California Legislature—2015–16 Regular Session

Assembly Bill No. 2363

Introduced by Assembly Member Low

February 18, 2016

An act to amend Section 201 of the Labor Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

AB 2363, as introduced, Low. Payment of wages.

Under existing law, an employer who discharges or lays off employees must pay wages earned but unpaid within specified time limits.

This bill would make technical, nonsubstantive changes to that provision.

Vote: majority. Appropriation: no. Fiscal committee: no. 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 a group of employees begin delete by
reason of end delete begin insert due to end insert the termination of seasonal employment in the
curing, canning, or drying of any variety of perishable fruit, fish begin insert , end insert
or vegetables, shall be deemed to have made immediate payment
when the wages of begin delete said end delete begin insert those end insert employees are paid within a
reasonable time as necessary for computation and payment begin delete thereof; end delete
begin insert thereof, end insert provided, however, that the reasonable time shall not
exceed 72 hours, and further provided that payment shall be made
by mail to any 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 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 begin delete , end delete begin insert that end insert 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 begin delete Sections end delete begin insert Section end insert 401(k), 403(b),
or 457 of the Internal Revenue Code begin delete provided end delete begin insert , if end insert 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) 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) Contribute the entire payment to his or her 401(k), 403(b),
or 457 plan account.

(2) 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) Receive a lump-sum payment for all of the deferred unused
leave as described above.

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.