Law360, New York (July 20, 2009, 12:34 PM ET) -- Under California law, an employer may not "settle" a wage claim in exchange for a release agreement unless: (a) the employer pays the actual wages due in consideration for the release, or (b) a genuine dispute exists as to whether or not wages are actually due.
The latter is the situation in which the parties found themselves in Chindarah v. Pick Up Stix, Inc., a case recently decided by the Fourth Appellate District in California, and left untouched by the California Supreme Court.