BILL NUMBER: AB 2363	INTRODUCED
	BILL TEXT


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  by reason of
  due to  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  
those  employees are paid within a reasonable time as necessary
for computation and payment  thereof;   thereof,
 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  ,  
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
  , if  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.