SB 588: Employment: nonpayment of wages: Labor Commissioner: judgment enforcement.
- Session Year: 2015-2016
- House: Senate
- Latest Version Date: 2015-10-11
(1)The Enforcement of Judgments Law provides for the enforcement of money judgments and other civil judgments. Under that law, a judgment creditor may levy upon the property of a judgment debtor to satisfy a judgment, and a levying officer holds the property until the final determination of any exemptions claimed by the judgment debtor.
This bill would enact special provisions for the enforcement of judgments against an employer arising from the employers nonpayment of wages for work performed in this state. The bill would authorize the Labor Commissioner to use any of the existing remedies available to a judgment creditor and to act as a levying officer when enforcing a judgment pursuant to a writ of execution, as provided.
The bill would also authorize the Labor Commissioner to issue a notice of levy, as specified, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor.
(2)Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law requires the Labor Commissioner to determine all matters arising under his or her jurisdiction. Existing law makes any employer or other person acting on behalf of an employer who violates or causes to be violated specified provisions regulating hours and days of work in any order of the Industrial Welfare Commission to be subject to a civil penalty, as specified. A violation of the general provisions governing working hours is a crime.
This bill would authorize the Labor Commissioner to provide for a hearing to recover civil penalties against any employer or other person acting on behalf of an employer, as defined, for a violation of those provisions regulating hours and days of work in any order of the Industrial Welfare Commission, as specified. This bill would provide that any employer or other person acting on behalf of an employer, as defined, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, other related provisions of law is authorized to be held liable as the employer for such violation. Because the bill expands liability and a violation of those provisions would be a crime, the bill would impose a state-mandated local program.
Under existing law, within a specified period of time after service of notice of an order, decision, or award, the parties are authorized to seek review by filing an appeal to the superior court, where the appeal is required to be heard de novo.
This bill, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to an appeal, would authorize the Labor Commissioner to, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property, belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. The bill would also require the judgment debtor to be served with a copy of the notice of levy. The bill would require any person who surrenders to the Labor Commissioner any credits, money, or property, or pays the debts owed to the judgment debtor to be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy. The bill would make any person noticed with a levy who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or property or in the amount of the levy, as provided.
If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a specified period of time after the time to appeal has expired and no appeal is pending, the bill would prohibit an employer from continuing to conduct business in this state, as specified, unless the employer has obtained a bond from a surety company and has filed a copy of that bond with the Labor Commissioner, as provided. As an alternative to the bond requirement, the bill would authorize the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. The bill would make any employer conducting business without satisfying the bond requirement subject to a specified civil penalty, as provided. The bill, where an employer is conducting business in violation of the bond requirement, would authorize the Labor Commissioner to issue and serve on such employer a stop order prohibiting the use of employee labor by the employer until the employer complies with the bond requirement provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The bill would make the failure of an employer, owner, director, officer, or managing agent of the employer to observe a stop order guilty of a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program. Subject to required prior notice to the employer, the bill would authorize the Labor Commissioner to create a lien on any real or personal property in California of an employer or a successor employer with respect to real property, as described, that is conducting business without satisfying the bond requirement for the full amount of any wages, interest, and penalties claimed to be owed to an employee, as specified.
Existing law generally provides for the licensure and regulation of various types of long-term care facilities by the State Department of Public Health and the State Department of Social Services.
If a final judgment against an employer arising from the employers nonpayment of wages remains unsatisfied after the time to appeal has expired and there is no pending appeal and an employer in the long-term care industry, as specified, is found to be conducting business without obtaining a bond or reaching an accord with an individual holding an unsatisfied judgment, this bill would authorize those departments to deny a new license or the renewal of an existing license. The bill would also authorize the Labor Commissioner to notify those departments of such a violation. The bill would require any individual or business entity that contracts for services in the property services or long-term care industries to be jointly and severally liable for any unpaid wages where the individual or business entity has been provided notice, by any party, of any proceeding or investigation by the Labor Commissioner in which the employer is found liable for those unpaid wages, to the extent the amounts are for services performed under that contract, as provided.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The Enforcement of Judgments Law provides for the enforcement of money judgments and other civil judgments. Under that law, a judgment creditor may levy upon the property of a judgment debtor to satisfy a judgment, and a levying officer holds the property until the final determination of any exemptions claimed by the judgment debtor.
This bill would enact special provisions for the enforcement of judgments against an employer arising from the employers nonpayment of wages for work performed in this state. The bill would authorize the Labor Commissioner to use any of the existing remedies available to a judgment creditor and to act as a levying officer when enforcing a judgment pursuant to a writ of execution, as provided.
The bill would also authorize the Labor Commissioner to issue a notice of levy, as specified, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor.
(2)Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law requires the Labor Commissioner to determine all matters arising under his or her jurisdiction. Existing law makes any employer or other person acting on behalf of an employer who violates or causes to be violated specified provisions regulating hours and days of work in any order of the Industrial Welfare Commission to be subject to a civil penalty, as specified. A violation of the general provisions governing working hours is a crime.
This bill would authorize the Labor Commissioner to provide for a hearing to recover civil penalties against any employer or other person acting on behalf of an employer, as defined, for a violation of those provisions regulating hours and days of work in any order of the Industrial Welfare Commission, as specified. This bill would provide that any employer or other person acting on behalf of an employer, as defined, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, other related provisions of law is authorized to be held liable as the employer for such violation. Because the bill expands liability and a violation of those provisions would be a crime, the bill would impose a state-mandated local program.
Under existing law, within a specified period of time after service of notice of an order, decision, or award, the parties are authorized to seek review by filing an appeal to the superior court, where the appeal is required to be heard de novo.
This bill, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to an appeal, would authorize the Labor Commissioner to, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property, belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. The bill would also require the judgment debtor to be served with a copy of the notice of levy. The bill would require any person who surrenders to the Labor Commissioner any credits, money, or property, or pays the debts owed to the judgment debtor to be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy. The bill would make any person noticed with a levy who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or property or in the amount of the levy, as provided.
If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a specified period of time after the time to appeal has expired and no appeal is pending, the bill would prohibit an employer from continuing to conduct business in this state, as specified, unless the employer has obtained a bond from a surety company and has filed a copy of that bond with the Labor Commissioner, as provided. As an alternative to the bond requirement, the bill would authorize the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. The bill would make any employer conducting business without satisfying the bond requirement subject to a specified civil penalty, as provided. The bill, where an employer is conducting business in violation of the bond requirement, would authorize the Labor Commissioner to issue and serve on such employer a stop order prohibiting the use of employee labor by the employer until the employer complies with the bond requirement provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The bill would make the failure of an employer, owner, director, officer, or managing agent of the employer to observe a stop order guilty of a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program. Subject to required prior notice to the employer, the bill would authorize the Labor Commissioner to create a lien on any real or personal property in California of an employer or a successor employer with respect to real property, as described, that is conducting business without satisfying the bond requirement for the full amount of any wages, interest, and penalties claimed to be owed to an employee, as specified.
Existing law generally provides for the licensure and regulation of various types of long-term care facilities by the State Department of Public Health and the State Department of Social Services.
If a final judgment against an employer arising from the employers nonpayment of wages remains unsatisfied after the time to appeal has expired and there is no pending appeal and an employer in the long-term care industry, as specified, is found to be conducting business without obtaining a bond or reaching an accord with an individual holding an unsatisfied judgment, this bill would authorize those departments to deny a new license or the renewal of an existing license. The bill would also authorize the Labor Commissioner to notify those departments of such a violation. The bill would require any individual or business entity that contracts for services in the property services or long-term care industries to be jointly and severally liable for any unpaid wages where the individual or business entity has been provided notice, by any party, of any proceeding or investigation by the Labor Commissioner in which the employer is found liable for those unpaid wages, to the extent the amounts are for services performed under that contract, as provided.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The Enforcement of Judgments Law provides for the enforcement of money judgments and other civil judgments. Under that law, a judgment creditor may levy upon the property of a judgment debtor to satisfy a judgment, and a levying officer holds the property until the final determination of any exemptions claimed by the judgment debtor.
This bill would enact special provisions for the enforcement of judgments against an employer arising from the employers nonpayment of wages for work performed in this state. The bill would authorize the Labor Commissioner to use any of the existing remedies available to a judgment creditor and to act as a levying officer when enforcing a judgment pursuant to a writ of execution, as provided.
The bill would also authorize the Labor Commissioner to issue a notice of levy, as specified, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor.
(2)Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law requires the Labor Commissioner to determine all matters arising under his or her jurisdiction. Existing law makes any employer or other person acting on behalf of an employer who violates or causes to be violated specified provisions regulating hours and days of work in any order of the Industrial Welfare Commission to be subject to a civil penalty, as specified. A violation of the general provisions governing working hours is a crime.
This bill would authorize the Labor Commissioner to provide for a hearing to recover civil penalties against any employer or other person acting on behalf of an employer, as defined, for a violation of those provisions regulating hours and days of work in any order of the Industrial Welfare Commission, as specified. This bill would provide that any employer or other person acting on behalf of an employer, as defined, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, other related provisions of law is authorized to be held liable as the employer for such violation. Because the bill expands liability and a violation of those provisions would be a crime, the bill would impose a state-mandated local program.
Under existing law, within a specified period of time after service of notice of an order, decision, or award, the parties are authorized to seek review by filing an appeal to the superior court, where the appeal is required to be heard de novo.
This bill, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to an appeal, would authorize the Labor Commissioner to, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property, belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. The bill would also require the judgment debtor to be served with a copy of the notice of levy. The bill would require any person who surrenders to the Labor Commissioner any credits, money, or property, or pays the debts owed to the judgment debtor to be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy. The bill would make any person noticed with a levy who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or property or in the amount of the levy, as provided.
If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a specified period of time after the time to appeal has expired and no appeal is pending, the bill would prohibit an employer from continuing to conduct business in this state, as specified, unless the employer has obtained a bond from a surety company and has filed a copy of that bond with the Labor Commissioner, as provided. As an alternative to the bond requirement, the bill would authorize the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. The bill would make any employer conducting business without satisfying the bond requirement subject to a specified civil penalty, as provided. The bill, where an employer is conducting business in violation of the bond requirement, would authorize the Labor Commissioner to issue and serve on such employer a stop order prohibiting the use of employee labor by the employer until the employer complies with the bond requirement provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The bill would make the failure of an employer, owner, director, officer, or managing agent of the employer to observe a stop order guilty of a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program. Subject to required prior notice to the employer, the bill would authorize the Labor Commissioner to create a lien on any real or personal property in California of an employer or a successor employer with respect to real property, as described, that is conducting business without satisfying the bond requirement for the full amount of any wages, interest, and penalties claimed to be owed to an employee, as specified.
Existing law generally provides for the licensure and regulation of various types of long-term care facilities by the State Department of Public Health and the State Department of Social Services.
If a final judgment against an employer arising from the employers nonpayment of wages remains unsatisfied after the time to appeal has expired and there is no pending appeal, this bill would prohibit appeal and an employer in the long-term care industry, as specified, from obtaining a license or renewing that license if the employer is found to be conducting business without obtaining a bond or reaching an accord with an individual holding an unsatisfied judgment, as described above. judgment, this bill would authorize those departments to deny a new license or the renewal of an existing license. The bill would also authorize the Labor Commissioner to notify those departments of such a violation. The bill would require any individual or business entity that contracts for services in the property services or long-term care industries to be jointly and severally liable for any unpaid wages where the individual or business entity has been provided notice, by any party, of any proceeding or investigation by the Labor Commissioner in which the employer is found liable for those unpaid wages, to the extent the amounts are for services performed under that contract, as provided.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The Enforcement of Judgments Law provides for the enforcement of money judgments and other civil judgments. Under that law, a judgment creditor may levy upon the property of a judgment debtor to satisfy a judgment, and a levying officer holds the property until the final determination of any exemptions claimed by the judgment debtor.
This bill would enact special provisions for the enforcement of judgments against an employer arising from the employers nonpayment of wages for work performed in this state. The bill would authorize the Labor Commissioner to use any of the existing remedies available to a judgment creditor and to act as a levying officer when enforcing a judgment pursuant to a writ of execution, as provided.
The bill would also authorize the Labor Commissioner to issue a notice of levy, as specified, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor.
(2)Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law requires the Labor Commissioner to determine all matters arising under his or her jurisdiction. Existing law makes any employer or other person acting on behalf of an employer who violates or causes to be violated specified provisions regulating hours and days of work in any order of the Industrial Welfare Commission to be subject to a civil penalty, as specified. A violation of the general provisions governing working hours is a crime.
This bill would authorize the Labor Commissioner to provide for a hearing to recover civil penalties against any employer or other person acting on behalf of an employer employer, as defined, for a violation of those provisions regulating hours and days of work in any order of the Industrial Welfare Commission. The bill would also authorize any person liable for a violation of those provisions to be held liable in various other actions relating to, among other things, an employers failure to pay wages. Commission, as specified. This bill would provide that any employer or other person acting on behalf of an employer, as defined, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, other related provisions of law is authorized to be held liable as the employer for such violation. Because the bill expands liability and a violation of those provisions would be a crime, the bill would impose a state-mandated local program.
Under existing law, within a specified period of time after service of notice of an order, decision, or award, the parties are authorized to seek review by filing an appeal to the superior court, where the appeal is required to be heard de novo.
This bill, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to an appeal, would authorize the Labor Commissioner to, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property, belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. The bill would also require the judgment debtor to be served with a copy of the notice of levy. The bill would require any person who surrenders to the Labor Commissioner any credits, money, or property, or pays the debts owed to the judgment debtor to be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy. The bill would make any person noticed with a levy who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or property or in the amount of the levy, as provided.
If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a specified period of time after the time to appeal has expired and no appeal is pending, the bill would prohibit an employer from continuing to conduct business in this state state, as specified, unless the employer has obtained a bond from a surety company admitted and has filed a copy of that bond with the Labor Commissioner, as provided. As an alternative to the bond requirement, the bill would authorize the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. The bill would make any employer conducting business without satisfying the bond requirement subject to a specified civil penalty penalty, as provided. The bill, where an employer is conducting business in violation of the bond requirement, would authorize the Labor Commissioner to issue and serve on such employer a stop order prohibiting the use of employee labor by the employer until the employer complies with the bond requirement provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The bill would make the failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees owner, director, officer, or managing agent of the employer to observe a stop order guilty of a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program. Subject to required prior notice to the employer, the bill would authorize the Labor Commissioner to create a lien on any real or personal property in California of an employer or a successor employer with respect to real property, as described, that is conducting business without satisfying the bond requirement for the full amount of any wages, interest, and penalties claimed to be owed to an employee, as specified.
Existing law generally provides for the licensure and regulation of various types of long-term care facilities by the State Department of Public Health and the State Department of Social Services.
If a final judgment against an employer arising from the employer's employers nonpayment of wages remains unsatisfied after the time to appeal has expired and there is no pending appeal, this bill would prohibit an employer in the long-term care industry, as specified, from obtaining a license or renewing that license if the employer is conducting business without obtaining a bond or reaching an accord with an individual holding an unsatisfied judgment, as described above. The bill would make a specified entity that contracts with an employer to perform services in the property services, as defined, or long-term care industries jointly and severally liable where the entity has been named as a defendant with the employer for any unpaid wages and the employer was found liable for those unpaid wages pursuant to a specified action, as provided. The bill would require any individual or business entity that contracts for services in the property services or long-term care industries to be jointly and severally liable for any unpaid wages where the individual or business entity has been provided notice, by any party, of any proceeding or investigation by the Labor Commissioner in which the employer is found liable for those unpaid wages, to the extent the amounts are for services performed under that contract, as provided.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The Enforcement of Judgments Law provides for the enforcement of money judgments and other civil judgments. Under that law, a judgment creditor may levy upon the property of a judgment debtor to satisfy a judgment, and a levying officer holds the property until the final determination of any exemptions claimed by the judgment debtor.
This bill would enact special provisions for the enforcement of judgments against an employer arising from the employers nonpayment of wages for work performed in this state. The bill would authorize the Labor Commissioner to use any of the existing remedies available to a judgment creditor and to act as a levying officer when enforcing a judgment pursuant to a writ of execution, as provided.
The bill would also authorize the Labor Commissioner to issue a notice of levy, as specified, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor.
(2)Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law requires the Labor Commissioner to determine all matters arising under his or her jurisdiction. Existing law makes any employer or other person acting on behalf of an employer who violates or causes to be violated specified provisions regulating hours and days of work in any order of the Industrial Welfare Commission to be subject to a civil penalty, as specified.
This bill would authorize the Labor Commissioner to provide for a hearing against any employer or other person acting on behalf of an employer for a violation of those provisions regulating hours and days of work in any order of the Industrial Welfare Commission. The bill would also authorize any person liable for a violation of those provisions to be held liable in various other actions relating to, among other things, an employers failure to pay wages.
Under existing law, within a specified period of time after service of notice of an order, decision, or award, the parties are authorized to seek review by filing an appeal to the superior court, where the appeal is required to be heard de novo.
This bill, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to an appeal, would authorize the Labor Commissioner to, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property, belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. The bill would also require the judgment debtor to be served with a copy of the notice of levy. The bill would require any person who surrenders to the Labor Commissioner any credits, money, or property, or pays the debts owed to the judgment debtor to be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy. The bill would make any person noticed with a levy who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or property or in the amount of the levy, as provided.
If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a specified period of time after the time to appeal has expired and no appeal is pending, the bill would prohibit an employer from continuing to conduct business in this state unless the employer has obtained a bond from a surety company admitted and has filed a copy of that bond with the Labor Commissioner, as provided. As an alternative to the bond requirement, the bill would authorize the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. The bill would make any employer conducting business without satisfying the bond requirement subject to a specified civil penalty. The bill, where an employer is conducting business in violation of the bond requirement, would authorize the Labor Commissioner to issue and serve on such employer a stop order prohibiting the use of employee labor by the employer until the employer complies with the bond requirement provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The bill would make the failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees to observe a stop order guilty of a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program. Subject to required prior notice to the employer, the bill would authorize the Labor Commissioner to create a lien on any real or personal property in California of an employer that is conducting business without satisfying the bond requirement for the full amount of any wages, interest, penalties, and attorneys fees and penalties claimed to be owed to an employee. employee, as specified.
Existing law generally provides for the licensure and regulation of various types of long-term care facilities by the State Department of Public Health and the State Department of Social Services.
If a final judgment against an employer arising from the employer's nonpayment of wages remains unsatisfied after the time to appeal has expired and there is no pending appeal, this bill would prohibit an employer in the long-term care industry, as specified, from obtaining a license or renewing that license if the employer is conducting business without obtaining a bond or reaching an accord with an individual holding an unsatisfied judgment, as described above. The bill would make a specified entity that contracts with an employer to perform services in the property services, as defined, or long-term care industries jointly and severally liable where the entity has been named as a defendant with the employer for any unpaid wages and the employer was found liable for those unpaid wages pursuant to a specified action, as provided.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The Enforcement of Judgments Law provides for the enforcement of money judgments and other civil judgments. Under that law, a judgment creditor may levy upon the property of a judgment debtor to satisfy a judgment, and a levying officer holds the property until the final determination of any exemptions claimed by the judgment debtor.
This bill would enact special provisions for the enforcement of judgments against an employer arising from the employers nonpayment of wages for work performed in this state. The bill would authorize the Labor Commissioner to use any of the existing remedies available to a judgment creditor and to act as a levying officer when enforcing a judgment pursuant to a writ of execution, as provided.
The bill would also authorize the Labor Commissioner to issue a notice of levy, as specified, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor.
(2)Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law requires the Labor Commissioner to determine all matters arising under his or her jurisdiction. Existing law makes any employer or other person acting on behalf of an employer who violates or causes to be violated specified provisions regulating hours and days of work in any order of the Industrial Welfare Commission to be subject to a civil penalty, as specified.
This bill would authorize the Labor Commissioner to provide for a hearing against any employer or other person acting on behalf of an employer for a violation of those provisions regulating hours and days of work in any order of the Industrial Welfare Commission. The bill would also authorize any person liable for a violation of those provisions to be held liable in various other actions relating to, among other things, an employers failure to pay wages.
Under existing law, within a specified period of time after service of notice of an order, decision, or award, the parties are authorized to seek review by filing an appeal to the superior court, where the appeal is required to be heard de novo.
This bill, after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee pursuant to an appeal, would authorize the Labor Commissioner to, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property, belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. The bill would also require the judgment debtor to be served with a copy of the notice of levy. The bill would require any person who surrenders to the commissioner Labor Commissioner any credits, money, or property, or pays the debts owing owed to the judgment debtor to be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner Labor Commissioner as a result of the levy. The bill would make any person noticed with a levy who fails or refuses to surrender any credits, money, or property or pay any debts owing owed to the judgment debtor liable in his or her own person or estate to the commissioner Labor Commissioner in an amount equal to the value of the credits, money, or property or in the amount of the levy, as provided.
If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a specified period of time after the time to appeal has expired and no appeal is pending, the bill would prohibit an employer from continuing to conduct business in this state unless the employer has obtained a bond from a surety company admitted and has filed a copy of that bond with the Labor Commissioner, as provided. As an alternative to the bond requirement, the bill would authorize the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. The bill would make any employer conducting business without satisfying the bond requirement subject to a specified civil fine. penalty. The bill, where an employer is conducting business in violation of the bond requirement, would authorize the Labor Commissioner to issue and serve on such employer a stop order prohibiting the use of employee labor by the employer until the employer complies with the bond requirement provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The bill would make the failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees to observe a stop order guilty of a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program. Subject to required prior notice to the employer, the bill would authorize the Labor Commissioner to create a lien on any real or personal property in California of an employer that is conducting business without satisfying the bond requirement for the full amount of any wages, interest, penalties, and attorneys fees claimed to be owed to an employee.
Existing law generally provides for the licensure and regulation of various types of long-term care facilities by the State Department of Public Health and the State Department of Social Services.
If a final judgment against an employer arising from the employer's nonpayment of wages remains unsatisfied after the time to appeal has expired and there is no pending appeal, this bill would prohibit an employer in the long-term care industry, as specified, from obtaining a license or renewing that license if the employer is conducting business without obtaining a bond or reaching an accord with an individual holding an unsatisfied judgment, as described above. The bill would make a specified entity that contracts with an employer to perform services in the property services, as defined, or long-term care industries jointly and severally liable where the entity has been named as a defendant with the employer for any unpaid wages and the employer was found liable for those unpaid wages pursuant to a specified action, as provided.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The Enforcement of Judgments Law provides for the enforcement of money judgments and other civil judgments. Under that law, a judgment creditor may levy upon the property of a judgment debtor to satisfy a judgment, and a levying officer holds the property until the final determination of any exemptions claimed by the judgment debtor.
This bill would enact special provisions for the enforcement of judgments against an employer arising from the employers nonpayment of wages for work performed in this state. The bill would authorize the Labor Commissioner to use any of the existing remedies available to a judgment creditor and to act as a levying officer when enforcing a judgment pursuant to a writ of execution, as provided.
The bill would also authorize the Labor Commissioner to issue a notice of levy, as specified, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor.
(2)Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law requires the Labor Commissioner to determine all matters arising under his or her jurisdiction. Existing law makes any employer or other person acting on behalf of an employer who violates or causes to be violated specified provisions regulating hours and days of work in any order of the Industrial Welfare Commission to be subject to a civil penalty, as specified.
This bill would authorize the Labor Commissioner to provide for a hearing against any employer or other person acting on behalf of an employer for a violation of those provisions regulating hours and days of work in any order of the Industrial Welfare Commission. The bill would also authorize any person liable for a violation of those provisions to be held liable in various other actions relating to, among other things, an employers failure to pay wages.
Under existing law, within a specified period of time after service of notice of an order, decision, or award, the parties are authorized to seek review by filing an appeal to the superior court, where the appeal is required to be heard de novo.
This bill, after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee pursuant to an appeal, would authorize the Labor Commissioner to, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property, belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. The bill would also require the judgment debtor to be served with a copy of the notice of levy. The bill would require any person who surrenders to the commissioner any credits, money, or property, or pays the debts owing the judgment debtor to be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner as a result of the levy. The bill would make any person noticed with a levy who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor liable in his or her own person or estate to the commissioner in an amount equal to the value of the credits, money, or property or in the amount of the levy, as provided.
If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a specified period of time after the time to appeal has expired and no appeal is pending, the bill would prohibit an employer from continuing to conduct business in this state unless the employer has obtained a bond from a surety company admitted and has filed a copy of that bond with the Labor Commissioner, as provided. As an alternative to the bond requirement, the bill would authorize the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. The bill would make any employer conducting business without satisfying the bond requirement subject to a specified civil fine. The bill, where an employer is conducting business in violation of the bond requirement, would authorize the Labor Commissioner to issue and serve on such employer a stop order prohibiting the use of employee labor by the employer until the employer complies with the bond requirement provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The bill would make the failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees to observe a stop order guilty of a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program. Subject to required prior notice to the employer, the bill would authorize the Labor Commissioner to create a lien on any real or personal property in California of an employer that is conducting business without satisfying the bond requirement for the full amount of any wages, interest, penalties, and attorneys fees claimed to be owed to an employee.
Existing law generally provides for the licensure and regulation of various types of long-term care facilities by the State Department of Public Health and the State Department of Social Services.
If a final judgment against an employer arising from the employer's nonpayment of wages remains unsatisfied after the time to appeal has expired and there is no pending appeal, this bill would prohibit an employer in the long-term care industry, as specified, from obtaining a license or renewing that license if the employer is conducting business without obtaining a bond or reaching an accord with an individual holding an unsatisfied judgment, as described above. The bill would make a specified entity that contracts with an employer to perform services in the property services, as defined, or long-term care industries jointly and severally liable where the entity has been named as a defendant with the employer for any unpaid wages and the employer was found liable for those unpaid wages pursuant to a specified action, as provided.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law prohibits a person or entity from entering into a contract or agreement for labor or services with specified types of contractors if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided, and provides there is a rebuttable presumption affecting the burden of proof that there has been no violation of this provision if the contract or agreement meets specified requirements.
This bill would make nonsubstantive changes to these provisions.
Existing law prohibits a person or entity from entering into a contract or agreement for labor or services with specified types of contractors if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided, and provides there is a rebuttable presumption affecting the burden of proof that there has been no violation of this provision if the contract or agreement meets specified requirements.
This bill would make nonsubstantive changes to these provisions.
For the purpose of the remedies provided under this chapter, jurisdiction is conferred upon the superior court.
690.030.(a)Except as otherwise provided by statute, whenever a warrant or notice of levy may properly be issued by the Labor Commissioner pursuant to Section 96.8 of the Labor Code, and the warrant may be levied with the same effect as a levy pursuant to a writ of execution, the Labor Commissioner may use any of the remedies available to a judgment creditor, including, but not limited to, those provided in Chapter 6 (commencing with Section 708.010) of Division 2.
(b)The proper court for the enforcement of the remedies provided under this chapter is the superior court of any of the following counties:
(1)The county where the employee resides.
(2)The county where the judgment debtor resides.
(3)The county where the person against whom the levy or warrant was issued resides.
690.040.(a)Whenever the Labor Commissioner, pursuant to Section 96.8 of the Labor Code, levies upon property pursuant to a warrant or notice of levy for the collection of an unsatisfied judgment or award:
(1)If the debtor is a natural person, the debtor is entitled to the same exemptions to which a judgment debtor is entitled. Except as provided in subdivisions (b) and (c), the claim of exemption shall be made, heard, and determined as provided in Chapter 4 (commencing with Section 703.010) of Division 2 in the same manner as if the property were levied upon under a writ of execution.
(2)A third person may claim ownership or the right to possession of the property or a security interest in or lien on the property. Except as provided in subdivisions (b) and (c) or as otherwise provided by statute, the third-party claim shall be made, heard, and determined as provided in Division 4 (commencing with Section 720.010) in the same manner as if the property were levied upon under a writ of execution.
(b)In the case of a warrant or notice of levy issued pursuant to Section 96.8 of the Labor Code, the claim of exemption or the third-party claim shall be filed with the Labor Commissioner.
(c)A claim of exemption or a third-party claim pursuant to this section shall be heard and determined in a superior court specified in subdivision (b) of Section 690.030.
690.050.(a)Notwithstanding any other law, in the case of a writ of execution issued by a court of competent jurisdiction pursuant to Chapter 3 (commencing with Section 699.010) and Chapter 5 (commencing with Section 706.010) of Division 2, the Labor Commissioner, when collecting an unsatisfied judgment or award pursuant to Section 96.8 of the Labor Code, may perform the duties of the levying officer, except that the Labor Commissioner need not give himself or herself the notices that the levying officer is required to serve on a judgment creditor or the notices that a judgment creditor is required to give to the levying officer.
(b)Notwithstanding subdivision (a) of Section 700.140 and Sections 700.150, 700.160, and 700.170, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor, the Labor Commissioner may deliver or mail a notice of levy to a centralized location designated by the bank or savings and loan association or, in the case of an account receivable or other general intangible, to the agent for service of process of the account debtor. If the notice of levy is received at the designated central location for the bank or savings and loan association, the notice of levy will apply to all deposits, credits, money, and personal property held by the bank or savings and loan association regardless of the location of that property. The notice of levy may be issued directly by the Labor Commissioner, whether or not a court has issued a writ of execution, and shall contain all of the information required to be included in a writ of execution under Section 699.520 and in a notice of levy under Section 699.540.
SEC. 2.Section 96.8 is added to the Labor Code, to read:96.8.(a)Notwithstanding any other law, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to subdivision (e) of Section 98.2, the Labor Commissioner may, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy.
(b)Notwithstanding any other law, the Labor Commissioner may execute a levy on any property that may be levied under Section 700.140, 700.150, 700.160, or 700.170 of the Code of Civil Procedure by mailing a notice of levy to the person against whom the levy is directed and serving a copy on the judgment debtor. The notice of levy shall contain all of the information required to be included in a writ of execution under Section 699.520 of the Code of Civil Procedure and in a notice of levy under Section 699.540 of the Code of Civil Procedure.
(c)Any person, upon whom a levy has been noticed having in his or her possession or under his or her control any credits, money, or property belonging to the judgment debtor or owing any debts to the judgment debtor at the time of receipt of the levy or coming into his or her possession or under his or her control within one year of receipt of the notice of levy, shall surrender the credits, money, or property to the Labor Commissioner or pay to the Labor Commissioner the amount of any debt owed to the judgment debtor within 10 days of service of the levy, and shall surrender the credits or property, or the amount of any debt owing to the judgment debtor coming into his or her own possession or control within one year of receipt of the notice of levy within 10 days of the date of coming into possession or control of the credits or property or the amount of any debt owed to the judgment debtor.
(d)Any person who surrenders to the Labor Commissioner pursuant to this section any credits, money, or property, or pays the debts owed to the judgment debtor, shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy.
(e)If the levy is made on a deposit or credits, money, or property in the possession or under the control of a bank, savings and loan association, or other financial institution as defined by Section 669a(d)(1) of Title 42 of the United States Code, the notice of levy may be delivered or mailed to a centralized location designated by the bank, savings and loan association, or other financial institution pursuant to Section 690.050 of the Code of Civil Procedure.
(f)Any person who is noticed with a levy pursuant to this section and who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor shall be liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or other property or in the amount of the levy, up to the amount specified in the levy.
(g)The fees, commissions, expenses, and the reasonable costs associated with the sale of property levied upon by warrant or levy pursuant to this section, including, but not limited to, appraisers fees, auctioneers fees, and advertising fees are an obligation of the judgment debtor and may be collected from the judgment debtor by virtue of the warrant or levy or in any other manner as though these items were part of the judgment or award outstanding.
(h)This section shall not apply to the judgment debtors interest in real property.
(i)This section shall not apply if enforcement of the judgment has been stayed on appeal pursuant to Chapter 2 (commencing with Section 916) of Title 13 of Part 2 of the Code of Civil Procedure.
SEC. 3.Section 98 of the Labor Code is amended to read:98.(a)The Labor Commissioner is authorized to investigate employee complaints. The Labor Commissioner may provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and shall determine all matters arising under his or her jurisdiction. The Labor Commissioner may also provide for a hearing to recover civil penalties due pursuant to Section 558 against any employer or other person acting on behalf of an employer, including, but not limited to, an individual liable pursuant to Section 558.1. It is within the jurisdiction of the Labor Commissioner to accept and determine claims from holders of payroll checks or payroll drafts returned unpaid because of insufficient funds, if, after a diligent search, the holder is unable to return the dishonored check or draft to the payee and recover the sums paid out. Within 30 days of the filing of the complaint, the Labor Commissioner shall notify the parties as to whether a hearing will be held, whether action will be taken in accordance with Section 98.3, or whether no further action will be taken on the complaint. If the determination is made by the Labor Commissioner to hold a hearing, the hearing shall be held within 90 days of the date of that determination. However, the Labor Commissioner may postpone or grant additional time before setting a hearing if the Labor Commissioner finds that it would lead to an equitable and just resolution of the dispute. A party who has received actual notice of a claim before the Labor Commissioner shall, while the matter is before the Labor Commissioner, notify the Labor Commissioner in writing of any change in that partys business or personal address within 10 days after the change in address occurs.
It is the intent of the Legislature that hearings held pursuant to this section be conducted in an informal setting preserving the rights of the parties.
(b)When a hearing is set, a copy of the complaint, which shall include the amount of compensation requested, together with a notice of time and place of the hearing, shall be served on all parties, personally or by certified mail, or in the manner specified in Section 415.20 of the Code of Civil Procedure.
(c)Within 10 days after service of the notice and the complaint, a defendant may file an answer with the Labor Commissioner in any form as the Labor Commissioner may prescribe, setting forth the particulars in which the complaint is inaccurate or incomplete and the facts upon which the defendant intends to rely.
(d)No pleading other than the complaint and answer of the defendant or defendants shall be required. Both shall be in writing and shall conform to the form and the rules of practice and procedure adopted by the Labor Commissioner.
(e)Evidence on matters not pleaded in the answer shall be allowed only on terms and conditions the Labor Commissioner shall impose. In all these cases, the claimant shall be entitled to a continuance for purposes of review of the new evidence.
(f)If the defendant fails to appear or answer within the time allowed under this chapter, no default shall be taken against him or her, but the Labor Commissioner shall hear the evidence offered and shall issue an order, decision, or award in accordance with the evidence. A defendant failing to appear or answer, or subsequently contending to be aggrieved in any manner by want of notice of the pendency of the proceedings, may apply to the Labor Commissioner for relief in accordance with Section 473 of the Code of Civil Procedure. The Labor Commissioner may afford this relief. No right to relief, including the claim that the findings or award of the Labor Commissioner or judgment entered thereon are void upon their face, shall accrue to the defendant in any court unless prior application is made to the Labor Commissioner in accordance with this chapter.
(g)All hearings conducted pursuant to this chapter are governed by the division and by the rules of practice and procedure adopted by the Labor Commissioner.
(h)(1)Whenever a claim is filed under this chapter against a person operating or doing business under a fictitious business name, as defined in Section 17900 of the Business and Professions Code, which relates to the persons business, the division shall inquire at the time of the hearing whether the name of the person is the legal name under which the business or person has been licensed, registered, incorporated, or otherwise authorized to do business.
(2)The division may amend an order, decision, or award to conform to the legal name of the business or the person who is the defendant to a wage claim, if it can be shown that proper service was made on the defendant or his or her agent, unless a judgment had been entered on the order, decision, or award pursuant to subdivision (d) of Section 98.2. The Labor Commissioner may apply to the clerk of the superior court to amend a judgment that has been issued pursuant to a final order, decision, or award to conform to the legal name of the defendant, if it can be shown that proper service was made on the defendant or his or her agent.
SEC. 4.Section 238 is added to the Labor Code, to read:238.(a)If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a period of 30 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the employer shall not continue to conduct business in this state, including conducting business using the labor of another business, contractor, or subcontractor instead of the labor of an employee, unless the employer has obtained a bond from a surety company admitted to do business in this state and has filed a copy of that bond with the Labor Commissioner. The bond shall be effective and maintained until satisfaction of all judgments for nonpayment of wages. The principal sum of the bond shall not be less than the following:
(1)Fifty thousand dollars ($50,000) if the unsatisfied portion of the judgment is no more than five thousand dollars ($5,000).
