California Employment Law
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Pursuant to the Age Discrimination in Employment Act (ADEA) individuals who are 40 years of age or older are protected from employment discrimination based on age. Under this law, it is unlawful to discriminate against a person because of his/her age with respect to any term, condition, or privilege of employment. However, the ADEA applies to employers with 20 or more employees.
That said, if he is owed back pack, he will have a right to sue whether he is terminated or not. You best option here is to negotiate a severance with him wherein you spell out the terms under which he will be paid the money owed.
Here is a sample agreement for you to use as a go-by.
1. Well, if there is no money and he sues, then all he gets is a piece of paper that says he won a judgment. So, if he knows there is no money, then there really is no point in him suing.
2. Yes, if you do not have an employment contract with him for any set duration, then you can terminate him even if he does not want to retire. California’s Labor Code specifies that an employment relationship with no specified duration is presumed to be employment “at-will.” This means that the employer or employee may terminate the employment relationship at any time, with or without cause; just so long as it is not done because of age, race, national origin, gender, or disability.