Fair Labor Standards Act does not require any paid vacation or paid sick leave at all. The Family and Medical Leave Act offers 12 weeks of unpaid, job-protected leave for covered reasons. California’s CFRA mirrors FMLA in many ways but applies to smaller employers with 5 or more workers. When both laws apply, they usually run at the same time, but California’s stronger protections control.

The consequence of misreading this interaction is expensive for employers. For example, an employer who gives only the federal 12 weeks and then fires a worker on week 13 may still owe job restoration under state rules if a California-only reason, such as reproductive loss leave under SB 848, applies. Consider Priya, a software engineer in San Diego who takes 12 weeks of bonding leave under CFRA and then asks for 5 additional days after a pregnancy loss. Her employer must grant the extra leave. A misconception is that FMLA “uses up” all leave rights, but California stacks several independent rights on top.

Vacation PTO and the Vesting Rule

Vacation PTO is the most litigated type of paid time off in California because it involves real money that sits on the books for months or years. Under Labor Code section 227.3, vacation vests as it is earned, and nothing in a handbook can change that core rule. The DLSE’s vacation policy guidance explains that employers have wide freedom to design accrual schedules but very narrow freedom once PTO is earned. This section breaks the rules down into the three issues that drive most disputes: accrual, caps, and payout.

Accrual and Vesting

Accrual is the rate at which PTO builds up in your bank, and vesting is the moment that PTO becomes yours for good. California law lets employers pick almost any accrual formula, so long as it is clear and applied evenly. Common formulas include a flat grant at the start of the year, hourly accrual for every hour worked, and tiered accrual that rises with seniority. The key rule is that once an hour accrues, it vests, and the employer cannot reclaim it.

The consequence of mishandling accrual is that unpaid PTO becomes unpaid wages. Consider Jamal, a hotel front-desk agent in Anaheim whose employer tries to “reset” his PTO bank every January 1. Under California law, that reset is illegal because it wipes out wages he already earned. A misconception is that “probationary” employees do not accrue PTO, but if the policy grants PTO to the role, California treats any delay as a deferred vesting schedule, not a forfeiture.

Lawful Accrual Caps

California allows employers to place a reasonable cap on how much vacation can build up. Once a worker hits the cap, no new PTO accrues until they use some of what they have. The DLSE says a cap is “reasonable” if it is at least 1.75 times the annual accrual rate. Caps let employers control balance-sheet liability without wiping out earned time.

The consequence of a cap that is too low is that courts treat it as a disguised “use-it-or-lose-it” policy, which is illegal. Consider Linh, a paralegal in Sacramento whose firm caps vacation at exactly one year of accrual and then refuses to let her schedule time off. If the cap is set so low that she cannot realistically use the PTO, a court may void it. A misconception is that any cap is automatically legal, but California requires the cap to give workers a meaningful chance to use their time.

Final Paycheck and Payout Rules

When employment ends, every hour of vested PTO must be paid out at the worker’s final rate of pay. Labor Code section 227.3 requires this payout regardless of whether the worker quits, is fired, or is laid off. If the employer fires the worker, the final check, including PTO, is due the same day. If the worker quits with at least 72 hours’ notice, the check is due on the last day; with less notice, the employer has 72 hours.

The consequence of late payment is a waiting-time penalty of one day of wages for each late day, up to 30 days. Consider Brandon, a restaurant manager in Long Beach who is fired on a Friday with 60 hours of accrued vacation. If his employer waits two weeks to pay the vacation, he can claim 14 days of extra wages on top of the original balance. A misconception is that the penalty only applies to the base hourly rate, but it applies to full daily wages including regular overtime patterns.

Paid Sick Leave Under SB 616

California’s paid sick leave law got a big upgrade on January 1, 2024, when SB 616 raised the statewide minimum from 3 days or 24 hours to 5 days or 40 hours per year. The underlying statute is the Healthy Workplaces, Healthy Families Act, codified at Labor Code sections 245 through 249. Paid sick leave is separate from vacation, and employers cannot force workers to use vacation before sick leave. The DLSE’s updated paid sick leave FAQ is the clearest government explainer.

Who Qualifies

Almost every worker in California qualifies for paid sick leave after 30 days of work in a 12-month period for the same employer. That includes part-time workers, temporary workers, per diem workers, and most in-home support service providers. Exempt groups are narrow and include certain airline flight crews and some union workers covered by a valid CBA with specific language. Workers must also complete a 90-day waiting period before they can use the accrued leave.

