Bill Text: CA AB2424 | 2009-2010 | Regular Session | Introduced
Bill Title: Employment: payment of wages.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-04-05 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB2424 Detail]
Download: California-2009-AB2424-Introduced.html
BILL NUMBER: AB 2424 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Niello
FEBRUARY 19, 2010
An act to amend Sections 201 and 202 of, and to repeal Section
201.7 of, the Labor Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2424, as introduced, Niello. Employment: payment of wages.
Existing law provides that all unpaid wages earned by a discharged
employee are due immediately upon discharge.
This bill would instead require that, subject to specified
exceptions, an employer pay all unpaid wages due to a discharged
employee within a reasonable time not exceeding 24 hours after
discharge, excluding weekends and holidays. The bill would provide
that payment may be made by mail to the most current address of the
employee in the employer's payroll records or to an alternate address
provided by the employee at the time of discharge, or by making
payment available to the discharged employee at a location specified
by the employer. The bill would also make conforming changes to
existing provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 201 of the Labor Code is amended to read:
201. (a) If an employer discharges an employee, the wages earned
and unpaid at the time of discharge are due and payable
immediately. An employer who lays off as follows:
(1) Payment of wages upon discharge shall be made within a
reasonable time not exceeding 24 hours after discharge, excluding
weekends and holidays. The payment may be made by mail to the most
current address of the employee in the employer's payroll records or
to an alternate address designated by the employee in writing at the
time of his or her discharge, or by making the payment available to
the employee at a location specified by the employer. The date that
the payment is mailed or made available constitutes the date of
payment.
(2) Notwithstanding paragraph (1),
payment of wages to a group of employees laid off by
reason of the termination of seasonal employment
in the curing, canning, or drying of any variety of perishable fruit,
fish , or vegetables, shall be deemed to have
made immediate payment when the wages of said
employees are paid within a reasonable time as necessary
for computation and payment thereof ; provided, however,
that the reasonable time shall not exceed
exceeding 72 hours, and further
provided that payment shall be made by mail to any
an employee who so requests and designates a
mailing address therefor.
(b) Notwithstanding any other provision of law, the state employer
shall be deemed to have made an immediate payment
of wages under in compliance with this
section for any unused or accumulated vacation, annual leave,
holiday leave, or time off to which the employee is entitled by
reason of previous overtime work where compensating time off was
given by the appointing power, provided that , at least
five workdays prior to his or her final day of employment, the
employee submits a written election to his or her appointing power
authorizing the state employer to tender payment for any or all leave
to be contributed on a pretax basis to the employee's account in a
state-sponsored supplemental retirement plan as described under
Sections Section 401(k), 403(b), or 457
of the Internal Revenue Code provided the plan allows those
contributions. The contribution shall be tendered for payment to the
employee's 401(k), 403(b), or 457 plan account no later than 45 days
after the employee's discharge from employment. Nothing in this
section is intended to authorize contributions in excess of the
annual deferral limits imposed under federal and state law or the
provisions of the supplemental retirement plan itself.
(c) (1) Notwithstanding any other provision
of law, when the state employer discharges an employee, the employee
may, at least five workdays prior to his or her final day of
employment, submit a written election to his or her appointing power
authorizing the state employer to defer into the next calendar year
payment of any or all of the employee's unused or accumulated
vacation, annual leave, holiday leave, or time off to which the
employee is entitled by reason of previous overtime work where
compensating time off was given by the appointing power. To qualify
for the deferral of payment under this section, only that portion of
leave that extends past the November pay period for state employees
shall be deferred into the next calendar year. An employee electing
to defer payment into the next calendar year under this section may
do any of the following:
(1)
(A) Contribute the entire payment to his or her 401(k),
403(b), or 457 plan account.
(2)
(B) Contribute any portion of the deferred payment to
his or her 401(k), 403(b), or 457 plan account and receive cash
payment for the remaining noncontributed unused leave.
(3)
(C) Receive a lump-sum payment for all of the deferred
unused leave as described above.
