We are having issues with employees picking up their paycheck on their break and then leaving, either to cash the check or for the day. Their manager is requesting that checks not be released on days that they work, until their shift is over. Can we do this?

For example:
Checks are normally released at 3pm (which happens to be break time too). Can we hold the checks until 4:30 - 5, when they are finished for the day?

I have never seen any regulations requiring a specific time that checks are to be distributed on pay date. The fact that you are paying them on pay date should be enough to meet your responsibility of constructive receipt.

http://www.dir.ca.gov/dlse/FAQ_Paydays.htm

I agree. Even in CA, I am not aware of any law that requires you to hand over the checks at any particular time of day or time of shift. Nor are you prohibited from disciplining an employee who disappears for the rest of his shift after receiving his paycheck.

So the only requirement is to release the checks on a specific day.

I know California requires a posting of day, time, and location that checks are released. So this is why I asked. Our posting says Every Other Friday, at 3pm, from Supervisor.

I wish this particular manager would use discipline.

Discipline the manager for not doing so.

And change the time on the poster to 5:00pm.

So as long as the poster says 5pm we are okay?

Can we specify 5pm on working day, 3pm on non-working days? Or does it have to be one specific time?

Say 5:00 all the time, and release them earlier than that when you want to.