(2)One hundred thousand dollars ($100,000) if the unsatisfied portion of the judgment is more than five thousand dollars ($5,000) and no more than ten thousand dollars ($10,000).
(3)One hundred fifty thousand dollars ($150,000) if the unsatisfied portion of the judgment is more than ten thousand dollars ($10,000).
(b)In lieu of filing and maintaining the bond required by this section, the employer may provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. If the accord provides for the judgment to be paid in installments, and an installment payment is not made, the employer is no longer excused from satisfying the bond requirement of this section.
(c)(1)The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be for the benefit of any employee damaged by his or her employers failure to pay wages, including any interest, penalties, and attorneys fees.
(2)This section shall not require a bond in favor of employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the bond required by this section.
(3)Thirty days prior to the cancellation or termination of any bond required by this section, the surety shall send written notice to both the employer and the Labor Commissioner, identifying the bond and the date of the cancellation or termination. If the bond is terminated or canceled, the employer shall obtain a new surety bond and file a copy of that bond with the Labor Commissioner to remain in compliance with this section.
(d)For purposes of this section, a judgment also includes any final arbitration award where the time to file a petition for a trial de novo or a petition to vacate or correct the arbitration award has expired and no petition is pending.
(e)Subject to subdivision (f), an employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages, upon receiving written notice of the unsatisfied judgment, shall be deemed the same employer for purposes of this section if (1) the employees of the successor employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors or (2) if the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
(f)Any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil penalty of two thousand five hundred dollars ($2,500). Any employer that has previously been assessed and failed to pay a penalty pursuant to this section shall be subject to an additional penalty of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section; however, this additional amount shall not exceed one hundred thousand dollars ($100,000). These civil penalties may be assessed under a citation issued by the Labor Commissioner and the procedures for issuing, contesting, and enforcing judgments shall be the same as those set forth in Section 1197.1. The Labor Commissioner shall not assess these civil penalties against an entity determined to be a successor employer pursuant to subdivision (e) within the first 30 days after notice of the judgment.
SEC. 5.Section 238.1 is added to the Labor Code, to read:238.1.(a)Where an employer is conducting business in violation of Section 238, the Labor Commissioner may issue and serve on that employer a stop order prohibiting the use of employee labor by that employer until the employers compliance with Section 238, provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The stop order shall also prohibit the employer from continuing to provide services by conducting business using the labor of another business, contractor, or subcontractor. The stop order shall become effective immediately upon the service of the order. Any employee affected by the work stoppage shall be paid by the employer for such time lost, not exceeding 10 days, pending compliance by the employer. The employer may protest the stop order by making and filing with the Labor Commissioner a written request for a hearing within 20 days after service of the stop order. The hearing shall be held within five days from the date of filing the request. The Labor Commissioner shall notify the employer of the time and place of the hearing by mail. At the conclusion of the hearing, the stop order shall be immediately affirmed or dismissed, and within 24 hours thereafter, the Labor Commissioner shall issue and serve on all parties to the hearing by registered or certified mail a written notice of findings, accompanied by written findings. A writ of mandate may be taken from the findings to the appropriate superior court. The writ shall be taken within 45 days after the mailing of the notice of findings accompanied by written findings. The Labor Commissioner may file an action in superior court for injunctive and other appropriate relief to enforce the stop order and shall be entitled to recovery of costs and attorneys fees if any relief is obtained by the Labor Commissioner.
(b)Failure of an employer, owner, director, officer, or managing agent of the employer to observe a stop order issued and served upon him or her pursuant to this section is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both. For the purposes of this section, the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code.
SEC. 6.Section 238.2 is added to the Labor Code, to read:238.2.(a)The Labor Commissioner may create a lien on any real property in California of an employer, or a successor employer pursuant to subdivision (e) of Section 238, that is conducting business in violation of Section 238 for the full amount of any wages, interest, and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by recording a certificate of lien using the same procedure applicable under subdivision (g) of Section 98.2.
(c)The Labor Commissioner shall issue a certificate of release, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond pursuant to Section 238. The certificate of release may be recorded by the employer at the employers expense.
(d)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(e)Prior to using the lien procedure in this section, the Labor Commissioner shall provide at least 20 days notice to the employer. The notice shall advise the employer of the Labor Commissioners authority to create a lien on the property to secure payment of the claim.
(f)The Labor Commissioner may serve the notice with and in the same manner as the order, decision, and award in accordance with Section 98.1.
(g)A lien created pursuant to this section is in addition to any other lien rights available to an employee or to the Labor Commissioner and shall not be construed to limit those rights.
SEC. 7.Section 238.3 is added to the Labor Code, to read:238.3.(a)The Labor Commissioner may create a lien on any personal property in California of an employer that conducts business in violation of Section 238 for the full amount of any wages, interest, and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by filing a notice of lien with the Secretary of State on the standard form of initial financing statement pursuant to Section 9521 of the Commercial Code. The standard form shall be completed in the following manner:
(1)The Labor Commissioner shall be identified as the secured party.
(2)The employer shall be identified as the debtor.
(3)The description of the collateral shall include the following statements:
(A)A statement of the Labor Commissioners demand for payment of the wages, penalties, interest, and attorneys fees, if applicable. The statement shall specify the amount owed to the employee, and if the amount is estimated, shall provide an explanation for the basis of the estimate.
(B)A general statement of the kind of work furnished by the employee and the dates of employment.
(c)For the purpose of the Secretary of States index pursuant to Sections 9515, 9516, and 9522 of the Commercial Code and for the purpose of the issuance of a certificate pursuant to Section 9519 or 9528 of the Commercial Code, the Secretary of State shall treat a notice of lien pursuant to this section as a financing statement.
(d)The lien attaches to all personal property that is owned by the employer at the time of the filing of the notice of lien, or that is subsequently acquired by the employer, that can be made subject to a security interest under the Commercial Code.
(e)The Labor Commissioner shall file a termination statement, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond in a form acceptable to the Labor Commissioner sufficient to secure the claim.
(f)The notice of claim of lien to which the termination statement relates ceases to be effective upon the filing of a termination statement with the office of the Secretary of State. A termination statement for a notice of lien may be filed in the same manner as a termination statement for a financing statement filed pursuant to Section 9513 of the Commercial Code.
(g)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(h)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers personal property to secure payment of the claim.
(i)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(j)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(k)A lien created pursuant to this section in addition to any other lien rights available to an employee or to the Labor Commissioner shall not be construed to limit those rights.
SEC. 8.Section 238.4 is added to the Labor Code, to read:238.4.(a)If an employer in the long-term care industry that is also required to obtain a license from the State Department of Public Health or the State Department of Social Services pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code, is found to be in violation of Section 238, the State Department of Public Health or the State Department of Social Services may deny a new license or the renewal of an existing license for that employer.
(b)If the Labor Commissioner finds that an employer in the long-term care industry is conducting business in violation of Section 238, the Labor Commissioner shall notify the State Department of Public Health or the State Department of Social Services.
(c)For purposes of this section long-term care means the operation of a skilled nursing facility, intermediate care facility, congregate living health facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization, as those terms are used in Division 2 (commencing with Section 1200) of the Health and Safety Code.
SEC. 9.Section 238.5 is added to the Labor Code, to read:238.5.(a)(1)Any individual or business entity, regardless of its form, that, as part of its business, contracts for services in the property services or long-term care industries shall be jointly and severally liable for any unpaid wages, including interest, where the individual or business entity has been provided notice, by any party, of any proceeding or investigation by the Labor Commissioner in which the employer is found liable for those unpaid wages, to the extent the amounts are for services performed under that contract.
(2)The issue of joint and several liability under this section shall be determined (A) in a proceeding under Section 98 if the individual or contracting business is provided notice in the administrative complaint alleging such liability and named a defendant in the course of the Section 98 proceeding, (B) in an administrative proceeding brought by the Labor Commissioner to investigate, prosecute, or recover unpaid wages and interest pursuant to a citation, or in a court action brought by the Labor Commissioner, if the contracting individual or business is provided preliminary notice by the Labor Commissioner of joint and several liability under this section at least 30 days prior to issuance of a citation, or filing of a court action, or (C) by a court in an action pursuant to Section 98.2. No action for a violation or enforcement of this section shall be brought under Part 13 (commencing with Section 2698) of Division 2.
(b)The joint and several liability provided by this section shall not apply to unpaid wages owed to employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the joint and several liability provided by this section.
(c)An employer that contracts to provide services in the property services or long-term care industries shall, prior to entering into such a contract, provide written notice to the other party to the prospective contract of any unsatisfied final judgments against the employer for nonpayment of wages. The notice shall also provide the text of this section. The failure of the employer to provide notice under this subdivision shall not be a defense to the joint and several liability provided by this section.
(d)An employer that contracts to provide services in the property services or long-term care industries shall provide, within 30 days of the entry of the judgment, written notice of any unsatisfied final judgments against the employer for nonpayment of wages to any parties with which the employer is presently under contract to provide services in the property services or long-term care industries. The failure of the employer to provide notice under this subdivision shall not be a defense to the joint and several liability provided by this section.
(e)For the purposes of this section, the following apply:
(1)Property services means janitorial, security guard, valet parking, landscaping, and gardening services.
(2)Long-term care has the same definition as in Section 238.4.
(f)This section shall not be interpreted to impose joint liability on an individual or the owner of a home-based business, for any property services, to the extent that the property services are provided at the individual or home-based business owners primary residence, provided that the primary residence does not have multiple housing units.
SEC. 10.Section 558.1 is added to the Labor Code, to read:558.1.(a)Any employer or other person acting on behalf of an employer, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, Sections 203, 226, 226.7, 1193.6, 1194, or 2802, may be held liable as the employer for such violation.
(b)For purposes of this section, the term other person acting on behalf of an employer is limited to a natural person who is an owner, director, officer, or managing agent of the employer, and the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code.
(c)Nothing in this section shall be construed to limit the definition of employer under existing law.
SEC. 11.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For the purpose of the remedies provided under this chapter, jurisdiction is conferred upon the superior court.
690.030.(a)Except as otherwise provided by statute, whenever a warrant or notice of levy may properly be issued by the Labor Commissioner pursuant to Section 96.8 of the Labor Code, and the warrant may be levied with the same effect as a levy pursuant to a writ of execution, the Labor Commissioner may use any of the remedies available to a judgment creditor, including, but not limited to, those provided in Chapter 6 (commencing with Section 708.010) of Division 2.
(b)The proper court for the enforcement of the remedies provided under this chapter is the superior court of any of the following counties:
(1)The county where the employee resides.
(2)The county where the judgment debtor resides.
(3)The county where the person against whom the levy or warrant was issued resides.
690.040.(a)Whenever the Labor Commissioner, pursuant to Section 96.8 of the Labor Code, levies upon property pursuant to a warrant or notice of levy for the collection of an unsatisfied judgment or award:
(1)If the debtor is a natural person, the debtor is entitled to the same exemptions to which a judgment debtor is entitled. Except as provided in subdivisions (b) and (c), the claim of exemption shall be made, heard, and determined as provided in Chapter 4 (commencing with Section 703.010) of Division 2 in the same manner as if the property were levied upon under a writ of execution.
(2)A third person may claim ownership or the right to possession of the property or a security interest in or lien on the property. Except as provided in subdivisions (b) and (c) or as otherwise provided by statute, the third-party claim shall be made, heard, and determined as provided in Division 4 (commencing with Section 720.010) in the same manner as if the property were levied upon under a writ of execution.
(b)In the case of a warrant or notice of levy issued pursuant to Section 96.8 of the Labor Code, the claim of exemption or the third-party claim shall be filed with the Labor Commissioner.
(c)A claim of exemption or a third-party claim pursuant to this section shall be heard and determined in a superior court specified in subdivision (b) of Section 690.030.
690.050.(a)Notwithstanding any other law, in the case of a writ of execution issued by a court of competent jurisdiction pursuant to Chapter 3 (commencing with Section 699.010) and Chapter 5 (commencing with Section 706.010) of Division 2, the Labor Commissioner, when collecting an unsatisfied judgment or award pursuant to Section 96.8 of the Labor Code, may perform the duties of the levying officer, except that the Labor Commissioner need not give himself or herself the notices that the levying officer is required to serve on a judgment creditor or the notices that a judgment creditor is required to give to the levying officer.
(b)Notwithstanding subdivision (a) of Section 700.140 and Sections 700.150, 700.160, and 700.170, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor, the Labor Commissioner may deliver or mail a notice of levy to a centralized location designated by the bank or savings and loan association or, in the case of an account receivable or other general intangible, to the agent for service of process of the account debtor. If the notice of levy is received at the designated central location for the bank or savings and loan association, the notice of levy will apply to all deposits, credits, money, and personal property held by the bank or savings and loan association regardless of the location of that property. The notice of levy may be issued directly by the Labor Commissioner, whether or not a court has issued a writ of execution, and shall contain all of the information required to be included in a writ of execution under Section 699.520 and in a notice of levy under Section 699.540.
SEC. 2.Section 96.8 is added to the Labor Code, to read:96.8.(a)Notwithstanding any other law, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to subdivision (e) of Section 98.2, the Labor Commissioner may, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy.
(b)Notwithstanding any other law, the Labor Commissioner may execute a levy on any property that may be levied under Section 700.140, 700.150, 700.160, or 700.170 of the Code of Civil Procedure by mailing a notice of levy to the person against whom the levy is directed and serving a copy on the judgment debtor. The notice of levy shall contain all of the information required to be included in a writ of execution under Section 699.520 of the Code of Civil Procedure and in a notice of levy under Section 699.540 of the Code of Civil Procedure.
(c)Any person, upon whom a levy has been noticed having in his or her possession or under his or her control any credits, money, or property belonging to the judgment debtor or owing any debts to the judgment debtor at the time of receipt of the levy or coming into his or her possession or under his or her control within one year of receipt of the notice of levy, shall surrender the credits, money, or property to the Labor Commissioner or pay to the Labor Commissioner the amount of any debt owed to the judgment debtor within 10 days of service of the levy, and shall surrender the credits or property, or the amount of any debt owing to the judgment debtor coming into his or her own possession or control within one year of receipt of the notice of levy within 10 days of the date of coming into possession or control of the credits or property or the amount of any debt owed to the judgment debtor.
(d)Any person who surrenders to the Labor Commissioner pursuant to this section any credits, money, or property, or pays the debts owed to the judgment debtor, shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy.
(e)If the levy is made on a deposit or credits, money, or property in the possession or under the control of a bank, savings and loan association, or other financial institution as defined by Section 669a(d)(1) of Title 42 of the United States Code, the notice of levy may be delivered or mailed to a centralized location designated by the bank, savings and loan association, or other financial institution pursuant to Section 690.050 of the Code of Civil Procedure.
(f)Any person who is noticed with a levy pursuant to this section and who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor shall be liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or other property or in the amount of the levy, up to the amount specified in the levy.
(g)The fees, commissions, expenses, and the reasonable costs associated with the sale of property levied upon by warrant or levy pursuant to this section, including, but not limited to, appraisers fees, auctioneers fees, and advertising fees are an obligation of the judgment debtor and may be collected from the judgment debtor by virtue of the warrant or levy or in any other manner as though these items were part of the judgment or award outstanding.
(h)This section shall not apply to the judgment debtors interest in real property.
(i)This section shall not apply if enforcement of the judgment has been stayed on appeal pursuant to Chapter 2 (commencing with Section 916) of Title 13 of Part 2 of the Code of Civil Procedure.
SEC. 3.Section 98 of the Labor Code is amended to read:98.(a)The Labor Commissioner is authorized to investigate employee complaints. The Labor Commissioner may provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and shall determine all matters arising under his or her jurisdiction. The Labor Commissioner may also provide for a hearing to recover civil penalties due pursuant to Section 558 against any employer or other person acting on behalf of an employer, including, but not limited to, an individual liable pursuant to Section 558.1. It is within the jurisdiction of the Labor Commissioner to accept and determine claims from holders of payroll checks or payroll drafts returned unpaid because of insufficient funds, if, after a diligent search, the holder is unable to return the dishonored check or draft to the payee and recover the sums paid out. Within 30 days of the filing of the complaint, the Labor Commissioner shall notify the parties as to whether a hearing will be held, whether action will be taken in accordance with Section 98.3, or whether no further action will be taken on the complaint. If the determination is made by the Labor Commissioner to hold a hearing, the hearing shall be held within 90 days of the date of that determination. However, the Labor Commissioner may postpone or grant additional time before setting a hearing if the Labor Commissioner finds that it would lead to an equitable and just resolution of the dispute. A party who has received actual notice of a claim before the Labor Commissioner shall, while the matter is before the Labor Commissioner, notify the Labor Commissioner in writing of any change in that partys business or personal address within 10 days after the change in address occurs.
It is the intent of the Legislature that hearings held pursuant to this section be conducted in an informal setting preserving the rights of the parties.
(b)When a hearing is set, a copy of the complaint, which shall include the amount of compensation requested, together with a notice of time and place of the hearing, shall be served on all parties, personally or by certified mail, or in the manner specified in Section 415.20 of the Code of Civil Procedure.
(c)Within 10 days after service of the notice and the complaint, a defendant may file an answer with the Labor Commissioner in any form as the Labor Commissioner may prescribe, setting forth the particulars in which the complaint is inaccurate or incomplete and the facts upon which the defendant intends to rely.
(d)No pleading other than the complaint and answer of the defendant or defendants shall be required. Both shall be in writing and shall conform to the form and the rules of practice and procedure adopted by the Labor Commissioner.
(e)Evidence on matters not pleaded in the answer shall be allowed only on terms and conditions the Labor Commissioner shall impose. In all these cases, the claimant shall be entitled to a continuance for purposes of review of the new evidence.
(f)If the defendant fails to appear or answer within the time allowed under this chapter, no default shall be taken against him or her, but the Labor Commissioner shall hear the evidence offered and shall issue an order, decision, or award in accordance with the evidence. A defendant failing to appear or answer, or subsequently contending to be aggrieved in any manner by want of notice of the pendency of the proceedings, may apply to the Labor Commissioner for relief in accordance with Section 473 of the Code of Civil Procedure. The Labor Commissioner may afford this relief. No right to relief, including the claim that the findings or award of the Labor Commissioner or judgment entered thereon are void upon their face, shall accrue to the defendant in any court unless prior application is made to the Labor Commissioner in accordance with this chapter.
(g)All hearings conducted pursuant to this chapter are governed by the division and by the rules of practice and procedure adopted by the Labor Commissioner.
(h)(1)Whenever a claim is filed under this chapter against a person operating or doing business under a fictitious business name, as defined in Section 17900 of the Business and Professions Code, which relates to the persons business, the division shall inquire at the time of the hearing whether the name of the person is the legal name under which the business or person has been licensed, registered, incorporated, or otherwise authorized to do business.
(2)The division may amend an order, decision, or award to conform to the legal name of the business or the person who is the defendant to a wage claim, if it can be shown that proper service was made on the defendant or his or her agent, unless a judgment had been entered on the order, decision, or award pursuant to subdivision (d) of Section 98.2. The Labor Commissioner may apply to the clerk of the superior court to amend a judgment that has been issued pursuant to a final order, decision, or award to conform to the legal name of the defendant, if it can be shown that proper service was made on the defendant or his or her agent.
SEC. 4.Section 238 is added to the Labor Code, to read:238.(a)If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a period of 30 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the employer shall not continue to conduct business in this state, including conducting business using the labor of another business, contractor, or subcontractor instead of the labor of an employee, unless the employer has obtained a bond from a surety company admitted to do business in this state and has filed a copy of that bond with the Labor Commissioner. The bond shall be effective and maintained until satisfaction of all judgments for nonpayment of wages. The principal sum of the bond shall not be less than the following:
(1)Fifty thousand dollars ($50,000) if the unsatisfied portion of the judgment is no more than five thousand dollars ($5,000).
(2)One hundred thousand dollars ($100,000) if the unsatisfied portion of the judgment is more than five thousand dollars ($5,000) and no more than ten thousand dollars ($10,000).
(3)One hundred fifty thousand dollars ($150,000) if the unsatisfied portion of the judgment is more than ten thousand dollars ($10,000).
(b)In lieu of filing and maintaining the bond required by this section, the employer may provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. If the accord provides for the judgment to be paid in installments, and an installment payment is not made, the employer is no longer excused from satisfying the bond requirement of this section.
(c)(1)The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be for the benefit of any employee damaged by his or her employers failure to pay wages, including any interest, penalties, and attorneys fees.
(2)This section shall not require a bond in favor of employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the bond required by this section.
(3)Thirty days prior to the cancellation or termination of any bond required by this section, the surety shall send written notice to both the employer and the Labor Commissioner, identifying the bond and the date of the cancellation or termination. If the bond is terminated or canceled, the employer shall obtain a new surety bond and file a copy of that bond with the Labor Commissioner to remain in compliance with this section.
(d)For purposes of this section, a judgment also includes any final arbitration award where the time to file a petition for a trial de novo or a petition to vacate or correct the arbitration award has expired and no petition is pending.
(e)Subject to subdivision (f), an employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages, upon receiving written notice of the unsatisfied judgment, shall be deemed the same employer for purposes of this section if (1) the employees of the successor employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors or (2) if the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
(f)Any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil penalty of two thousand five hundred dollars ($2,500). Any employer that has previously been assessed and failed to pay a penalty pursuant to this section shall be subject to an additional penalty of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section; however, this additional amount shall not exceed one hundred thousand dollars ($100,000). These civil penalties may be assessed under a citation issued by the Labor Commissioner and the procedures for issuing, contesting, and enforcing judgments shall be the same as those set forth in Section 1197.1. The Labor Commissioner shall not assess these civil penalties against an entity determined to be a successor employer pursuant to subdivision (e) within the first 30 days after notice of the judgment.
SEC. 5.Section 238.1 is added to the Labor Code, to read:238.1.(a)Where an employer is conducting business in violation of Section 238, the Labor Commissioner may issue and serve on that employer a stop order prohibiting the use of employee labor by that employer until the employers compliance with Section 238, provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The stop order shall also prohibit the employer from continuing to provide services by conducting business using the labor of another business, contractor, or subcontractor. The stop order shall become effective immediately upon the service of the order. Any employee affected by the work stoppage shall be paid by the employer for such time lost, not exceeding 10 days, pending compliance by the employer. The employer may protest the stop order by making and filing with the Labor Commissioner a written request for a hearing within 20 days after service of the stop order. The hearing shall be held within five days from the date of filing the request. The Labor Commissioner shall notify the employer of the time and place of the hearing by mail. At the conclusion of the hearing, the stop order shall be immediately affirmed or dismissed, and within 24 hours thereafter, the Labor Commissioner shall issue and serve on all parties to the hearing by registered or certified mail a written notice of findings, accompanied by written findings. A writ of mandate may be taken from the findings to the appropriate superior court. The writ shall be taken within 45 days after the mailing of the notice of findings accompanied by written findings. The Labor Commissioner may file an action in superior court for injunctive and other appropriate relief to enforce the stop order and shall be entitled to recovery of costs and attorneys fees if any relief is obtained by the Labor Commissioner.
(b)Failure of an employer, owner, director, officer, or managing agent of the employer to observe a stop order issued and served upon him or her pursuant to this section is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both. For the purposes of this section, the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code.
SEC. 6.Section 238.2 is added to the Labor Code, to read:238.2.(a)The Labor Commissioner may create a lien on any real property in California of an employer, or a successor employer pursuant to subdivision (e) of Section 238, that is conducting business in violation of Section 238 for the full amount of any wages, interest, and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by recording a certificate of lien using the same procedure applicable under subdivision (g) of Section 98.2.
(c)The Labor Commissioner shall issue a certificate of release, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond pursuant to Section 238. The certificate of release may be recorded by the employer at the employers expense.
(d)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(e)Prior to using the lien procedure in this section, the Labor Commissioner shall provide at least 20 days notice to the employer. The notice shall advise the employer of the Labor Commissioners authority to create a lien on the property to secure payment of the claim.
(f)The Labor Commissioner may serve the notice with and in the same manner as the order, decision, and award in accordance with Section 98.1.
(g)A lien created pursuant to this section is in addition to any other lien rights available to an employee or to the Labor Commissioner and shall not be construed to limit those rights.
SEC. 7.Section 238.3 is added to the Labor Code, to read:238.3.(a)The Labor Commissioner may create a lien on any personal property in California of an employer that conducts business in violation of Section 238 for the full amount of any wages, interest, and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by filing a notice of lien with the Secretary of State on the standard form of initial financing statement pursuant to Section 9521 of the Commercial Code. The standard form shall be completed in the following manner:
(1)The Labor Commissioner shall be identified as the secured party.
(2)The employer shall be identified as the debtor.
(3)The description of the collateral shall include the following statements:
(A)A statement of the Labor Commissioners demand for payment of the wages, penalties, interest, and attorneys fees, if applicable. The statement shall specify the amount owed to the employee, and if the amount is estimated, shall provide an explanation for the basis of the estimate.
(B)A general statement of the kind of work furnished by the employee and the dates of employment.
(c)For the purpose of the Secretary of States index pursuant to Sections 9515, 9516, and 9522 of the Commercial Code and for the purpose of the issuance of a certificate pursuant to Section 9519 or 9528 of the Commercial Code, the Secretary of State shall treat a notice of lien pursuant to this section as a financing statement.
(d)The lien attaches to all personal property that is owned by the employer at the time of the filing of the notice of lien, or that is subsequently acquired by the employer, that can be made subject to a security interest under the Commercial Code.
(e)The Labor Commissioner shall file a termination statement, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond in a form acceptable to the Labor Commissioner sufficient to secure the claim.
(f)The notice of claim of lien to which the termination statement relates ceases to be effective upon the filing of a termination statement with the office of the Secretary of State. A termination statement for a notice of lien may be filed in the same manner as a termination statement for a financing statement filed pursuant to Section 9513 of the Commercial Code.
(g)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(h)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers personal property to secure payment of the claim.
(i)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(j)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(k)A lien created pursuant to this section in addition to any other lien rights available to an employee or to the Labor Commissioner shall not be construed to limit those rights.
SEC. 8.Section 238.4 is added to the Labor Code, to read:238.4.(a)If an employer in the long-term care industry that is also required to obtain a license from the State Department of Public Health or the State Department of Social Services pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code, is found to be in violation of Section 238, the State Department of Public Health or the State Department of Social Services may deny a new license or the renewal of an existing license for that employer.
(b)If the Labor Commissioner finds that an employer in the long-term care industry is conducting business in violation of Section 238, the Labor Commissioner shall notify the State Department of Public Health or the State Department of Social Services.
(c)For purposes of this section long-term care means the operation of a skilled nursing facility, intermediate care facility, congregate living health facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization, as those terms are used in Division 2 (commencing with Section 1200) of the Health and Safety Code.
SEC. 9.Section 238.5 is added to the Labor Code, to read:238.5.(a)(1)Any individual or business entity, regardless of its form, that, as part of its business, contracts for services in the property services or long-term care industries shall be jointly and severally liable for any unpaid wages, including interest, where the individual or business entity has been provided notice, by any party, of any proceeding or investigation by the Labor Commissioner in which the employer is found liable for those unpaid wages, to the extent the amounts are for services performed under that contract.
(2)The issue of joint and several liability under this section shall be determined (A) in a proceeding under Section 98 if the individual or contracting business is provided notice in the administrative complaint alleging such liability and named a defendant in the course of the Section 98 proceeding, (B) in an administrative proceeding brought by the Labor Commissioner to investigate, prosecute, or recover unpaid wages and interest pursuant to a citation, or in a court action brought by the Labor Commissioner, if the contracting individual or business is provided preliminary notice by the Labor Commissioner of joint and several liability under this section at least 30 days prior to issuance of a citation, or filing of a court action, or (C) by a court in an action pursuant to Section 98.2. No action for a violation or enforcement of this section shall be brought under Part 13 (commencing with Section 2698) of Division 2.
(b)The joint and several liability provided by this section shall not apply to unpaid wages owed to employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the joint and several liability provided by this section.
(c)An employer that contracts to provide services in the property services or long-term care industries shall, prior to entering into such a contract, provide written notice to the other party to the prospective contract of any unsatisfied final judgments against the employer for nonpayment of wages. The notice shall also provide the text of this section. The failure of the employer to provide notice under this subdivision shall not be a defense to the joint and several liability provided by this section.
(d)An employer that contracts to provide services in the property services or long-term care industries shall provide, within 30 days of the entry of the judgment, written notice of any unsatisfied final judgments against the employer for nonpayment of wages to any parties with which the employer is presently under contract to provide services in the property services or long-term care industries. The failure of the employer to provide notice under this subdivision shall not be a defense to the joint and several liability provided by this section.
(e)For the purposes of this section, the following apply:
(1)Property services means janitorial, security guard, valet parking, landscaping, and gardening services.
(2)Long-term care has the same definition as in Section 238.4.
(f)This section shall not be interpreted to impose joint liability on an individual or the owner of a home-based business, for any property services, to the extent that the property services are provided at the individual or home-based business owners primary residence, provided that the primary residence does not have multiple housing units.
SEC. 10.Section 558.1 is added to the Labor Code, to read:558.1.(a)Any employer or other person acting on behalf of an employer, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, Sections 203, 226, 226.7, 1193.6, 1194, or 2802, may be held liable as the employer for such violation.
(b)For purposes of this section, the term other person acting on behalf of an employer is limited to a natural person who is an owner, director, officer, or managing agent of the employer, and the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code.
(c)Nothing in this section shall be construed to limit the definition of employer under existing law.
SEC. 11.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For the purpose of the remedies provided under this chapter, jurisdiction is conferred upon the superior court.
690.030.(a)Except as otherwise provided by statute, whenever a warrant or notice of levy may properly be issued by the Labor Commissioner pursuant to Section 96.8 of the Labor Code, and the warrant may be levied with the same effect as a levy pursuant to a writ of execution, the Labor Commissioner may use any of the remedies available to a judgment creditor, including, but not limited to, those provided in Chapter 6 (commencing with Section 708.010) of Division 2.
(b)The proper court for the enforcement of the remedies provided under this chapter is the superior court of any of the following counties:
(1)The county where the employee resides.
(2)The county where the judgment debtor resides.
(3)The county where the person against whom the levy or warrant was issued resides.
690.040.(a)Whenever the Labor Commissioner, pursuant to Section 96.8 of the Labor Code, levies upon property pursuant to a warrant or notice of levy for the collection of an unsatisfied judgment or award:
(1)If the debtor is a natural person, the debtor is entitled to the same exemptions to which a judgment debtor is entitled. Except as provided in subdivisions (b) and (c), the claim of exemption shall be made, heard, and determined as provided in Chapter 4 (commencing with Section 703.010) of Division 2 in the same manner as if the property were levied upon under a writ of execution.
(2)A third person may claim ownership or the right to possession of the property or a security interest in or lien on the property. Except as provided in subdivisions (b) and (c) or as otherwise provided by statute, the third-party claim shall be made, heard, and determined as provided in Division 4 (commencing with Section 720.010) in the same manner as if the property were levied upon under a writ of execution.
(b)In the case of a warrant or notice of levy issued pursuant to Section 96.8 of the Labor Code, the claim of exemption or the third-party claim shall be filed with the Labor Commissioner.
(c)A claim of exemption or a third-party claim pursuant to this section shall be heard and determined in a superior court specified in subdivision (b) of Section 690.030.
690.050.(a)Notwithstanding any other law, in the case of a writ of execution issued by a court of competent jurisdiction pursuant to Chapter 3 (commencing with Section 699.010) and Chapter 5 (commencing with Section 706.010) of Division 2, the Labor Commissioner, when collecting an unsatisfied judgment or award pursuant to Section 96.8 of the Labor Code, may perform the duties of the levying officer, except that the Labor Commissioner need not give himself or herself the notices that the levying officer is required to serve on a judgment creditor or the notices that a judgment creditor is required to give to the levying officer.
(b)Notwithstanding subdivision (a) of Section 700.140 and Sections 700.150, 700.160, and 700.170, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor, the Labor Commissioner may deliver or mail a notice of levy to a centralized location designated by the bank or savings and loan association or, in the case of an account receivable or other general intangible, to the agent for service of process of the account debtor. If the notice of levy is received at the designated central location for the bank or savings and loan association, the notice of levy will apply to all deposits, credits, money, and personal property held by the bank or savings and loan association regardless of the location of that property. The notice of levy may be issued directly by the Labor Commissioner, whether or not a court has issued a writ of execution, and shall contain all of the information required to be included in a writ of execution under Section 699.520 and in a notice of levy under Section 699.540.
SEC. 2.Section 96.8 is added to the Labor Code, to read:96.8.(a)Notwithstanding any other law, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to subdivision (e) of Section 98.2, the Labor Commissioner may, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy.
(b)Notwithstanding any other law, the Labor Commissioner may execute a levy on any property that may be levied under Section 700.140, 700.150, 700.160, or 700.170 of the Code of Civil Procedure by mailing a notice of levy to the person against whom the levy is directed and serving a copy on the judgment debtor. The notice of levy shall contain all of the information required to be included in a writ of execution under Section 699.520 of the Code of Civil Procedure and in a notice of levy under Section 699.540 of the Code of Civil Procedure.
(c)Any person, upon whom a levy has been noticed having in his or her possession or under his or her control any credits, money, or property belonging to the judgment debtor or owing any debts to the judgment debtor at the time of receipt of the levy or coming into his or her possession or under his or her control within one year of receipt of the notice of levy, shall surrender the credits, money, or property to the Labor Commissioner or pay to the Labor Commissioner the amount of any debt owed to the judgment debtor within 10 days of service of the levy, and shall surrender the credits or property, or the amount of any debt owing to the judgment debtor coming into his or her own possession or control within one year of receipt of the notice of levy within 10 days of the date of coming into possession or control of the credits or property or the amount of any debt owed to the judgment debtor.
(d)Any person who surrenders to the Labor Commissioner pursuant to this section any credits, money, or property, or pays the debts owed to the judgment debtor, shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy.
(e)If the levy is made on a deposit or credits, money, or property in the possession or under the control of a bank, savings and loan association, or other financial institution as defined by Section 669a(d)(1) of Title 42 of the United States Code, the notice of levy may be delivered or mailed to a centralized location designated by the bank, savings and loan association, or other financial institution pursuant to Section 690.050 of the Code of Civil Procedure.
(f)Any person who is noticed with a levy pursuant to this section and who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor shall be liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or other property or in the amount of the levy, up to the amount specified in the levy.
(g)The fees, commissions, expenses, and the reasonable costs associated with the sale of property levied upon by warrant or levy pursuant to this section, including, but not limited to, appraisers fees, auctioneers fees, and advertising fees are an obligation of the judgment debtor and may be collected from the judgment debtor by virtue of the warrant or levy or in any other manner as though these items were part of the judgment or award outstanding.
(h)This section shall not apply to the judgment debtors interest in real property.
(i)This section shall not apply if enforcement of the judgment has been stayed on appeal pursuant to Chapter 2 (commencing with Section 916) of Title 13 of Part 2 of the Code of Civil Procedure.
SEC. 3.Section 98 of the Labor Code is amended to read:98.(a)The Labor Commissioner is authorized to investigate employee complaints. The Labor Commissioner may provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and shall determine all matters arising under his or her jurisdiction. The Labor Commissioner may also provide for a hearing to recover civil penalties due pursuant to Section 558 against any employer or other person acting on behalf of an employer, including, but not limited to, an individual liable pursuant to Section 558.1. It is within the jurisdiction of the Labor Commissioner to accept and determine claims from holders of payroll checks or payroll drafts returned unpaid because of insufficient funds, if, after a diligent search, the holder is unable to return the dishonored check or draft to the payee and recover the sums paid out. Within 30 days of the filing of the complaint, the Labor Commissioner shall notify the parties as to whether a hearing will be held, whether action will be taken in accordance with Section 98.3, or whether no further action will be taken on the complaint. If the determination is made by the Labor Commissioner to hold a hearing, the hearing shall be held within 90 days of the date of that determination. However, the Labor Commissioner may postpone or grant additional time before setting a hearing if the Labor Commissioner finds that it would lead to an equitable and just resolution of the dispute. A party who has received actual notice of a claim before the Labor Commissioner shall, while the matter is before the Labor Commissioner, notify the Labor Commissioner in writing of any change in that partys business or personal address within 10 days after the change in address occurs.
