Labor Code Section 202(c)

On August 19, 2014, a California Court of Appeal held that the requirements of Labor Code sections 202 and 203 apply not only to employees who quit, but also to employees who retire.  In McLean v. State of California et al., No. C074515 (Cal. Aug. 19, 2014), the plaintiff filed a putative class action lawsuit on behalf of all employees employed by the State of California who retired from their employment between November 2010 and March 2011, who did not receive prompt payment of wages as required by Labor Code section 202.  Among other things, the putative class sought waiting time penalties under Labor Code section 203.  At the trial level, the defendants’ demurrer was sustained without leave to amend because the plain text of Labor Code section 202 requires prompt payment of wages owed only for employees who “quit his or her employment.”  Because the putative class sought penalties for retired employees, the trial court determined that the employer could not have violated Labor Code section 202.  Nevertheless, the Court of Appeal reversed and found that the term “quit” in Labor Code section 202 also encompasses retired employees.
Continue Reading California Court of Appeal Holds That Retired Employees Can Also Subject Employers to Waiting Time Penalties