Important New Law for California Employers
The California Legislature recently enacted a new law that requires all employers to give their new, non-exempt hires written notice regarding the terms of their employment. This law went into effect on January 1, 2012. The form is accessible through this link. Keep in mind that you do not need to have your new hires fill out this form if 1) the employees are directly employed by the state or any political subdivision; 2) the employees are exempt and not entitled to overtime; or 3) the employee is covered by a collective bargaining agreement.
This law is not retroactive, so only new employees as of January 1, 2012 need to fill out this form. Be sure to keep a copy of this form in the employee’s personnel file.
What is important about this new law is that all employers must be clear about classifying their new hires as either exempt or non-exempt at the outset of their employment.
Happy Holidays! See You in ’12!
I’m taking the holidays off from the blogosphere. Make sure to check back after the 1st! Wishing you and yours all the best for the new year.
……….. I’m out!
Should You Cash a Check Marked “Payment in Full?”
Q: My customer owes me $1,000. It sent me a check for $700, marked “payment in full.” Is it OK to cash it?
A: Cashing a check marked “payment in full” will likely discharge the debtor’s obligation entirely, under the doctrine of “accord and satisfaction.” Tendering of a check marked “payment in full” or “paid in full” is an offer to settle the debt for an amount different than what the parties’ contract says. Cashing the check is considered to be acceptance of the offer, and extinguishes the debt. In order to be effective, the words must be clear and conspicuous. There must be no question that the debtor intends the check to settle the debt entirely.
My recommendation is that you only cash the check if you agree to accept this amount as payment in full. Otherwise, return it to sender along with an explanation of why you did not cash the check.
The question of whether you can just strike out the “payment in full” language and cash the check anyway is murky. Civil Code section 1526 provides that a creditor can render the language ineffective by striking it out. However, Commercial Code section 3311 provides that the “payment in full” language is binding regardless of whether the creditor strikes it out. My advice is to play it safe and not strike out the language, but rather just return the check to sender uncashed if you do not agree to accept it as payment in full.
Kring & Chung December Newsletter
The December newsletter is here, packed with informative articles on child support, divorce, safe holiday party tips, additional insurance coverage, sexual harassment training, construction defect law, and our Thanksgiving Food Drive.
