HR Management & Compliance

News Flash: Court Says Final Paycheck Rules Can’t Be Changed By Agreement; Employer Hit With Fines For Violations

David Balcorta complained that Twentieth Century Fox Film Corporation in Los Angeles violated the California Labor Code on 11 occasions by not paying him promptly after his discharge from short-term jobs with the studio. Fox contended that it had paid Balcorta according to the terms of its collective bargaining agreement. But the Ninth Circuit Court of Appeal has ruled that must now pay Balcorta $14,208 in penalties, plus attorneys’ fees. The court held that California’s final paycheck rules cannot be changed by written agreement—either with an employee directly or as part of a union contract.

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