It is the intent of the Legislature that hearings held pursuant to this section be conducted in an informal setting preserving the rights of the parties.
(b)When a hearing is set, a copy of the complaint, which shall include the amount of compensation requested, together with a notice of time and place of the hearing, shall be served on all parties, personally or by certified mail, or in the manner specified in Section 415.20 of the Code of Civil Procedure.
(c)Within 10 days after service of the notice and the complaint, a defendant may file an answer with the Labor Commissioner in any form as the Labor Commissioner may prescribe, setting forth the particulars in which the complaint is inaccurate or incomplete and the facts upon which the defendant intends to rely.
(d)No pleading other than the complaint and answer of the defendant or defendants shall be required. Both shall be in writing and shall conform to the form and the rules of practice and procedure adopted by the Labor Commissioner.
(e)Evidence on matters not pleaded in the answer shall be allowed only on terms and conditions the Labor Commissioner shall impose. In all these cases, the claimant shall be entitled to a continuance for purposes of review of the new evidence.
(f)If the defendant fails to appear or answer within the time allowed under this chapter, no default shall be taken against him or her, but the Labor Commissioner shall hear the evidence offered and shall issue an order, decision, or award in accordance with the evidence. A defendant failing to appear or answer, or subsequently contending to be aggrieved in any manner by want of notice of the pendency of the proceedings, may apply to the Labor Commissioner for relief in accordance with Section 473 of the Code of Civil Procedure. The Labor Commissioner may afford this relief. No right to relief, including the claim that the findings or award of the Labor Commissioner or judgment entered thereon are void upon their face, shall accrue to the defendant in any court unless prior application is made to the Labor Commissioner in accordance with this chapter.
(g)All hearings conducted pursuant to this chapter are governed by the division and by the rules of practice and procedure adopted by the Labor Commissioner.
(h)(1)Whenever a claim is filed under this chapter against a person operating or doing business under a fictitious business name, as defined in Section 17900 of the Business and Professions Code, which relates to the persons business, the division shall inquire at the time of the hearing whether the name of the person is the legal name under which the business or person has been licensed, registered, incorporated, or otherwise authorized to do business.
(2)The division may amend an order, decision, or award to conform to the legal name of the business or the person who is the defendant to a wage claim, if it can be shown that proper service was made on the defendant or his or her agent, unless a judgment had been entered on the order, decision, or award pursuant to subdivision (d) of Section 98.2. The Labor Commissioner may apply to the clerk of the superior court to amend a judgment that has been issued pursuant to a final order, decision, or award to conform to the legal name of the defendant, if it can be shown that proper service was made on the defendant or his or her agent.
SEC. 4.Section 238 is added to the Labor Code, to read:238.(a)If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a period of 30 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the employer shall not continue to conduct business in this state, including conducting business using the labor of another business, contractor, or subcontractor instead of the labor of an employee, unless the employer has obtained a bond from a surety company admitted to do business in this state and has filed a copy of that bond with the Labor Commissioner. The bond shall be effective and maintained until satisfaction of all judgments for nonpayment of wages. The principal sum of the bond shall not be less than the following:
(1)Fifty thousand dollars ($50,000) if the unsatisfied portion of the judgment is no more than five thousand dollars ($5,000).
(2)One hundred thousand dollars ($100,000) if the unsatisfied portion of the judgment is more than five thousand dollars ($5,000) and no more than ten thousand dollars ($10,000).
(3)One hundred fifty thousand dollars ($150,000) if the unsatisfied portion of the judgment is more than ten thousand dollars ($10,000).
(b)In lieu of filing and maintaining the bond required by this section, the employer may provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. If the accord provides for the judgment to be paid in installments, and an installment payment is not made, the employer is no longer excused from satisfying the bond requirement of this section.
(c)(1)The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be for the benefit of any employee damaged by his or her employers failure to pay wages, including any interest, penalties, and attorneys fees.
(2)This section shall not require a bond in favor of employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the bond required by this section.
(3)Thirty days prior to the cancellation or termination of any bond required by this section, the surety shall send written notice to both the employer and the Labor Commissioner, identifying the bond and the date of the cancellation or termination. If the bond is terminated or canceled, the employer shall obtain a new surety bond and file a copy of that bond with the Labor Commissioner to remain in compliance with this section.
(d)For purposes of this section, a judgment also includes any final arbitration award where the time to file a petition for a trial de novo or a petition to vacate or correct the arbitration award has expired and no petition is pending.
(e)Subject to subdivision (f), an employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages, upon receiving written notice of the unsatisfied judgment, shall be deemed the same employer for purposes of this section if (1) the employees of the successor employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors or (2) if the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
(f)Any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil penalty of two thousand five hundred dollars ($2,500). Any employer that has previously been assessed and failed to pay a penalty pursuant to this section shall be subject to an additional penalty of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section; however, this additional amount shall not exceed one hundred thousand dollars ($100,000). These civil penalties may be assessed under a citation issued by the Labor Commissioner and the procedures for issuing, contesting, and enforcing judgments shall be the same as those set forth in Section 1197.1. The Labor Commissioner shall not assess these civil penalties against an entity determined to be a successor employer pursuant to subdivision (e) within the first 30 days after notice of the judgment.
SEC. 5.Section 238.1 is added to the Labor Code, to read:238.1.(a)Where an employer is conducting business in violation of Section 238, the Labor Commissioner may issue and serve on that employer a stop order prohibiting the use of employee labor by that employer until the employers compliance with Section 238, provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The stop order shall also prohibit the employer from continuing to provide services by conducting business using the labor of another business, contractor, or subcontractor. The stop order shall become effective immediately upon the service of the order. Any employee affected by the work stoppage shall be paid by the employer for such time lost, not exceeding 10 days, pending compliance by the employer. The employer may protest the stop order by making and filing with the Labor Commissioner a written request for a hearing within 20 days after service of the stop order. The hearing shall be held within five days from the date of filing the request. The Labor Commissioner shall notify the employer of the time and place of the hearing by mail. At the conclusion of the hearing, the stop order shall be immediately affirmed or dismissed, and within 24 hours thereafter, the Labor Commissioner shall issue and serve on all parties to the hearing by registered or certified mail a written notice of findings, accompanied by written findings. A writ of mandate may be taken from the findings to the appropriate superior court. The writ shall be taken within 45 days after the mailing of the notice of findings accompanied by written findings. The Labor Commissioner may file an action in superior court for injunctive and other appropriate relief to enforce the stop order and shall be entitled to recovery of costs and attorneys fees if any relief is obtained by the Labor Commissioner.
(b)Failure of an employer, owner, director, officer, or managing agent of the employer to observe a stop order issued and served upon him or her pursuant to this section is guilty of a misdemeanor punishable by imprisonment in county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both. For the purposes of this section, the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code.
SEC. 6.Section 238.2 is added to the Labor Code, to read:238.2.(a)The Labor Commissioner may create a lien on any real property in California of an employer, or a successor employer pursuant to subdivision (e) of Section 238, that is conducting business in violation of Section 238 for the full amount of any wages, interest, and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by recording a certificate of lien using the same procedure applicable under subdivision (g) of Section 98.2.
(c)The Labor Commissioner shall issue a certificate of release, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond pursuant to Section 238. The certificate of release may be recorded by the employer at the employers expense.
(d)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(e)Prior to using the lien procedure in this section, the Labor Commissioner shall provide at least 20 days notice to the employer. The notice shall advise the employer of the Labor Commissioners authority to create a lien on the property to secure payment of the claim.
(f)The Labor Commissioner may serve the notice with and in the same manner as the order, decision, and award in accordance with Section 98.1.
(g)A lien created pursuant to this section is in addition to any other lien rights available to an employee or to the Labor Commissioner and shall not be construed to limit those rights.
SEC. 7.Section 238.3 is added to the Labor Code, to read:238.3.(a)The Labor Commissioner may create a lien on any personal property in California of an employer that conducts business in violation of Section 238 for the full amount of any wages, interest, and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by filing a notice of lien with the Secretary of State on the standard form of initial financing statement pursuant to Section 9521 of the Commercial Code. The standard form shall be completed in the following manner:
(1)The Labor Commissioner shall be identified as the secured party.
(2)The employer shall be identified as the debtor.
(3)The description of the collateral shall include the following statements:
(A)A statement of the Labor Commissioners demand for payment of the wages, penalties, interest, and attorneys fees, if applicable. The statement shall specify the amount owed to the employee, and if the amount is estimated, shall provide an explanation for the basis of the estimate.
(B)A general statement of the kind of work furnished by the employee and the dates of employment.
(c)For the purpose of the Secretary of States index pursuant to Sections 9515, 9516, and 9522 of the Commercial Code and for the purpose of the issuance of a certificate pursuant to Section 9519 or 9528 of the Commercial Code, the Secretary of State shall treat a notice of lien pursuant to this section as a financing statement.
(d)The lien attaches to all personal property that is owned by the employer at the time of the filing of the notice of lien, or that is subsequently acquired by the employer, that can be made subject to a security interest under the Commercial Code.
(e)The Labor Commissioner shall file a termination statement, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond in a form acceptable to the Labor Commissioner sufficient to secure the claim.
(f)The notice of claim of lien to which the termination statement relates ceases to be effective upon the filing of a termination statement with the office of the Secretary of State. A termination statement for a notice of lien may be filed in the same manner as a termination statement for a financing statement filed pursuant to Section 9513 of the Commercial Code.
(g)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(h)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers personal property to secure payment of the claim.
(i)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(j)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(k)A lien created pursuant to this section in addition to any other lien rights available to an employee or to the Labor Commissioner shall not be construed to limit those rights.
SEC. 8.Section 238.4 is added to the Labor Code, to read:238.4.(a)An If an employer in the long-term care industry that is also required to obtain a license from the State Department of Public Health or the State Department of Social Services pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code may not obtain a license or renew that license if the employer is conducting business Code, is found to be in violation of Section 238. 238, the State Department of Public Health or the State Department of Social Services may deny a new licence or the renewal of an existing license for that employer.
(b)If the Labor Commissioner finds that an employer in the long-term care industry is conducting business in violation of Section 238, the Labor Commissioner shall notify the State Department of Public Health or the State Department of Social Services.
(b)
(c)For purposes of this section long-term care means the operation of a skilled nursing facility, intermediate care facility, congregate living health facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization, as those terms are used in Division 2 (commencing with Section 1200) of the Health and Safety Code.
SEC. 9.Section 238.5 is added to the Labor Code, to read:238.5.(a)(1)Any individual or business entity, regardless of its form, that, as part of its business, contracts for services in the property services or long-term care industries shall be jointly and severally liable for any unpaid wages, including interest, where the individual or business entity has been provided notice, by any party, of any proceeding or investigation by the Labor Commissioner in which the employer is found liable for those unpaid wages, to the extent the amounts are for services performed under that contract.
(2)The issue of joint and several liability under this section shall be determined (A) in a proceeding under Section 98 if the individual or contracting business is provided notice in the administrative complaint alleging such liability and named a defendant in the course of the Section 98 proceeding, (B) in an administrative proceeding brought by the Labor Commissioner to investigate, prosecute, or recover unpaid wages and interest pursuant to a citation, or in a court action brought by the Labor Commissioner, if the contracting individual or business is provided preliminary notice by the Labor Commissioner of joint and several liability under this section at least 30 days prior to issuance of a citation, or filing of a court action, or (C) by a court in an action pursuant to Section 98.2. No action for a violation or enforcement of this section shall be brought under Part 13 (commencing with Section 2698) of Division 2.
(b)The joint and several liability provided by this section shall not apply to unpaid wages owed to employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the joint and several liability provided by this section.
(c)An employer that contracts to provide services in the property services or long-term care industries shall, prior to entering into such a contract, provide written notice to the other party to the prospective contract of any unsatisfied final judgments against the employer for nonpayment of wages. The notice shall also provide the text of this section. The failure of the employer to provide notice under this subdivision shall not be a defense to the joint and several liability provided by this section.
(d)An employer that contracts to provide services in the property services or long-term care industries shall provide, within 30 days of the entry of the judgment, written notice of any unsatisfied final judgments against the employer for nonpayment of wages to any parties with which the employer is presently under contract to provide services in the property services or long-term care industries. The failure of the employer to provide notice under this subdivision shall not be a defense to the joint and several liability provided by this section.
(e)For the purposes of this section, the following apply:
(1)Property services means janitorial, security guard, valet parking, landscaping, and gardening services.
(2)Long-term care has the same definition as in Section 238.4.
(f)This section shall not be interpreted to impose joint liability on an individual or the owner of a home-based business, for any property services, to the extent that the property services are provided at the individual or home-based business owners primary residence, provided that the primary residence does not have multiple housing units.
SEC. 10.Section 558.1 is added to the Labor Code, to read:558.1.(a)Any employer or other person acting on behalf of an employer, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, Sections 203, 226, 226.7, 1193.6, 1194, or 2802, may be held liable as the employer for such violation.
(b)For purposes of this section, the term other person acting on behalf of an employer is limited to a natural person who is an owner, director, officer, or managing agent of the employer, and the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code.
(c)Nothing in this section shall be construed to limit the definition of employer under existing law.
SEC. 11.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For the purpose of the remedies provided under this chapter, jurisdiction is conferred upon the superior court.
690.030.(a)Except as otherwise provided by statute, whenever a warrant or notice of levy may properly be issued by the Labor Commissioner pursuant to Section 96.8 of the Labor Code, and the warrant may be levied with the same effect as a levy pursuant to a writ of execution, the Labor Commissioner may use any of the remedies available to a judgment creditor, including, but not limited to, those provided in Chapter 6 (commencing with Section 708.010) of Division 2.
(b)The proper court for the enforcement of the remedies provided under this chapter is the superior court of any of the following counties:
(1)The county where the employee resides.
(2)The county where the judgment debtor resides.
(3)The county where the person against whom the levy or warrant was issued resides.
690.040.(a)Whenever the Labor Commissioner, pursuant to Section 96.8 of the Labor Code, levies upon property pursuant to a warrant or notice of levy for the collection of an unsatisfied judgment or award:
(1)If the debtor is a natural person, the debtor is entitled to the same exemptions to which a judgment debtor is entitled. Except as provided in subdivisions (b) and (c), the claim of exemption shall be made, heard, and determined as provided in Chapter 4 (commencing with Section 703.010) of Division 2 in the same manner as if the property were levied upon under a writ of execution.
(2)A third person may claim ownership or the right to possession of the property or a security interest in or lien on the property. Except as provided in subdivisions (b) and (c) or as otherwise provided by statute, the third-party claim shall be made, heard, and determined as provided in Division 4 (commencing with Section 720.010) in the same manner as if the property were levied upon under a writ of execution.
(b)In the case of a warrant or notice of levy issued pursuant to Section 96.8 of the Labor Code, the claim of exemption or the third-party claim shall be filed with the Labor Commissioner.
(c)A claim of exemption or a third-party claim pursuant to this section shall be heard and determined in a superior court specified in subdivision (b) of Section 690.030.
690.050.(a)Notwithstanding any other law, in the case of a writ of execution issued by a court of competent jurisdiction pursuant to Chapter 3 (commencing with Section 699.010) and Chapter 5 (commencing with Section 706.010) of Division 2, the Labor Commissioner, when collecting an unsatisfied judgment or award pursuant to Section 96.8 of the Labor Code, may perform the duties of the levying officer, except that the Labor Commissioner need not give himself or herself the notices that the levying officer is required to serve on a judgment creditor or the notices that a judgment creditor is required to give to the levying officer.
(b)Notwithstanding subdivision (a) of Section 700.140 and Sections 700.150, 700.160, and 700.170, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor, the Labor Commissioner may deliver or mail a notice of levy to a centralized location designated by the bank or savings and loan association or, in the case of an account receivable or other general intangible, to the agent for service of process of the account debtor. If the notice of levy is received at the designated central location for the bank or savings and loan association, the notice of levy will apply to all deposits, credits, money, and personal property held by the bank or savings and loan association regardless of the location of that property. The notice of levy may be issued directly by the Labor Commissioner, whether or not a court has issued a writ of execution, and shall contain all of the information required to be included in a writ of execution under Section 699.520 and in a notice of levy under Section 699.540.
SEC. 2.Section 96.8 is added to the Labor Code, to read:96.8.(a)Notwithstanding any other law, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to subdivision (e) of Section 98.2, the Labor Commissioner may, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy.
(b)Notwithstanding any other law, the Labor Commissioner may execute a levy on any property that may be levied under Section 700.140, 700.150, 700.160, or 700.170 of the Code of Civil Procedure by mailing a notice of levy to the person against whom the levy is directed and serving a copy on the judgment debtor. The notice of levy shall contain all of the information required to be included in a writ of execution under Section 699.520 of the Code of Civil Procedure and in a notice of levy under Section 699.540 of the Code of Civil Procedure.
(c)Any person, upon whom a levy has been noticed having in his or her possession or under his or her control any credits, money, or property belonging to the judgment debtor or owing any debts to the judgment debtor at the time of receipt of the levy or coming into his or her possession or under his or her control within one year of receipt of the notice of levy, shall surrender the credits, money, or property to the Labor Commissioner or pay to the Labor Commissioner the amount of any debt owed to the judgment debtor within 10 days of service of the levy, and shall surrender the credits or property, or the amount of any debt owing to the judgment debtor coming into his or her own possession or control within one year of receipt of the notice of levy within 10 days of the date of coming into possession or control of the credits or property or the amount of any debt owed to the judgment debtor.
(d)Any person who surrenders to the Labor Commissioner pursuant to this section any credits, money, or property, or pays the debts owed to the judgment debtor, shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy.
(e)If the levy is made on a deposit or credits, money, or property in the possession or under the control of a bank, savings and loan association, or other financial institution as defined by Section 669a(d)(1) of Title 42 of the United States Code, the notice of levy may be delivered or mailed to a centralized location designated by the bank, savings and loan association, or other financial institution pursuant to Section 690.050 of the Code of Civil Procedure.
(f)Any person who is noticed with a levy pursuant to this section and who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor shall be liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or other property or in the amount of the levy, up to the amount specified in the levy.
(g)The fees, commissions, expenses, and the reasonable costs associated with the sale of property levied upon by warrant or levy pursuant to this section, including, but not limited to, appraisers fees, auctioneers fees, and advertising fees are an obligation of the judgment debtor and may be collected from the judgment debtor by virtue of the warrant or levy or in any other manner as though these items were part of the judgment or award outstanding.
(h)This section shall not apply to the judgment debtors interest in real property.
(i)This section shall not apply if enforcement of the judgment has been stayed on appeal pursuant to Chapter 2 (commencing with Section 916) of Title 13 of Part 2 of the Code of Civil Procedure.
SEC. 3.Section 98 of the Labor Code is amended to read:98.(a)The Labor Commissioner is authorized to investigate employee complaints. The Labor Commissioner may provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and shall determine all matters arising under his or her jurisdiction. The Labor Commissioner may also provide for a hearing against any employer or other person acting on behalf of an employer for a violation of Section 558. to recover civil penalties due pursuant to Section 558 against any employer or other person acting on behalf of an employer, including, but not limited to, an individual liable pursuant to Section 558.1. It is within the jurisdiction of the Labor Commissioner to accept and determine claims from holders of payroll checks or payroll drafts returned unpaid because of insufficient funds, if, after a diligent search, the holder is unable to return the dishonored check or draft to the payee and recover the sums paid out. Within 30 days of the filing of the complaint, the Labor Commissioner shall notify the parties as to whether a hearing will be held, whether action will be taken in accordance with Section 98.3, or whether no further action will be taken on the complaint. If the determination is made by the Labor Commissioner to hold a hearing, the hearing shall be held within 90 days of the date of that determination. However, the Labor Commissioner may postpone or grant additional time before setting a hearing if the Labor Commissioner finds that it would lead to an equitable and just resolution of the dispute. A party who has received actual notice of a claim before the Labor Commissioner shall, while the matter is before the Labor Commissioner, notify the Labor Commissioner in writing of any change in that partys business or personal address within 10 days after the change in address occurs.
It is the intent of the Legislature that hearings held pursuant to this section be conducted in an informal setting preserving the rights of the parties.
(b)When a hearing is set, a copy of the complaint, which shall include the amount of compensation requested, together with a notice of time and place of the hearing, shall be served on all parties, personally or by certified mail, or in the manner specified in Section 415.20 of the Code of Civil Procedure.
(c)Within 10 days after service of the notice and the complaint, a defendant may file an answer with the Labor Commissioner in any form as the Labor Commissioner may prescribe, setting forth the particulars in which the complaint is inaccurate or incomplete and the facts upon which the defendant intends to rely.
(d)No pleading other than the complaint and answer of the defendant or defendants shall be required. Both shall be in writing and shall conform to the form and the rules of practice and procedure adopted by the Labor Commissioner.
(e)Evidence on matters not pleaded in the answer shall be allowed only on terms and conditions the Labor Commissioner shall impose. In all these cases, the claimant shall be entitled to a continuance for purposes of review of the new evidence.
(f)If the defendant fails to appear or answer within the time allowed under this chapter, no default shall be taken against him or her, but the Labor Commissioner shall hear the evidence offered and shall issue an order, decision, or award in accordance with the evidence. A defendant failing to appear or answer, or subsequently contending to be aggrieved in any manner by want of notice of the pendency of the proceedings, may apply to the Labor Commissioner for relief in accordance with Section 473 of the Code of Civil Procedure. The Labor Commissioner may afford this relief. No right to relief, including the claim that the findings or award of the Labor Commissioner or judgment entered thereon are void upon their face, shall accrue to the defendant in any court unless prior application is made to the Labor Commissioner in accordance with this chapter.
(g)All hearings conducted pursuant to this chapter are governed by the division and by the rules of practice and procedure adopted by the Labor Commissioner.
(h)(1)Whenever a claim is filed under this chapter against a person operating or doing business under a fictitious business name, as defined in Section 17900 of the Business and Professions Code, which relates to the persons business, the division shall inquire at the time of the hearing whether the name of the person is the legal name under which the business or person has been licensed, registered, incorporated, or otherwise authorized to do business.
(2)The division may amend an order, decision, or award to conform to the legal name of the business or the person who is the defendant to a wage claim, if it can be shown that proper service was made on the defendant or his or her agent, unless a judgment had been entered on the order, decision, or award pursuant to subdivision (d) of Section 98.2. The Labor Commissioner may apply to the clerk of the superior court to amend a judgment that has been issued pursuant to a final order, decision, or award to conform to the legal name of the defendant, if it can be shown that proper service was made on the defendant or his or her agent.
SEC. 4.Section 238 is added to the Labor Code, to read:238.(a)If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a period of 20 30 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the employer shall not continue to conduct business in this state state, including conducting business using the labor of another business, contractor, or subcontractor instead of the labor of an employee, unless the employer has obtained a bond from a surety company admitted to do business in this state and has filed a copy of that bond with the Labor Commissioner. The bond shall be effective and maintained until satisfaction of all judgments for nonpayment of wages. The principal sum of the bond shall not be less than one hundred fifty thousand dollars ($150,000). the following:
(1)Fifty thousand dollars ($50,000) if the unsatisfied portion of the judgment is no more than five thousand dollars ($5,000).
(2)One hundred thousand dollars ($100,000) if the unsatisfied portion of the judgment is more than five thousand dollars ($5,000) and no more than ten thousand dollars ($10,000).
(3)One hundred fifty thousand dollars ($150,000) if the unsatisfied portion of the judgment is more than ten thousand dollars ($10,000).
(b)In lieu of filing and maintaining the bond required by this section, the employer may provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. If the accord provides for the judgment to be paid in installments, and an installment payment is not made, the employer is no longer excused from satisfying the bond requirement of this section.
(c)(1)The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be for the benefit of any employee damaged by his or her employers failure to pay wages, including any interest, penalties, and attorneys fees.
(2)This section shall not require a bond in favor of employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the bond required by this section.
(3)Thirty days prior to the cancellation or termination of any bond required by this section, the surety shall send written notice to both the employer and the Labor Commissioner, identifying the bond and the date of the cancellation or termination. If the bond is terminated or canceled, the employer shall obtain a new surety bond and file a copy of that bond with the Labor Commissioner to remain in compliance with this section.
(d)For purposes of this section, a judgment also includes any final arbitration award where the time to file a petition for a trial de novo or a petition to vacate or correct the arbitration award has expired and no petition is pending.
(e)An Subject to subdivision (f), an employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages, upon receiving written notice of the unsatisfied judgment, shall be deemed the same employer for purposes of this section if (1) the employees of the subsequent successor employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors or (2) if the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
(f)Any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil penalty of two thousand five hundred dollars ($2,500). Any employer that has previously paid been assessed and failed to pay a penalty pursuant to this section shall be subject to an additional penalty of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section; however, this additional amount shall not exceed one hundred thousand dollars ($100,000). These civil penalties may be assessed under a citation issued by the Labor Commissioner and the procedures for issuing, contesting, and enforcing judgments shall be the same as those set forth in Section 1197.1. The Labor Commissioner shall not assess these civil penalties against an entity determined to be a successor employer pursuant to subdivision (e) within the first 30 days after notice of the judgment.
SEC. 5.Section 238.1 is added to the Labor Code, to read:238.1.(a)Where an employer is conducting business in violation of Section 238, the Labor Commissioner may issue and serve on that employer a stop order prohibiting the use of employee labor by that employer until the employers compliance with Section 238, provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The stop order shall also prohibit the employer from continuing to provide services by subcontracting for labor. conducting business using the labor of another business, contractor, or subcontractor. The stop order shall become effective immediately upon the service of the order. Any employee affected by the work stoppage shall be paid by the employer for such time lost, not exceeding 10 days, pending compliance by the employer. The employer may protest the stop order by making and filing with the Labor Commissioner a written request for a hearing within 20 days after service of the stop order. The hearing shall be held within five days from the date of filing the request. The Labor Commissioner shall notify the employer of the time and place of the hearing by mail. At the conclusion of the hearing, the stop order shall be immediately affirmed or dismissed, and within 24 hours thereafter, the Labor Commissioner shall issue and serve on all parties to the hearing by registered or certified mail a written notice of findings, accompanied by written findings. A writ of mandate may be taken from the findings to the appropriate superior court. The writ shall be taken within 45 days after the mailing of the notice of findings accompanied by written findings. The Labor Commissioner may file an action in superior court for injunctive and other appropriate relief to enforce the stop order and shall be entitled to recovery of costs and attorneys fees if any relief is obtained by the Labor Commissioner.
(b)Failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees owner, director, officer, or managing agent of the employer to observe a stop order issued and served upon him or her pursuant to this section is guilty of a misdemeanor punishable by imprisonment in the county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both. The Labor Commissioner may also obtain injunctive and other relief from the courts to carry out the purposes of this section. For the purposes of this section, the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code.
SEC. 6.Section 238.2 is added to the Labor Code, to read:238.2.(a)The Labor Commissioner may create a lien on any real property in California of an employer employer, or a successor employer pursuant to subdivision (e) of Section 238, that is conducting business in violation of Section 238 for the full amount of any wages, interest, and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by recording a certificate of lien using the same procedure applicable under subsection subdivision (g) of Section 98.2.
(c)The Labor Commissioner shall issue a certificate of release, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond pursuant to Section 238. The certificate of release may be recorded by the employer at the employers expense.
(d)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(e)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers property to secure payment of the claim.
(f)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(g)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(e)Prior to using the lien procedure in this section, the Labor Commissioner shall provide at least 20 days notice to the employer. The notice shall advise the employer of the Labor Commissioners authority to create a lien on the property to secure payment of the claim.
(f)The Labor Commissioner may serve the notice with and in the same manner as the order, decision, and award in accordance with Section 98.1.
(h)
(g)A lien created pursuant to this section is in addition to any other lien rights available to an employee or to the Labor Commissioner and shall not be construed to limit those rights.
SEC. 7.Section 238.3 is added to the Labor Code, to read:238.3.(a)The Labor Commissioner may create a lien on any personal property in California of an employer that conducts business in violation of Section 238 for the full amount of any wages, interest, and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by filing a notice of lien with the Secretary of State on the standard form of initial financing statement pursuant to Section 9521 of the Commercial Code. The standard form shall be completed in the following manner:
(1)The Labor Commissioner shall be identified as the secured party.
(2)The employer shall be identified as the debtor.
(3)The description of the collateral shall include the following statements:
(A)A statement of the Labor Commissioners demand for payment of the wages, penalties, interest, and attorneys fees, if applicable. The statement shall specify the amount owed to the employee, and if the amount is estimated, shall provide an explanation for the basis of the estimate.
(B)A general statement of the kind of work furnished by the employee and the dates of employment.
(c)For the purpose of the Secretary of States index pursuant to Sections 9515, 9516, and 9522 of the Commercial Code and for the purpose of the issuance of a certificate pursuant to Section 9519 or 9528 of the Commercial Code, the Secretary of State shall treat a notice of lien pursuant to this section as a financing statement.
(d)The lien attaches to all personal property that is owned by the employer at the time of the filing of the notice of lien, or that is subsequently acquired by the employer, that can be made subject to a security interest under the Commercial Code.
(e)The Labor Commissioner shall file a termination statement, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond in a form acceptable to the Labor Commissioner sufficient to secure the claim.
(f)The notice of claim of lien to which the termination statement relates ceases to be effective upon the filing of a termination statement with the office of the Secretary of State. A termination statement for a notice of lien may be filed in the same manner as a termination statement for a financing statement filed pursuant to Section 9513 of the Commercial Code.
(g)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(h)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers personal property to secure payment of the claim.
(i)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(j)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(k)A lien created pursuant to this section in addition to any other lien rights available to an employee or to the Labor Commissioner shall not be construed to limit those rights.
SEC. 8.Section 238.4 is added to the Labor Code, to read:238.4.(a)An employer in the long-term care industry that is also required to obtain a license from the State Department of Public Health or the State Department of Social Services pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code may not obtain a license or renew that license if the employer is conducting business in violation of Section 238.
(b)For purposes of this section long-term care means the operation of a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization, as those terms are used in Division 2 (commencing with Section 1200) of the Health and Safety Code.
SEC. 9.Section 238.5 is added to the Labor Code, to read:238.5.(a)An individual, partnership, corporation, limited liability company, joint venture, or association that, as part of its business, contracts with an employer to perform services in the property services or long-term care industries shall be jointly and severally liable, where the individual, partnership, corporation, limited liability company, joint venture, or association has been named as a defendant and provided notice pursuant to subdivision (b) of Section 98, with the employer for any unpaid wages, including interest, and the employer was found liable for those unpaid wages by an order, decision or award issued pursuant to Section 98.2, to the extent the amounts are for services performed under that contract. The issue of joint and several liability under this section may be determined by the Labor Commissioner in a proceeding under Section 98.
238.5.(a)(1)Any individual or business entity, regardless of its form, that, as part of its business, contracts for services in the property services or long-term care industries shall be jointly and severally liable for any unpaid wages, including interest, where the individual or business entity has been provided notice, by any party, of any proceeding or investigation by the Labor Commissioner in which the employer is found liable for those unpaid wages, to the extent the amounts are for services performed under that contract.
(2)The issue of joint and several liability under this section shall be determined (A) in a proceeding under Section 98 if the individual or contracting business is provided notice in the administrative complaint alleging such liability and named a defendant in the course of the Section 98 proceeding, (B) in an administrative proceeding brought by the Labor Commissioner to investigate, prosecute, or recover unpaid wages and interest pursuant to a citation, or in a court action brought by the Labor Commissioner, if the contracting individual or business is provided preliminary notice by the Labor Commissioner of joint and several liability under this section at least 30 days prior to issuance of a citation, or filing of a court action, or (C) by a court in an action pursuant to Section 98.2. No action for a violation or enforcement of this section shall be brought under Part 13 (commencing with Section 2698) of Division 2.
(b)The joint and several liability provided by this section shall not apply to unpaid wages owed to employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the joint and several liability provided by this section.
(c)An employer that contracts to provide services in the property services or long-term care industries shall, prior to entering into such a contract, provide written notice to the other party to the prospective contract of any unsatisfied final judgments against the employer for nonpayment of wages. The notice shall also provide the text of this section. The employer The failure of the employer to provide notice under this subdivision shall not be a defense to the joint and several liability provided by this section.
(d)An employer that contracts to provide services in the property services or long-term care industries shall provide, within thirty (30) 30 days of the entry of the judgment, written notice of any unsatisfied final judgments against the employer for nonpayment of wages to any parties with which the employer is presently under contract to provide services in the property services or long-term care industries. The failure of the employer to provide such notices notice under this subdivision shall not be a defense to the joint and several liability provided by this section.
(d)
(e)For the purposes of this section: section, the following apply:
(1)Property services means janitorial, security guard, valet parking, landscaping landscaping, and gardening services.
(2)Long-term care has the same definition as in Section 238.4.
(f)This section shall not be interpreted to impose joint liability on an individual or the owner of a home-based business, for any property services, to the extent that the property services are provided at the individual or home-based business owners primary residence, provided that the primary residence does not have multiple housing units.
SEC. 10.Section 558.1 is added to the Labor Code, to read:558.1.Any person who would be liable for any violation under Section 558 may also be held liable in an action pursuant to Section 98, 203, 226, 1193.6, 1194, or 2802.
558.1.(a)Any employer or other person acting on behalf of an employer, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, Sections 203, 226, 226.7, 1193.6, 1194, or 2802, may be held liable as the employer for such violation.
(b)For purposes of this section, the term other person acting on behalf of an employer is limited to a natural person who is an owner, director, officer, or managing agent of the employer, and the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code.
(c)Nothing in this section shall be construed to limit the definition of employer under existing law.
SEC. 11.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
HeadingLine 3.For the purpose of the remedies provided under this chapter, jurisdiction is conferred upon the superior court.
690.030.(a)Except as otherwise provided by statute, whenever a warrant or notice of levy may properly be issued by the Labor Commissioner pursuant to Section 96.8 of the Labor Code, and the warrant may be levied with the same effect as a levy pursuant to a writ of execution, the Labor Commissioner may use any of the remedies available to a judgment creditor, including, but not limited to, those provided in Chapter 6 (commencing with Section 708.010) of Division 2.
(b)The proper court for the enforcement of the remedies provided under this chapter is the superior court of any of the following counties:
(1)The county where the employee resides.
(2)The county where the judgment debtor resides.
(3)The county where the person against whom the levy or warrant was issued resides.
690.040.(a)Whenever the Labor Commissioner, pursuant to Section 96.8 of the Labor Code, levies upon property pursuant to a warrant or notice of levy for the collection of an unsatisfied judgment or award:
(1)If the debtor is a natural person, the debtor is entitled to the same exemptions to which a judgment debtor is entitled. Except as provided in subdivisions (b) and (c), the claim of exemption shall be made, heard, and determined as provided in Chapter 4 (commencing with Section 703.010) of Division 2 in the same manner as if the property were levied upon under a writ of execution.
(2)A third person may claim ownership or the right to possession of the property or a security interest in or lien on the property. Except as provided in subdivisions (b) and (c) or as otherwise provided by statute, the third-party claim shall be made, heard, and determined as provided in Division 4 (commencing with Section 720.010) in the same manner as if the property were levied upon under a writ of execution.
(b)In the case of a warrant or notice of levy issued pursuant to Section 96.8 of the Labor Code, the claim of exemption or the third-party claim shall be filed with the Labor Commissioner.
(c)A claim of exemption or a third-party claim pursuant to this section shall be heard and determined in a superior court specified in subdivision (b) of Section 690.030.
690.050.(a)Notwithstanding any other law, in the case of a writ of execution issued by a court of competent jurisdiction pursuant to Chapter 3 (commencing with Section 699.010) and Chapter 5 (commencing with Section 706.010) of Division 2, the Labor Commissioner, when collecting an unsatisfied judgment or award pursuant to Section 96.8 of the Labor Code, may perform the duties of the levying officer, except that the Labor Commissioner need not give himself or herself the notices that the levying officer is required to serve on a judgment creditor or the notices that a judgment creditor is required to give to the levying officer.
