The following excerpt is from Guilfoyle v. Dollar Tree Stores, Inc., No. 12-cv-00703-GEB-CKD (E.D. Cal. 2014):
California Labor Code section 203 prescribes that when "an employer willfully fails to pay . . . any wages of an employee who is discharged or who quits, the wages of the employee shall continue as a penalty." (emphasis added) "[A] good faith belief in a legal defense will preclude a finding of willfulness" within the meaning of section 203. Arementa v. Osmose, 135 Cal. App. 4th 314, 325 (2005). "The fact that a defense is ultimately unsuccessful will not preclude a finding that a good faith dispute did exist." Cal. Code Regs. tit. 8, 13520(a). However, "[d]efenses presented which, under all the circumstances, are unsupported by any evidence, are unreasonable, or are presented in bad faith, will preclude a finding of a 'good faith dispute.'" Id.
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