SB 1283 Defeated

Senate Bill 1283, which would have allowed employers to delay payment of final wages to terminated employees to as late as 24 hours following the start of the next business day after the termination, has been voted down in the California Senate. "Unfortunately, many California businesses are currently forced into the practice of immediately providing compensation when an employee is discharged for any cause," said a disappointed bill sponser Senator Harman, "for many discharged employees, the requirement on businesses creates an opportunity to take advantage of the employer by joining with other former employees to file a class action lawsuit, thereby unnecessarily clogging our already burdened court system with frivolous claims." We've never heard of even a single lawsuit, much less a class action, arising out of a single day's delay in the payment of final wages, so it sounded to us like a strong-handed solution to a problem that was merely theoretical. We think the failure of SB 1283 will have neither an effect on business nor an effect on any pending or future cases. The lesson for employers: fire at will, but don't send your discharged employee home empty-handed.