(b)Notwithstanding subdivision (a) of Section 700.140 and Sections 700.150, 700.160, and Section 700.170, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor, the Labor Commissioner may deliver or mail a notice of levy to a centralized location designated by the bank or savings and loan association or, in the case of an account receivable or other general intangible, to the agent for service of process of the account debtor. If the notice of levy is received at the designated central location for the bank or savings and loan association, the notice of levy will apply to all deposits, credits, money, and personal property held by the bank or savings and loan association regardless of the location of that property. The notice of levy may be issued directly by the Labor Commissioner, whether or not a court has issued a writ of execution, and shall contain all of the information required to be included in a writ of execution under Section 699.520 and in a notice of levy under Section 699.540.
SEC. 2.Section 96.8 is added to the Labor Code, to read:96.8.(a)Notwithstanding any other law, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner, or in favor of any employee pursuant to subdivision (e) of Section 98.2, the Labor Commissioner may, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy.
(b)Notwithstanding any other law, the Labor Commissioner may execute a levy on any property that may be levied under Section 700.140, 700.150, 700.160, or 700.170 of the Code of Civil Procedure by mailing a notice of levy to the person against whom the levy is directed and serving a copy on the judgment debtor. The notice of levy shall contain all of the information required to be included in a writ of execution under Section 699.520 of the Code of Civil Procedure and in a notice of levy under Section 699.540 of the Code of Civil Procedure.
(c)Any person, upon whom a levy has been noticed having in his or her possession or under his or her control any credits, money, or property belonging to the judgment debtor or owing any debts to the judgment debtor at the time of receipt of the levy or coming into his or her possession or under his or her control within one year of receipt of the notice of levy, shall surrender the credits, money, or property to the Labor Commissioner or pay to the Labor Commissioner the amount of any debt owed to the judgment debtor within 10 days of service of the levy, and shall surrender the credits or property, or the amount of any debt owing to the judgment debtor coming into his or her own possession or control within one year of receipt of the notice of levy within 10 days of the date of coming into possession or control of the credits or property or the amount of any debt owed to the judgment debtor.
(d)Any person who surrenders to the Labor Commissioner pursuant to this section any credits, money, or property, or pays the debts owed to the judgment debtor, shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy.
(e)If the levy is made on a deposit or credits, money, or property in the possession or under the control of a bank, savings and loan association, or other financial institution as defined by Section 669a(d)(1) of Title 42 of the United States Code, the notice of levy may be delivered or mailed to a centralized location designated by the bank, savings and loan association, or other financial institution pursuant to Section 690.050 of the Code of Civil Procedure.
(f)Any person who is noticed with a levy pursuant to this section and who fails or refuses to surrender any credits, money, or property or pay any debts owed to the judgment debtor shall be liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or other property or in the amount of the levy, up to the amount specified in the levy.
(g)The fees, commissions, expenses, and the reasonable costs associated with the sale of property levied upon by warrant or levy pursuant to this section, including, but not limited to, appraisers fees, auctioneers fees, and advertising fees are an obligation of the judgment debtor and may be collected from the judgment debtor by virtue of the warrant or levy or in any other manner as though these items were part of the judgment or award outstanding.
(h)This section shall not apply to the judgment debtors interest in real property.
(i)This section shall not apply if enforcement of the judgment has been stayed on appeal pursuant to Chapter 2 (commencing with Section 916) of Title 13 of Part 2 of the Code of Civil Procedure.
SEC. 3.Section 98 of the Labor Code is amended to read:98.(a)The Labor Commissioner is authorized to investigate employee complaints. The Labor Commissioner may provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and shall determine all matters arising under his or her jurisdiction. The Labor Commissioner may also provide for a hearing against any employer or other person acting on behalf of an employer for a violation of Section 558. It is within the jurisdiction of the Labor Commissioner to accept and determine claims from holders of payroll checks or payroll drafts returned unpaid because of insufficient funds, if, after a diligent search, the holder is unable to return the dishonored check or draft to the payee and recover the sums paid out. Within 30 days of the filing of the complaint, the Labor Commissioner shall notify the parties as to whether a hearing will be held, whether action will be taken in accordance with Section 98.3, or whether no further action will be taken on the complaint. If the determination is made by the Labor Commissioner to hold a hearing, the hearing shall be held within 90 days of the date of that determination. However, the Labor Commissioner may postpone or grant additional time before setting a hearing if the Labor Commissioner finds that it would lead to an equitable and just resolution of the dispute. A party who has received actual notice of a claim before the Labor Commissioner shall, while the matter is before the Labor Commissioner, notify the Labor Commissioner in writing of any change in that partys business or personal address within 10 days after the change in address occurs.
It is the intent of the Legislature that hearings held pursuant to this section be conducted in an informal setting preserving the rights of the parties.
(b)When a hearing is set, a copy of the complaint, which shall include the amount of compensation requested, together with a notice of time and place of the hearing, shall be served on all parties, personally or by certified mail, or in the manner specified in Section 415.20 of the Code of Civil Procedure.
(c)Within 10 days after service of the notice and the complaint, a defendant may file an answer with the Labor Commissioner in any form as the Labor Commissioner may prescribe, setting forth the particulars in which the complaint is inaccurate or incomplete and the facts upon which the defendant intends to rely.
(d)No pleading other than the complaint and answer of the defendant or defendants shall be required. Both shall be in writing and shall conform to the form and the rules of practice and procedure adopted by the Labor Commissioner.
(e)Evidence on matters not pleaded in the answer shall be allowed only on terms and conditions the Labor Commissioner shall impose. In all these cases, the claimant shall be entitled to a continuance for purposes of review of the new evidence.
(f)If the defendant fails to appear or answer within the time allowed under this chapter, no default shall be taken against him or her, but the Labor Commissioner shall hear the evidence offered and shall issue an order, decision, or award in accordance with the evidence. A defendant failing to appear or answer, or subsequently contending to be aggrieved in any manner by want of notice of the pendency of the proceedings, may apply to the Labor Commissioner for relief in accordance with Section 473 of the Code of Civil Procedure. The Labor Commissioner may afford this relief. No right to relief, including the claim that the findings or award of the Labor Commissioner or judgment entered thereon are void upon their face, shall accrue to the defendant in any court unless prior application is made to the Labor Commissioner in accordance with this chapter.
(g)All hearings conducted pursuant to this chapter are governed by the division and by the rules of practice and procedure adopted by the Labor Commissioner.
(h)(1)Whenever a claim is filed under this chapter against a person operating or doing business under a fictitious business name, as defined in Section 17900 of the Business and Professions Code, which relates to the persons business, the division shall inquire at the time of the hearing whether the name of the person is the legal name under which the business or person has been licensed, registered, incorporated, or otherwise authorized to do business.
(2)The division may amend an order, decision, or award to conform to the legal name of the business or the person who is the defendant to a wage claim, if it can be shown that proper service was made on the defendant or his or her agent, unless a judgment had been entered on the order, decision, or award pursuant to subdivision (d) of Section 98.2. The Labor Commissioner may apply to the clerk of the superior court to amend a judgment that has been issued pursuant to a final order, decision, or award to conform to the legal name of the defendant, if it can be shown that proper service was made on the defendant or his or her agent.
SEC. 4.Section 238 is added to the Labor Code, to read:238.(a)If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a period of 10 20 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the employer shall not continue to conduct business in this state unless the employer has obtained a bond from a surety company admitted to do business in this state and has filed a copy of that bond with the Labor Commissioner. The principal sum of the bond shall not be less than one hundred and fifty thousand dollars ($150,000).
(b)In lieu of filing and maintaining the bond required by this section, the employer may provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment. If the accord provides for the judgment to be paid in installments, and an installment payment is not made, the employer is no longer excused from satisfying the bond requirement of this section.
(c)(1)The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be for the benefit of any employee damaged by his or her employers failure to pay wages, including any interest, penalties, and attorneys fees.
(2)This section shall not require a bond in favor of employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the bond required by this section.
(3)Thirty days prior to the cancellation or termination of any bond required by this section, the surety shall send written notice to both the employer and the Labor Commissioner, identifying the bond and the date of the cancellation or termination. If the bond is terminated or canceled, the employer shall obtain a new surety bond and file a copy of that bond with the Labor Commissioner to remain in compliance with this section.
(d)For purposes of this section, a judgment also includes any final arbitration award where the time to file a petition for a trial de novo or a petition to vacate or correct the arbitration award has expired and no petition is pending.
(e)An employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages, upon receiving written notice of the unsatisfied judgment, shall be deemed the same employer for purposes of this section if (1) the employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors or (2) if the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
(f)Any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil penalty of two thousand five hundred dollars ($2,500). Any employer that has previously paid a penalty pursuant to this section shall be subject to an additional penalty of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section; however, this additional amount shall not exceed one hundred thousand dollars ($100,000).
SEC. 5.Section 238.1 is added to the Labor Code, to read:238.1.(a)Where an employer is conducting business in violation of Section 238, the Labor Commissioner may issue and serve on that employer a stop order prohibiting the use of employee labor by that employer until the employers compliance with Section 238, provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The stop order shall also prohibit the employer from continuing to provide services by subcontracting for labor. The stop order shall become effective immediately upon the service of the order. Any employee affected by the work stoppage shall be paid by the employer for such time lost, not exceeding 10 days, pending compliance by the employer. The employer may protest the stop order by making and filing with the Labor Commissioner a written request for a hearing within 20 days after service of the stop order. The hearing shall be held within 5 five days from the date of filing the request. The Labor Commissioner shall notify the employer of the time and place of the hearing by mail. At the conclusion of the hearing, the stop order shall be immediately affirmed or dismissed, and within 24 hours thereafter, the Labor Commissioner shall issue and serve on all parties to the hearing by registered or certified mail a written notice of findings, accompanied by written findings. A writ of mandate may be taken from the findings to the appropriate superior court. The writ shall be taken within 45 days after the mailing of the notice of findings accompanied by written findings.
(b)Failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees to observe a stop order issued and served upon him or her pursuant to this section is guilty of a misdemeanor punishable by imprisonment in the county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both. The Labor Commissioner may also obtain injunctive and other relief from the courts to carry out the purposes of this section.
SEC. 6.Section 238.2 is added to the Labor Code, to read:238.2.(a)The Labor Commissioner may create a lien on any real property in California of an employer that is conducting business in violation of Section 238 for the full amount of any wages, interest, penalties, and attorneys fees and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by recording a certificate of lien using the same procedure applicable under subsection (g) of Section 98.2.
(c)The Labor Commissioner shall issue a certificate of release, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond pursuant to Section 238. The certificate of release may be recorded by the employer at the employers expense.
(d)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(e)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers property to secure payment of the claim.
(f)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(g)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(h)A lien created pursuant to this section is in addition to any other lien rights available to an employee or to the Labor Commissioner and shall not be construed to limit those rights.
SEC. 7.Section 238.3 is added to the Labor Code, to read:238.3.(a)The Labor Commissioner may create a lien on any personal property in California of an employer that conducts business in violation of Section 238 for the full amount of any wages, interest, penalties, and attorneys fees and penalties claimed to be owed to any employee. To the extent attorneys fees are specifically allowed to be recovered by this code, such as by, but not limited to, subdivision (f) of Section 2673.1 and Section 2802, during a hearing pursuant to Section 98, the Labor Commissioner may include that amount in the lien.
(b)The Labor Commissioner may create the lien provided in this section by filing a notice of lien with the Secretary of State on the standard form of initial financing statement pursuant to Section 9521 of the Commercial Code. The standard form shall be completed in the following manner:
(1)The Labor Commissioner shall be identified as the secured party.
(2)The employer shall be identified as the debtor.
(3)The description of the collateral shall include the following statements:
(A)A statement of the Labor Commissioners demand for payment of the wages, penalties, interest, and attorneys fees, if applicable. The statement shall specify the amount owed to the employee, and if the amount is estimated, shall provide an explanation for the basis of the estimate.
(B)A general statement of the kind of work furnished by the employee and the dates of employment.
(c)For the purpose of the Secretary of States index pursuant to Sections 9515, 9516, and 9522 of the Commercial Code and for the purpose of the issuance of a certificate pursuant to Section 9519 or 9528 of the Commercial Code, the Secretary of State shall treat a notice of lien pursuant to this section as a financing statement.
(d)The lien attaches to all personal property that is owned by the employer at the time of the filing of the notice of lien, or that is subsequently acquired by the employer, that can be made subject to a security interest under the Commercial Code.
(e)The Labor Commissioner shall file a termination statement, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond in a form acceptable to the Labor Commissioner sufficient to secure the claim.
(f)The notice of claim of lien to which the termination statement relates ceases to be effective upon the filing of a termination statement with the office of the Secretary of State. A termination statement for a notice of lien may be filed in the same manner as a termination statement for a financing statement filed pursuant to Section 9513 of the Commercial Code.
(g)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(h)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers personal property to secure payment of the claim.
(i)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(j)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(k)A lien created pursuant to this section in addition to any other lien rights available to an employee or to the Labor Commissioner shall not be construed to limit those rights.
SEC. 8.Section 238.4 is added to the Labor Code, to read:238.4.(a)An employer in the long-term care industry that is also required to obtain a license from the State Department of Public Health or the State Department of Social Services pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code may not obtain a license or renew that license if the employer is conducting business in violation of Section 238.
(b)For purposes of this section long-term care means the operation of a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization, as those terms are used in Division 2 (commencing with Section 1200) of the Health and Safety Code.
SEC. 9.Section 238.5 is added to the Labor Code, to read:238.5.(a)An individual, partnership, corporation, limited liability company, joint venture, or association that, as part of its business, contracts with an employer to perform services in the property services or long-term care industries shall be jointly and severally liable, where the individual, partnership, corporation, limited liability company, joint venture, or association has been named as a defendant and provided notice pursuant to subdivision (b) of Section 98, with the employer for any unpaid wages, including interest, and the employer was found liable for those unpaid wages by an order, decision or award issued pursuant to Section 98.2, to the extent the amounts are for services performed under that contract. The issue of joint and several liability under this section may be determined by the Labor Commissioner in a proceeding under Section 98.
(b)The joint and several liability provided by this section shall not apply to unpaid wages owed to employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the joint and several liability provided by this section.
(c)An employer that contracts to provide services in the property services or long-term care industries shall, prior to entering into such a contract, provide written notice to the other party to the prospective contract of any unsatisfied final judgments against the employer for nonpayment of wages. The notice shall also provide the text of this section. The employer shall provide, within thirty (30) days of the entry of the judgment, written notice of any unsatisfied final judgments against the employer for nonpayment of wages to any parties with which the employer is presently under contract to provide services in the property services or long-term care industries. The failure of the employer to provide such notices shall not be a defense to the joint and several liability provided by this section.
(d)For purposes of this section:
(1)Property services means janitorial, security guard, valet parking, landscaping and gardening services.
(2)Long-term care has the same definition as in Section 238.4.
SEC. 10.Section 558.1 is added to the Labor Code, to read:558.1.Any person who would be liable for any violation under Section 558 may also be held liable in an action pursuant to Section 98, 203, 226, 1193.6, 1194, or 2802.
SEC. 11.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For the purpose of the remedies provided under this chapter, jurisdiction is conferred upon the superior court.
690.030.(a)Except as otherwise provided by statute, whenever a warrant or notice of levy may properly be issued by the Labor Commissioner pursuant to Section 96.8 of the Labor Code, and the warrant may be levied with the same effect as a levy pursuant to a writ of execution, the commissioner Labor Commissioner may use any of the remedies available to a judgment creditor, including, but not limited to, those provided in Chapter 6 (commencing with Section 708.010) of Division 2.
(b)The proper court for the enforcement of the remedies provided under this chapter is the superior court of any of the following counties:
(1)The county where the employee resides.
(2)The county where the judgment debtor resides.
(3)The county where the person against whom the levy or warrant was issued resides.
690.040.(a)Whenever the Labor Commissioner, pursuant to Section 96.8 of the Labor Code, levies upon property pursuant to a warrant or notice of levy for the collection of an unsatisfied judgment or award:
(1)If the debtor is a natural person, the debtor is entitled to the same exemptions to which a judgment debtor is entitled. Except as provided in subdivisions (b) and (c), the claim of exemption shall be made, heard, and determined as provided in Chapter 4 (commencing with Section 703.010) of Division 2 in the same manner as if the property were levied upon under a writ of execution.
(2)A third person may claim ownership or the right to possession of the property or a security interest in or lien on the property. Except as provided in subdivisions (b) and (c) or as otherwise provided by statute, the third-party claim shall be made, heard, and determined as provided in Division 4 (commencing with Section 720.010) in the same manner as if the property were levied upon under a writ of execution.
(b)In the case of a warrant or notice of levy issued pursuant to Section 96.8 of the Labor Code, the claim of exemption or the third-party claim shall be filed with the Labor Commissioner.
(c)A claim of exemption or a third-party claim pursuant to this section shall be heard and determined in a superior court specified in subdivision (b) of Section 690.030.
690.050.(a)Notwithstanding any other law, in the case of a writ of execution issued by a court of competent jurisdiction pursuant to Chapter 3 (commencing with Section 699.010) and Chapter 5 (commencing with Section 706.010) of Division 2, the Labor Commissioner, when collecting an unsatisfied judgment or award pursuant to Section 96.8 of the Labor Code, may perform the duties of the levying officer, except that the commissioner Labor Commissioner need not give himself or herself the notices that the levying officer is required to serve on a judgment creditor or the notices that a judgment creditor is required to give to the levying officer.
(b)Notwithstanding subdivision (a) of Section 700.140 and Section 700.170, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor, the commissioner Labor Commissioner may deliver or mail a notice of levy to a centralized location designated by the bank or savings and loan association or, in the case of an account receivable or other general intangible, to the agent for service of process of the account debtor. If the notice of levy is received at the designated central location for the bank or savings and loan association, it the notice of levy will apply to all deposits, credits, money, and personal property held by the bank or savings and loan association regardless of the location of that property. The notice of levy may be issued directly by the commissioner, Labor Commissioner, whether or not a court has issued a writ of execution, and shall contain all of the information required to be included in a writ of execution under Section 699.520 and in a notice of levy under Section 699.540.
SEC. 2.Section 96.8 is added to the Labor Code, to read:96.8.(a)Notwithstanding any other law, after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee pursuant to Section 98.2, the Labor Commissioner may, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy.
(b)Notwithstanding any other law, the Labor Commissioner may execute a levy on any property that may be levied under Section 700.140 or 700.170 of the Code of Civil Procedure by mailing a notice of levy to the person against whom the levy is directed and serving a copy on the judgment debtor. The notice of levy shall contain all of the information required to be included in a writ of execution under Section 699.520 of the Code of Civil Procedure and in a notice of levy under Section 699.540 of the Code of Civil Procedure.
(c)Any person, upon whom a levy has been noticed having in his or her possession or under his or her control any credits, money, or property belonging to the judgment debtor or owing any debts to the judgment debtor at the time of receipt of the levy or coming into his or her possession or under his or her control within one year of receipt of the notice of levy, shall surrender the credits, money, or property to the commissioner Labor Commissioner or pay to the commissioner Labor Commissioner the amount of any debt owing owed to the judgment debtor within 10 days of service of the levy, and shall surrender the credits or property, or the amount of any debt owing to the judgment debtor coming into his or her own possession or control within one year of receipt of the notice of levy within 10 days of the date of coming into possession or control of the credits or property or the amount of any debt owing owed to the judgment debtor.
(d)Any person who surrenders to the commissioner Labor Commissioner pursuant to this section any credits, money, or property, or pays the debts owing owed to the judgment debtor, shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner Labor Commissioner as a result of the levy.
(e)If the levy is made on a deposit or credits, money, or property in the possession or under the control of a bank, savings and loan association, or other financial institution as defined by Section 669a(d)(1) of Title 42 of the United States Code, the notice of levy may be delivered or mailed to a centralized location designated by the bank, savings and loan association, or other financial institution pursuant to Section 690.050 of the Code of Civil Procedure.
(f)Any person who is noticed with a levy pursuant to this section and who fails or refuses to surrender any credits, money, or property or pay any debts owing owed to the judgment debtor shall be liable in his or her own person or estate to the commissioner Labor Commissioner in an amount equal to the value of the credits, money, or other property or in the amount of the levy, up to the amount specified in the levy.
(g)The fees, commissions, expenses, and the reasonable costs associated with the sale of property levied upon by warrant or levy pursuant to this section, including, but not limited to, appraisers fees, auctioneers fees, and advertising fees are an obligation of the judgment debtor and may be collected from the judgment debtor by virtue of the warrant or levy or in any other manner as though these items were part of the judgment or award outstanding.
(h)This section shall not apply to the judgment debtors interest in real property.
SEC. 3.Section 98 of the Labor Code is amended to read:98.(a)The Labor Commissioner is authorized to investigate employee complaints. The Labor Commissioner may provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and shall determine all matters arising under his or her jurisdiction. The Labor Commissioner may also provide for a hearing against any employer or other person acting on behalf of an employer for a violation of Section 558. It is within the jurisdiction of the Labor Commissioner to accept and determine claims from holders of payroll checks or payroll drafts returned unpaid because of insufficient funds, if, after a diligent search, the holder is unable to return the dishonored check or draft to the payee and recover the sums paid out. Within 30 days of the filing of the complaint, the Labor Commissioner shall notify the parties as to whether a hearing will be held, whether action will be taken in accordance with Section 98.3, or whether no further action will be taken on the complaint. If the determination is made by the Labor Commissioner to hold a hearing, the hearing shall be held within 90 days of the date of that determination. However, the Labor Commissioner may postpone or grant additional time before setting a hearing if the Labor Commissioner finds that it would lead to an equitable and just resolution of the dispute. A party who has received actual notice of a claim before the Labor Commissioner shall, while the matter is before the Labor Commissioner, notify the Labor Commissioner in writing of any change in that partys business or personal address within 10 days after the change in address occurs.
It is the intent of the Legislature that hearings held pursuant to this section be conducted in an informal setting preserving the rights of the parties.
(b)When a hearing is set, a copy of the complaint, which shall include the amount of compensation requested, together with a notice of time and place of the hearing, shall be served on all parties, personally or by certified mail, or in the manner specified in Section 415.20 of the Code of Civil Procedure.
(c)Within 10 days after service of the notice and the complaint, a defendant may file an answer with the Labor Commissioner in any form as the Labor Commissioner may prescribe, setting forth the particulars in which the complaint is inaccurate or incomplete and the facts upon which the defendant intends to rely.
(d)No pleading other than the complaint and answer of the defendant or defendants shall be required. Both shall be in writing and shall conform to the form and the rules of practice and procedure adopted by the Labor Commissioner.
(e)Evidence on matters not pleaded in the answer shall be allowed only on terms and conditions the Labor Commissioner shall impose. In all these cases, the claimant shall be entitled to a continuance for purposes of review of the new evidence.
(f)If the defendant fails to appear or answer within the time allowed under this chapter, no default shall be taken against him or her, but the Labor Commissioner shall hear the evidence offered and shall issue an order, decision, or award in accordance with the evidence. A defendant failing to appear or answer, or subsequently contending to be aggrieved in any manner by want of notice of the pendency of the proceedings, may apply to the Labor Commissioner for relief in accordance with Section 473 of the Code of Civil Procedure. The Labor Commissioner may afford this relief. No right to relief, including the claim that the findings or award of the Labor Commissioner or judgment entered thereon are void upon their face, shall accrue to the defendant in any court unless prior application is made to the Labor Commissioner in accordance with this chapter.
(g)All hearings conducted pursuant to this chapter are governed by the division and by the rules of practice and procedure adopted by the Labor Commissioner.
(h)(1)Whenever a claim is filed under this chapter against a person operating or doing business under a fictitious business name, as defined in Section 17900 of the Business and Professions Code, which relates to the persons business, the division shall inquire at the time of the hearing whether the name of the person is the legal name under which the business or person has been licensed, registered, incorporated, or otherwise authorized to do business.
(2)The division may amend an order, decision, or award to conform to the legal name of the business or the person who is the defendant to a wage claim, if it can be shown that proper service was made on the defendant or his or her agent, unless a judgment had been entered on the order, decision, or award pursuant to subdivision (d) of Section 98.2. The Labor Commissioner may apply to the clerk of the superior court to amend a judgment that has been issued pursuant to a final order, decision, or award to conform to the legal name of the defendant, if it can be shown that proper service was made on the defendant or his or her agent.
SEC. 4.Section 238 is added to the Labor Code, to read:238.(a)If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a period of 10 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the employer shall not continue to conduct business in this state related to that final judgment unless the employer has obtained a bond from a surety company admitted to do business in this state and has filed a copy of that bond with the Labor Commissioner. The principal sum of the bond shall not be less than one hundred and fifty thousand dollars ($150,000).
(b)In lieu of filing and maintaining the bond required by this section, the employer may provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment.
(c)(1)The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be for the benefit of any employee damaged by his or her employers failure to pay wages, including any interest, penalties, and attorneys fees.
(2)This section shall not require a bond in favor of employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the bond required by this section.
(3)Thirty days prior to the cancellation or termination of any bond required by this section, the surety shall send written notice to both the employer and the Labor Commissioner, identifying the bond and the date of the cancellation or termination. If the bond is terminated or canceled, the employer shall obtain a new surety bond and file a copy of that bond with the Labor Commissioner to remain in compliance with this section.
(d)For purposes of this section, a judgment also includes any final arbitration award where the time to file a petition for a trial de novo or a petition to vacate or correct the arbitration award has expired and no petition is pending.
(e)Subject to written notice to a subsequent employer about any unsatisfied judgments against the employer for nonpayment of wages, a subsequent An employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages wages, upon receiving written notice of the unsatisfied judgment, shall be deemed the same employer for purposes of this section if (1) the employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors or (2) if the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
(f)Any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil fine penalty of two thousand five hundred dollars ($2,500). Any employer that has previously paid a fine penalty pursuant to this section shall be subject to an additional fine penalty of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section; however, this additional amount shall not exceed one hundred thousand dollars ($100,000).
SEC. 5.Section 238.1 is added to the Labor Code, to read:238.1.(a)Where an employer is conducting business in violation of Section 238, the Labor Commissioner may issue and serve on that employer a stop order prohibiting the use of employee labor by that employer until the employers compliance with Section 238, provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The stop order shall also prohibit the employer from continuing to provide services by subcontracting for labor. The stop order shall become effective immediately upon the service of the order. Any employee affected by the work stoppage shall be paid by the employer for such time lost, not exceeding 10 days, pending compliance by the employer. The employer may protest the stop order by making and filing with the Labor Commissioner a written request for a hearing within 20 days after service of the stop order. The hearing shall be held within 5 days from the date of filing the request. The Labor Commissioner shall notify the employer of the time and place of the hearing by mail. At the conclusion of the hearing, the stop order shall be immediately affirmed or dismissed, and within 24 hours thereafter, the Labor Commissioner shall issue and serve on all parties to the hearing by registered or certified mail a written notice of findings, accompanied by written findings. A writ of mandate may be taken from the findings to the appropriate superior court. The writ shall be taken within 45 days after the mailing of the notice of findings and findings. accompanied by written findings.
(b)Failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees to observe a stop order issued and served upon him or her pursuant to this section is guilty of a misdemeanor punishable by imprisonment in the county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both. The Labor Commissioner may also obtain injunctive and other relief from the courts to carry out the purposes of this section.
SEC. 6.Section 238.2 is added to the Labor Code, to read:238.2.(a)The Labor Commissioner may create a lien on any real property in California of an employer that is conducting business in violation of Section 238 for the full amount of any wages, interest, penalties, and attorneys fees claimed to be owed to any employee.
(b)The Labor Commissioner may create the lien provided in this section by recording a certificate of lien using the same procedure applicable under subsection (g) of Section 98.2.
(c)The Labor Commissioner shall issue a certificate of release, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond pursuant to Section 238. The certificate of release may be recorded by the employer at the employers expense.
(d)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(e)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers property to secure payment of the claim.
(f)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(g)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(h)A lien created pursuant to this section is in addition to any other lien rights available to an employee or to the Labor Commissioner and shall not be construed to limit those rights.
SEC. 7.Section 238.3 is added to the Labor Code, to read:238.3.(a)The Labor Commissioner may create a lien on any personal property in California of an employer that conducts business in violation of Section 238 for the full amount of any wages, interest, penalties, and attorneys fees claimed to be owed to any employee.
(b)The Labor Commissioner may create the lien provided in this section by filing a notice of lien with the Secretary of State on the standard form of initial financing statement pursuant to Section 9521 of the Commercial Code. The standard form shall be completed in the following manner:
(1)The Labor Commissioner shall be identified as the secured party.
(2)The employer shall be identified as the debtor.
(3)The description of the collateral shall include the following statements:
(A)A statement of the Labor Commissioners demand for payment of the wages, penalties, interest, and attorneys fees. The statement shall specify the amount owed to the employee, and if the amount is estimated, shall provide an explanation for the basis of the estimate.
(B)A general statement of the kind of work furnished by the employee and the dates of employment.
(c)For the purpose of the Secretary of States index pursuant to Sections 9515, 9516, and 9522 of the Commercial Code and for the purpose of the issuance of a certificate pursuant to Section 9519 or 9528 of the Commercial Code, the Secretary of State shall treat a notice of lien pursuant to this section as a financing statement.
(d)The lien attaches to all personal property that is owned by the employer at the time of the filing of the notice of lien, or that is subsequently acquired by the employer, that can be made subject to a security interest under the Commercial Code.
(e)The Labor Commissioner shall file a termination statement, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond in a form acceptable to the Labor Commissioner sufficient to secure the claim.
(f)The notice of claim of lien to which the termination statement relates ceases to be effective upon the filing of a termination statement with the office of the Secretary of State. A termination statement for a notice of lien may be filed in the same manner as a termination statement for a financing statement filed pursuant to Section 9513 of the Commercial Code.
(g)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(h)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers personal property to secure payment of the claim.
(i)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(j)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(k)A lien created pursuant to this section in addition to any other lien rights available to an employee or to the Labor Commissioner shall not be construed to limit those rights.
SEC. 8.Section 238.4 is added to the Labor Code, to read:238.4.(a)An employer in the long-term care industry that is also required to obtain a license from the State Department of Public Health or the State Department of Social Services pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code may not obtain a license or renew that license if the employer is conducting business in violation of Section 238.
(b)For purposes of this section long-term care means the operation of a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization, as those terms are used in Division 2 (commencing with Section 1200) of the Health and Safety Code.
SEC. 9.Section 238.5 is added to the Labor Code, to read:238.5.(a)An individual, partnership, corporation, limited liability company, joint venture, or association that, as part of its business, contracts with an employer to perform services in the property services or long-term care industries shall be jointly and severally liable, where the individual, partnership, corporation, limited liability company, joint venture, or association has been named as a defendant and provided notice pursuant to subdivision (c), (b) of Section 98, with the employer for any unpaid wages, including interest, and the employer was found liable for those unpaid wages by an order, decision or award issued pursuant to Section 98.2, to the extent the amounts are for services performed under that contract. The issue of joint and several liability under this section may be determined by the Labor Commissioner in a proceeding under Section 98.
(b)The joint and several liability provided by this section shall not apply to unpaid wages owed to employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the joint and several liability provided by this section.
(c)An employer that contracts to provide services in the property services or long-term care industries shall, prior to entering into such a contract, provide written notice to the other party to the prospective contract of any unsatisfied final judgments against the employer for nonpayment of wages. The notice shall also provide the text of this section. The employer shall provide, within thirty (30) days of the entry of the judgment, written notice of any unsatisfied final judgments against the employer for nonpayment of wages to any parties with which the employer is presently under contract to provide services in the property services or long-term care industries. The failure of the employer to provide such notices shall not be a defense to the joint and several liability provided by this section.
(d)For purposes of this section:
(1)Property services means janitorial, security guard, valet parking, landscaping and gardening services.
(2)Long-term care has the same definition as in Section 238.4.
SEC. 10.Section 558.1 is added to the Labor Code, to read:558.1.Any person who would be liable for any violation under Section 558 may also be held liable in an action pursuant to Section 98, 203, 226, 1193.6, 1194, or 2802.
SEC. 11.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For the purpose of the remedies provided under this chapter, jurisdiction is conferred upon the superior court.
690.030.(a)Except as otherwise provided by statute, whenever a warrant or notice of levy may properly be issued by the Labor Commissioner pursuant to Section 96.8 of the Labor Code, and the warrant may be levied with the same effect as a levy pursuant to a writ of execution, the commissioner may use any of the remedies available to a judgment creditor, including, but not limited to, those provided in Chapter 6 (commencing with Section 708.010) of Division 2.
(b)The proper court for the enforcement of the remedies provided under this chapter is the superior court of any of the following counties:
(1)The county where the employee resides.
(2)The county where the judgment debtor resides.
(3)The county where the person against whom the levy or warrant was issued resides.
690.040.(a)Whenever the Labor Commissioner, pursuant to Section 96.8 of the Labor Code, levies upon property pursuant to a warrant or notice of levy for the collection of an unsatisfied judgment or award:
(1)If the debtor is a natural person, the debtor is entitled to the same exemptions to which a judgment debtor is entitled. Except as provided in subdivisions (b) and (c), the claim of exemption shall be made, heard, and determined as provided in Chapter 4 (commencing with Section 703.010) of Division 2 in the same manner as if the property were levied upon under a writ of execution.
(2)A third person may claim ownership or the right to possession of the property or a security interest in or lien on the property. Except as provided in subdivisions (b) and (c) or as otherwise provided by statute, the third-party claim shall be made, heard, and determined as provided in Division 4 (commencing with Section 720.010) in the same manner as if the property were levied upon under a writ of execution.
(b)In the case of a warrant or notice of levy issued pursuant to Section 96.8 of the Labor Code, the claim of exemption or the third-party claim shall be filed with the Labor Commissioner.
(c)A claim of exemption or a third-party claim pursuant to this section shall be heard and determined in a superior court specified in subdivision (b) of Section 690.030.
690.050.(a)Notwithstanding any other law, in the case of a writ of execution issued by a court of competent jurisdiction pursuant to Chapter 3 (commencing with Section 699.010) and Chapter 5 (commencing with Section 706.010) of Division 2, the Labor Commissioner, when collecting an unsatisfied judgment or award pursuant to Section 96.8 of the Labor Code, may perform the duties of the levying officer, except that the commissioner need not give himself or herself the notices that the levying officer is required to serve on a judgment creditor or the notices that a judgment creditor is required to give to the levying officer.
(b)Notwithstanding subdivision (a) of Section 700.140 and Section 700.170, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor, the commissioner may deliver or mail a notice of levy to a centralized location designated by the bank or savings and loan association or, in the case of an account receivable or other general intangible, to the agent for service of process of the account debtor. If the notice of levy is received at the designated central location for the bank or savings and loan association, it will apply to all deposits, credits, money, and personal property held by the bank or savings and loan association regardless of the location of that property. The notice of levy may be issued directly by the commissioner, whether or not a court has issued a writ of execution, and shall contain all of the information required to be included in a writ of execution under Section 699.520 and in a notice of levy under Section 699.540.
SEC. 2.Section 96.8 is added to the Labor Code, to read:96.8.(a)Notwithstanding any other law, after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee pursuant to Section 98.2, the Labor Commissioner may, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy.
(b)Notwithstanding any other law, the Labor Commissioner may execute a levy on any property that may be levied under Section 700.140 or 700.170 of the Code of Civil Procedure by mailing a notice of levy to the person against whom the levy is directed and serving a copy on the judgment debtor. The notice of levy shall contain all of the information required to be included in a writ of execution under Section 699.520 of the Code of Civil Procedure and in a notice of levy under Section 699.540 of the Code of Civil Procedure.
(c)Any person, upon whom a levy has been noticed having in his or her possession or under his or her control any credits, money, or property belonging to the judgment or owing any debts to the judgment debtor at the time of receipt of the levy or coming into his or her possession or under his or her control within one year of receipt of the notice of levy, shall surrender the credits, money, or property to the commissioner or pay to the commissioner the amount of any debt owing the judgment debtor within 10 days of service of the levy, and shall surrender the credits or property, or the amount of any debt owing to the judgment debtor coming into his or her own possession or control within one year of receipt of the notice of levy within 10 days of the date of coming into possession or control of the credits or property or the amount of any debt owing to the judgment debtor.
(d)Any person who surrenders to the commissioner pursuant to this section any credits, money, or property, or pays the debts owing the judgment debtor, shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner as a result of the levy.
