I recently quit my job and my employer is stating that I need to sign a separation agreement in order to receive my final check.

2 views 5 answers
My employer has my resignation in email form, but is now stating that they will not pay my final paycheck unless I sign a separation agreement. Also, I quit my job because they would not pay me full commissions on an event because I called in sick two weeks before the event took place. My questions are: 1. Can they make me sign this separation agreement before I get my final paycheck and commissions? 2. Am I eligible for unemployment since I quit due to non-payment? 3. Should I go to the Fair Employment and Housing Board?

Attorney Answers

5
Michael Kirschbaum ·
Do not sign anything! Your employer cannot make you sign a release, or any other document to receive your final paycheck. Insist that you be provided with your final check, unconditionally, or you will file a complaint with the Division of Labor Standards Enforcement and seek waiting time penalties (which is up to 30 days' pay) unless you are given your check immediately.
0 upvotes
Brian Kindsvater ·
I have had a number of cases just like this. Here is the strategy: Your wages continue as a penalty for up to 30 days (calendar days, not work days), or until you receive your final paycheck. If you can survive without that check DO NOT make demands for payment, threaten penalties, file a labor claim, etc. You probably should have no communication with the company. Let the penalty max out. Of course, if you absolutely need the money now then you demand the money now. But keep in mind that filing a claim will stop amount of the penalty from accruing. Important - only an attorney reviewing your complete situation can tell you what to do or not to do, so don't rely on anything you read online. You are not required to sign any document or do anything else to get paid. You mention commissions. That could be an issue for your penalties if commissions did not accrue until after you left. But given what I read into your question about a paycheck being owed, but not paid, it may not be an issue. If you are owed, not but paid, anything - the full amount of penalties accrue. Since you quit, if you gave at least 72 hours notice before quitting your final paycheck was due on your last day of work. Otherwise, if you gave less than 72 hours notice the employer has 72 hours from when notice is given to pay you. The day the paycheck was owed is the the day the failure to pay penalties start to accrue. If you file a claim with the California Labor Commissioner (not the Housing Board) you will be responsible for paying for any legal advice. If you hire an attorney to file a lawsuit then your former employer should be responsible for also paying your attorney. I do not know what is in the separate agreement, but there is a California statute saying any agreement required to be signed as a condition for getting paid is not enforceable. On the other hand, I have seen separation agreements that are very favorable, and worth signing and not worrying about penalties. It depends on what is being offered.
0 upvotes
John Valentine ·
Your employer cannot force you to sign a separation agreement (which I assume includes a release of claims) in order to receive your final paycheck. Even if such an agreement is signed it is not valid because it violates Labor Code section 206. In order to qualify for unemployment benefits you need to show that you quit with good cause. Quitting due the nonpayment of wages will likely be found to be good cause if you have made efforts to get paid before quitting. You can file a claim with the Labor Commissioner’s office for unpaid wages and a waiting time penalty. You are entitled to all of your wages within 72 hours of quitting your employment. If all wages are not paid you are entitled to a waiting time penalty that is equal to your average daily wage (commissions included) up to a maximum of thirty days.
0 upvotes
Joseph Lovretovich ·
You are not required to sign any type of agreement to obtain your wages. There are penalties that accrue for 30 days so you should just wait and file a claim with the labor board
0 upvotes
Kevin Sullivan ·
no. They cannot make you sign a separation agreement as a condition of your receiving your final check. if he makes you wait you can get waiting time penalties. How much are you owed?
0 upvotes