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California Termination California

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  • California Termination California

    Hello,
    Washington State employer with one California employee.
    The company will be terminating his employment next week and the call at this time is to pay (and benefit) him through February via scheduled payroll.

    I understand CA requires payout at day of termination, however if we continue to pay him as a scheduled employee through end of next month will we be in violation of CA employment law?

    Long time lurker and occasional poster, a big shout out thanks to the great regulars, you folks keep me sharper.

  • #2
    Not exactly true. CA requires payment of statutory earnings quickly upon termination. 24 or 72 hours depending on quit/fire and lead time. However, statutory earnings are pay for time worked and vacation balances. If your employee is going to keep working, then termination has not occurred. And if you are paying the employee to not work, that is not statutory earnings.

    What exactly are you paying for ? Severance, which is not statutory?
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Thanks DAW,
      He'll be termed this week (lay-off, since we're closing the office) and paid through February as severance.

      Comment


      • #4
        There is no explicit rule on severance pay. It is payable"when due" but there is no statutory definition of when due. CA-DLSE tends to give employers a certain latitude with severance pay not available with statutory wages.
        "Reality is that which, when you stop believing in it, doesn't go away".
        Philip K. **** (1928-1982)

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        • #5
          Roger that, thank you DAW.

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          • #6
            Just wanted to say welcome back, Sockeye.
            The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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            • #7
              Originally posted by cbg View Post
              Just wanted to say welcome back, Sockeye.
              Thank you cbg.

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              • #8
                Sockeye, not your question but I hope you got a signed release for the severance. Just to prevent the employee from attempting to sue later on.

                Comment

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