Why should you care about California Labor Code 206.5?
It’s easy to imagine that we can’t keep track of the codes and regulations today, and just hope that our employer is doing the right thing, but what if they don’t. You have to arm yourself with knowledge and sometimes a GREAT LAWYER.
In Pulli v. Pony International, LLC, the California appellate court passed judgment clarifying and bolstering employee’s rights under labor code section 206.5.
Labor code 206.5 was put in place to help prevent employee abuse by withholding pay. No employer can withhold wages they owe to an employee as means of forcing the employee to give up their right to a jury trial, this is seen quite often in a contract as an arbitration agreement. Such arbitration agreements often require that the parties settle without a trial commonly using mediation rather than having the case heard by a judge. There are contradictions in the ruling as it stands though, for instance; you can be required to sign the arbitration agreement to get your final paycheck, but the court can still through it out and grant you a jury trial if the judge deems the case worthy of trial.
Pulli filed suit against his former employer, Pony International for “fraudulent inducement to enter into an arbitration agreement”, as well as wrongful termination. The claim stated the defendant was coerced and threatened so that he would sign the arbitration agreement or be denied the final pay and wages which were already earned. Pony International’s motion for arbitration was denied by the courts base on code 206.5, stating they could not force arbitration if the Pulli was unwilling.
We must note, however, that the California court of appeals saw it differently. The appellate court claimed, the “existence of an invalid release of a wage claim pursuant to Section 206.5 in an agreement does not provide a defense to the enforcement of an arbitration provision contained in the same agreement.” And so the debate goes on and cases are left to the judge to decide whether the case is valid and deserves to be heard in court by a jury.
California Labor Law is a very intricate maze of codes and case law, at UELG we have over 35 years experience that helps us navigate this maze and create the best outcomes for our clients.
Call United Employees Law Group Today for your private case review, free of cost. 408-648-4248
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