When Are Last Checks Due for Temporary / Staffing Agency Workers

Figuring out when last checks are due for temporary / staffing agency workers whose assignments have ended can be confusing. Some argue that each assignment, no matter how brief, represents a separate employment requiring the worker’s last check to be paid immediately at the end of each assignment as if they were terminated. Others argue that if the staffing agency stands ready to give the worker their next assignment, the employment has not ended at all and no last check is not due immediately.

California courts initially adopted the former view, holding that last checks were immediately due to the worker upon the end of each assignment. See Smith v. Superior Court (L’Oréal) (2006) 39 Cal. 4th 77. This ruling exposed staffing agencies to the threat of multiple waiting time penalties for each temporary worker. Then in 2008, the California legislature overturned the L’Oréal decision with the passage of Senate Bill 940, which clarified that last checks were due only when the worker’s employment with the staffing agency itself was terminated. SB940 also introduced some worker protection measures as well, as will be seen below. In 2023, the court of appeal confirmed this switch in Young v. RemX (2023) 91 Cal.App.5th 427.

The Spark: Smith v. L’Oréal (2006) 39 Cal. 4th 77

In 2006, the California Supreme Court decided the Smith v. Superior Court (L’Oréal) case, which reshaped how final pay rules applied to temporary workers. In this case, a temporary worker hired by a staffing agency for a one day assignment with L’Oréal argued she was “discharged” when the assignment ended and was owed waiting time penalties — even though the worker still had an ongoing employment relationship with the staffing agency and was going to receive additional assignments.

Under California Labor Code sections 201 and 203, this meant that the employer (in this case, L’Oréal) had to pay the final paycheck immediately at the end of that day’s work. Failure to do so would trigger hefty waiting time penalties.

The Problem for Temp Agencies

While the decision protected workers’ rights to prompt final pay, it also created a real problem for staffing agencies. Staffing agencies rely on placing employees in many short-term or one-day assignments. But it can be logistically challenging — if not impossible — for agencies to provide immediate final pay at the end of every single-day job, especially if the work ends outside of normal office hours or at remote job sites.

SB 940: The Legislative Fix

In 2008, the California legislature signed Senate Bill 940 (SB 940) into law. SB 940 directly responded to the issues raised by Smith v. L’Oréal. It clarified that temporary workers who finish an assignment are not automatically considered discharged — as long as they remain employed by the staffing agency and are available for future assignments.

This change recognized the realities of temp work: assignments can vary from day to day, but workers often stay on the staffing agency’s payroll in between gigs.

New Requirements and Protections for Temp Workers

While SB 940 provided flexibility for staffing agencies, it didn’t leave temp workers without protections. The bill also included new rules:

✅ Weekly Pay Requirement
For most temp workers, staffing agencies must pay wages weekly, rather than at the end of each assignment.

✅ Daily Pay for Day-to-Day Assignments
If a temp worker is hired for a single day or works on a “day-to-day” basis (for example, day laborers or one-day event staff), they must still be paid daily — preserving the original protection recognized in Smith v. L’Oréal.

Further Confirmation: Young v. RemX (2023) 91 Cal.App.5th 427 

In 2023, the California Court of Appeal considered whether temporary workers assigned by a staffing agency to a client (in this case, Bank of the West) were entitled to immediate final wage payments upon conclusion of the client assignment. The court held that under Labor Code § 201.3(b)(4), “discharge” only occurs if the employment relationship with the staffing agency ends, not merely the end of a client placement. Thus, staffing agencies didn’t owe immediate final pay for simply ending a temporary assignment; rather, immediate final wages were required only if the worker was formally terminated from the staffing agency’s employment entirely.

Key Takeaways for Temp Workers

• Know your pay rights: If you’re a temporary worker, you’re entitled to weekly pay (or daily, if it’s a one-day job).
• Ongoing employment matters: If you’re still employed by the staffing agency and available for work, you’re not automatically considered “discharged” when an assignment ends. A final paycheck is not immediately due, and the staffing agency can legally pay you on the next scheduled payday.
• Penalties for late pay: However, if your staffing agency terminates you (cutting you off from any more client assignments) or if you quit the staffing agency, then your last check is due to you immediately (or within 72 hours if you quit without at least 72 hours advance notice). If the staffing agency fails to give you your last check on time, then the staffing agency could be on the hook for waiting time penalties under California Labor Code § 203 just like any other employer.

Final Thought

If you find the above a little confusing, you’re not alone. If you’re a temporary worker and feel your pay rights are being violated, don’t be afraid to speak with an experienced labor law attorney. Initial consultations are confidential, attorney-client privileged, and typically free of charge.