(e)If the levy is made on a deposit or credits, money, or property in the possession or under the control of a bank, savings and loan association, or other financial institution as defined by Section 669a(d)(1) of Title 42 of the United States Code, the notice of levy may be delivered or mailed to a centralized location designated by the bank, savings and loan association, or other financial institution pursuant to Section 690.050 of the Code of Civil Procedure.
(f)Any person who is noticed with a levy pursuant to this section and who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor shall be liable in his or her own person or estate to the commissioner in an amount equal to the value of the credits, money, or other property or in the amount of the levy, up to the amount specified in the levy.
(g)The fees, commissions, expenses, and the reasonable costs associated with the sale of property levied upon by warrant or levy pursuant to this section, including, but not limited to, appraisers fees, auctioneers fees, and advertising fees are an obligation of the judgment debtor and may be collected from the judgment debtor by virtue of the warrant or levy or in any other manner as though these items were part of the judgment or award outstanding.
(h)This section shall not apply to the judgment debtors interest in real property.
SEC. 3.Section 98 of the Labor Code is amended to read:98.(a)The Labor Commissioner is authorized to investigate employee complaints. The Labor Commissioner may provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and shall determine all matters arising under his or her jurisdiction. The Labor Commissioner may also provide for a hearing against any employer or other person acting on behalf of an employer for a violation of Section 558. It is within the jurisdiction of the Labor Commissioner to accept and determine claims from holders of payroll checks or payroll drafts returned unpaid because of insufficient funds, if, after a diligent search, the holder is unable to return the dishonored check or draft to the payee and recover the sums paid out. Within 30 days of the filing of the complaint, the Labor Commissioner shall notify the parties as to whether a hearing will be held, whether action will be taken in accordance with Section 98.3, or whether no further action will be taken on the complaint. If the determination is made by the Labor Commissioner to hold a hearing, the hearing shall be held within 90 days of the date of that determination. However, the Labor Commissioner may postpone or grant additional time before setting a hearing if the Labor Commissioner finds that it would lead to an equitable and just resolution of the dispute. A party who has received actual notice of a claim before the Labor Commissioner shall, while the matter is before the Labor Commissioner, notify the Labor Commissioner in writing of any change in that partys business or personal address within 10 days after the change in address occurs.
It is the intent of the Legislature that hearings held pursuant to this section be conducted in an informal setting preserving the rights of the parties.
(b)When a hearing is set, a copy of the complaint, which shall include the amount of compensation requested, together with a notice of time and place of the hearing, shall be served on all parties, personally or by certified mail, or in the manner specified in Section 415.20 of the Code of Civil Procedure.
(c)Within 10 days after service of the notice and the complaint, a defendant may file an answer with the Labor Commissioner in any form as the Labor Commissioner may prescribe, setting forth the particulars in which the complaint is inaccurate or incomplete and the facts upon which the defendant intends to rely.
(d)No pleading other than the complaint and answer of the defendant or defendants shall be required. Both shall be in writing and shall conform to the form and the rules of practice and procedure adopted by the Labor Commissioner.
(e)Evidence on matters not pleaded in the answer shall be allowed only on terms and conditions the Labor Commissioner shall impose. In all these cases, the claimant shall be entitled to a continuance for purposes of review of the new evidence.
(f)If the defendant fails to appear or answer within the time allowed under this chapter, no default shall be taken against him or her, but the Labor Commissioner shall hear the evidence offered and shall issue an order, decision, or award in accordance with the evidence. A defendant failing to appear or answer, or subsequently contending to be aggrieved in any manner by want of notice of the pendency of the proceedings, may apply to the Labor Commissioner for relief in accordance with Section 473 of the Code of Civil Procedure. The Labor Commissioner may afford this relief. No right to relief, including the claim that the findings or award of the Labor Commissioner or judgment entered thereon are void upon their face, shall accrue to the defendant in any court unless prior application is made to the Labor Commissioner in accordance with this chapter.
(g)All hearings conducted pursuant to this chapter are governed by the division and by the rules of practice and procedure adopted by the Labor Commissioner.
(h)(1)Whenever a claim is filed under this chapter against a person operating or doing business under a fictitious business name, as defined in Section 17900 of the Business and Professions Code, which relates to the persons business, the division shall inquire at the time of the hearing whether the name of the person is the legal name under which the business or person has been licensed, registered, incorporated, or otherwise authorized to do business.
(2)The division may amend an order, decision, or award to conform to the legal name of the business or the person who is the defendant to a wage claim, if it can be shown that proper service was made on the defendant or his or her agent, unless a judgment had been entered on the order, decision, or award pursuant to subdivision (d) of Section 98.2. The Labor Commissioner may apply to the clerk of the superior court to amend a judgment that has been issued pursuant to a final order, decision, or award to conform to the legal name of the defendant, if it can be shown that proper service was made on the defendant or his or her agent.
SEC. 4.Section 238 is added to the Labor Code, to read:238.(a)If a final judgment against an employer arising from the employers nonpayment of wages for work performed in this state remains unsatisfied after a period of 10 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the employer shall not continue to conduct business in this state related to that final judgment unless the employer has obtained a bond from a surety company admitted to do business in this state and has filed a copy of that bond with the Labor Commissioner. The principal sum of the bond shall not be less than one hundred and fifty thousand dollars ($150,000).
(b)In lieu of filing and maintaining the bond required by this section, the employer may provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment.
(c)(1)The bond required by this section shall be in favor of, and payable to, the people of the State of California, and shall be for the benefit of any employee damaged by his or her employers failure to pay wages, including any interest, penalties, and attorneys fees.
(2)This section shall not require a bond in favor of employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the bond required by this section.
(3)Thirty days prior to the cancellation or termination of any bond required by this section, the surety shall send written notice to both the employer and the Labor Commissioner, identifying the bond and the date of the cancellation or termination. If the bond is terminated or canceled, the employer shall obtain a new surety bond and file a copy of that bond with the Labor Commissioner to remain in compliance with this section.
(d)For purposes of this section, a judgment also includes any final arbitration award where the time to file a petition for a trial de novo or a petition to vacate or correct the arbitration award has expired and no petition is pending.
(e)Subject to written notice to a subsequent employer about any unsatisfied judgments against the employer for nonpayment of wages, a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages shall be deemed the same employer for purposes of this section if (1) the employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors or (2) if the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
(f)Any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil fine of two thousand five hundred dollars ($2,500). Any employer that has previously paid a fine pursuant to this section shall be subject to an additional fine of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section; however, this additional amount shall not exceed one hundred thousand dollars ($100,000).
SEC. 5.Section 238.1 is added to the Labor Code, to read:238.1.(a)Where an employer is conducting business in violation of Section 238, the Labor Commissioner may issue and serve on that employer a stop order prohibiting the use of employee labor by that employer until the employers compliance with Section 238, provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The stop order shall also prohibit the employer from continuing to provide services by subcontracting for labor. The stop order shall become effective immediately upon the service of the order. Any employee affected by the work stoppage shall be paid by the employer for such time lost, not exceeding 10 days, pending compliance by the employer. The employer may protest the stop order by making and filing with the Labor Commissioner a written request for a hearing within 20 days after service of the stop order. The hearing shall be held within 5 days from the date of filing the request. The Labor Commissioner shall notify the employer of the time and place of the hearing by mail. At the conclusion of the hearing, the stop order shall be immediately affirmed or dismissed, and within 24 hours thereafter, the Labor Commissioner shall issue and serve on all parties to the hearing by registered or certified mail a written notice of findings, accompanied by written findings. A writ of mandate may be taken from the findings to the appropriate superior court. The writ shall be taken within 45 days after the mailing of the notice of findings and findings.
(b)Failure of an employer, officer, or anyone having direction, management, or control of any place of employment or of employees to observe a stop order issued and served upon him or her pursuant to this section is guilty of a misdemeanor punishable by imprisonment in the county jail not exceeding 60 days or by a fine not exceeding ten thousand dollars ($10,000), or both. The Labor Commissioner may also obtain injunctive and other relief from the courts to carry out the purposes of this section.
SEC. 6.Section 238.2 is added to the Labor Code, to read:238.2.(a)The Labor Commissioner may create a lien on any real property in California of an employer that is conducting business in violation of Section 238 for the full amount of any wages, interest, penalties, and attorneys fees claimed to be owed to any employee.
(b)The Labor Commissioner may create the lien provided in this section by recording a certificate of lien using the same procedure applicable under subsection (g) of Section 98.2.
(c)The Labor Commissioner shall issue a certificate of release, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond pursuant to Section 238. The certificate of release may be recorded by the employer at the employers expense.
(d)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(e)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers property to secure payment of the claim.
(f)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(g)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(h)A lien created pursuant to this section is in addition to any other lien rights available to an employee or to the Labor Commissioner and shall not be construed to limit those rights.
SEC. 7.Section 238.3 is added to the Labor Code, to read:238.3.(a)The Labor Commissioner may create a lien on any personal property in California of an employer that conducts business in violation of Section 238 for the full amount of any wages, interest, penalties, and attorneys fees claimed to be owed to any employee.
(b)The Labor Commissioner may create the lien provided in this section by filing a notice of lien with the Secretary of State on the standard form of initial financing statement pursuant to Section 9521 of the Commercial Code. The standard form shall be completed in the following manner:
(1)The Labor Commissioner shall be identified as the secured party.
(2)The employer shall be identified as the debtor.
(3)The description of the collateral shall include the following statements:
(A)A statement of the Labor Commissioners demand for payment of the wages, penalties, interest, and attorneys fees. The statement shall specify the amount owed to the employee, and if the amount is estimated, shall provide an explanation for the basis of the estimate.
(B)A general statement of the kind of work furnished by the employee and the dates of employment.
(c)For the purpose of the Secretary of States index pursuant to Sections 9515, 9516, and 9522 of the Commercial Code and for the purpose of the issuance of a certificate pursuant to Section 9519 or 9528 of the Commercial Code, the Secretary of State shall treat a notice of lien pursuant to this section as a financing statement.
(d)The lien attaches to all personal property that is owned by the employer at the time of the filing of the notice of lien, or that is subsequently acquired by the employer, that can be made subject to a security interest under the Commercial Code.
(e)The Labor Commissioner shall file a termination statement, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond in a form acceptable to the Labor Commissioner sufficient to secure the claim.
(f)The notice of claim of lien to which the termination statement relates ceases to be effective upon the filing of a termination statement with the office of the Secretary of State. A termination statement for a notice of lien may be filed in the same manner as a termination statement for a financing statement filed pursuant to Section 9513 of the Commercial Code.
(g)Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(h)Prior to using this lien procedure in this section, the Labor Commissioner shall provide at least 20 days preliminary notice to the employer. The preliminary notice shall advise the employer of the nature and amount of the employees claim and of the Labor Commissioners authority to create a lien on the employers personal property to secure payment of the claim.
(i)The Labor Commissioner shall serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employers residence or place of business. The Labor Commissioner shall serve a copy of any notice of lien on the employer in the same manner.
(j)Upon entry of a final order, decision, or award issued in an appeal pursuant to Section 98.2 against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, the Labor Commissioner may bring an action to foreclose on any lien created pursuant to this section.
(k)A lien created pursuant to this section in addition to any other lien rights available to an employee or to the Labor Commissioner shall not be construed to limit those rights.
SEC. 8.Section 238.4 is added to the Labor Code, to read:238.4.(a)An employer in the long-term care industry that is also required to obtain a license from the State Department of Public Health or the State Department of Social Services pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code may not obtain a license or renew that license if the employer is conducting business in violation of Section 238.
(b)For purposes of this section long-term care means the operation of a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization, as those terms are used in Division 2 (commencing with Section 1200) of the Health and Safety Code.
SEC. 9.Section 238.5 is added to the Labor Code, to read:238.5.(a)An individual, partnership, corporation, limited liability company, joint venture, or association that, as part of its business, contracts with an employer to perform services in the property services or long-term care industries shall be jointly and severally liable, where the individual, partnership, corporation, limited liability company, joint venture, or association has been named as a defendant and provided notice pursuant to subdivision (c), with the employer for any unpaid wages, including interest, and the employer was found liable for those unpaid wages by an order, decision or award issued pursuant to Section 98.2, to the extent the amounts are for services performed under that contract. The issue of joint and several liability under this section may be determined by the Labor Commissioner in a proceeding under Section 98.
(b)The joint and several liability provided by this section shall not apply to unpaid wages owed to employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the joint and several liability provided by this section.
(c)An employer that contracts to provide services in the property services or long-term care industries shall, prior to entering into such a contract, provide written notice to the other party to the prospective contract of any unsatisfied final judgments against the employer for nonpayment of wages. The notice shall also provide the text of this section. The employer shall provide, within thirty (30) days of the entry of the judgment, written notice of any unsatisfied final judgments against the employer for nonpayment of wages to any parties with which the employer is presently under contract to provide services in the property services or long-term care industries. The failure of the employer to provide such notices shall not be a defense to the joint and several liability provided by this section.
(d)For purposes of this section:
(1)Property services means janitorial, security guard, valet parking, landscaping and gardening services.
(2)Long-term care has the same definition as in Section 238.4.
SEC. 10.Section 558.1 is added to the Labor Code, to read:558.1.Any person who would be liable for any violation under Section 558 may also be held liable in an action pursuant to Section 98, 203, 226, 1193.6, 1194, or 2802.
SEC. 11.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
All matter omitted in this version of the bill appears in the bill as introduced in the Senate, February. (JR11)(a)A person or entity shall not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, security guard, or warehouse contractor, where if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.
(b)There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision (a) where if the contract or agreement with a construction, farm labor, garment, janitorial, security guard, or warehouse contractor meets all of the requirements in subdivision (d).
(c)Subdivision (a) does not apply to a person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement, or to a person who enters into a contract or agreement for labor or services to be performed on his or her home residences, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at least a part of the year.
(d)To meet the requirements of subdivision (b), a contract or agreement with a construction, farm labor, garment, janitorial, security guard, or warehouse contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be required by regulations adopted by the Labor Commissioner from time to time:
(1)The name, address, and telephone number of the person or entity and the construction, farm labor, garment, janitorial, security guard, or warehouse contractor through whom the labor or services are to be provided.
(2)A description of the labor or services to be provided and a statement of when those services are to be commenced and completed.
(3)The employer identification number for state tax purposes of the construction, farm labor, garment, janitorial, security guard, or warehouse contractor.
(4)The workers compensation insurance policy number and the name, address, and telephone number of the insurance carrier of the construction, farm labor, garment, janitorial, security guard, or warehouse contractor.
(5)The vehicle identification number of any vehicle that is owned by the construction, farm labor, garment, janitorial, security guard, or warehouse contractor and used for transportation in connection with any service provided pursuant to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier.
(6)The address of any real property to be used to house workers in connection with the contract or agreement.
(7)The total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid.
(8)The amount of the commission or other payment made to the construction, farm labor, garment, janitorial, security guard, or warehouse contractor for services under the contract or agreement.
(9)The total number of persons who will be utilized under the contract or agreement as independent contractors, along with a list of the current local, state, and federal contractor license identification numbers that the independent contractors are required to have under local, state, or federal laws or regulations.
(10)The signatures of all parties, and the date the contract or agreement was signed.
(e)(1)To qualify for the rebuttable presumption set forth in subdivision (b), a material change to the terms and conditions of a contract or agreement between a person or entity and a construction, farm labor, garment, janitorial, security guard, or warehouse contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision (d) that are affected by the change.
(2)If a provision required to be contained in a contract or agreement pursuant to paragraph (7) or (9) of subdivision (d) is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision (d). If an estimate is used in place of actual figures in accordance with this paragraph, the parties to the contract or agreement have a continuing duty to ascertain the information required pursuant to paragraph (7) or (9) of subdivision (d) and to reduce that information to writing in accordance with the requirements of paragraph (1) once that information becomes known.
(f)A person or entity who enters into a contract or agreement referred to in subdivisions (d) or (e) shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the Labor Commissioner, any person or entity who enters into the contract or agreement shall provide to the Labor Commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to paragraphs (1) to (10), inclusive, of subdivision (d). Documents obtained pursuant to this section are exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).
(g)(1)An employee aggrieved by a violation of subdivision (a) may file an action for damages to recover the greater of all of his or her actual damages or two hundred fifty dollars ($250) per employee per violation for an initial violation and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, may recover costs and reasonable attorneys fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.
(2)An employee aggrieved by a violation of subdivision (a) may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorneys fees.
(h)The phrase construction, farm labor, garment, janitorial, security guard, or warehouse contractor includes any person, as defined in this code, whether or not licensed, who is acting in the capacity of a construction, farm labor, garment, janitorial, security guard, or warehouse contractor.
(i)(1)The term knows includes the knowledge, arising from familiarity with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.
(2)The phrase should know includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.
(3)A failure by a person or entity to request or obtain any information from the contractor that is required by any an applicable statute or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.
(j)For the purposes of this section, warehouse means a facility the primary operation of which is the storage or distribution of general merchandise, refrigerated goods, or other products.
|
Date
|
Status
|
|---|---|
| Sep 4, 2015 | Ordered to third reading. |
| Jul 1, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. & E. |
| Jul 9, 2015 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (July 8). Re-referred to Com. on JUD. |
| Jul 14, 2015 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (July 14). Re-referred to Com. on APPR. |
| Aug 19, 2015 | August 19 set for first hearing. Placed on APPR. suspense file. |
| Aug 31, 2015 | From committee: Do pass as amended. (Ayes 12. Noes 5.) (August 27). |
| Sep 1, 2015 | (Corrected September 2). |
| Sep 1, 2015 | Read second time and amended. Ordered to second reading. |
| Sep 2, 2015 | Read second time. Ordered to third reading. |
| Sep 4, 2015 | Assembly Rule 69 suspended. |
| Jun 18, 2015 | Referred to Coms. on L. & E. and JUD. |
| Sep 4, 2015 | Read third time and amended. |
| Sep 8, 2015 | In Senate. Concurrence in Assembly amendments pending. |
| Sep 8, 2015 | Read third time. Passed. Ordered to the Senate. |
| Sep 8, 2015 | Read third time. Passed. (Ayes 58. Noes 18. Page 2964.) Ordered to the Senate. |
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 28. Noes 11. Page 2709.) Ordered to engrossing and enrolling. |
| Sep 10, 2015 | Assembly amendments concurred in. (Ayes 28. Noes 11.) Ordered to engrossing and enrolling. |
| Sep 16, 2015 | Enrolled and presented to the Governor at 11:45 a.m. |
| Oct 11, 2015 | Approved by the Governor. |
| Oct 11, 2015 | Chaptered by Secretary of State. Chapter 803, Statutes of 2015. |
| Apr 30, 2015 | Read second time and amended. Re-referred to Com. on APPR. |
| Feb 27, 2015 | From printer. May be acted upon on or after March 29. |
| Mar 12, 2015 | Referred to Com. on RLS. |
| Apr 20, 2015 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Apr 22, 2015 | Re-referred to Coms. on JUD. and L. & I.R. |
| Apr 23, 2015 | Set for hearing April 28. |
| Apr 24, 2015 | Set for hearing April 29 in L. & I.R. pending receipt. |
| Apr 29, 2015 | From committee: Do pass and re-refer to Com. on L. & I.R. (Ayes 4. Noes 1. Page 819.) (April 28). Re-referred to Com. on L. & I.R. |
| Apr 29, 2015 | From committee: Do pass and re-refer to Com. on L. & I.R. (Ayes 4. Noes 1.) (April 28). Re-referred to Com. on L. & I.R. |
| Apr 29, 2015 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 1. Page 820.) (April 29). |
| Feb 26, 2015 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
| May 5, 2015 | Set for hearing May 11. |
| May 11, 2015 | May 11 hearing: Placed on APPR. suspense file. |
| May 23, 2015 | Set for hearing May 28. |
| May 28, 2015 | From committee: Do pass. (Ayes 5. Noes 2. Page 1157.) (May 28). |
| May 28, 2015 | From committee: Do pass. (Ayes 5. Noes 2.) (May 28). |
| May 28, 2015 | Read second time. Ordered to third reading. |
| Jun 1, 2015 | Read third time. Passed. (Ayes 26. Noes 13. Page 1206.) Ordered to the Assembly. |
| Jun 1, 2015 | Read third time. Passed. (Ayes 26. Noes 13.) Ordered to the Assembly. |
| Jun 2, 2015 | In Assembly. Read first time. Held at Desk. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 10, 2015 | Unfinished Business SB588 De León Concurrence | Senate Floor |
Passed |
|
| Sep 8, 2015 | SB 588 De León Senate Third Reading | Assembly Floor |
Passed |
|
| Aug 27, 2015 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 14, 2015 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Judiciary |
Passed |
|
| Jul 8, 2015 | Do pass and be re-referred to the Committee on [Judiciary] | Assembly Standing Committee on Labor and Employment |
Passed |
|
| Jun 1, 2015 | Senate 3rd Reading SB588 De León | Senate Floor |
Passed |
|
| May 28, 2015 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| May 11, 2015 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 29, 2015 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Labor and Industrial Relations |
Passed |
|
| Apr 28, 2015 | Do pass, but first be re-referred to the Committee on [Labor and Industrial Relations] | Senate Standing Committee on Judiciary |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 9to5 | ** Support | Sep 8, 2015 |
| Alliance Of Californians For Community Empowerment | ** Support | Sep 8, 2015 |
| Alliance San Diego | ** Support | Sep 8, 2015 |
| Asian Americans Advancing Justice- Los Angeles | ** Support | Sep 8, 2015 |
| Bet Tzedek Legal Services | ** Support | Sep 8, 2015 |
| California Chamber Of Commerce | * Indeterminate | Jul 14, 2015 |
| California Employment Lawyers Association | ** Support | Sep 8, 2015 |
| California Grocers Association | * Against | Jul 14, 2015 |
| California Immigrant Policy Center | ** Support | Sep 8, 2015 |
| California Labor Federation, Afl-Cio | ** Support | Sep 8, 2015 |
| California Partnership | * Indeterminate | Jul 8, 2015 |
| California Professional Firefighters | ** Support | Sep 8, 2015 |
| California Rural Legal Assistance | ** Support | Sep 8, 2015 |
| California School Employees Association | ** Support | Sep 8, 2015 |
| Center for Worker's Rights | * Indeterminate | Jul 8, 2015 |
| Center on Policy Initiatives | ** Support | Sep 8, 2015 |
| Central American Resource Center | ** Support | Sep 8, 2015 |
| Centro Legal de la Raza | ** Support | Sep 8, 2015 |
| Child Development Assistant for the Head Start | * Indeterminate | Jul 8, 2015 |
| Children Over Politics | * Support | Jul 14, 2015 |
| Chinese Progressive Association | ** Support | Sep 8, 2015 |
| CHIRLA-Coalition for Humane Immigrant Rights of Los Angeles | ** Support | Sep 8, 2015 |
| Clean Car Wash Campaign | ** Support | Sep 8, 2015 |
| Coalition for a Safe Environment | ** Support | Sep 8, 2015 |
| Coalition to Abolish Slavery & Trafficking | ** Support | Sep 8, 2015 |
| Community Action Board of Santa Cruz County Inc. | ** Support | Sep 8, 2015 |
| Community Services | ** Support | Sep 8, 2015 |
| Day Labor Center Hayward | ** Support | Sep 8, 2015 |
| Day Worker Center of Mountain View | ** Support | Sep 8, 2015 |
| Dignity Campaign | ** Support | Sep 8, 2015 |
| Dolores Street Community Services | ** Support | Sep 8, 2015 |
| Employment Rights Center | ** Support | Sep 8, 2015 |
| Equal Rights Advocates | ** Support | Sep 8, 2015 |
| Filipino Advocates for Justice | ** Support | Sep 8, 2015 |
| Filipino Migrant Center | ** Support | Sep 8, 2015 |
| Fresno County Democrats | ** Support | Sep 8, 2015 |
| Garment Worker Center | ** Support | Sep 8, 2015 |
| Gender Justice LA | ** Support | Sep 8, 2015 |
| Graton Day Labor Center | ** Support | Sep 8, 2015 |
| Holman United Methodist Church | ** Support | Sep 8, 2015 |
| Housing Long Beach | ** Support | Sep 8, 2015 |
| Human Impact Partners | ** Support | Sep 8, 2015 |
| InnerCity Struggle | ** Support | Sep 8, 2015 |
| Instituto de Educacion Popular del Sur de California | ** Support | Sep 8, 2015 |
| Katharine & George Alexander Community Law Center | ** Support | Sep 8, 2015 |
| Khmer Girls in Action | ** Support | Sep 8, 2015 |
| Korea Town Immigrant Workers Alliance | * Indeterminate | Jul 8, 2015 |
| Koreatown Immigrant Workers Alliance | ** Support | Sep 8, 2015 |
| LA Black Worker Center | ** Support | Sep 8, 2015 |
| La Colectiva de Mujeres | ** Support | Sep 8, 2015 |
| Liberty Hill Foundation | ** Support | Sep 8, 2015 |
| Los Angeles Alliance for a New Economy | ** Support | Sep 8, 2015 |
| Los Angeles Fight for $15 Organizing Committee | ** Support | Sep 8, 2015 |
| Maintenance Cooperation Trust Fund | ** Support | Sep 8, 2015 |
| Making Change at Walmart | ** Support | Sep 8, 2015 |
| Mi Familia Vota | ** Support | Sep 8, 2015 |
| National Association of Working Women | ** Support | Sep 8, 2015 |
| National Day Laborer Organizing Network | ** Support | Sep 8, 2015 |
| National Employment Law Project | ** Support | Sep 8, 2015 |
| Oakland | ** Support | Sep 8, 2015 |
| One LA-IAF | ** Support | Sep 8, 2015 |
| Pacoima Beautiful | ** Support | Sep 8, 2015 |
| Pilgrim United Church of Christ | ** Support | Sep 8, 2015 |
| Restaurant Opportunities Center of Los Angeles | ** Support | Sep 8, 2015 |
| Sacramento Area Congregations Together | ** Support | Sep 8, 2015 |
| San Diego and Imperial Counties Labor Council, AFL-CIO | ** Support | Sep 8, 2015 |
| San Francisco Progressive Workers Alliance | ** Support | Sep 8, 2015 |
| Santa Clara University | ** Support | Sep 8, 2015 |
| Service Employees International Union California | ** Support | Sep 8, 2015 |
| Servicon Systems | * Support | Jul 14, 2015 |
| Social Justice Learning Institute | ** Support | Sep 8, 2015 |
| Street Level Health Project | ** Support | Sep 8, 2015 |
| T.R.U.S.T. South LA | ** Support | Sep 8, 2015 |
| UCLA Labor Center | ** Support | Sep 8, 2015 |
| Union de Vecinos | ** Support | Sep 8, 2015 |
| Wage Justice Center | ** Support | Sep 8, 2015 |
| Workplace Justice Initiative | ** Support | Sep 8, 2015 |
SB 588
Page 11
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
UNFINISHED BUSINESS
Bill No: SB 588
Amended: 9/4/15
SENATE JUDICIARY COMMITTEE: 4-1, 4/28/15
AYES: Jackson, Leno, Monning, Wieckowski
NOES: Anderson
NO VOTE RECORDED: Moorlach, Hertzberg
SENATE LABOR & IND. REL. COMMITTEE: 4-1, 4/29/15
AYES: Mendoza, Jackson, Leno, Mitchell
NOES: Stone
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SENATE FLOOR: 26-13, 6/1/15
AYES: Allen, Beall, Block, Cannella, De León, Galgiani, Glazer, Hall, Hancock, Hernandez, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Roth, Wieckowski, Wolk
NOES: Anderson, Bates, Berryhill, Fuller, Gaines, Huff, Moorlach, Morrell, Nguyen, Nielsen, Runner, Stone, Vidak
NO VOTE RECORDED: Hertzberg
ASSEMBLY FLOOR: Not available
SUBJECT: Employment: nonpayment of wages: Labor Commissioner: judgment enforcement
SOURCE: Koreatown Immigrant Workers Alliance
Service Employees International Union California
Wage Justice Center
DIGEST: This bill allows the Labor Commissioner to file a lien or levy on an employer’s property in order to assist the employee in collecting unpaid wages when there is a judgment against the employer.
Assembly Amendments create a sliding scale for the surety bond depending on the amount of outstanding wages, require that the Labor Commissioner reports to the State Department of Public Health or the State Department of Social Services if a long-term care facility is operating in violation of the surety bond provisions, clarify technical issues with wage orders, appeals, and attorney’s fees, and also add co-authors.
Provides mechanics, persons furnishing materials, artisans, and laborers of every class the right to file a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor and material. Existing law also requires the Legislature to provide, by law, for the speedy and efficient enforcement of such liens. (California Constitution Article XIV, Section 3)
Provides for mechanics liens relating to services and supplies authorized and provided on a work of improvement. Existing law also regulates the conditions under which a mechanics lien may be enforced. (Civil Code §§ 8400-8494)
Recognizes prejudgment wage liens against property as a remedy in certain industries, including mining (Civil Code § 3060), agriculture (Civil Code §§ 3061.5-3061.6), and logging (Civil Code § 3065).
Requires the Labor Commissioner and his or her deputies and representatives authorized by him or her in writing, upon the filing of a claim therefor by an employee, or an employee representative authorized in writing by an employee, with the Labor Commissioner, to take assignments of, among other things, wage claims and incidental expense accounts and advances and mechanics and other liens of employees. (Labor Code § 96)
Authorizes the Labor Commissioner, after investigation and upon determination that wages or monetary benefits are due and unpaid to any worker in the State of California, to collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the Commissioner. (Labor Code § 96.7)
Authorizes the Labor Commissioner to investigate employee complaints and provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and is required to determine all matters arising under his or her jurisdiction. (Labor Code § 98)
Authorizes the Labor Commissioner, at the Commissioner’s discretion and upon a final order, to place a lien on real property for amounts due under the final order and in favor of the employee or employees named in the order, with the county recorder of any county in which the employer’s real property may be located. (Labor Code § 98.2(g))
Provides that, if any employer or other person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation shall be subject to a civil penalty. (Labor Code § 558)
This bill authorizes the Labor Commissioner to file a lien on all property of the employer in California for the full amount of any wages and other compensation, penalties, and interest owed to the employee.
Specifically, this bill:
Allows the Labor Commissioner, after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee, to collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. This can only be done with the consent of the aggrieved worker.
Provides that, any person, upon whom a levy has been noticed for either possessing or owing credits, money, or property belonging to the judgment shall surrender the credits, money, or property to the commissioner or pay to the commissioner the amount of any debt owing the judgment debtor within 10 days of service of the levy. This includes property, money or credits coming into the person’s possession within one year of receipt of the notice of levy.
Provides that any person who complies with the notice of Levy from the Labor Commissioner shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner.
Provides that any person who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor shall be liable in his or her own person or estate to the commissioner in an amount equal to the levy.
Provides a process for filing a levy with a bank or other financial institution, as defined under federal law.
Limits the above-discussed provisions to property that IS NOT real property.
Surety Bond Requirements
Requires that, if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after a period of 10 days after the time to appeal therefrom has expired, the employer must cease business operations unless the employer has obtained a surety bond. The bond must be filed with the Labor Commissioner and be payable to the people of the State of California for the benefit of any employee damaged by his or her employer’s failure to pay wages, including any interest, penalties, and attorney’s fees. The surety bond amounts are as follows:
Fifty thousand dollars ($50,000) if the unsatisfied portion of the judgment is no more than five thousand dollars ($5,000).
One hundred thousand dollars ($100,000) if the unsatisfied portion of the judgment is more than five thousand dollars ($5,000) and no more than ten thousand dollars ($10,000).
One hundred fifty thousand dollars ($150,000) if the unsatisfied portion of the judgment is more than ten thousand dollars ($10,000).
Allows the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment instead of filing a surety bond described above.
Provides that a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages shall be deemed the same employer for purposes of this section if:
The employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors; or
If the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
Requires that any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil fine $2,500 and that any employer that has previously paid a fine pursuant to this section shall be subject to an additional fine of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section, capped at $100,000.
Exempts employers from the requirements of the bond if they employ workers who are covered by a bona fide collective bargaining agreement that expressly provides for wages, hours of work, working conditions, includes a process to resolve disputes concerning nonpayment of wages, and contains a waiver of the bond.
Provides notice requirements to the Labor Commissioner in the event of the surety bond being cancelled or terminated.
Provides the following in the event of an employer failing to comply with the bond provisions listed above:
A stop order prohibiting the use of employee labor by that employer or use of subcontracted labor until the employer complies with bonding requirements. The stop order must become effective immediately, and the employer must pay any worker for their lost time due to the stop order, not exceeding 10 days.
A lien on the real property and personal property of an employer that for the full amount of any wages, interest, penalties, and attorney’s fees claimed to be owed to any employee. This lien would be filed by the Labor Commissioner. Unless the lien is satisfied or released, the lien must continue until 10 years from the date of its creation.
Creates notice and filing requirements for the lien provisions discussed above, as well as give the Labor Commissioner the ability to foreclose on the property.
Licensure
Prohibits the State Department of Public Health or the State Department of Social Services from allowing a long-term care industry from obtaining or renewing a license if the employer is conducting business in violation of the surety bond requirement. This bill defines a long-term care industry as a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization.
Joint and Several Liability
Holds individual, partnership, corporation, limited liability company, joint venture, or association jointly and severally liable for liens against real property if the entity provides janitorial, security guard, valet parking, landscaping, gardening services, and long-term care and has been named a defendant and to the extent that the amounts are for services performed under that contract.
Creates a notice requirement for contractors of janitorial, security guard, valet parking, landscaping, gardening services, and long-term care if there are outstanding wage violations for prospective contracts, but also states that the employer to provide such notices shall not be a defense to the joint and several liability as described above.
Liability for Acting on Behalf of the Employer
Allows provide for the Labor Commissioner to hear complaints against a person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation, and would also make a person acting on behalf of an employer liable for willfully failing to pay wages, provide a paystub, unpaid minimum wages or overtime, and failing to indemnifying an employee.
Enforcement Provisions
Creates enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
Comments
Wage Theft: A Brief Background: In 2008, the Ford Foundation sponsored a survey of 4,387 workers in low-wage industries in the three largest U.S. cities: Chicago, Los Angeles and New York City. The report of that survey, titled Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America's Cities, revealed that 26 percent of workers in the sample were paid less than the legally required minimum wage the prior work week, and 60 percent of these workers were underpaid by more than $1 per hour. In addition, 76 percent of the respondents who worked overtime in the previous week were not paid the legally required overtime rate by their employers.
The study also notes that minimum wage violation rates vary significantly by industry, and occupation. For example, some industries, such as apparel and textile manufacturing and personal and repair services have minimum wage violation rates that exceed 40 percent, while others, including restaurants, and retail and grocery stores, have rates of 20 to 25 percent. However, the study found that undocumented immigrant women were at the greatest risk of minimum wage violations. The study estimated that the workers in low-wage industries Chicago, Los Angeles, and New York City lose more than $56.4 million per week due to labor law violations.
A follow-up study by the UCLA Institute for Research and Labor and Employment was published earlier this year, and that study utilized the data from the 2008 survey, but focused specifically on Los Angeles County. This study, titled Wage Theft and Workplace Violations in Los Angeles: The Failure of Employment and Labor Law for Low-Wage Workers focused on a survey results of 1,815 workers in Los Angeles County.
This study found similar results to the national survey: almost 30 percent of the workers sampled were paid less than the minimum wage in the prior work week, and 63.3 percent of these workers were underpaid by more than $1 per hour. Assuming a full-year work schedule, Los Angeles County survey respondents lost an average of $2,070.00 annually out of total earnings of $16,536.00. The study estimated that workers in low-wage industries in Los Angeles County lose more than $26.2 million per week as a result of employment and labor law violations.
Both of the studies make the same public policy recommendations to address these issues, which included strengthening government enforcement of existing employment and labor laws and stiffening the penalties.
