STOP! Don’t Sign Away Your Rights!
California Labor Code Section 206.5: Restrictions of Release of Wage Claims.
Pulli v. Pony International, LLC: California appellate court gave a decision, which helps clarify the restriction of release of wage claims.
1. An employer should not restrict an employer from being paid unless payment has already been made. If the employer violates this, they will be charged with a misdemeanor.
2. Execution of release includes requiring the employee to execute a statement of the hours they worked during a pay period that the employer is aware is untrue in order for payment.
Labor Code Section 206.5: Restrictions of Wage Claim was instated so employers cannot withhold wages from employees as an attempt to try to deter them from taking action against their employer, and to waive their rights to a jury trial. This is something that is common when it comes to arbitration agreements. Sometimes these agreements will have a trial with a jury while other times it will require mediation with a mediator instead of a judge. In the past, the courts did allow this behavior to take place yet it did not mean the agreement would be valid later nor did it mean that it would be invalid.
Pulli v. Pony International LLC
The Pulli v. Pony International LLC was about Pulli alleging the company committed fraudulent inducement to enter into an arbitration agreement and wrongful termination. Pulli stated he was threatened and forced into signing an arbitration agreement so he could receive his final pay wages that he had worked hard for. Pony International LLC filed a motion to compel arbitration yet the courts did not approve their motion and found that the agreement as a whole was enforceable under section 206.5.
The court of appeals did not feel the same way. Instead, they felt that the existence of an invalid release of a wage claim does not provide a defense to the enforcement of arbitration according to Section 206.5. This means that the entire agreement and the arbitration could not be considered automatically invalidated.
Bottom Line
Labor law is very complex and many employers have no problems at all trying to get over on those who they feel do not know any better. If you have any questions or concerns regarding your employment it is important that you contact our San Francisco labor lawyers at UELG immediately to see if there is something that they can do for you. If you contact our law firm, we will provide you with a no obligation and free consultation so we can evaluate your case.
Photo Credit: Shutterstock/Africa Studio (1)