Lab. Code 202 and 203 require employers to pay final wages promptly to an employee who “quits”—and impose waiting time penalties on employers who do not comply. This decision holds that an employee “quits” for this purpose whenever he resigns his employment for whatever reason—including “quitting” to go into retirement. So the prompt payment of final wages rules apply to employees who retire as well as those who quit for other reasons. The opinion also holds that plaintiff did not lose her claim by suing the State of California rather than the Department of Justice, her employer. At least at the pleading stage, plaintiff may have a claim against the state rather than her employing agency because she alleged wrongdoing by the State Controller who paid her wages as well as by the Department of Justice, her employer.
California Supreme Court (Kruger, J.); August 18, 2016; 2016 WL 4395672