I found multiple articles saying it's not taxable (including legal from where I worked), here is one:There was some ambiguity and disagreement over the years re...
Section 203 of the California Labor Code has required employers to pay a penalty for willful failure to provide a departing employee with their final wages on t...
I don't think it is taxable per this legal guidance:IRS Chief Counsel: CA Waiting Time Penalties Are Not WagesFor years now, Section 203 of the California Labor...