The consequence of misclassifying coverage is a wage-and-hour claim plus possible PAGA penalties. Consider Elena, a part-time tutor in Bakersfield who is told she does not qualify because she works fewer than 20 hours per week. That denial is illegal because California sick leave has no hours-based exemption. A misconception is that independent contractors qualify, but only W-2 employees do; however, misclassified “contractors” who are really employees keep full rights.

Accrual, Frontloading, and Usage Caps

Employers can pick between two methods. The accrual method gives at least 1 hour of paid sick leave for every 30 hours worked, with a usage cap of 40 hours or 5 days per year and an accrual cap of 80 hours or 10 days. The frontload method grants the full 40 hours or 5 days at the start of each year with no accrual required. Frontloading is simpler, but accrual is cheaper for high-turnover workplaces.

The consequence of picking the wrong method is unpaid wages and penalties. Consider Marcus, a warehouse clerk in Ontario whose employer frontloads only 24 hours in 2026, thinking the old law still applies. That shortfall is an automatic violation under SB 616. A misconception is that employers can “carry over” only part of the unused balance, but unused accrued sick leave must carry over fully, subject only to the 80-hour overall cap.

Allowed Uses and Kin Care

Paid sick leave can cover the worker’s own illness, preventive care, or care for a close family member. Labor Code section 233, known as the “kin care” statute, lets workers use up to half of their annual sick leave to care for a sick child, parent, spouse, registered domestic partner, grandparent, grandchild, sibling, or designated person. Victims of domestic violence, sexual assault, or stalking can also use the leave for safety planning and court appearances. Employers cannot require a doctor’s note for short absences.

The consequence of denying a valid reason is a retaliation claim under Labor Code section 246.5. Consider Aisha, a bank teller in Oakland who takes two days to care for her grandmother. If her manager issues a write-up, that discipline is unlawful retaliation. A misconception is that kin care applies only to biological relatives, but California now recognizes a “designated person” chosen by the worker once per year.

Unlimited PTO Policies in California

Unlimited PTO sounds generous, but California treats it as a legal minefield. In McPherson v. EF Intercultural Foundation, a 2020 Court of Appeal decision, the court held that so-called unlimited vacation policies can still trigger payout obligations at separation if the policy is not truly unlimited in practice. The ruling sent shockwaves through tech companies and startups that had copied the “no-limits” model from other states. It is the single most important PTO case of the past decade.

The McPherson Rule

Under McPherson, a policy is only truly unlimited if the employer clearly states in writing that workers may take as much time as they need, actually lets them do it, and tracks no accruals. If any of those pieces is missing, the policy may be treated as a traditional PTO bank, which triggers vesting under Labor Code section 227.3. Courts look at real-world practice, not just handbook language, when deciding.

The consequence of a failed “unlimited” policy is a back-pay claim for every day of unused vacation, calculated at a judicially determined accrual rate. Consider Sophia, a marketing director in Palo Alto whose startup tells her she can take unlimited time off but pressures her to keep vacations under 10 days. If she quits after 3 years and never took more than 10 days per year, she may sue for the implied accrual she never used. A misconception is that calling a policy “unlimited” in the handbook is enough, but courts look at how managers actually apply it.

When Unlimited Policies Work

Unlimited PTO can work in California if the policy is explicit, evenly applied, and free of hidden quotas. The employer should publish written guidance telling workers the policy is truly unlimited, encouraging real use, and disclaiming any accrual. Managers must not discipline workers for taking “too much” time off within reason. HR should document that workers actually take leave in varied amounts.

The consequence of skipping these steps is class-action risk, because one manager’s email pressuring a team can sink a whole policy. Consider Robert, an engineering manager at a Bay Area startup who writes in Slack that “nobody takes more than two weeks here.” That single message can become Exhibit A in a McPherson-style class suit. A misconception is that unlimited PTO saves money, but poorly drafted plans often cost more than a clean accrual system.

Bereavement and Reproductive Loss Leave

California added two new leave categories in the last few years that sit next to PTO but are governed by their own rules. AB 1949, effective January 1, 2023, guarantees up to 5 days of bereavement leave. SB 848, effective January 1, 2024, added up to 5 days of reproductive loss leave. Both laws apply to employers with 5 or more workers and cover employees after 30 days of service.

