I think it is, at least here in CA. I also lived in NY and it was the case too.
What I was thinking is that maybe if they terminate him and he is a contract employee they could get out of paying it for a while if there was legal action brought by either party..so he shouldn't count on that money to live until it clears his bank.
I was under the impression that is legally mandated (at least where I live - NYC). Is that not true?