EmploymentQuestion 981 of 1605
An employer asks an employee to sign a release stating all wages have been paid, even though disputed overtime remains unpaid, as a condition of receiving the undisputed portion. Is this lawful under Labor Code §206.5?
a.Yes, releases always settle wage disputes
b.No; an employer may not require a release of wages as a condition of paying wages that are concededly due
c.Yes, if notarized
d.Yes, because the employee needs the money
Explanation
Labor Code §206.5 prohibits an employer from requiring an employee to sign a release of wages as a condition of being paid wages that are concededly due (undisputed). Such coerced releases are void. The employer must pay the undisputed wages without strings; genuinely disputed amounts can be litigated or settled separately, but they cannot be leveraged to extract a release of admitted wages.
Law Reference: Labor Code §206.5; wage release prohibitionPractice all 1605 questions free — no signup required.
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