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Perspective

May 2, 2009

Controlled Release

The Court of Appeal recently decided the second significant case in the past 12 months involving employee releases, writes Stephen P. Wiman.

By Stephen P. Wiman

In Chindarah v. Pick Up Stix Inc., 171 Cal.App.4th 796 (2009), the California Court of Appeal held that a release of an employer as part of a settlement of a disputed employee overtime claim is valid and enforceable. The release does not violate Section 206.5 of the Labor Code barring a release with respect to "wages due or to become due." In other words, Section 206.5 precludes an employer from obtaining a release from an employee in return f...

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