AB 444 – Expands Options For Processing Final Wages For Public Employees

Under existing law, various sections of the Government Code govern the processing of final wages for deceased public employees. For state employees, the law allows employees to designate a “person”, which includes a corporation, trust, or estate, to receive their final paycheck. For local employees, the process is similar, but the law does not specify that an employee’s designated “person” can include a corporation, trust, or estate. AB 444 clarifies that a local employee can designate a corporation, trust, or estate as the “person” designated to receive their final wages, just as a state employee can.

The bill also amends the process for state employees to allow issuance of a new check in the designated person’s name, in order to avoid potential conflicts with financial institutions’ third-party check cashing restrictions.

(AB 444 amends Sections 12479 and 53245 of the Government Code.)