Wage Theft in California: Collecting Unpaid Wages: Equally troubling, if not more troubling, than the high rate of wage theft in California is the low rate of collections. According to a 2013 report published by the National Employment Law Project (NELP) and the UCLA Labor Center, only 17% of workers who PREVAILED in their wage claims before the DLSE and won a judgment were able to receive any payment between 2008 and 2011. Of those who did receive payment between 2008 and 2011, workers were able to collect 15% of what was OWED. In short, the vast majority of wage theft victims received nothing, and those that received anything received little of what they were legally due.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, initial administrative costs of approximately $2.6 million [Labor Enforcement and Compliance Fund (LECF)] and ongoing costs of approximately $2.2 million (LECF) for the Department of Industrial Relations to implement the provisions of this bill. This bill imposes new duties on the Labor Commissioner, for example the ability to utilize the levy process as a supplemental option beyond placing liens. The bill also expands duties related to surety bonds and the stop order process. Additionally, the bill could also result in unknown but potentially significant court costs associated with additional proceedings regarding wage claims.
Koreatown Immigrant Workers Alliance (co-source)
Service Employees International Union California (co-source)
Wage Justice Center (co-source)
9to5
Alliance of Californians for Community Empowerment
Alliance San Diego
Asian Americans Advancing Justice- Los Angeles
Bet Tzedek Legal Services
California Employment Lawyers Association
California Immigrant Policy Center
California Labor Federation, AFL-CIO
California Professional Firefighters
California Rural Legal Assistance
California School Employees Association
Center on Policy Initiatives
Central American Resource Center
Centro Legal de la Raza
Chinese Progressive Association
CHIRLA-Coalition for Humane Immigrant Rights of Los Angeles
CLEAN Car Wash Campaign
Clergy and Laity United for Economic Justice
Coalition For A Safe Environment
Coalition to Abolish Slavery & Trafficking
Community Action Board of Santa Cruz County Inc.
Community Services
Day Labor Center Hayward/ Oakland
Day Worker Center of Mountain View
Dignity Campaign
Dolores Street Community Services
Employment Rights Center
Equal Rights Advocates
Filipino Advocates for Justice
Filipino Migrant Center
Fresno County Democrats
Garment Worker Center
Gender Justice LA
Graton Day Labor Center
Holman United Methodist Church
Housing Long Beach
Human Impact Partners
InnerCity Struggle
Instituto de Educacion Popular del Sur de California
Katharine & George Alexander Community Law Center
Khmer Girls in Action
LA Black Worker Center
La Colectiva De Mujeres
Liberty Hill Foundation
Los Angeles Alliance for a New Economy
Los Angeles Fight for $15 Organizing Committee
Maintenance Cooperation Trust Fund
Making Change at Walmart
Mi Familia Vota
National Association of Working Women
National Day Laborer Organizing Network
National Employment Law Project
One LA-IAF
Pacoima Beautiful
Pilgrim United Church of Christ
Pilipino Association of Workers and Immigrants - Silicon Valley
Restaurant Opportunities Center of Los Angeles
Sacramento Area Congregations Together
San Diego and Imperial Counties Labor Council, AFL-CIO
San Francisco Day Labor Program & Women’s Collective, a program of Dolores Street
San Francisco Progressive Workers Alliance
Santa Clara University
SoCalCosh, Southern California Coalition for Occupational Safety and Health
Social Justice Learning Institute
Street Level Health Project
T.R.U.S.T. South LA
The Institute of Popular Education of Southern California
The Wage Justice Center
UCLA Labor Center
Union de Vecinos
Workplace Justice Initiative
Worksafe, Inc.
None Received
ARGUMENTS IN SUPPORT: Proponents, noting the 2010 wage theft study discussed earlier, argue that wage theft is a significant problem in California, with LA County’s wage theft resulting in over $1 billion unlawfully failing to reach the workers who desperately need it. Proponents also note that current wage theft collection rates are less than 20%, meaning the vast majority of scofflaw employers are successful in robbing their workers of their lawful wages. Proponents believe that SB 588 will help combat the high rate of wage theft in California by creating a simple lien process for the Labor Commissioner to use against employers who rob workers of their wages. Proponents, noting Wisconsin’s success, argue that wage liens are simple, effective, and a time tested approach to halting wage theft.
Prepared by: Gideon L. Baum / L. & I.R. / (916) 651-1556
9/8/15 18:58:09
SB 588
Page 11
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
SB 588 |
UNFINISHED BUSINESS
Bill No: SB 588
Amended: 9/4/15
SENATE JUDICIARY COMMITTEE: 4-1, 4/28/15
AYES: Jackson, Leno, Monning, Wieckowski
NOES: Anderson
NO VOTE RECORDED: Moorlach, Hertzberg
SENATE LABOR & IND. REL. COMMITTEE: 4-1, 4/29/15
AYES: Mendoza, Jackson, Leno, Mitchell
NOES: Stone
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielsen
SENATE FLOOR: 26-13, 6/1/15
AYES: Allen, Beall, Block, Cannella, De León, Galgiani, Glazer, Hall, Hancock, Hernandez, Hill, Hueso, Jackson, Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Roth, Wieckowski, Wolk
NOES: Anderson, Bates, Berryhill, Fuller, Gaines, Huff, Moorlach, Morrell, Nguyen, Nielsen, Runner, Stone, Vidak
NO VOTE RECORDED: Hertzberg
ASSEMBLY FLOOR: 58-18, 9/08/15 - See last page for vote
SUBJECT: Employment: nonpayment of wages: Labor Commissioner: judgment enforcement
SOURCE: Koreatown Immigrant Workers Alliance
Service Employees International Union California
Wage Justice Center
DIGEST: This bill allows the Labor Commissioner to file a lien or levy on an employer’s property in order to assist the employee in collecting unpaid wages when there is a judgment against the employer.
Assembly Amendments create a sliding scale for the surety bond depending on the amount of outstanding wages, require that the Labor Commissioner reports to the State Department of Public Health or the State Department of Social Services if a long-term care facility is operating in violation of the surety bond provisions, clarify technical issues with wage orders, appeals, and attorney’s fees, and also add co-authors.
Provides mechanics, persons furnishing materials, artisans, and laborers of every class the right to file a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor and material. Existing law also requires the Legislature to provide, by law, for the speedy and efficient enforcement of such liens. (California Constitution Article XIV, Section 3)
Provides for mechanics liens relating to services and supplies authorized and provided on a work of improvement. Existing law also regulates the conditions under which a mechanics lien may be enforced. (Civil Code §§ 8400-8494)
Recognizes prejudgment wage liens against property as a remedy in certain industries, including mining (Civil Code § 3060), agriculture (Civil Code §§ 3061.5-3061.6), and logging (Civil Code § 3065).
Requires the Labor Commissioner and his or her deputies and representatives authorized by him or her in writing, upon the filing of a claim therefor by an employee, or an employee representative authorized in writing by an employee, with the Labor Commissioner, to take assignments of, among other things, wage claims and incidental expense accounts and advances and mechanics and other liens of employees. (Labor Code § 96)
Authorizes the Labor Commissioner, after investigation and upon determination that wages or monetary benefits are due and unpaid to any worker in the State of California, to collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the Commissioner. (Labor Code § 96.7)
Authorizes the Labor Commissioner to investigate employee complaints and provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and is required to determine all matters arising under his or her jurisdiction. (Labor Code § 98)
Authorizes the Labor Commissioner, at the Commissioner’s discretion and upon a final order, to place a lien on real property for amounts due under the final order and in favor of the employee or employees named in the order, with the county recorder of any county in which the employer’s real property may be located. (Labor Code § 98.2(g))
Provides that, if any employer or other person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation shall be subject to a civil penalty. (Labor Code § 558)
This bill authorizes the Labor Commissioner to file a lien on all property of the employer in California for the full amount of any wages and other compensation, penalties, and interest owed to the employee.
Specifically, this bill:
Allows the Labor Commissioner, after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee, to collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. This can only be done with the consent of the aggrieved worker.
Provides that, any person, upon whom a levy has been noticed for either possessing or owing credits, money, or property belonging to the judgment shall surrender the credits, money, or property to the commissioner or pay to the commissioner the amount of any debt owing the judgment debtor within 10 days of service of the levy. This includes property, money or credits coming into the person’s possession within one year of receipt of the notice of levy.
Provides that any person who complies with the notice of Levy from the Labor Commissioner shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner.
Provides that any person who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor shall be liable in his or her own person or estate to the commissioner in an amount equal to the levy.
Provides a process for filing a levy with a bank or other financial institution, as defined under federal law.
Limits the above-discussed provisions to property that IS NOT real property.
Surety Bond Requirements
Requires that, if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after a period of 10 days after the time to appeal therefrom has expired, the employer must cease business operations unless the employer has obtained a surety bond. The bond must be filed with the Labor Commissioner and be payable to the people of the State of California for the benefit of any employee damaged by his or her employer’s failure to pay wages, including any interest, penalties, and attorney’s fees. The surety bond amounts are as follows:
Fifty thousand dollars ($50,000) if the unsatisfied portion of the judgment is no more than five thousand dollars ($5,000).
One hundred thousand dollars ($100,000) if the unsatisfied portion of the judgment is more than five thousand dollars ($5,000) and no more than ten thousand dollars ($10,000).
One hundred fifty thousand dollars ($150,000) if the unsatisfied portion of the judgment is more than ten thousand dollars ($10,000).
Allows the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment instead of filing a surety bond described above.
Provides that a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages shall be deemed the same employer for purposes of this section if:
The employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors; or
If the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
Requires that any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil fine $2,500 and that any employer that has previously paid a fine pursuant to this section shall be subject to an additional fine of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section, capped at $100,000.
Exempts employers from the requirements of the bond if they employ workers who are covered by a bona fide collective bargaining agreement that expressly provides for wages, hours of work, working conditions, includes a process to resolve disputes concerning nonpayment of wages, and contains a waiver of the bond.
Provides notice requirements to the Labor Commissioner in the event of the surety bond being cancelled or terminated.
Provides the following in the event of an employer failing to comply with the bond provisions listed above:
A stop order prohibiting the use of employee labor by that employer or use of subcontracted labor until the employer complies with bonding requirements. The stop order must become effective immediately, and the employer must pay any worker for their lost time due to the stop order, not exceeding 10 days.
A lien on the real property and personal property of an employer that for the full amount of any wages, interest, penalties, and attorney’s fees claimed to be owed to any employee. This lien would be filed by the Labor Commissioner. Unless the lien is satisfied or released, the lien must continue until 10 years from the date of its creation.
Creates notice and filing requirements for the lien provisions discussed above, as well as give the Labor Commissioner the ability to foreclose on the property.
Licensure
Prohibits the State Department of Public Health or the State Department of Social Services from allowing a long-term care industry from obtaining or renewing a license if the employer is conducting business in violation of the surety bond requirement. This bill defines a long-term care industry as a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization.
Joint and Several Liability
Holds individual, partnership, corporation, limited liability company, joint venture, or association jointly and severally liable for liens against real property if the entity provides janitorial, security guard, valet parking, landscaping, gardening services, and long-term care and has been named a defendant and to the extent that the amounts are for services performed under that contract.
Creates a notice requirement for contractors of janitorial, security guard, valet parking, landscaping, gardening services, and long-term care if there are outstanding wage violations for prospective contracts, but also states that the employer to provide such notices shall not be a defense to the joint and several liability as described above.
Liability for Acting on Behalf of the Employer
Allows provide for the Labor Commissioner to hear complaints against a person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation, and would also make a person acting on behalf of an employer liable for willfully failing to pay wages, provide a paystub, unpaid minimum wages or overtime, and failing to indemnifying an employee.
Enforcement Provisions
Creates enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
Comments
Wage Theft: A Brief Background: In 2008, the Ford Foundation sponsored a survey of 4,387 workers in low-wage industries in the three largest U.S. cities: Chicago, Los Angeles and New York City. The report of that survey, titled Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America's Cities, revealed that 26 percent of workers in the sample were paid less than the legally required minimum wage the prior work week, and 60 percent of these workers were underpaid by more than $1 per hour. In addition, 76 percent of the respondents who worked overtime in the previous week were not paid the legally required overtime rate by their employers.
The study also notes that minimum wage violation rates vary significantly by industry, and occupation. For example, some industries, such as apparel and textile manufacturing and personal and repair services have minimum wage violation rates that exceed 40 percent, while others, including restaurants, and retail and grocery stores, have rates of 20 to 25 percent. However, the study found that undocumented immigrant women were at the greatest risk of minimum wage violations. The study estimated that the workers in low-wage industries Chicago, Los Angeles, and New York City lose more than $56.4 million per week due to labor law violations.
A follow-up study by the UCLA Institute for Research and Labor and Employment was published earlier this year, and that study utilized the data from the 2008 survey, but focused specifically on Los Angeles County. This study, titled Wage Theft and Workplace Violations in Los Angeles: The Failure of Employment and Labor Law for Low-Wage Workers focused on a survey results of 1,815 workers in Los Angeles County.
This study found similar results to the national survey: almost 30 percent of the workers sampled were paid less than the minimum wage in the prior work week, and 63.3 percent of these workers were underpaid by more than $1 per hour. Assuming a full-year work schedule, Los Angeles County survey respondents lost an average of $2,070.00 annually out of total earnings of $16,536.00. The study estimated that workers in low-wage industries in Los Angeles County lose more than $26.2 million per week as a result of employment and labor law violations.
Both of the studies make the same public policy recommendations to address these issues, which included strengthening government enforcement of existing employment and labor laws and stiffening the penalties.
Wage Theft in California: Collecting Unpaid Wages: Equally troubling, if not more troubling, than the high rate of wage theft in California is the low rate of collections. According to a 2013 report published by the National Employment Law Project (NELP) and the UCLA Labor Center, only 17% of workers who PREVAILED in their wage claims before the DLSE and won a judgment were able to receive any payment between 2008 and 2011. Of those who did receive payment between 2008 and 2011, workers were able to collect 15% of what was OWED. In short, the vast majority of wage theft victims received nothing, and those that received anything received little of what they were legally due.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee, initial administrative costs of approximately $2.6 million [Labor Enforcement and Compliance Fund (LECF)] and ongoing costs of approximately $2.2 million (LECF) for the Department of Industrial Relations to implement the provisions of this bill. This bill imposes new duties on the Labor Commissioner, for example the ability to utilize the levy process as a supplemental option beyond placing liens. The bill also expands duties related to surety bonds and the stop order process. Additionally, the bill could also result in unknown but potentially significant court costs associated with additional proceedings regarding wage claims.
Koreatown Immigrant Workers Alliance (co-source)
Service Employees International Union California (co-source)
Wage Justice Center (co-source)
9to5
Alliance of Californians for Community Empowerment
Alliance San Diego
Asian Americans Advancing Justice- Los Angeles
Bet Tzedek Legal Services
California Employment Lawyers Association
California Immigrant Policy Center
California Labor Federation, AFL-CIO
California Professional Firefighters
California Rural Legal Assistance
California School Employees Association
Center on Policy Initiatives
Central American Resource Center
Centro Legal de la Raza
Chinese Progressive Association
CHIRLA-Coalition for Humane Immigrant Rights of Los Angeles
CLEAN Car Wash Campaign
Clergy and Laity United for Economic Justice
Coalition For A Safe Environment
Coalition to Abolish Slavery & Trafficking
Community Action Board of Santa Cruz County Inc.
Community Services
Day Labor Center Hayward/ Oakland
Day Worker Center of Mountain View
Dignity Campaign
Dolores Street Community Services
Employment Rights Center
Equal Rights Advocates
Filipino Advocates for Justice
Filipino Migrant Center
Fresno County Democrats
Garment Worker Center
Gender Justice LA
Graton Day Labor Center
Holman United Methodist Church
Housing Long Beach
Human Impact Partners
InnerCity Struggle
Instituto de Educacion Popular del Sur de California
Katharine & George Alexander Community Law Center
Khmer Girls in Action
LA Black Worker Center
La Colectiva De Mujeres
Liberty Hill Foundation
Los Angeles Alliance for a New Economy
Los Angeles Fight for $15 Organizing Committee
Maintenance Cooperation Trust Fund
Making Change at Walmart
Mi Familia Vota
National Association of Working Women
National Day Laborer Organizing Network
National Employment Law Project
One LA-IAF
Pacoima Beautiful
Pilgrim United Church of Christ
Pilipino Association of Workers and Immigrants - Silicon Valley
Restaurant Opportunities Center of Los Angeles
Sacramento Area Congregations Together
San Diego and Imperial Counties Labor Council, AFL-CIO
San Francisco Day Labor Program & Women’s Collective, a program of Dolores Street
San Francisco Progressive Workers Alliance
Santa Clara University
SoCalCosh, Southern California Coalition for Occupational Safety and Health
Social Justice Learning Institute
Street Level Health Project
T.R.U.S.T. South LA
The Institute of Popular Education of Southern California
The Wage Justice Center
UCLA Labor Center
Union de Vecinos
Workplace Justice Initiative
Worksafe, Inc.
None Received
ARGUMENTS IN SUPPORT: Proponents, noting the 2010 wage theft study discussed earlier, argue that wage theft is a significant problem in California, with LA County’s wage theft resulting in over $1 billion unlawfully failing to reach the workers who desperately need it. Proponents also note that current wage theft collection rates are less than 20%, meaning the vast majority of scofflaw employers are successful in robbing their workers of their lawful wages. Proponents believe that SB 588 will help combat the high rate of wage theft in California by creating a simple lien process for the Labor Commissioner to use against employers who rob workers of their wages. Proponents, noting Wisconsin’s success, argue that wage liens are simple, effective, and a time tested approach to halting wage theft.
ASSEMBLY FLOOR: 58-18, 9/08/15
AYES: Achadjian, Alejo, Baker, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Hadley, Roger Hernández, Holden, Irwin, Jones-Sawyer, Lackey, Levine, Linder, Lopez, Low, Maienschein, McCarty, Medina, Mullin, Nazarian, O'Donnell, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Atkins
NOES: Travis Allen, Bigelow, Brough, Dahle, Beth Gaines, Gallagher, Grove, Harper, Jones, Mathis, Melendez, Obernolte, Olsen, Patterson, Steinorth, Wagner, Waldron, Wilk
NO VOTE RECORDED: Chang, Chávez, Kim, Mayes
Prepared by: Gideon L. Baum / L. & I.R. / (916) 651-1556
9/8/15 19:01:26
SB 588
Page 4
SENATE THIRD READING
SB 588
(De León)
As Amended September 4, 2015
Majority vote
SENATE VOTE: 26-13
Committee |
Votes |
Ayes |
Noes |
Labor |
5-2 |
Roger Hernández, Chu, Low, McCarty, Thurmond |
Harper, Patterson |
Judiciary |
7-3 |
Mark Stone, Weber, Alejo, Chau, Chiu, Cristina Garcia, Thurmond |
Wagner, Gallagher, Maienschein |
Appropriations |
12-5 |
Gomez, Bloom, Bonta, Calderon, Nazarian, Eggman, Eduardo Garcia, Holden, Quirk, Rendon, Weber, Wood |
Bigelow, Chang, Gallagher, Jones, Wagner |
SUMMARY: Authorizes the Labor Commissioner to file a lien or levy on an employer's property in order to assist an employee in collecting unpaid wages where there is a judgment against the employer, and contains related provisions. Specifically, this bill:
Allows the Labor Commissioner, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee, to collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. This can only be done with the consent of the aggrieved worker.
Provides that, any person, upon whom a levy has been noticed for either possessing or owing credits, money, or property belonging to the judgment, shall surrender the credits, money, or property to the commissioner or pay to the commissioner the amount of any debt owing the judgment debtor within ten days of service of the levy. This includes property, money or credits coming into the person’s possession within one year of receipt of the notice of levy.
Provides that any person who complies with the notice of levy from the Labor Commissioner shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner.
Provides that any person who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor shall be liable in his or her own person or estate to the commissioner in an amount equal to the levy.
Provides a process for filing a levy with a bank or other financial institution, as defined under federal law.
Limits the above-discussed provisions to property that is not real property.
Requires that, if a final judgment against an employer arising from the employer's nonpayment of wages for work performed in this state remains unsatisfied after a period of 30 days after the time to appeal therefrom has expired, the employer must cease business operations, including conducting business using labor of another business or contractor unless the employer has obtained a surety bond. The principal sum of the bond shall not be less than:
Fifty thousand dollars if the unsatisfied portion of the judgment is no more than $5,000.
One hundred thousand dollars if the unsatisfied portion of the judgment is more than $5,000 and no more than $10,000.
One hundred-fifty thousand dollars if the unsatisfied portion of the judgment is more than $10,000.
Allows the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment instead of filing a surety bond described above. However, if the accord provides for the judgment to be paid in installments, and an installment payment is not made, the employer is no longer excused from satisfying the bond requirements.
Provides that a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages shall be deemed the same employer for purposes of this section if:
The employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors; or
If the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
Requires that any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil penalty of $2,500 and that any employer that has previously paid a fine pursuant to this section shall be subject to an additional fine of $100 for each calendar day that the employer conducts business in violation of this section, capped at $100,000. The civil penalty may be assessed by the Labor Commissioner, but shall not be assessed against an entity determined to be a successor employer within the first 30 days after the notice of judgment.
Exempts employers from the requirements of the bond if they employ workers who are covered by a bona fide collective bargaining agreement that expressly provides for wages, hours of work, working conditions, includes a process to resolve disputes concerning nonpayment of wages, and contains a waiver of the bond.
Provides notice requirements to the Labor Commissioner in the event of the surety bond being cancelled or terminated.
Provides the following in the event of an employer failing to comply with the bond provisions listed above:
A stop order prohibiting the use of employee labor by that employer or use of subcontracted labor until the employer complies with bonding requirements. The stop order must become effective immediately, and the employer must pay any worker for their lost time due to the stop order, not exceeding 10 days.
A lien on the real property and personal property of an employer that for the full amount of any wages, interest, penalties, and attorney’s fees (to the extent specifically allowed to be recovered under existing law) claimed to be owed to any employee. This lien would be filed by the Labor Commissioner. Unless the lien is satisfied or released, the lien must continue until ten years from the date of its creation.
Creates notice and filing requirements for the lien provisions discussed above.
Provides that if a licensed employer in the long-term care industry is found to be in violation of specified provisions of this bill, the State Department of Public Health or the State Department of Social Services may deny a new license or the renewal of an existing license for that employer. This bill defines a long-term care industry as a skilled nursing facility, intermediate care facility, congregate living health facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization.
Provide that if the Labor Commissioner finds that an employer in the long-term care industry is conducting business in violation of a specified provision of this bill, the Labor Commissioner shall notify the State Department of Public Health or the State Department of Social Services.
Provides that any individual or business entity that, as part of its business, contracts for services in the property services or long-term care industries shall be jointly and severally liable for any unpaid wages, as provided, to the extent the amounts are for services performed under the contract. The issue of joint and several liability shall be determined in specified administrative or court proceedings before or by the Labor Commissioner, but no action shall be brought under the Private Attorneys General Act of 2004.
Creates a notice requirement for an employer that contracts to provide services in the property services or long-term care industries regarding unsatisfied judgments, but also states that the failure by the employer to provide this notice shall not be a defense to the joint and several liabilities as described above.
Provides that this bill shall not be interpreted to impose joint liability on an individual, or the owner of a home-based business, for any property services, to the extent that such property services are provided at the individual or home-based business owner's primary residence, provided that the primary residence does not have multiple business units.
Allows for the Labor Commissioner provide for a hearing to recover civil penalties against an employer or other person acting on behalf of any employers, for specified violations.
Provides that any employer, or other person acting on behalf of an employer, that violates or causes to be violated, any provision of law regulating minimum wages or hours and days of work, as specified, may be held liable as the employer for such a violation.
Defines "other person acting on behalf of an employer" to be limited to a natural person who is an owner, director, officer or managing agent of the employer.
Provides that nothing in the foregoing provision shall be construed to limit the definition of "employer" (including natural persons) under existing law.
Creates enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in initial administrative costs of approximately $2.6 million [Labor Enforcement and Compliance Fund (LECF)] and ongoing costs of approximately $2.2 million (LECF) for the Department of Industrial Relations to implement the provisions of this bill.
COMMENTS: Supporters argue that wage theft is a significant problem in California, with Los Angeles County's wage theft resulting in over $1 billion unlawfully failing to reach the workers who desperately need it. Supporters also note that current wage theft collection rates are less than 20%, meaning the vast majority of scofflaw employers are successful in robbing their workers of their lawful wages. Supporters believe that this bill will help combat the high rate of wage theft in California by creating a simple lien process for the Labor Commissioner to use against employers who rob workers of their wages. Supporters, noting Wisconsin's success, argue that wage liens are simple, effective, and a time tested approach to halting wage theft.
This bill is co-sponsored by the Service Employees International Union, the Koreatown Immigrant Workers Alliance, and the Wage Justice Center. They write:
[This bill] gives the Labor Commissioner additional tools to collect from employers who have exhausted all appeals for their non-payment of wages and have final judgments owed. It requires a business that has an outstanding unpaid judgment against them to purchase a wage bond of $150,000. If it fails to do that, the employer can be subject to a stop work order and a lien at the Labor Commissioner's discretion.
This bill also gives the Labor Commissioner the authority to hold individual business owners accountable for their debts to workers. This will discourage business owners from rolling up their operations and walking away from their debts to workers and starting a new company.
In addition, [this bill] targets two high-risk sectors – property services and long-term care – by establishing procedures to ensure parties are held individually responsible to ensure that employers can’t evade the law through contracting and subcontracting arrangements.
There is no opposition on file.
Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0002160
SB 588
Page 4
SENATE THIRD READING
SB 588
(De León)
As Amended September 1, 2015
Majority vote
SENATE VOTE: 26-13
Committee |
Votes |
Ayes |
Noes |
Labor |
5-2 |
Roger Hernández, Chu, Low, McCarty, Thurmond |
Harper, Patterson |
Judiciary |
7-3 |
Mark Stone, Weber, Alejo, Chau, Chiu, Cristina Garcia, Thurmond |
Wagner, Gallagher, Maienschein |
Appropriations |
12-5 |
Gomez, Bloom, Bonta, Calderon, Nazarian, Eggman, Eduardo Garcia, Holden, Quirk, Rendon, Weber, Wood |
Bigelow, Chang, Gallagher, Jones, Wagner |
SUMMARY: Authorizes the Labor Commissioner to file a lien or levy on an employer's property in order to assist an employee in collecting unpaid wages where there is a judgment against the employer, and contains related provisions. Specifically, this bill:
Allows the Labor Commissioner, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee, to collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. This can only be done with the consent of the aggrieved worker.
Provides that, any person, upon whom a levy has been noticed for either possessing or owing credits, money, or property belonging to the judgment, shall surrender the credits, money, or property to the commissioner or pay to the commissioner the amount of any debt owing the judgment debtor within ten days of service of the levy. This includes property, money or credits coming into the person’s possession within one year of receipt of the notice of levy.
Provides that any person who complies with the notice of Levy from the Labor Commissioner shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner.
Provides that any person who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor shall be liable in his or her own person or estate to the commissioner in an amount equal to the levy.
Provides a process for filing a levy with a bank or other financial institution, as defined under federal law.
Limits the above-discussed provisions to property that is not real property.
Requires that, if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after a period of 30 days after the time to appeal therefrom has expired, the employer must cease business operations, including conducting business using labor of another business or contractor unless the employer has obtained a surety bond. The principal sum of the bond shall not be less than:
$50,000 if the unsatisfied portion of the judgment is no more than $5,000.
$100,000 if the unsatisfied portion of the judgment is more than $5,000 and no more than $10,000.
$150,000 if the unsatisfied portion of the judgment is more than $10,000.
Allows the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment instead of filing a surety bond described above. However, if the accord provides for the judgment to be paid in installments, and an installment payment is not made, the employer is no longer excused from satisfying the bond requirements.
Provides that a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages shall be deemed the same employer for purposes of this section if:
The employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors; or
If the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
Requires that any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil penalty of $2,500 and that any employer that has previously paid a fine pursuant to this section shall be subject to an additional fine of $100 for each calendar day that the employer conducts business in violation of this section, capped at $100,000. The civil penalty may be assessed by the Labor Commissioner, but shall not be assessed against an entity determined to be a successor employer within the first 30 days after the notice of judgment.
Exempts employers from the requirements of the bond if they employ workers who are covered by a bona fide collective bargaining agreement that expressly provides for wages, hours of work, working conditions, includes a process to resolve disputes concerning nonpayment of wages, and contains a waiver of the bond.
Provides notice requirements to the Labor Commissioner in the event of the surety bond being cancelled or terminated.
Provides the following in the event of an employer failing to comply with the bond provisions listed above:
A stop order prohibiting the use of employee labor by that employer or use of subcontracted labor until the employer complies with bonding requirements. The stop order must become effective immediately, and the employer must pay any worker for their lost time due to the stop order, not exceeding ten days.
A lien on the real property and personal property of an employer that for the full amount of any wages, interest, penalties, and attorney’s fees (to the extent specifically allowed to be recovered under existing law) claimed to be owed to any employee. This lien would be filed by the Labor Commissioner. Unless the lien is satisfied or released, the lien must continue until ten years from the date of its creation.
Creates notice and filing requirements for the lien provisions discussed above.
Prohibits the State Department of Public Health or the State Department of Social Services from allowing a long-term care industry employer from obtaining or renewing a license if the employer is conducting business in violation of the surety bond requirement. This bill defines a long-term care industry as a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization.
Provides that any individual or business entity that, as part of its business, contracts for services in the property services or long-term care industries shall be jointly and severally liable for any unpaid wages, as provided, to the extent the amounts are for services performed under the contract. The issue of joint and several liability shall be determined in specified administrative or court proceedings before or by the Labor Commissioner, but no action shall be brought under the Private Attorneys General Act of 2004.
Creates a notice requirement for an employer that contracts to provide services in the property services or long-term care industries regarding unsatisfied judgments, but also states that the failure by the employer to provide this notice shall not be a defense to the joint and several liabilities as described above.
Provides that this bill shall not be interpreted to impose joint liability on an individual, or the owner of a home-based business, for any property services, to the extent that such property services are provided at the individual or home-based business owner's primary residence, provided that the primary residence does not have multiple business units.
Allows for the Labor Commissioner provide for a hearing to recover civil penalties against an employer or other person acting on behalf of any employers, for specified violations.
Provides that any employer, or other person acting on behalf of an employer, that violates or causes to be violated, any provision of law regulating minimum wages or hours and days of work, as specified, may be held liable as the employer for such a violation.
Defines "other person acting on behalf of an employer" to be limited to a natural person who is an owner, director, officer or managing agent of the employer.
Provides that nothing in the foregoing provision shall be construed to limit the definition of "employer" (including natural persons) under existing law.
Creates enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
FISCAL EFFECT: According to the Assembly Appropriations Committee, this bill would result in initial administrative costs of approximately $2.6 million [Labor Enforcement and Compliance Fund (LECF)] and ongoing costs of approximately $2.2 million (LECF) for the Department of Industrial Relations to implement the provisions of this bill.
COMMENTS: Supporters argue that wage theft is a significant problem in California, with Los Angeles County's wage theft resulting in over $1 billion unlawfully failing to reach the workers who desperately need it. Supporters also note that current wage theft collection rates are less than 20%, meaning the vast majority of scofflaw employers are successful in robbing their workers of their lawful wages. Supporters believe that this bill will help combat the high rate of wage theft in California by creating a simple lien process for the Labor Commissioner to use against employers who rob workers of their wages. Supporters, noting Wisconsin's success, argue that wage liens are simple, effective, and a time tested approach to halting wage theft.
This bill is co-sponsored by the Service Employees International Union, the Koreatown Immigrant Workers Alliance, and the Wage Justice Center. They write:
[This bill] gives the Labor Commissioner additional tools to collect from employers who have exhausted all appeals for their non-payment of wages and have final judgments owed. It requires a business that has an outstanding unpaid judgment against them to purchase a wage bond of $150,000. If it fails to do that, the employer can be subject to a stop work order and a lien at the Labor Commissioner’s discretion.
This bill also gives the Labor Commissioner the authority to hold individual business owners accountable for their debts to workers. This will discourage business owners from rolling up their operations and walking away from their debts to workers and starting a new company.
In addition, [this bill] targets two high-risk sectors – property services and long-term care – by establishing procedures to ensure parties are held individually responsible to ensure that employers can’t evade the law through contracting and subcontracting arrangements.
There is no opposition on file.
Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091 FN: 0001688
Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 588
(De León) – As Amended July 1, 2015
Policy Committee: |
Labor and Employment |
Vote: |
5 - 2 |
|
Judiciary |
|
7 - 3 |
|
|
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill authorizes the Labor Commissioner to file a lien or levy on an employer's property in order to assist an employee in collecting unpaid wages where there is a judgment against the employer, and contains related provisions. Specifically, this bill:
Allows the Labor Commissioner, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee, to collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. This can only be done with the consent of the aggrieved worker.
Provides that, any person, upon whom a levy has been noticed for either possessing or owing credits, money, or property belonging to the judgment, is required to surrender the credits, money, or property to the commissioner or pay to the commissioner the amount of any debt owing the judgment debtor within ten days of service of the levy. This includes property, money or credits coming into the person’s possession within one year of receipt of the notice of levy.
Provides that any person who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor will be liable to the commissioner in an amount equal to the levy. This levy is limited to property that is not real property and specifies these provisions do not apply if enforcement of the judgment has been stayed on appeal.
Requires that, if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after a period of 20 days after the time to appeal therefrom has expired, the employer must cease business operations unless the employer has obtained a surety bond of $150,000. The bond must be filed with the Labor Commissioner and be payable to the people of the State of California for the benefit of any employee damaged by his or her employer’s failure to pay wages, including any interest, penalties, and attorney’s fees.
Provides that a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages must be deemed the same employer for purposes of this section if the employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors; or if the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
Applies a civil penalty of $2,500 to any employer, or other person acting on behalf of an employer, that violates provisions of the bill and applies an additional fine of one hundred dollars $100 for each calendar day that the employer conducts business in violation of law, capped at $100,000.
Authorizes the Labor Commissioner to issue a stop order prohibiting the use of employee labor by that employer or use of subcontracted labor until the employer complies with bonding requirements in the event of an employer failing to comply with the bond provisions of the bill. The stop order must become effective immediately, and the employer must pay any worker for their lost time due to the stop order, not exceeding ten days.
Authorizes the Labor Commissioner to create a lien on the real property and personal property of an employer for the full amount of any wages, interest, penalties, and attorney’s fees (to the extent specifically allowed to be recovered under existing law) claimed to be owed to any employee. Unless the lien is satisfied or released, the lien must continue until ten years from the date of its creation. Creates notice and filing requirements for the lien and authorizes the Labor Commissioner to foreclose on the property.
Prohibits the State Department of Public Health or the State Department of Social Services from allowing a long-term care industry employer to obtain or renew a license if the employer is conducting business in violation of the surety bond requirement. This bill defines a long-term care industry as a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization.
Holds an individual, partnership, corporation, limited liability company, joint venture, or association jointly and severally liable for liens for unpaid wages against real property if the entity provides janitorial, security guard, valet parking, landscaping, gardening services, and long-term care and has been named a defendant and to the extent that the amounts are for services performed under that contract.
Specifies the bond requirements and the joint and several liability do not apply to unpaid wages owed to employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages.
Creates a notice requirement for contractors of janitorial, security guard, valet parking, landscaping, gardening services, and long-term care if there are outstanding wage violations for prospective contracts, but also states that the failure by employer to provide such notices shall not be a defense to the joint and several liability as described above.
Allows for the Labor Commissioner to hear complaints against a person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation, and would also make a person acting on behalf of an employer liable for willfully failing to pay wages, provide a paystub, unpaid minimum wages or overtime, and failing to indemnifying an employee.
Creates enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
FISCAL EFFECT:
Initial administrative costs of approximately $2.6 million [Labor Enforcement and Compliance Fund (LECF)] and ongoing costs of approximately $2.2 million (LECF) for the Department of Industrial Relations to implement the provisions of this bill.
This bill imposes new duties on the Labor Commissioner, for example the ability to utilize the levy process as a supplemental option beyond placing liens. The bill also expands duties related to surety bonds and the stop order process. Additionally, the bill could also result in unknown but potentially significant court costs associated with additional proceedings regarding wage claims.
COMMENTS:
Background. Under existing law, when an employer fails to pay wages due, the employee has the right to file a claim with the Department of Labor Standards Enforcement (DLSE), which is directed by the State Labor Commissioner. The collection rate is low, however, because decisions on wage claims can sometimes take 12-18 months to conclude. This long time period can result in businesses closing or filing for bankruptcy.
