(a) If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately. An employer who lays off a group of employees by reason of the termination of seasonal employment in the curing, canning, or drying of any variety of perishable fruit, fish, or vegetables, shall be deemed to have made immediate payment when the wages of said employees are paid within a reasonable time as necessary for computation and payment thereof; provided, however, that the reasonable time shall not exceed 72 hours, and further provided that payment shall be made by mail to any employee who so requests and designates a mailing address therefor.

(b) Notwithstanding any other law, the state employer shall be deemed to have made an immediate payment of wages under this section for any unused or accumulated vacation, annual leave, holiday leave, or time off to which the employee is entitled by reason of previous overtime work where compensating time off was given by the appointing power, provided, at least five workdays prior to his or her final day of employment, the employee submits a written election to his or her appointing power authorizing the state employer to tender payment for any or all leave to be contributed on a pretax basis or a Roth basis, in the year of discharge, to the employee’s account in a state-sponsored supplemental retirement plan as described under Sections 401(k), 403(b), or 457 of the Internal Revenue Code provided the plan allows those contributions. The contribution shall be deposited into the employee’s 401(k), 403(b), or 457 plan account no later than two and one-half months after the employee’s discharge from employment. This section is not intended to authorize contributions in excess of the annual deferral limits imposed under federal and state law or the provisions of the supplemental retirement plan itself.

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(c) Notwithstanding any other law, when the state employer discharges an employee, the employee may, at least five workdays prior to his or her final day of employment, submit a written election to his or her appointing power authorizing the state employer to defer into the next calendar year payment of any or all of the employee’s unused or accumulated vacation, annual leave, holiday leave, or time off to which the employee is entitled by reason of previous overtime work where compensating time off was given by the appointing power. An employee electing to defer payment into the next calendar year under this section may do any of the following:

(1) Contribute the entire payment to his or her 401(k), 403(b), or 457 plan account.

(A) This election is only available if the employee is terminated from service on or after November 1 of the calendar year of his or her termination.

(B) The contributions shall be deposited into an applicable plan account no later than two and one-half months after the employee’s last day of employment.

(2) Contribute any portion of the deferred payment to his or her 401(k), 403(b), or 457 plan account and receive cash payment for the remaining noncontributed unused leave.

(A) An employee is eligible to defer a portion of the deferred payment into a 401(k), 403(b), or 457 plan account only if the employee’s date of termination from service was on or after November 1 of the calendar year of his or her termination.

(B) For the portion deferred into a 401(k), 403(b), or 457 plan account, the contributions shall be deposited into an applicable plan account no later than two and one-half months after the employee’s last day of employment.

(C) For the portion received as a cash payment:

(i) Only that portion of leave that extends past the November pay period for the employee shall be deferred into the next calendar year.

(ii) Payments shall be tendered under this paragraph no later than February 1 in the year following the employee’s last day of employment.

(3) Receive a lump-sum payment for all of the deferred unused leave as described above.

(A) Only that portion of leave that extends past the November pay period for the employee shall be deferred into the next calendar year.

(B) Payments shall be tendered under this paragraph no later than February 1 in the year following the employee’s last day of employment.

(d) This section is not intended to authorize contributions in excess of the annual deferral limits imposed under federal and state law or the provisions of the supplemental retirement plan itself.

(Amended by Stats. 2018, Ch. 903, Sec. 19. (SB 1504) Effective January 1, 2019.)