Bereavement Leave Mechanics

Bereavement leave under AB 1949 covers the death of a spouse, child, parent, sibling, grandparent, grandchild, domestic partner, or parent-in-law. The leave itself is unpaid by default, but workers may use accrued vacation, PTO, or paid sick leave to cover it. Leave does not have to be taken on consecutive days but must be completed within 3 months of the loss. Employers can require reasonable documentation, such as a death certificate or obituary.

The consequence of denying bereavement leave is a civil action with damages and attorney fees. Consider Hannah, a retail supervisor in Riverside whose father dies overseas, and who asks for 5 days to fly out for the funeral. If her employer refuses or demotes her, she has a direct claim under the Government Code. A misconception is that bereavement leave must be taken all at once, but AB 1949 allows splitting it over the 3-month window.

Reproductive Loss Leave

SB 848 covers 5 days of leave after a miscarriage, failed adoption, failed surrogacy, stillbirth, or unsuccessful assisted reproduction. Employees can take up to 20 days of reproductive loss leave in a 12-month period if they experience multiple losses. Like AB 1949, the leave is unpaid unless the worker chooses to use existing PTO. Privacy rules limit how much detail employers can demand.

The consequence of mishandling the request is both a wage claim and a potential emotional distress suit. Consider Jessica, a nurse in Bakersfield who has two miscarriages in one year and requests 10 total days of leave. Her employer must grant the leave and keep the reason confidential. A misconception is that the leave is limited to biological mothers, but SB 848 covers intended parents, partners, and surrogates.

Local Ordinances Add Another Layer

California’s cities often go further than state law, and the strongest PTO rules in the country sit inside a few local ordinances. Workers in Los Angeles, San Francisco, San Diego, Oakland, Berkeley, Emeryville, Santa Monica, and West Hollywood should check city rules before relying only on state law. Employers must follow the most generous rule that applies.

San Francisco and Oakland

San Francisco’s Paid Sick Leave Ordinance gives up to 72 hours of paid sick leave at larger employers, well above the state minimum. Oakland’s Paid Sick Leave Ordinance mirrors that 72-hour ceiling for employers with 10 or more workers. Both ordinances allow broader uses, including care for a “designated person” chosen by the worker.

The consequence of ignoring a local rule is a local wage claim plus private lawsuits. Consider Tyler, a barista in San Francisco whose chain applies only the state 40-hour floor. That shortfall triggers a San Francisco OLSE claim for the missing 32 hours plus penalties. A misconception is that state law “preempts” local law, but California lets cities add stronger protections on top.

Los Angeles and West Hollywood

Los Angeles requires up to 48 hours of paid sick leave under its city ordinance, and West Hollywood requires up to 96 hours under its local ordinance, which is the highest in the state. Both ordinances also regulate PTO and minimum wage. West Hollywood’s rule also requires 96 hours of unpaid leave once paid leave is exhausted.

The consequence of using the wrong city’s rules is a layered claim that can include city fines plus state penalties. Consider Daniela, a hotel housekeeper in West Hollywood whose employer caps paid sick leave at 48 hours thinking Los Angeles rules apply. She can claim the missing 48 hours under West Hollywood law. A misconception is that the rules follow the employer’s headquarters, but they follow where the work is performed.

Three Real-World PTO Scenarios

Named Examples That Show the Rules in Action

Example 1: Carlos in San Diego

Carlos works as a production supervisor at a San Diego manufacturing plant for 6 years and accrues 160 hours of vacation. He is laid off on a Monday but receives no vacation payout in his final check. Under Labor Code 227.3, he is owed all 160 hours at his final hourly rate. Because the employer did not pay on the day of termination, he also claims waiting-time penalties for 30 days.

The employer argued that a “no-layoff payout” clause in the handbook controlled. The DLSE rejected the argument, relying on Suastez and 227.3. Carlos recovered about $15,000 total, including penalties and interest. This shows how handbook language cannot override a vested wage.

Example 2: Nia in Silicon Valley

Nia is a product manager at a Mountain View startup with “unlimited PTO.” She takes 9 days off per year for 3 years, then resigns. She learns from a labor lawyer that managers steered the team to keep vacations short and that the policy, in practice, was not unlimited. She sues under McPherson.

