Legal Question in Employment Law in California

She Was Forced to Sign a Release in Order to Receive Wages: Illegal?

My fiance was discriminated against and wrongfully terminated. Her employer, knowing himself to be liable and fearful that she may pursue a lawsuit, refused to pay her owed wages unless she signed a release promising not to sue him. The release also states that by signing, she is relinquishing any claims to additional wages, which she is, in fact, still owed.

Does the following law apply, and if so, is the release null and void? If not, why, and does her signing this agreement bar litigation for discrimination?

Labor Code 206.5. No employer shall require the execution of any release of any claim or right on account of wages due, or to become due, or made as an

advance on wages to be earned, unless payment of such wages has been made. Any release required or executed in violation of the provisions of this section shall be null and void as between the employer and the employee and the violation of the provisions of this section shall be a misdemeanor.


Asked on 1/21/02, 12:43 am

4 Answers from Attorneys

John Ferry Law Offices of John C. Ferry

Re: She Was Forced to Sign a Release in Order to Receive Wages: Illegal?

Your fiancee should do 3 things.

1. Consult with a local attorney who can review the actual documents and consider the nature of the discrimination. He or she would then also advise her to:

2. Contact the labor commissioner, as failure to pay wages owed is within the province of that department; and

3. Contact the Department of Fair Employment and Housing to present a claim for employment discrimination -- which has a separate set of procedures and remedies available.

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Answered on 1/29/02, 6:20 am
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: She Was Forced to Sign a Release in Order to Receive Wages: Illegal?

I could get around the release, what would be more difficult, however, is the statute of limitations. She must file complaints with the DFEH and the EEOC, within 300 days of the discrimintation and other dates may apply. You certainly need to pursue this action. Tortious Retailatory Discharge in Violation of Public Policy allows for general damages, and punitive damages. Please call me directly at (619) 222-3504.

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Answered on 1/29/02, 12:12 pm
Paul Crost Reich, Adell, Crost & Cvitan

Re: She Was Forced to Sign a Release in Order to Receive Wages: Illegal?

If the money paid pursuant to the release is only what the employee was entitled to, there is no consideration for the release, and it is not binding for that reason as well as the Labor Code violation. On the other hand, if the payment was in excess of the amount due as wages, there may be a basis for the employer to claim that the release was given for the additional money, not the wages that were due. In any event, an attorney should be consulted about the merits of the wrongful termination claim if you are within 1 year of the date of termination.

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Answered on 1/29/02, 4:08 pm
Ken Koury Kenneth P. Koury, Esq.

Re: She Was Forced to Sign a Release in Order to Receive Wages: Illegal?

It sounds like an illegal contract that will not be enforced as being contrary to public policy.

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Answered on 1/29/02, 2:04 am


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