Wages Must Be Paid in Money and What if the Employee Disputes the Amount Owed?

Some employers attempt to avoid their responsibility to timely pay employee wages by attempting to make payments in some form other than in cash or cash equivalent, for example with vouchers, in kind services, or even goods. In California, employers must pay wages using cash or a form of payment that is negotiable in cash. Employers are allowed to deposit wages into the employees’ bank, credit union or similar institution with the employee’s approval. There are exceptions to this requirement especially for certain government employees and student-employees.

Occasionally, when an employer and employee dispute the amount of wages owing, an employer may attempt to placate the employee with a smaller check and with a note of “payment in full” or similar language. Even though the employee believes additional wages are due, should the employee cash the smaller check and possibly lose claims to the full amount?

California Labor Code § 206 and a handful of court decisions allow an employee to cash the “payment-in-full” check and to then pursue the balance in court or in front of the Labor Commissioner.

However, if the employer attempts to write a check against an account with insufficient funds, the employer may face steep penalties. If the employees’ check “bounces,” the employer can be penalized one days’ wages, up to a maximum of 30, for each day it fails to remedy the bounced check. However, the employer can avoid liability by establishing that the bounced check was unintentional.

Read more

Workers sorting produce in warehouse

Misclassified Delivery Drivers Get $650,000 in Back Wages from Romero’s Food Products

A food manufacturer in Santa Fe Springs, California, is on the hook for $650,000 after the U.S. Department of Labor’s (DOL) efforts to recover back wages for a group of misclassified delivery…

READ ARTICLE
Retail working in a mask standing behind an open sign

Marin County Home Consignment Center Worker Wins $1.3 Million in COVID-19 Whistleblower Lawsuit

People often think of whistleblowing in relation to exposing a major scandal or government wrongdoing. However, being a whistleblower does not always have to be so dramatic in the context of workplace…

READ ARTICLE
Restaurant workers discussing their employer

Sacramento Restaurant Uses Fake Priest to Get Workers to Confess Wrongdoing

Even though workplace retaliation is unlawful, employers sometimes try to take advantage of workers who do not know or understand their rights. Examples of retaliation include threatening to report employees to immigration…

READ ARTICLE
Asian tech worker working late at night

Silicon Valley Firm Faces $20 Million Lawsuit Over Anti-Asian Discrimination

An Asian former employee of a Silicon Valley tech firm is seeking $20 million in damages after being fired due to the company’s alleged “culture of prejudice against Asians.” He filed a…

READ ARTICLE
SEEN ON
Fox40-bw
KPIX-bw
SFGate-bw
marin-ij
Abc10-bw