The trial court finds that the “unlimited” label was a cover for a 2-week-per-year expectation. Nia wins back pay for the difference between the expected 2 weeks and her actual 9 days, multiplied across 3 years. The case highlights how real-world practice controls, not the handbook label.

Example 3: Mei in Oakland

Mei works at a small café in Oakland and takes 3 paid sick days to care for a designated person, her longtime roommate who just had surgery. Her manager questions the relationship and withholds the sick pay. Under SB 616 and the Oakland ordinance, the “designated person” category is lawful, and the pay is owed.

Mei files an Oakland OLSE complaint. The city orders the café to pay the missing wages, a civil penalty, and post a workplace notice. The example shows how designated-person rules now work in practice.

Mistakes to Avoid

• Treating vacation as “use-it-or-lose-it” invites a wage claim, because California voids these clauses and forces payout of the wiped balance.
• Setting accrual caps below 1.75x the annual rate risks reclassification as a forfeiture, which then triggers back-pay liability.
• Forcing workers to use vacation before paid sick leave violates Labor Code 246 and creates PAGA exposure.
• Calling a policy “unlimited” without a true no-limits practice invites a McPherson class suit for implied accrual.
• Ignoring city ordinances like San Francisco’s 72-hour rule layers city penalties onto state wage claims.
• Missing the final-check deadline after termination runs the 30-day waiting-time clock for each late day.
• Denying kin care for a designated person now violates SB 616 and exposes employers to retaliation claims.
• Demanding a doctor’s note for short sick days violates Labor Code 246.5 and chills lawful leave.
• Refusing bereavement leave for a domestic partner violates AB 1949 and opens a civil-rights claim.
• Mixing reproductive loss leave with vacation without consent can produce a privacy and wage-theft claim at once.

Do’s and Don’ts for Employers

• Do write a clear accrual schedule in the handbook so workers can see when PTO vests and how caps apply.
• Do pay out vested vacation on the last day of employment, because the 30-day penalty clock starts fast.
• Do train managers on kin care so they do not deny lawful requests for designated persons or siblings.
• Do separate vacation, sick leave, and bereavement on pay stubs, which Labor Code 246 actually requires.
• Do audit unlimited PTO policies yearly to confirm the practice matches the handbook’s “no limits” promise.
• Don’t apply out-of-state “forfeit on quit” clauses, because California courts void them under 227.3.
• Don’t cap sick leave below SB 616’s 40-hour floor, because the 2024 update is now the state baseline.
• Don’t retaliate for leave requests, because Labor Code 246.5 and CFRA both offer reinstatement and damages.
• Don’t skip pay-stub disclosures of sick leave balances, because each missing pay stub is its own violation.
• Don’t ignore city ordinances, because local enforcement agencies issue separate fines and back-pay orders.

Pros and Cons of California’s PTO System

• Pro: Earned PTO is protected as wages, which gives workers real leverage that most states do not provide.
• Pro: Paid sick leave is universal after SB 616, so even part-time workers get meaningful leave.
• Pro: Bereavement and reproductive loss leave fill gaps that federal law leaves wide open.
• Pro: City ordinances add flexibility, since workers in strong-rule cities can get up to 96 hours of sick leave.
• Pro: Strong enforcement tools, including PAGA, make violations costly and deter bad behavior.
• Con: Compliance is complex, because overlapping state, city, and federal rules confuse even careful employers.
• Con: Unlimited PTO is risky, because McPherson can turn a “generous” policy into a back-pay lawsuit.
• Con: Accrual caps can be hard to set, because the 1.75x standard is a guideline, not a bright line.
• Con: Small employers face big penalties, since waiting-time and PAGA rules hit hard regardless of size.
• Con: Workers sometimes underuse leave, because fear of stigma undercuts the value of the rights they have.

Court Rulings and Precedent Recap

Two cases drive nearly every PTO dispute in California. Suastez v. Plastic Dress-Up Co. established that vacation pay is deferred compensation that vests as it is earned. McPherson v. EF Intercultural Foundation extended that logic to unlimited PTO policies, holding that employers cannot hide behind handbook labels when real practice looks like an accrual plan.