The Labor Commissioner receives roughly 36,000 wage claims annually, about 8,000 of which complete the process and reach the Order, Decision or Award (ODA) stage. Of the latter amount, about 6,500 claims are found in favor of the wage claimant.
Purpose. This bill is co-sponsored by the Service Employees International Union, the Koreatown Immigrant Workers Alliance, and the Wage Justice Center as an effort to provide the Labor Commissioner with additional tools to collect from employers who have exhausted all appeals for their non-payment of wages and have final judgments owed.
Supporters note that California has a very low rate of collections. According to a 2013 report published by the National Employment Law Project (NELP) and the UCLA Labor Center, only 17% of workers who prevailed in their wage claim before the DLSE and won a judgment were able to receive any payment between 2008 and 2011. Of those who did receive payment between 2008 and 2011, workers were able to collect 15% of what was owed.
Supporters believe that this bill will help combat the high rate of wage theft in California by creating a lien process for the Labor Commissioner to use against employers post-judgment.
This is a key difference from prior attempts to address this issue. Prior bills authorized a pre-judgment lien. This bill authorizes the levy or lien to be filed only where a judgment has already been rendered against the employee. This bill also differs from prior legislation in that it authorizes a levy against the employer's credit, money, or related property (other than real property). A lien is authorized only where the employer fails to satisfy a judgment after notice of judgment and continues to operate without complying with a specified bond requirement.
Concerns. A number of groups, including the California Chamber of Commerce, express "concerns" that certain provisions of this bill will negatively impact employers who do not operate in the underground economy. First, they express concern that this bill imposes joint and several liability on employers for "property services" contracts and they state that an employer should not be forced to cover the liabilities of another company that the employer had no reasonable opportunity or ability to prevent. Second, they argue that this bill improperly imposes personal liability on lower-level supervisors and managers of a company for wage and hour violations the employer could not prevent. Finally, they argue that the amount of the proposed bond needs to be adjusted to encourage payment of the underlying judgment. They suggest the amount of the bond should be left to the discretion of the Labor Commissioner to take into account the totality of circumstances in order to achieve the necessary balance.
Prior legislation.
AB 2416 (Stone) of 2014 would have allowed an employee to request that the Labor Commissioner file a pre-judgment lien on an employer’s real, personal property, or on the real property where a contracted employee conducted work, in order to assist the employee in collecting unpaid wages. AB 2416 failed passage on the Senate Floor.
AB 1164 (Lowenthal) from 2013 was similar to AB 2416 (Stone). This bill was moved to the inactive file on the Assembly floor and was not taken up for a vote.
AB 2517 (Eng) of 2012, as introduced, was also similar to AB 2416 (Stone). The bill was subsequently amended to provide for wage liens only in the car wash and polishing industry. AB 2517 failed passage on the Assembly floor.
Analysis Prepared by: Misty Feusahrens / APPR. / (916) 319-2081
SB 588
Page 9
Date of Hearing: July 14, 2015
ASSEMBLY COMMITTEE ON JUDICIARY
Mark Stone, Chair
SB 588
(De León) – As Amended July 1, 2015
SENATE VOTE: 26-13
SUBJECT: nonpayment of wages: Labor Commissioner and judgment enforcement
KEY ISSUES:
should the labor commissioner, on behalf of an aggrieved employee, be authorized to file a levy against any credits, MONEY, or other property of an employer in order to collect a judgment for unpaid wages?
If an employer fails to satisfy a judgment within 20 days of receiving a notice of levy, should that employer be required to cease business operations or obtain a surety bond of $150,000?
Should a business that contracts for certain "Property services" be jointly and severally liable for the wage violations of the service contractor, so long as the business was named and noticed in the underlying compLaint?
SYNOPSIS
According to a 2010 study conducted jointly by the UCLA Labor Center and the National Employment Law Project, only 17% of workers who successfully filed a wage claim with the California Division of Labor Standards recovered any payment. SB 588 is one of several recent bills that have sought to deal with the problem of collecting unpaid wages, even where a court has found a violation and the employee has won a judgment against an employer. Most recently AB 1164 (Lowenthal, 2013) and AB 2416 (Stone, 2014) attempted to grapple with this problem by allowing an employee to file a "pre-judgment" lien against the real and personal property of an offending employer. Neither bill made it to the Governor's desk. The bill under review differs from those bills in two significant ways. First, this bill authorizes not a lien against real property, but a levy against the employer's credit, money, or related property (other than real property). A lien is authorized only where the employer fails to satisfy a judgment after notice of judgment and continues to operate without complying with a specified bond requirement. Second, and perhaps most significantly, this bill does not authorize a pre-judgment lien; rather, it authorizes the levy or lien to be filed only where a judgment has already been rendered against the employer. Although a coalition of business and employer groups, led by the Chamber of Commerce, opposed the prior bills, the same coalition has submitted only a letter of "concern" regarding this bill. When the bill recently passed out the Assembly Labor & Employment Committee, the author and the Chamber of Commerce indicated a willingness to work on the remaining issues. However, no agreement had been reached at the time of the writing of this analysis. The analysis discusses the three issues on which the coalition and author still disagree; however, amendments, if any, would occur in the Appropriations Committee, or on the Floor, if the bill passes out of this Committee.
SUMMARY: Authorizes the California Labor Commissioner (Commissioner) to file a levy, and in some cases, a lien on an employer's property in order to assist an employee in enforcing a judgment for unpaid wages. Specifically, this bill:
Allows the Commissioner, after a judgment for unpaid wages is entered by a court in favor of the Commissioner or employee, to mail a notice of levy to all persons who possess or control any credits, money, or property belonging to the employer. Requires any person upon whom a levy has been noticed to surrender the credits, money, or property to the Commissioner, or pay to the Commissioner the amount owed, within ten days of service.
Provides that a person who complies with the notice of levy shall be discharged from any obligation or liability to the employer. Any person who fails or refuses to surrender any credits, money, or property, or pay any debts owed, shall be liable to the Commissioner in an amount equal to the levy.
Exempts real property from the provisions above.
Provides, subject to exceptions, that if a final judgment against an employer for unpaid wages remains unsatisfied for 20 days after the time to appeal the judgment has expired and no appeal is pending, then the employer must cease business operations unless the employer has obtained a surety bond of $150,000. The bond must be filed with the Commissioner and paid to the people of the State of California for the benefit of the aggrieved employee.
Subjects any employer, or person acting on behalf of an employer, that violates the bond requirement to a civil penalty, as specified, and a "stop order" prohibiting the conduct of business until the employer complies with the bond requirements.
Authorizes the Commissioner, in the event that the employer fails to comply with the bond provision, to impose a lien on the employer's real and personal property for the full amount of wages, interest, penalties, and attorney's fees, to the extent allowed under law. Unless it is satisfied or released, the lien remains in place for ten years from the date of its creation.
Prohibits the State Department of Public Health or the State Department of Social Services from renewing the license of an employer in the long-term care industry, as defined, if the employer is conducting business in violation of the surety bond requirement.
Provides that an individual or business that contracts with an employer to perform property services or long-term care services shall be jointly and severally liable with the employer for unpaid wages if the business was named as a defendant in, and received notice of, the underlying complaint.
Requires property services and long-term care contractors to provide notice to the other party to the contract as to any outstanding wage violations or unsatisfied judgments, but also states that the failure by the employer to provide such notices shall not be a defense to the joint and several liability.
Creates enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
EXISTING LAW:
Gives mechanics, persons furnishing materials, artisans, and laborers of every class the right to file a lien against the property upon which they have bestowed labor or furnished material for the value of such labor and material. Existing law also requires the Legislature to provide, by law, for the speedy and efficient enforcement of such liens. (California Constitution Article XIV, Section 3.)
Provides for mechanics liens relating to labor, services, and supplies provided to a work of improvement and regulates the conditions under which a mechanics lien may be enforced. (Civil Code Sections 8400-8494.)
Recognizes prejudgment wage liens against property as a remedy in certain industries, including mining (Civil Code Section 3060), agriculture (Civil Code Sections 3061.5-3061.6), and logging (Civil Code Section 3065).
Authorizes the Commissioner, after investigation and upon determination that wages or monetary benefits are due and unpaid to any worker in the State of California, to collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the Commissioner. (Labor Code Section 96.7.)
Authorizes the Commissioner to investigate employee complaints and provide for a hearing in any action to recover wages, penalties, and other demands for compensation, and requires the Commission to determine all matters arising under his or her jurisdiction. (Labor Code Section 98.)
Authorizes the Commissioner, at its discretion and upon a final order, to place a lien on real property for amounts due under the final order and in favor of the employee or employees named in the order, with the county recorder of any county in which the employer’s real property may be located. (Labor Code Section 98.2(g).)
Provides that, if any employer or other person acting on behalf of an employer violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation shall be subject to a civil penalty. (Labor Code Section 558.)
FISCAL EFFECT: As currently in print this bill is keyed fiscal.
COMMENTS: Recent studies have highlighted the problem of unpaid wages in California and elsewhere. For example, a 2009 Ford Foundation study on workers in low-wage industries in Chicago, Los Angeles and New York City found that 26 percent of workers in the sample were paid less than the legally required minimum wage, and 60 percent of these workers were underpaid by more than $1 per hour. In addition, 76 percent of the respondents who worked overtime in the previous week were not paid the legally required overtime rate by their employers. Another survey of 1,815 workers in Los Angeles County found that low-wage workers regularly experience violations of minimum wage and overtime pay requirements. (Center for Urban Economic Development, National Employment Law Project, UCLA Institute for Research on Labor and Employment Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America's Cities (2009); Milkman, Gonzalez and Narro, Wage Theft and Workplace Violation in Los Angeles: The Failure of Employment and Labor Law for Low-Wage Workers, UCLA Institute for Research on Labor and Employment (2010).)
The Problem of Collecting Unpaid Wages. While the number of violations is bad enough, the statistics on the inability of workers to recover wages – even when a court or the Labor Commission issues a judgment in their favor – are staggering. Under existing law, when an employer fails to pay wages that are due, the employee has the right to file a claim against the employer with the Department of Labor Standards Enforcement (DLSE), which is directed by the State Labor Commissioner (Commissioner). After conducting an investigation, the Commissioner typically holds an administrative hearing and renders a decision. If either party is unhappy with the Commissioner's decision, it can bring an appeal in civil court. However, even where a worker wins a favorable decision, the process of collecting the award is often difficult and ineffective. Irresponsible employers may have hidden their cash assets, declared bankruptcy, or otherwise become judgment-proof. According to a 2013 report published by the National Employment Law Project (NELP) and the UCLA Labor Center, only 17% of workers who prevailed in their wage claim before the DLSE and won a judgment were able to receive any payment between 2008 and 2011.
Comparison with Prior Bills. SB 588 seeks to address the problem of unpaid wages by giving the Commissioner expanded power to file a levy or lien against the property of an employer. It is the latest in a series of recent bills that have sought to deal with the problem of collecting unpaid wages from employers after a court has found a violation and the employee has won a judgment against the employer. Most recently AB 1164 (Lowenthal, 2013) and AB 2416 (Stone, 2014) attempted to grapple with this problem by allowing an employee to file a "pre-judgment" lien against the real and personal property of the offending employer. Both of these bills faced considerable opposition from business and employer groups. AB 1164 died on the Assembly Floor; AB 2416 passed out of the Assembly only to die on the Senate Floor. The bill under review differs in three important ways from those prior bills. First, this bill authorizes not a lien against real property, but a levy against the employer's credit, money, or related property that is not real property. Under this bill, a lien against real property is authorized only where the employer fails to satisfy a judgment after notice of judgment and continues to operate without complying with the bond requirement, as described below. Second, this bill authorizes the Commissioner to file a levy or lien on the employee's behalf; unlike the earlier bills, this bill does not allow an employee to directly file a lien against an employer’s property. Third, and perhaps most significantly, this bill does not authorize a pre-judgment lien; rather, it authorized the levy or lien to be filed only where a judgment has already been rendered against the employer.
Changes to Existing Law. California's "mechanic's lien" law – as required by the California Constitution – gives mechanics, artisans, suppliers, and "laborers of every class" a lien against any property "upon which they bestowed labor or furnished material for the value of such labor done and material furnished." (California Constitution Article XIV, Section; enacted and enforced by Civil Code Sections 8400-8494.) Because the labor or materials of a worker are bestowed upon a "property," this provision has generally been construed to apply to works of improvement. For example, a worker who installs windows on a new building has a lien for the value of his or her labor against the building property. If that worker is not paid for her labor, she can try to collect by recording a lien against the property. However, an employee who merely works in an office, factory, or department store has no ability to file such a lien against the employer's property if the employer fails to pay proper wages. That worker would most likely file a claim for unpaid wages with the Commissioner and hope to win a judgment against the employer. Upon receiving a claim from an employee, the Commissioner has the authority to investigate the claim, conduct a hearing, and, if it determines that wages or other monetary benefits are due, collect wages or benefits on behalf of the worker. Finally, under existing law, the Commissioner may, upon issuing a final order, place a lien on the employer's real property for the amount of unpaid wages that are due.
Bill Expands Labor Commission's Existing Authority. This bill would expand the Commissioner's existing authority to collect unpaid wages in two important ways:
First, while the Commissioner could still record a lien against the real property of an employer who did not satisfy a final order, this bill would give the Commissioner the additional authority to collect a court judgment in favor of the Commissioner or any employee by mailing a "notice of levy" to all persons in possession of credits, money, or other property (other than real property) belonging to the employer. A levy is similar to, but not the same as, a lien. A lien is a recorded interest or encumbrance on real property, which can be collected upon sale of the property. A levy, on the other hand, is simply a legal means to seize the money or assets of a judgment debtor. It can be directed, for example, to a bank or other party in possession of the debtor's money or assets. Under this bill, if a person in possession of the debtor's money fails to surrender the money, that person is liable to the Commissioner for the amount of the levy. If the person in possession surrenders the money, that person is discharged from any obligation or liability to the employer.
Second, where a final judgment against an employer remains unsatisfied for 20 days after the time for an appeal has expired (and no appeal is pending), this bill would prohibit the employer from conducting business in this state unless the employer obtains a surety bond in the amount of $150,000. The bond must be filed with the Commissioner and paid to the state for the benefit of the employee who is denied his or her just wages. If the employer fails to comply with the bond requirement, this bill would give the Commissioner the authority to serve upon that employer a "stop order," prohibiting the employer from using any employee labor or continuing to operate by subcontracting for labor. (In theory, the employer could continue to operate the business if he did the work himself, but as a practical matter the stop order is an order to cease operations until judgments are paid or appropriate bonds acquired.) An employer, or any officer or manager of the employer having effective control of the operation, who continues to operate the business in the face of the stop order, commits a misdemeanor punishable by imprisonment in county jail for not more than 60 days or by fine not exceeding $10,000, or both. The Commissioner may also record a lien against the real property of any employer who violates the bond requirement.
Potential Liability of Supervisors and Managers. In addition to expanding the authority of the Commissioner to file levies and enforce the new bond requirement, this bill also expands existing law in other ways. Under existing law, the Commissioner may issue citations and impose fines for violating wage laws against the employer or any "other person acting on behalf of an employer who violates or causes to be violated" the wage law provisions. This bill, however, appears to use more expansive language by allowing the Commissioner to conduct hearings concerning wage violations against any employer "or other person acting on the employer's behalf." One of the concerns expressed by the Chamber of Commerce is that this new language omits the critical words "who violates or causes to be violated." In other words, the Chamber contends, this new language could subject a manager, or even a relatively low-level employee, to penalties whether or not the manager or employee had sufficient control to commit or prevent a violation. (The Chamber's proposed resolution to this issue is discussed below.)
Joint and Several Liability of Contracting Parties. This bill also appears to expand existing law by imposing joint and several liability for wage violations on any business that contracts with an offending employer to perform "property services" or "long-term care services," but only where the business was named as a defendant and received notice pursuant to a complaint filed with the Commissioner. ("Property services" is defined to mean janitorial, security guard, valet parking, landscaping and gardening services; "long-term care services" is defined to mean a skilled nursing facility, adult residential facility, and residential care facility for the elderly and related facilities.) The bill requires an employer who contracts to provide those services to inform the other party to the contract of any pending claims or unsatisfied judgments for non-payment of wages. However, the bill also adds that an employer's failure to provide that information to the other party will not be a defense to the joint and several liability created by this bill. The Chamber of Commerce and its coalition express serious concerns about this provision, contending that it unfairly makes a business liable for violations committed by other employers over whom they may have little or no control. However, the rationale for this provision, according to the author, is that a business that uses such services has some obligation to take reasonable steps to ensure that the company with which it contracts does not exploit or cheat its workers. As noted below, this provision continues to be a considerable source of disagreement between the author and the concerned business coalition.
Remaining Concerns among Business Groups. A coalition of business and employer associations, led by the California Chamber of Commerce, expresses "concerns" that certain provisions of this bill will negatively impact employers. First, the coalition argues that the joint and several liability provisions are unfair because a business should not be penalized for the actions of a company with which it happened to contract but, through no fault or control or the contracting party, failed to pay the wages owed to its workers. Second, the coalition argues that this bill could improperly impose personal liability on lower-level supervisors and managers for wage and hour violations they did not commit and could not have prevented. Finally, the coalition argues that the amount of the proposed bond needs to be adjusted to encourage payment of the underlying judgment. The coalition suggests that the amount of the bond should be left to the discretion of the Commissioner, allowing the Commissioner to take into account the "totality of circumstances" in setting a proper and reasonable bond amount. To address these issues, the concerned business and employer coalition has proposed, conceptually at least, three possible amendments that might address their concerns:
In place of the fixed bond amount of $150,000, the Chamber of Commerce proposes either (1) a tiered bond amount based on the "totality of circumstances" or (2) giving the Labor Commissioner the discretion to determine an appropriate bond amount, up to $150,000.
In order to ensure that the bill does not improperly impose liability on managers or employees because of the employers' violation, the Chamber of Commerce proposes adding language that tracks the general rule of existing case law that a manager or other employee may only be liable for a violation if the manager or employee had sufficient control to cause the violation. Therefore, the Chamber of Commerce proposes adding the following qualifying language (or something like it): Liability under this section shall not apply if the person was acting solely within the scope of their agency with the employer and lacked any personal or direct control over the working conditions or payment of wages to the employee.
Modify the joint and several liability provisions so that a business that contracts with an employer who violates wage laws has an "opportunity to cure" the violation. Under this bill, a business would only be jointly and severally liable for the employer's violations if the business were named as a defendant and given notice at the time that a complaint was filed with the Labor Commission. It is not entirely clear to the Committee what the "opportunity to cure" would consist of, given that the business would only receive notice after the complaint had been filed and thus a violation has already committed. The businesses ability to cure would seem to be limited to its ability to force the employer with whom it contracts to satisfy the unpaid wages or face termination of the contract. This may be an issue that the author and opponents are unlikely to resolve.
The Committee may wish to explore with the author his willingness to address all or some of these concerns should the bill pass out of this Committee today.
ARGUMENTS IN SUPPORT: Supporters, noting the various wage theft studies, argue that wage theft is a significant problem in California, with LA County’s wage theft resulting in over $1 billion failing to reach the workers who desperately need and are lawfully entitled to those wages. Supporters also note that current wage theft collection rates are less than 20%, meaning the vast majority of scofflaw employers are successful in robbing their workers of their lawful wages. Supporters believe that this bill will help combat the high rate of wage theft in California by creating a simple lien process for the Labor Commissioner to use against employers who rob workers of their wages. Supporters, noting Wisconsin’s success, argue that wage liens are simple, effective, and a time tested approach to halting wage theft.
This bill is co-sponsored by the Service Employees International Union, the Koreatown Immigrant Workers Alliance, and the Wage Justice Center. They argue that SB 558 "gives the Labor Commissioner additional tools to collect from employers who have exhausted all appeals for their non-payment of wages and have final judgments owed. It requires a business that has an outstanding unpaid judgment against them to purchase a wage bond of $150,000. If it fails to do that, the employer can be subject to a stop work order and a lien at the Labor Commissioner’s discretion. . . This bill also gives the Labor Commissioner the authority to hold individual business owners accountable for their debts to workers. This will discourage business owners from rolling up their operations and walking away from their debts to workers and starting a new company." Finally supporters contend that this bill will target "two high-risk sectors – property services and long-term care – by establishing procedures to ensure parties are held individually responsible to ensure that employers can’t evade the law through contracting and subcontracting arrangements."
REGISTERED SUPPORT / OPPOSITION:
Support
Koreatown Immigrant Workers Alliance (co-sponsor)
SEIU- CA (co-sponsor)
Wage Justice Center (co-sponsor)
9to5
Alliance of Californians for Community Empowerment
Alliance San Diego
Asian Americans Advancing Justice- Los Angeles
Bet Tzedek Legal Services
California Employment Lawyers Association
California Immigrant Policy Center
California Labor Federation, AFL-CIO
California Professional Firefighters
California Rural Legal Assistance
California School Employees Association
Center on Policy Initiatives
Central American Resource Center
Centro Legal de la Raza
Chinese Progressive Association
CHIRLA-Coalition for Humane Immigrant Rights of Los Angeles
CLEAN Car Wash Campaign
Clergy and Laity United for Economic Justice
Coalition For A Safe Environment
Coalition to Abolish Slavery & Trafficking
Community Action Board of Santa Cruz County Inc.
Community Services
Day Labor Center Hayward/ Oakland
Day Worker Center of Mountain View
Dignity Campaign
Dolores Street Community Services
Employment Rights Center
Equal Rights Advocates
Filipino Advocates for Justice
Filipino Migrant Center
Fresno County Democrats
Garment Worker Center
Gender Justice LA
Graton Day Labor Center
Holman United Methodist Church
Housing Long Beach
Human Impact Partners
InnerCity Struggle
Instituto de Educacion Popular del Sur de California
Katharine & George Alexander Community Law Center
Khmer Girls in Action
LA Black Worker Center
La Colectiva De Mujeres
Liberty Hill Foundation
Los Angeles Alliance for a New Economy
Los Angeles Fight for $15 Organizing Committee
Maintenance Cooperation Trust Fund
Making Change at Walmart
Mi Familia Vota
National Association of Working Women
National Day Laborer Organizing Network
National Employment Law Project
One LA-IAF
Pacoima Beautiful
Pilgrim United Church of Christ
Pilipino Association of Workers and Immigrants - Silicon Valley
Restaurant Opportunities Center of Los Angeles
Sacramento Area Congregations Together
San Diego and Imperial Counties Labor Council, AFL-CIO
San Francisco Day Labor Program & Women’s Collective, a program of Dolores Street
San Francisco Progressive Workers Alliance
Santa Clara University
SoCalCosh, Southern California Coalition for Occupational Safety and Health
Social Justice Learning Institute
Street Level Health Project
T.R.U.S.T. South LA
The Institute of Popular Education of Southern California
The Wage Justice Center
UCLA Labor Center
Union de Vecinos
Workplace Justice Initiative
Worksafe, Inc.
Opposition
None on file
Analysis Prepared by: Thomas Clark / JUD. / (916) 319-2334
SB 588
Page 8
Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Roger Hernández, Chair
SB 588
(De León) – As Amended July 1, 2015
SENATE VOTE: 26-13
SUBJECT: Employment: nonpayment of wages: Labor Commissioner: judgment enforcement.
SUMMARY: Authorizes the Labor Commissioner to file a lien or levy on an employer's property in order to assist an employee in collecting unpaid wages where there is a judgment against the employer, and contains related provisions. Specifically, this bill:
Allows the Labor Commissioner, beginning 20 days after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee, to collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. This can only be done with the consent of the aggrieved worker.
Provides that, any person, upon whom a levy has been noticed for either possessing or owing credits, money, or property belonging to the judgment, shall surrender the credits, money, or property to the commissioner or pay to the commissioner the amount of any debt owing the judgment debtor within ten days of service of the levy. This includes property, money or credits coming into the person’s possession within one year of receipt of the notice of levy.
Provides that any person who complies with the notice of Levy from the Labor Commissioner shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner.
Provides that any person who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor shall be liable in his or her own person or estate to the commissioner in an amount equal to the levy.
Provides a process for filing a levy with a bank or other financial institution, as defined under federal law.
Limits the above-discussed provisions to property that is not real property.
Requires that, if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after a period of 20 days after the time to appeal therefrom has expired, the employer must cease business operations unless the employer has obtained a surety bond of $150,000. The bond must be filed with the Labor Commissioner and be payable to the people of the State of California for the benefit of any employee damaged by his or her employer’s failure to pay wages, including any interest, penalties, and attorney’s fees.
Allows the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment instead of filing a surety bond described above. However, if the accord provides for the judgment to be paid in installments, and an installment payment is not made, the employer is no longer excused from satisfying the bond requirements.
Provides that a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages shall be deemed the same employer for purposes of this section if:
The employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors; or
If the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
Requires that any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil penalty of $2,500 and that any employer that has previously paid a fine pursuant to this section shall be subject to an additional fine of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section, capped at $100,000.
Exempts employers from the requirements of the bond if they employ workers who are covered by a bona fide collective bargaining agreement that expressly provides for wages, hours of work, working conditions, includes a process to resolve disputes concerning nonpayment of wages, and contains a waiver of the bond.
Provides notice requirements to the Labor Commissioner in the event of the surety bond being cancelled or terminated.
Provides the following in the event of an employer failing to comply with the bond provisions listed above:
A stop order prohibiting the use of employee labor by that employer or use of subcontracted labor until the employer complies with bonding requirements. The stop order must become effective immediately, and the employer must pay any worker for their lost time due to the stop order, not exceeding ten days.
A lien on the real property and personal property of an employer that for the full amount of any wages, interest, penalties, and attorney’s fees (to the extent specifically allowed to be recovered under existing law) claimed to be owed to any employee. This lien would be filed by the Labor Commissioner. Unless the lien is satisfied or released, the lien must continue until ten years from the date of its creation.
Creates notice and filing requirements for the lien provisions discussed above, as well as give the Labor Commissioner the ability to foreclose on the property.
Prohibits the State Department of Public Health or the State Department of Social Services from allowing a long-term care industry employer from obtaining or renewing a license if the employer is conducting business in violation of the surety bond requirement. This bill defines a long-term care industry as a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization.
Holds an individual, partnership, corporation, limited liability company, joint venture, or association jointly and severally liable for liens for unpaid wages against real property if the entity provides janitorial, security guard, valet parking, landscaping, gardening services, and long-term care and has been named a defendant and to the extent that the amounts are for services performed under that contract.
Creates a notice requirement for contractors of janitorial, security guard, valet parking, landscaping, gardening services, and long-term care if there are outstanding wage violations for prospective contracts, but also states that the failure by employer to provide such notices shall not be a defense to the joint and several liability as described above.
Allows for the Labor Commissioner to hear complaints against a person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation, and would also make a person acting on behalf of an employer liable for willfully failing to pay wages, provide a paystub, unpaid minimum wages or overtime, and failing to indemnifying an employee.
Creates enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
EXISTING LAW:
Provides mechanics, persons furnishing materials, artisans, and laborers of every class the right to file a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor and material. Existing law also requires the Legislature to provide, by law, for the speedy and efficient enforcement of such liens. (California Constitution Article XIV, Section 3)
Provides for mechanics liens relating to services and supplies authorized and provided on a work of improvement. Existing law also regulates the conditions under which a mechanics lien may be enforced. (Civil Code §§ 8400-8494)
Recognizes prejudgment wage liens against property as a remedy in certain industries, including mining (Civil Code § 3060), agriculture (Civil Code §§ 3061.5-3061.6), and logging (Civil Code § 3065).
Requires the Labor Commissioner and his or her deputies and representatives authorized by him or her in writing, upon the filing of a claim therefor by an employee, or an employee representative authorized in writing by an employee, with the Labor Commissioner, to take assignments of, among other things, wage claims and incidental expense accounts and advances and mechanics and other liens of employees. (Labor Code § 96)
Authorizes the Labor Commissioner, after investigation and upon determination that wages or monetary benefits are due and unpaid to any worker in the State of California, to collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the Commissioner. (Labor Code § 96.7)
Authorizes the Labor Commissioner to investigate employee complaints and provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and is required to determine all matters arising under his or her jurisdiction. (Labor Code § 98)
Authorizes the Labor Commissioner, at the Commissioner’s discretion and upon a final order, to place a lien on real property for amounts due under the final order and in favor of the employee or employees named in the order, with the county recorder of any county in which the employer’s real property may be located. (Labor Code § 98.2(g))
Provides that, if any employer or other person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation shall be subject to a civil penalty. (Labor Code § 558)
FISCAL EFFECT: According to the Senate Appropriations Committee, the Department of Industrial Relations (DIR) indicates that it would incur first year costs of $2.6 million (special fund) to implement the provisions of the bill, with ongoing costs totaling $2.2 million. DIR also notes unknown, potentially significant court costs associated with additional proceedings regarding wage claims.
COMMENTS:
The Problem of "Wage Theft"
Various recent studies have highlighted concerns about alleged widespread "theft of wages" in the United States and in California, particularly in the underground economy. For example, in 2009 the Ford Foundation sponsored a study that surveyed 4,387 workers in low-wage industries in the three largest U.S. cities – Chicago, Los Angeles and New York City. The study revealed that 26 percent of workers in the sample were paid less than the legally required minimum wage, and 60 percent of these workers were underpaid by more than $1 per hour. In addition, 76 percent of the respondents who worked overtime in the previous week were not paid the legally required overtime rate by their employers. (Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America's Cities, Center for Urban Economic Development, National Employment Law Project, UCLA Institute for Research on Labor and Employment (2009).)
Another study focused on a survey of 1,815 workers in Los Angeles County. The survey found that low-wage workers in Los Angeles regularly experience violations of basic laws that mandate a minimum wage and overtime pay and are frequently forced to work off the clock or during their breaks. Other violations documented in the survey include lack of required payroll documentation, late payments, stealing tips, and employer retaliation. (Milkman, Gonzalez and Narro, Wage Theft and Workplace Violation in Los Angeles: The Failure of Employment and Labor Law for Low-Wage Workers, UCLA Institute for Research on Labor and Employment (2010).) The survey also revealed that the various forms of nonpayment and underpayment of wages take a heavy monetary toll on workers and their families. Respondents who experienced a pay-based violation in the previous work week lost an average of $39.81 out of average weekly earnings of $318.00 (or 12.5 percent). Assuming a full-year work schedule, these workers lost an average of $2,070.00 annually out of total earnings of $16,536.00. The survey estimated that, in a given week, 654,914 workers in Los Angeles County suffer at least one pay-based violation. Extrapolating from this figure, front-line workers in low-wage industries lose more than $26.2 million per week as a result of employment and labor law violations.
Effectiveness of Existing Methods of Recovering Unpaid Wages
Under existing law, when an employer fails to pay wages due, the employee has the right to file a claim against his or her employer (or former employer) with the Department of Labor Standards Enforcement (DLSE), which is directed by the State Labor Commissioner. The Labor Commissioner has jurisdiction over most private sector employees, except those that are bona fide independent contractors. In some cases, according to case law, the Commissioner does not have jurisdiction over those working under collective bargaining agreements. Existing law requires an employee who feels that his or her wages have been wrongly withheld must go through DLSE and according to statutorily prescribed procedures. (Labor Code Section 98 et seq.) After conducting an investigation, the Labor Commissioner may hold an administrative conference or hearing, or both. If a party is unhappy with the Commissioner's decision, it can appeal to the appropriate civil court. (Labor Code Section 98.2.) However, even where a worker wins a favorable decision, the process of collecting the award is often difficult and ineffective. Irresponsible employers may have already hidden their cash assets, declared bankruptcy, or otherwise become judgment-proof.
Equally troubling, if not more troubling, than the high rate of wage theft in California is the low rate of collections. According to a 2013 report published by the National Employment Law Project (NELP) and the UCLA Labor Center, only 17% of workers who prevailed in their wage claim before the DLSE and won a judgment were able to receive any payment between 2008 and 2011. Of those who did receive payment between 2008 and 2011, workers were able to collect 15% of what was owed. In short, the vast majority of wage theft victims received nothing, and those that received anything received little of what they were legally due.
ARGUMENTS IN SUPPORT
Supporters, noting the 2010 wage theft study discussed earlier, argue that wage theft is a significant problem in California, with LA County’s wage theft resulting in over $1 billion unlawfully failing to reach the workers who desperately need it. Supporters also note that current wage theft collection rates are less than 20%, meaning the vast majority of scofflaw employers are successful in robbing their workers of their lawful wages. Supporters believe that this bill will help combat the high rate of wage theft in California by creating a simple lien process for the Labor Commissioner to use against employers who rob workers of their wages. Supporters, noting Wisconsin’s success, argue that wage liens are simple, effective, and a time tested approach to halting wage theft.
This bill is co-sponsored by the Service Employees International Union, the Koreatown Immigrant Workers Alliance, and the Wage Justice Center. They write:
"[This bill] gives the Labor Commissioner additional tools to collect from employers who have exhausted all appeals for their non-payment of wages and have final judgments owed. It requires a business that has an outstanding unpaid judgment against them to purchase a wage bond of $150,000. If it fails to do that, the employer can be subject to a stop work order and a lien at the Labor Commissioner’s discretion.
This bill also gives the Labor Commissioner the authority to hold individual business owners accountable for their debts to workers. This will discourage business owners from rolling up their operations and walking away from their debts to workers and starting a new company.
In addition, [this bill] targets two high-risk sectors – property services and long-term care – by establishing procedures to ensure parties are held individually responsible to ensure that employers can’t evade the law through contracting and subcontracting arrangements."
"CONCERNS"
A number of groups, including the California Chamber of Commerce, express "concerns" that certain provisions of this bill will negatively impact employers who do not operate in the underground economy. First, they express concern that this bill imposes joint and several liability on employers for "property services" contracts and state that an employer should not be forced to cover the liabilities of another company that the employer had no reasonable opportunity or ability to prevent. Second, they argue that this bill improperly imposes personal liability on lower-level supervisors and managers of a company for wage and hour violations the employer could not prevent. Finally, they argue that the amount of the proposed bond needs to be adjusted to encourage payment of the underlying judgment. They suggest the amount of the bond should be left to the discretion of the Labor Commissioner to take into account the totality of circumstances in order to achieve the necessary balance.
PRIOR RELATED LEGISLATION:
AB 2416 (Stone) of 2014 would have allowed an employee request that the Labor Commissioner file a pre-judgment lien on an employer’s real, personal property, or on the real property where a contracted employee conducted work, in order to assist the employee in collecting unpaid wages. AB 2416 failed passage on the Senate Floor.
AB 2416 was similar, but not identical to, AB 1164 (Lowenthal) from 2013. AB 1164 was moved to the inactive file on the Assembly floor and was not taken up for a vote.
AB 2416 was also similar, but not identical to, the introduced version of AB 2517 (Eng) from 2012. AB 2517 was subsequently amended to provide for wage liens only in the car wash and polishing industry. AB 2517 failed passage on the Assembly floor.
REGISTERED SUPPORT / OPPOSITION:
Support
9to5
Alliance of Californians for Community Empowerment
Alliance San Diego
Asian Americans Advancing Justice- Los Angeles
Bet Tzedek Legal Services
California Employment Lawyers Association
California Immigrant Policy Center
California Labor Federation, AFL-CIO
California Professional Firefighters
California Rural Legal Assistance
California School Employees Association
Center on Policy Initiatives
Central American Resource Center
Centro Legal de la Raza
Chinese Progressive Association
CHIRLA-Coalition for Humane Immigrant Rights of Los Angeles
CLEAN Car Wash Campaign
Clergy and Laity United for Economic Justice
Coalition For A Safe Environment
Coalition to Abolish Slavery & Trafficking
Community Action Board of Santa Cruz County Inc.