(2) Payments shall be tendered under this
section no later than February 1 in the year following the employee's
last day of employment. Nothing in this section is intended to
authorize contributions in excess of the annual deferral limits
imposed under federal and state law or the provisions of the
supplemental retirement plan itself.
SEC. 2. Section 201.7 of the Labor Code is repealed.
201.7. An employer who lays off an employee or a group of
employees engaged in the business of oil drilling shall be deemed to
have made immediate payment within the meaning of Section 201 if the
wages of such employees are paid within such reasonable time as may
be necessary for computation or payment thereof; provided, however,
that such reasonable time shall not exceed 24 hours after discharge
excluding Saturdays, Sundays, and holidays; and provided further,
such payment may be mailed and the date of mailing is the date of
payment.
The Legislature finds and determines that special provision must
be made for the payment of wages on discharge of employees engaged in
oil drilling because their employment at various locations is often
far removed from the employer's principal administrative offices,
which makes the computation and payment of wages on an immediate
basis unduly burdensome.
SEC. 3. Section 202 of the Labor Code is amended to read:
202. (a) If an employee not having a written contract for a
definite period quits his or her employment, his or her wages shall
become due and payable not later than 72 hours thereafter, unless the
employee has given 72 hours hours'
previous notice of his or her intention to quit, in which case the
employee is entitled to his or her wages at the time of quitting.
Notwithstanding any other provision of law, an employee who quits
without providing a 72-hour notice shall be entitled to receive
payment by mail if he or she so requests and designates a mailing
address. The date of the mailing shall constitute the date of payment
for purposes of the requirement to provide payment within 72 hours
of the notice of quitting.
(b) Notwithstanding any other provision of law, the state employer
shall be deemed to have made an immediate payment
of wages under in com pliance with
this section for any unused or accumulated vacation, annual
leave, holiday leave, sick leave to which the employee is otherwise
entitled due to a disability retirement, or time off to which the
employee is entitled by reason of previous overtime work where
compensating time off was given by the appointing power, provided
that, at least five workdays prior to his or her final day
of employment, the employee submits a written election to his or her
appointing power authorizing the state employer to tender payment
for any or all leave to be contributed on a pretax basis to the
employee's account in a state-sponsored supplemental retirement plan
as described under Sections Section 401
(k), 403(b), or 457 of the Internal Revenue Code provided the plan
allows those contributions. The contribution shall be tendered for
payment to the employee's 401(k), 403(b), or 457 plan account no
later than 45 days after the employee's last day of employment.
Nothing in this section is intended to authorize contributions in
excess of the annual deferral limits imposed under federal and state
law or the provisions of the supplemental retirement plan itself.
(c) (1) Notwithstanding any other provision
of law, when a state employee quits, retires, or disability retires
from his or her employment with the state, the employee may, at least
five workdays prior to his or her final day of employment, submit a
written election to his or her appointing power authorizing the state
employer to defer into the next calendar year payment of any or all
of the employee's unused or accumulated vacation, annual leave,
holiday leave, sick leave to which the employee is otherwise entitled
due to a disability, retirement, or time off to which the employee
is entitled by reason of previous overtime work where compensating
time off was given by the appointing power. To qualify for the
deferral of payment under this section, only that portion of leave
that extends past the November pay period for state employees shall
be deferred into the next calendar year under this section may do any
of the following:
(1)
(A) Contribute the entire payment to his or her 401(k),
403(b), or 457 plan account.
(2)
(B) Contribute any portion of the deferred payment to
his or her 401(k), 403(b), or 457 plan account and receive cash
payment for the remaining noncontributed unused leave.
(3)
(C) Receive a lump-sum payment for all of the deferred
unused leave as described above.
(2) Payments shall be tendered under this
section no later than February 1 in the year following the employee's
last day of employment. Nothing in this section is intended to
authorize contributions in excess of the annual deferral limits
imposed under federal and state law or the provisions of the
supplemental retirement plan itself.