Other rulings fill in the edges. Minnick v. Automotive Creations allowed reasonable vesting delays at the start of employment, while Boothby v. Atlas Mechanical confirmed that vested vacation cannot be reduced by policy change. The DLSE opinion letters remain the go-to reference when a case is silent. Together, this body of law makes California the most protective PTO jurisdiction in the country.

CFRA and the Bigger Leave Picture

The California Family Rights Act runs on top of PTO rules and gives up to 12 weeks of job-protected leave per year for bonding, serious health conditions, and military exigency. The CFRA regulations cover employers with 5 or more workers, which is much smaller than the FMLA’s 50-worker floor. Workers can use accrued PTO to receive pay during otherwise unpaid CFRA leave.

The consequence of ignoring CFRA is a discrimination claim with reinstatement, back pay, and damages. Consider Omar, a school counselor in Riverside who takes 10 weeks of CFRA leave to bond with his newborn and is demoted on return. The demotion is unlawful because CFRA guarantees reinstatement to the same or a comparable job. A misconception is that CFRA only covers biological parents, but it also covers adoptive and foster parents.

How to File a PTO Claim

Workers who believe their PTO rights have been violated have several paths. The most common is a wage claim filed with the California Labor Commissioner, which is free and does not require a lawyer. Workers can also file a civil lawsuit, a PAGA notice, or a local ordinance complaint in strong-rule cities. Each path has its own deadlines and remedies.

The consequence of choosing the wrong path is often lost time, not lost rights, because multiple claims can run at once. Consider Rachel, a bookkeeper in Long Beach who files a DLSE claim and later adds a PAGA notice for the same violations. The two claims can coexist as long as she follows both sets of deadlines. A misconception is that signing a severance agreement wipes out PTO rights, but California voids waivers of unpaid wages that were not separately negotiated.

FAQs

Can my employer in California make me forfeit unused vacation when I quit?

No. California law under Labor Code 227.3 treats vested vacation as wages, so any forfeiture clause in a handbook is void, and your employer must pay out every vested hour at your final rate.

Is “use-it-or-lose-it” vacation legal in California?

No. Use-it-or-lose-it policies are banned because vested vacation is a wage; however, employers may set a reasonable accrual cap that pauses future accrual until some time is used.

Does SB 616 apply to part-time workers?

Yes. SB 616’s 40-hour paid sick leave floor covers part-time, temporary, per diem, and full-time workers alike after 30 days of work for the same employer over a 12-month period.

Can my employer deny sick leave because I did not bring a doctor’s note?

No. Labor Code 246.5 bars employers from conditioning short sick leave on a doctor’s note, and demanding one is often treated as retaliation that can trigger damages and reinstatement rights.

Are unlimited PTO policies legal in California?

Yes. They are legal, but only if the employer proves the policy is truly unlimited in practice, clearly written, and free of hidden quotas; otherwise courts reclassify them under the McPherson ruling.

Can I use vacation or sick leave during CFRA leave to get paid?

Yes. California lets workers stack accrued PTO on top of CFRA leave so the time off is paid, although employers may set reasonable rules about which bank gets used first for vacation.

Does California require paid bereavement leave?

No. AB 1949 guarantees up to 5 days of bereavement leave but does not require that it be paid; workers may use accrued PTO or sick leave to receive pay during the days off.

Can I take reproductive loss leave after a failed adoption?

Yes. SB 848 covers miscarriages, stillbirths, failed adoptions, failed surrogacies, and unsuccessful assisted reproduction, and intended parents and partners qualify along with the person who experienced the loss.

Do local ordinances like San Francisco’s override state PTO rules?

Yes. Local ordinances can give more generous rights than state law, and the most favorable rule applies, so workers in cities like San Francisco or West Hollywood often get extra sick leave.

Can my employer change the PTO policy and take away what I already earned?

No. Employers may change future accrual going forward, but they cannot reduce or erase vacation you have already earned because that balance is protected as vested wages under Labor Code 227.3.

What is the penalty if my employer pays my final vacation late?

Yes, there is a penalty. Labor Code 203 imposes a waiting-time penalty of one day of wages for each late day, up to 30 days, on top of the unpaid vacation balance itself.

Is PTO payout required if I am fired for cause?

Yes. California makes no exception for “for cause” terminations; all vested vacation must be paid on the day of firing, and an employer who delays faces the 30-day waiting-time penalty.