Community Services
Day Labor Center Hayward/ Oakland
Day Worker Center of Mountain View
Dignity Campaign
Dolores Street Community Services
Employment Rights Center
Equal Rights Advocates
Filipino Advocates for Justice
Filipino Migrant Center
Fresno County Democrats
Garment Worker Center
Gender Justice LA
Graton Day Labor Center
Holman United Methodist Church
Housing Long Beach
Human Impact Partners
InnerCity Struggle
Instituto de Educacion Popular del Sur de California
Katharine & George Alexander Community Law Center
Khmer Girls in Action
Koreatown Immigrant Workers Alliance (co-sponsor)
LA Black Worker Center
La Colectiva De Mujeres
Liberty Hill Foundation
Los Angeles Alliance for a New Economy
Los Angeles Fight for $15 Organizing Committee
Maintenance Cooperation Trust Fund
Making Change at Walmart
Mi Familia Vota
National Association of Working Women
National Day Laborer Organizing Network
National Employment Law Project
One LA-IAF
Pacoima Beautiful
Pilgrim United Church of Christ
Pilipino Association of Workers and Immigrants - Silicon Valley
Restaurant Opportunities Center of Los Angeles
Sacramento Area Congregations Together
San Diego and Imperial Counties Labor Council, AFL-CIO
San Francisco Day Labor Program & Women’s Collective, a program of Dolores Street
San Francisco Progressive Workers Alliance
Santa Clara University
SEIU- CA (co-sponsor)
SoCalCosh, Southern California Coalition for Occupational Safety and Health
Social Justice Learning Institute
Street Level Health Project
T.R.U.S.T. South LA
The Institute of Popular Education of Southern California
The Wage Justice Center
UCLA Labor Center
Union de Vecinos
Wage Justice Center (co-sponsor)
Workplace Justice Initiative
Worksafe, Inc.
Opposition
None on file.
Analysis Prepared by: Ben Ebbink / L. & E. / (916) 319-2091
SB 588
Page 11
|
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
THIRD READING
Bill No: SB 588
Amended: 4/30/15
SENATE JUDICIARY COMMITTEE: 4-1, 4/28/15
AYES: Jackson, Leno, Monning, Wieckowski
NOES: Anderson
NO VOTE RECORDED: Moorlach, Hertzberg
SENATE LABOR & IND. REL. COMMITTEE: 4-1, 4/29/15
AYES: Mendoza, Jackson, Leno, Mitchell
NOES: Stone
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/28/15
AYES: Lara, Beall, Hill, Leyva, Mendoza
NOES: Bates, Nielson
SUBJECT: Employment: nonpayment of wages: Labor Commissioner: judgment enforcement
DIGEST: This bill allows the Labor Commissioner to file a lien or levy on an employer’s property in order to assist the employee in collecting unpaid wages when there is a judgment against the employer.
Existing law:
Provides mechanics, persons furnishing materials, artisans, and laborers of every class the right to file a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor and material. Existing law also requires the Legislature to provide, by law, for the speedy and efficient enforcement of such liens. (California Constitution Article XIV, Section 3)
Provides for mechanics liens relating to services and supplies authorized and provided on a work of improvement. Existing law also regulates the conditions under which a mechanics lien may be enforced. (Civil Code §§ 8400-8494)
Recognizes prejudgment wage liens against property as a remedy in certain industries, including mining (Civil Code § 3060), agriculture (Civil Code §§ 3061.5-3061.6), and logging (Civil Code § 3065).
Requires the Labor Commissioner and his or her deputies and representatives authorized by him or her in writing, upon the filing of a claim therefor by an employee, or an employee representative authorized in writing by an employee, with the Labor Commissioner, to take assignments of, among other things, wage claims and incidental expense accounts and advances and mechanics and other liens of employees. (Labor Code § 96)
Authorizes the Labor Commissioner, after investigation and upon determination that wages or monetary benefits are due and unpaid to any worker in the State of California, to collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the Commissioner. (Labor Code § 96.7)
Authorizes the Labor Commissioner to investigate employee complaints and provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and is required to determine all matters arising under his or her jurisdiction. (Labor Code § 98)
Authorizes the Labor Commissioner, at the Commissioner’s discretion and upon a final order, to place a lien on real property for amounts due under the final order and in favor of the employee or employees named in the order, with the county recorder of any county in which the employer’s real property may be located. (Labor Code § 98.2(g))
Provides that, if any employer or other person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation shall be subject to a civil penalty. (Labor Code § 558)
This bill authorizes the Labor Commissioner to file a lien on all property of the employer in California for the full amount of any wages and other compensation, penalties, and interest owed to the employee.
Specifically, this bill:
Allows the Labor Commissioner, after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee, to collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. This can only be done with the consent of the aggrieved worker.
Provides that, any person, upon whom a levy has been noticed for either possessing or owing credits, money, or property belonging to the judgment shall surrender the credits, money, or property to the commissioner or pay to the commissioner the amount of any debt owing the judgment debtor within 10 days of service of the levy. This includes property, money or credits coming into the person’s possession within one year of receipt of the notice of levy.
Provides that any person who complies with the notice of Levy from the Labor Commissioner shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner.
Provides that any person who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor shall be liable in his or her own person or estate to the commissioner in an amount equal to the levy.
Provides a process for filing a levy with a bank or other financial institution, as defined under federal law.
Limits the above-discussed provisions to property that IS NOT real property.
Surety Bond Requirements:
Requires that, if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after a period of 10 days after the time to appeal therefrom has expired, the employer must cease business operations unless the employer has obtained a surety bond of $150,000. The bond must be filed with the Labor Commissioner and be payable to the people of the State of California for the benefit of any employee damaged by his or her employer’s failure to pay wages, including any interest, penalties, and attorney’s fees.
Allows the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment instead of filing a surety bond described above.
Provides that a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages shall be deemed the same employer for purposes of this section if:
The employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors; or
If the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
Requires that any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil fine $2,500 and that any employer that has previously paid a fine pursuant to this section shall be subject to an additional fine of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section, capped at $100,000.
Exempts employers from the requirements of the bond if they employ workers who are covered by a bona fide collective bargaining agreement that expressly provides for wages, hours of work, working conditions, includes a process to resolve disputes concerning nonpayment of wages, and contains a waiver of the bond.
Provides notice requirements to the Labor Commissioner in the event of the surety bond being cancelled or terminated.
Provides the following in the event of an employer failing to comply with the bond provisions listed above:
A stop order prohibiting the use of employee labor by that employer or use of subcontracted labor until the employer complies with bonding requirements. The stop order must become effective immediately, and the employer must pay any worker for their lost time due to the stop order, not exceeding 10 days.
A lien on the real property and personal property of an employer that for the full amount of any wages, interest, penalties, and attorney’s fees claimed to be owed to any employee. This lien would be filed by the Labor Commissioner. Unless the lien is satisfied or released, the lien must continue until 10 years from the date of its creation.
Creates notice and filing requirements for the lien provisions discussed above, as well as give the Labor Commissioner the ability to foreclose on the property.
Licensure:
Prohibits the State Department of Public Health or the State Department of Social Services from allowing a long-term care industry from obtaining or renewing a license if the employer is conducting business of the surety bond requirement. This bill defines a long-term care industry as a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization.
Joint and Several Liability:
Holds individual, partnership, corporation, limited liability company, joint venture, or association jointly and severally liable for liens against real property if the entity provides janitorial, security guard, valet parking, landscaping, gardening services, and long-term care and has been named a defendant and to the extent that the amounts are for services performed under that contract.
Creates a notice requirement for contractors of janitorial, security guard, valet parking, landscaping, gardening services, and long-term care if there are outstanding wage violations for prospective contracts, but also states that the employer to provide such notices shall not be a defense to the joint and several liability as described above.
Liability for Acting on Behalf of the Employer:
Allows for the Labor Commissioner to hear complaints against a person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation, and would also make a person acting on behalf of an employer liable for willfully failing to pay wages, provide a paystub, unpaid minimum wages or overtime, and failing to indemnifying an employee.
Enforcement Provisions:
Creates enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
Comments
1) Wage Theft: A Brief Background
In 2008, the Ford Foundation sponsored a survey of 4,387 workers in low-wage industries in the three largest U.S. cities: Chicago, Los Angeles and New York City. The report of that survey, titled Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America's Cities, revealed that 26 percent of workers in the sample were paid less than the legally required minimum wage the prior work week, and 60 percent of these workers were underpaid by more than $1 per hour. In addition, 76 percent of the respondents who worked overtime in the previous week were not paid the legally required overtime rate by their employers.
The study also notes that minimum wage violation rates vary significantly by industry, and occupation. For example, some industries, such as apparel and textile manufacturing and personal and repair services have minimum wage violation rates that exceed 40 percent, while others, including restaurants, and retail and grocery stores, have rates of 20 to 25 percent. However, the study found that undocumented immigrant women were at the greatest risk of minimum wage violations. The study estimated that the workers in low-wage industries Chicago, Los Angeles, and New York City lose more than $56.4 million per week due to labor law violations.
A follow-up study by the UCLA Institute for Research and Labor and Employment was published earlier this year, and that study utilized the data from the 2008 survey, but focused specifically on Los Angeles County. This study, titled Wage Theft and Workplace Violations in Los Angeles: The Failure of Employment and Labor Law for Low-Wage Workers focused on a survey results of 1,815 workers in Los Angeles County.
This study found similar results to the national survey: almost 30 percent of the workers sampled were paid less than the minimum wage in the prior work week, and 63.3 percent of these workers were underpaid by more than $1 per hour. Assuming a full-year work schedule, Los Angeles County survey respondents lost an average of $2,070.00 annually out of total earnings of $16,536.00. The study estimated that workers in low-wage industries in Los Angeles County lose more than $26.2 million per week as a result of employment and labor law violations.
Both of the studies make the same public policy recommendations to address these issues, which included strengthening government enforcement of existing employment and labor laws and stiffening the penalties.
2) Wage Theft in California: Collecting Unpaid Wages
Equally troubling, if not more troubling, than the high rate of wage theft in California is the low rate of collections. According to a 2013 report published by the National Employment Law Project (NELP) and the UCLA Labor Center, only 17% of workers who prevailed in their wage claims before the DLSE and won a judgment were able to receive any payment between 2008 and 2011. Of those who did receive payment between 2008 and 2011, workers were able to collect 15% of what was owed. In short, the vast majority of wage theft victims received nothing, and those that received anything received little of what they were legally due.
3) Stakeholder Concerns
This bill is currently unopposed. However, a coalition of employers raises several concerns with SB 588. First, they would like to see the surety bond capped at $150,000, with the Labor Commissioner able to ask for a lower bond. They would also like employers to have 25 days, rather than 10 days, to file a surety bond after a final order. Second, the employer coalition would like to remove the ability of the Labor Commissioner to retrieve attorney’s fees through the lien process. Finally, the employer coalition would like to see the joint and several liability provisions mirror existing law.
Prior Legislation
AB 2416 (Stone, 2014) would have allowed an employee request that the Labor Commissioner files a pre-judgment lien on an employer’s real, personal property, or on the real property where a contracted employee conducted work, in order to assist the employee in collecting unpaid wages. AB 2416 failed passage on the Senate Floor.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee, The Department of Industrial Relations (DIR) indicates that SB 588 would incur first year costs of $2.6 million (special fund) to implement the provisions of the bill, with ongoing costs totaling $2.2 million. DIR also notes unknown, potentially significant court costs associated with additional proceedings regarding wage claims.
Alliance of Californians for Community Empowerment
Alliance San Diego
Asian Americans Advancing Justice- Los Angeles
California Employment Lawyers Association
California Immigrant Policy Center
California Labor Federation, AFL-CIO
California Professional Firefighters
California Rural Legal Assistance
Center on Policy Initiatives
Central American Resource Center
Centro Legal de la Raza
Chinese Progressive Association
CHIRLA-Coalition for Humane Immigrant Rights of Los Angeles
CLEAN Car Wash Campaign
Clergy and Laity United for Economic Justice
Coalition For A Safe Environment
Coalition to Abolish Slavery & Trafficking
Community Action Board of Santa Cruz County Inc.
Community Services
Day Labor Center Hayward/ Oakland
Day Worker Center of Mountain View
Dignity Campaign
Dolores Street Community Services
Employment Rights Center
Equal Rights Advocates
Filipino Advocates for Justice
Filipino Migrant Center
Fresno County Democrats
Garment Worker Center
Gender Justice LA
Graton Day Labor Center
Holman United Methodist Church
Housing Long Beach
Human Impact Partners
InnerCity Struggle
Instituto de Educacion Popular del Sur de California
Katharine & George Alexander Community Law Center
Khmer Girls in Action
Koreatown Immigrant Workers Alliance
LA Black Worker Center
La Colectiva De Mujeres
Liberty Hill Foundation
Los Angeles Alliance for a New Economy
Los Angeles Fight for $15 Organizing Committee
Maintenance Cooperation Trust Fund
Making Change at Walmart
Mi Familia Vota
National Association of Working Women
National Day Laborer Organizing Network
National Employment Law Project
One LA-IAF
Pacoima Beautiful
Pilgrim United Church of Christ
Pilipino Association of Workers and Immigrants - Silicon Valley
Restaurant Opportunities Center of Los Angeles
Sacramento Area Congregations Together
San Diego and Imperial Counties Labor Council, AFL-CIO
San Francisco Day Labor Program & Women’s Collective, a program of Dolores Street
San Francisco Progressive Workers Alliance
Santa Clara University
SoCalCosh, Southern California Coalition for Occupational Safety and Health
Social Justice Learning Institute
Street Level Health Project
T.R.U.S.T. South LA
The Institute of Popular Education of Southern California
The Wage Justice Center
UCLA Labor Center
Union de Vecinos
Workplace Justice Initiative
Worksafe, Inc.
9to5
OPPOSITION: (Verified 4/20/15)
None received
ARGUMENTS IN SUPPORT: Proponents, noting the 2010 wage theft study discussed earlier, argue that wage theft is a significant problem in California, with LA County’s wage theft resulting in over $1 billion unlawfully failing to reach the workers who desperately need it. Proponents also note that current wage theft collection rates are less than 20%, meaning the vast majority of scofflaw employers are successful in robbing their workers of their lawful wages. Proponents believe that SB 588 will help combat the high rate of wage theft in California by creating a simple lien process for the Labor Commissioner to use against employers who rob workers of their wages. Proponents, noting Wisconsin’s success, argue that wage liens are simple, effective, and a time tested approach to halting wage theft.
Prepared by: Gideon Baum / LIR / (916) 651-1556
5/31/15 13:04:46
**** END ****
SB 588 (De León) Page 5 of 5
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 588 (De León) - Employment: nonpayment of wages: Labor Commissioner: judgment enforcement
|
|
Version: April 30, 2015 |
Policy Vote: JUD. 4 - 1, L. & I.R. 4 - 1 |
Urgency: No |
Mandate: Yes |
Hearing Date: May 11, 2015 |
Consultant: Robert Ingenito |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
SB 588, upon a judgment against an employer, would allow the Labor Commissioner to file a lien or levy on an employer’s property in order to assist an employee in collecting unpaid wages. Specifically, this bill would authorize the Labor Commissioner to (1) levy upon the employer’s bank accounts, accounts receivable, and real and personal property, as specified, (2) provide for third-party claims to the property, (3) specify due process notice, hearing, and appeals requirements, (4) authorize a stop order to issue against the employer, and (5) prohibit the continuation of business until the employer posts a bond, as specified.
Fiscal Impact:
The Department of Industrial Relations (DIR) indicates that it would incur first-year costs of $2.6 million (special fund) to implement the provisions of the bill. Ongoing costs would total $2.2 million. Note: subject to change by hearing time.
Unknown, potentially significant court costs associated with additional proceedings regarding wage claims.
Background:
Wage theft is a term used to describe labor law violations such as not paying an employee minimum wages or overtime, not paying for off-the-clock work, tip stealing, and not paying final wages. Under current law, when an employer fails to pay wages due, the employee has the right to file a claim against the employer with DIR’s Division of Labor Standards Enforcement (DLSE), which is directed by the Labor Commissioner. After conducting an investigation, the Labor Commissioner may hold an administrative conference or hearing, or both. If a party is dissatisfied with the Commissioner's decision, it can appeal to the appropriate civil court. When a worker wins a favorable decision, the process of collecting the award can be difficult and ineffective. Some employers may have already hidden their cash assets, declared bankruptcy, or otherwise become judgment-proof.
In 2008, the Ford Foundation sponsored a survey of 4,387 workers in low-wage industries Chicago, Los Angeles and New York City. The survey found that 26 percent of workers in the sample were paid less than the legally required minimum wage the prior work week, and 60 percent of these workers were underpaid by more than $1 per hour. In addition, 76 percent of the respondents who worked overtime in the previous week were not paid the legally required overtime rate by their employers.
The study also notes that minimum wage violation rates varied widely by industry. For example, some industries, such as apparel and textile manufacturing and personal and repair services have minimum wage violation rates that exceed 40 percent, while others, including restaurants, and retail and grocery stores, have rates of 20 to 25 percent. The study found that undocumented immigrant women were at the greatest risk of minimum wage violations. Overall, it estimated that the workers in low-wage industries Chicago, Los Angeles, and New York City lose more than $56 million per week due to labor law violations.
A subsequent 2014 study by UCLA researchers utilized the data from the 2008 survey, but focused specifically on Los Angeles County. This study focused on survey results of 1,815 workers in Los Angeles County, and found results similar to the national survey: nearly 30 percent of the workers sampled were paid less than the minimum wage in the prior work week, and 63 percent of these workers were underpaid by more than $1 per hour. Based on a full-year work schedule, Los Angeles County survey respondents lost an average of $2,070 annually out of total earnings of $16,536. The study estimated that workers in low-wage industries in Los Angeles County lose more than $26 million per week as a result of employment and labor law violations.
The California Constitution gives "mechanics, persons furnishing materials, artisans, and laborers of every class the right to file a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor and material." The state constitution further requires the Legislature to provide, by law, for the speedy and efficient enforcement of such liens. The Civil Code sets forth the obligations, rights, and remedies of those involved in a construction project. This lien is generally only available to construction workers (and a few others specially provided for by statute) and only allows the worker to place a lien on the property upon which labor was bestowed. An employee who performed labor that did not entail construction or making an improvement to real property – such as service work, for example – cannot make use of a mechanic's lien.
Proposed Law:
This bill would authorize the Labor Commissioner to file a lien on all property of the employer in California for the full amount of any wages and other compensation, penalties, and interest owed to the employee. Specifically, this bill would, among other things, do the following:
Allow the Labor Commissioner, after a judgment is entered in favor of either the Labor Commissioner or the employee, to collect (with the worker’s consent) any outstanding amount of the judgment by mailing a notice of levy, as specified.
Provide that, any person, upon whom a levy has been noticed for either possessing or owing credits, money, or property belonging to the judgment shall surrender the credits, money, or property to the Commissioner or pay to the Commissioner the amount of any debt owing the judgment debtor within 10 days of service of the levy. This includes property, money or credits coming into the person’s possession within one year of receipt of the notice of levy.
Provide that any person who complies with the notice of Levy from the Labor Commissioner shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner.
Provide that any person who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor shall be liable in his or her own person or estate to the Commissioner in an amount equal to the levy.
Provide a process for filing a levy with a bank or other financial institution, as defined under federal law.
Limit the above-discussed provisions to property that is not real property.
With respect to surety bond requirements, this bill would do the following:
Require that, if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in the State remains unsatisfied after a period of 10 days after the time to appeal therefrom has expired, the employer must cease business operations unless the employer has obtained a surety bond of $150,000. The bond must be filed with the Labor Commissioner, as specified.
Allow, as an alternative, the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment instead of filing a surety bond described above.
Provide that a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages shall be deemed the same employer if specified criteria are met.
Require that any employer, or other person acting on behalf of an employer, that conducts business in violation section shall be subject to a civil fine $2,500 and that any employer that has previously paid a fine pursuant to this section shall be subject to an additional fine of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section, capped at $100,000.
Exempt employers from the requirements of the bond if they employ workers who are covered by a bona fide collective bargaining agreement that expressly provides for wages, hours of work, working conditions, includes a process to resolve disputes concerning nonpayment of wages, and contains a waiver of the bond.
Provide notice requirements to the Labor Commissioner in the event of the surety bond being cancelled or terminated.
This bill would provide the following in the event of an employer failing to comply with the bond provisions listed above:
A stop order prohibiting the use of employee labor by that employer or use of subcontracted labor until the employer complies with bonding requirements. The stop order must become effective immediately, and the employer must pay any worker for their lost time due to the stop order, not exceeding 10 days.
A lien on the real property and personal property of an employer that for the full amount of any wages, interest, penalties, and attorney’s fees claimed to be owed to any employee. This lien would be filed by the Labor Commissioner. Unless the lien is satisfied or released, the lien must continue until 10 years from the date of its creation.
This bill would create notice and filing requirements for the lien provisions discussed above, as well as give the Labor Commissioner the ability to foreclose on the property.
This bill would prohibit the Department of Public Health or the Department of Social Services from allowing a long-term care industry from obtaining or renewing a license if the employer is conducting business of the surety bond requirement, as specified.
This bill would hold individual, partnership, corporation, limited liability company, joint venture, or association jointly and severally liable for liens against real property if the entity provides janitorial, security guard, valet parking, landscaping, gardening services, and long-term care and has been named a defendant and to the extent that the amounts are for services performed under that contract. Additionally, this bill creates a notice requirement for contractors of janitorial, security guard, valet parking, landscaping, gardening services, and long-term care if there are outstanding wage violations for prospective contracts, but also states that the employer to provide such notices shall not be a defense to the joint and several liability as described above.
This bill would provide for the Labor Commissioner to hear complaints against a person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation, and would also make a person acting on behalf of an employer liable for willfully failing to pay wages, provide a paystub, unpaid minimum wages or overtime, and failing to indemnifying an employee.
Finally, this bill would also create enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
Related Legislation:
AB 2416 (Stone) allowed an employee request that the Labor Commissioner files a pre-judgment lien on an employer’s real, personal property, or on the real property where a contracted employee conducted work, in order to assist the employee in collecting unpaid wages. AB 2416 failed passage on the Senate Floor.
Staff Comments:
The Labor Commissioner receives roughly 36,000 wage claims annually, about 8,000 of which complete the process and reach the Order, Decision or Award (ODA) stage. Of the latter amount, about 6,500 claims are found in favor of the wage claimant. If an ODA is issued in favor of an employee, the employer must either (1) comply with the ODA and pay back wages (and any applicable interest and penalties) within 10 days, or (2) appeal the decision in civil court. If an employer does not do either, the award is then turned into a judgment.
AB 1386 (Committee on Labor and Employment) was enacted in 2013, and permits the Labor Commissioner to place a lien on an employer’s property within the State after a final order has been issued. This bill would go beyond the scope of AB 1386 such that the Commissioner’s Office would incur additional workload resulting from (1) the utilization of the levy process as a supplemental option beyond placing liens, and (2) duties related to the surety bonds and the stop order process. DIR preliminarily anticipates the additional workload would result in first-years costs of $2.6 million, with $2.2 million ongoing annually.
-- END --
SB 588 (De León) Page 8 of 8
SENATE COMMITTEE ON LABOR AND INDUSTRIAL RELATIONS
Senator Tony Mendoza, Chair
2015 - 2016 Regular
Bill No: SB 588 Hearing Date: April 29, 2015
Author: |
De León |
||
Version: |
April 20, 2015 |
||
Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Gideon Baum |
||
Subject: Employment: nonpayment of wages: Labor Commissioner: judgment enforcement
KEY ISSUE
Should the Legislature allow the Labor Commissioner to file a lien or levy on an employer’s property in order to assist the employee in collecting unpaid wages when there is a judgment against the employer?
ANALYSIS
Existing law provides mechanics, persons furnishing materials, artisans, and laborers of every class the right to file a lien upon the property upon which they have bestowed labor or furnished material for the value of such labor and material. Existing law also requires the Legislature to provide, by law, for the speedy and efficient enforcement of such liens.
(California Constitution Article XIV, Section 3)
Existing law provides for mechanics liens relating to services and supplies authorized and provided on a work of improvement. Existing law also regulates the conditions under which a mechanics lien may be enforced. (Civil Code §§ 8400-8494)
Existing law recognizes prejudgment wage liens against property as a remedy in certain industries, including mining (Civil Code § 3060), agriculture (Civil Code §§ 3061.5-3061.6), and logging (Civil Code § 3065).
Existing law requires the Labor Commissioner and his or her deputies and representatives authorized by him or her in writing, upon the filing of a claim therefor by an employee, or an employee representative authorized in writing by an employee, with the Labor Commissioner, to take assignments of, among other things, wage claims and incidental expense accounts and advances and mechanics and other liens of employees. (Labor Code § 96)
Existing law authorizes the Labor Commissioner, after investigation and upon determination that wages or monetary benefits are due and unpaid to any worker in the State of California, to collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the Commissioner. (Labor Code § 96.7)
Existing law authorizes the Labor Commissioner to investigate employee complaints and provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, properly before the division or the Labor Commissioner, including orders of the Industrial Welfare Commission, and is required to determine all matters arising under his or her jurisdiction. (Labor Code § 98)
Existing law authorizes the Labor Commissioner, at the Commissioner’s discretion and upon a final order, to place a lien on real property for amounts due under the final order and in favor of the employee or employees named in the order, with the county recorder of any county in which the employer’s real property may be located. (Labor Code § 98.2(g))
Existing law provides that, if any employer or other person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation shall be subject to a civil penalty. (Labor Code § 558)
This bill would authorize the Labor Commissioner to file a lien on all property of the employer in California for the full amount of any wages and other compensation, penalties, and interest owed to the employee.
Specifically, this bill would:
Allow the Labor Commissioner, after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee, to collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy. This can only be done with the consent of the aggrieved worker.
Provide that, any person, upon whom a levy has been noticed for either possessing or owing credits, money, or property belonging to the judgment shall surrender the credits, money, or property to the commissioner or pay to the commissioner the amount of any debt owing the judgment debtor within 10 days of service of the levy. This includes property, money or credits coming into the person’s possession within one year of receipt of the notice of levy.
Provide that any person who complies with the notice of Levy from the Labor Commissioner shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the commissioner.
Provide that any person who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor shall be liable in his or her own person or estate to the commissioner in an amount equal to the levy.
Provides a process for filing a levy with a bank or other financial institution, as defined under federal law.
Limits the above-discussed provisions to property that IS NOT real property.
Surety Bond Requirements:
This bill would also:
Require that, if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after a period of 10 days after the time to appeal therefrom has expired, the employer must cease business operations unless the employer has obtained a surety bond of $150,000. The bond must be filed with the Labor Commissioner and be payable to the people of the State of California for the benefit of any employee damaged by his or her employer’s failure to pay wages, including any interest, penalties, and attorney’s fees.
Allow the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment instead of filing a surety bond described above.
Provides that a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages shall be deemed the same employer for purposes of this section if:
The employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors; or
If the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
Requires that any employer, or other person acting on behalf of an employer, that conducts business in violation of this section shall be subject to a civil fine $2,500 and that any employer that has previously paid a fine pursuant to this section shall be subject to an additional fine of one hundred dollars ($100) for each calendar day that the employer conducts business in violation of this section, capped at $100,000.
Exempts employers from the requirements of the bond if they employ workers who are covered by a bona fide collective bargaining agreement that expressly provides for wages, hours of work, working conditions, includes a process to resolve disputes concerning nonpayment of wages, and contains a waiver of the bond.
Provides notice requirements to the Labor Commissioner in the event of the surety bond being cancelled or terminated.
This bill provides the following in the event of an employer failing to comply with the bond provisions listed above:
A stop order prohibiting the use of employee labor by that employer or use of subcontracted labor until the employer complies with bonding requirements. The stop order must become effective immediately, and the employer must pay any worker for their lost time due to the stop order, not exceeding 10 days.
A lien on the real property and personal property of an employer that for the full amount of any wages, interest, penalties, and attorney’s fees claimed to be owed to any employee. This lien would be filed by the Labor Commissioner. Unless the lien is satisfied or released, the lien must continue until 10 years from the date of its creation.
This bill would create notice and filing requirements for the lien provisions discussed above, as well as give the Labor Commissioner the ability to foreclose on the property.
Licensure:
This bill would also prohibit the State Department of Public Health or the State Department of Social Services from allowing a long-term care industry from obtaining or renewing a license if the employer is conducting business of the surety bond requirement. This bill defines a long-term care industry as a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization.
Joint and Several Liability:
This bill would hold individual, partnership, corporation, limited liability company, joint venture, or association jointly and severally liable for liens against real property if the entity provides janitorial, security guard, valet parking, landscaping, gardening services, and long-term care and has been named a defendant and to the extent that the amounts are for services performed under that contract.
This bill creates a notice requirement for contractors of janitorial, security guard, valet parking, landscaping, gardening services, and long-term care if there are outstanding wage violations for prospective contracts, but also states that the employer to provide such notices shall not be a defense to the joint and several liability as described above.
Liability for Acting on Behalf of the Employer:
This bill would allow provide for the Labor Commissioner to hear complaints against a person acting on behalf of an employer who violates, or causes to be violated, any provision regulating hours and days of work in either statute or regulation, and would also make a person acting on behalf of an employer liable for willfully failing to pay wages, provide a paystub, unpaid minimum wages or overtime, and failing to indemnifying an employee.
Enforcement Provisions:
This bill would also create enforcement provisions for liens and levies discussed above within the Code of Civil Procedure. These provisions would bestow jurisdiction on the superior court and detail the service and hearing requirements for levies and liens filed by the Labor Commissioner.
COMMENTS
1. Wage Theft: A Brief Background
In 2008, the Ford Foundation sponsored a survey of 4,387 workers in low-wage industries in the three largest U.S. cities: Chicago, Los Angeles and New York City. The report of that survey, titled Broken Laws, Unprotected Workers: Violations of Employment and Labor Laws in America's Cities, revealed that 26 percent of workers in the sample were paid less than the legally required minimum wage the prior work week, and 60 percent of these workers were underpaid by more than $1 per hour. In addition, 76 percent of the respondents who worked overtime in the previous week were not paid the legally required overtime rate by their employers.
The study also notes that minimum wage violation rates vary significantly by industry, and occupation. For example, some industries, such as apparel and textile manufacturing and personal and repair services have minimum wage violation rates that exceed 40 percent, while others, including restaurants, and retail and grocery stores, have rates of 20 to 25 percent. However, the study found that undocumented immigrant women were at the greatest risk of minimum wage violations. The study estimated that the workers in low-wage industries Chicago, Los Angeles, and New York City lose more than $56.4 million per week due to labor law violations.
A follow-up study by the UCLA Institute for Research and Labor and Employment was published earlier this year, and that study utilized the data from the 2008 survey, but focused specifically on Los Angeles County. This study, titled Wage Theft and Workplace Violations in Los Angeles: The Failure of Employment and Labor Law for Low-Wage Workers focused on a survey results of 1,815 workers in Los Angeles County.
This study found similar results to the national survey: almost 30 percent of the workers sampled were paid less than the minimum wage in the prior work week, and 63.3 percent of these workers were underpaid by more than $1 per hour. Assuming a full-year work schedule, Los Angeles County survey respondents lost an average of $2,070.00 annually out of total earnings of $16,536.00. The study estimated that workers in low-wage industries in Los Angeles County lose more than $26.2 million per week as a result of employment and labor law violations.
Both of the studies make the same public policy recommendations to address these issues, which included strengthening government enforcement of existing employment and labor laws and stiffening the penalties.
3. Wage Theft in California: Collecting Unpaid Wages
Equally troubling, if not more troubling, than the high rate of wage theft in California is the low rate of collections. According to a 2013 report published by the National Employment Law Project (NELP) and the UCLA Labor Center, only 17% of workers who PREVAILED in their wage claims before the DLSE and won a judgment were able to receive any payment between 2008 and 2011. Of those who did receive payment between 2008 and 2011, workers were able to collect 15% of what was OWED. In short, the vast majority of wage theft victims received nothing, and those that received anything received little of what they were legally due.
4. Proponent Arguments:
Proponents, noting the 2010 wage theft study discussed earlier, argue that wage theft is a significant problem in California, with LA County’s wage theft resulting in over $1 billion unlawfully failing to reach the workers who desperately need it. Proponents also note that current wage theft collection rates are less than 20%, meaning the vast majority of scofflaw employers are successful in robbing their workers of their lawful wages. Proponents believe that SB 588 will help combat the high rate of wage theft in California by creating a simple lien process for the Labor Commissioner to use against employers who rob workers of their wages. Proponents, noting Wisconsin’s success, argue that wage liens are simple, effective, and a time tested approach to halting wage theft.
5. Concerns:
This bill is currently unopposed. However, a coalition of employers raises several concerns with SB 588. First, they would like to see the surety bond capped at $150,000, with the Labor Commissioner able to ask for a lower bond. They would also like employers to have 25 days, rather than 10 days, to file a surety bond after a final order. Second, the employer coalition would like to remove the ability of the Labor Commissioner to retrieve attorney’s fees through the lien process. Finally, the employer coalition would like to see the joint and several liability provisions mirror existing law.
6. Prior Legislation:
AB 2416 (Stone) allowed an employee request that the Labor Commissioner files a pre-judgment lien on an employer’s real, personal property, or on the real property where a contracted employee conducted work, in order to assist the employee in collecting unpaid wages. AB 2416 failed passage on the Senate Floor.
SUPPORT
Alliance of Californians for Community Empowerment
Alliance San Diego
Asian Americans Advancing Justice- Los Angeles
California Employment Lawyers Association
California Immigrant Policy Center
California Labor Federation, AFL-CIO
California Professional Firefighters
California Rural Legal Assistance
Center on Policy Initiatives
Central American Resource Center (CARECEN -- Los Angeles)
Centro Legal de la Raza
Chinese Progressive Association
CHIRLA-Coalition for Humane Immigrant Rights of Los Angeles
CLEAN Car Wash Campaign
Clergy and Laity United for Economic Justice (CLUE)
Coalition For A Safe Environment
Coalition to Abolish Slavery & Trafficking (CAST)
Community Action Board of Santa Cruz County Inc.
Community Services
Day Labor Center Hayward/ Oakland
Day Worker Center of Mountain View (DWCMV)
Dignity Campaign
Dolores Street Community Services
Employment Rights Center
Equal Rights Advocates
Filipino Advocates for Justice
Filipino Migrant Center
Fresno County Democrats
Garment Worker Center
Gender Justice LA
Graton Day Labor Center
Holman United Methodist Church
Housing Long Beach
Human Impact Partners
InnerCity Struggle
Instituto de Educacion Popular del Sur de California (IDEPSCA)
Katharine & George Alexander Community Law Center
Khmer Girls in Action
Koreatown Immigrant Workers Alliance (KIWA)
LA Black Worker Center
La Colectiva De Mujeres
Liberty Hill Foundation
Los Angeles Alliance for a New Economy (LAANE)
Los Angeles Fight for $15 Organizing Committee
Maintenance Cooperation Trust Fund
Making Change at Walmart
Mi Familia Vota
National Association of Working Women
National Day Laborer Organizing Network
National Employment Law Project
One LA-IAF
Pacoima Beautiful
Pilgrim United Church of Christ
Pilipino Association of Workers and Immigrants - Silicon Valley
Restaurant Opportunities Center of Los Angeles
Sacramento Area Congregations Together
San Diego and Imperial Counties Labor Council, AFL-CIO
San Francisco Day Labor Program & Women’s Collective, a program of Dolores Street
San Francisco Progressive Workers Alliance
Santa Clara University
SoCalCosh, Southern California Coalition for Occupational Safety and Health
Social Justice Learning Institute
Street Level Health Project
T.R.U.S.T. South LA
The Institute of Popular Education of Southern California
The Wage Justice Center
UCLA Labor Center
Union de Vecinos
Workplace Justice Initiative
Worksafe, Inc.
9to5
OPPOSITION
None on file.
-- END --
SB 588 (De León)
Page 20 of 20
Senator Hannah-Beth Jackson, Chair
2015 - 2016 Regular Session
SB 588 (De León)
Version: April 20, 2015
Hearing Date: April 28, 2015
Fiscal: Yes
Urgency: No
TMW
SUBJECT
Employment: nonpayment of wages: Labor Commissioner: judgment enforcement
DESCRIPTION
This bill would establish procedures through which the Labor Commissioner could enforce judgments against employers who fail to satisfy a final judgment relating to the nonpayment of wages to employees. This bill would authorize the Labor Commissioner to levy upon the employer’s bank accounts, accounts receivable, and real and personal property, as specified, provide for third-party claims to the property, specify due process notice, hearing, and appeals requirements, authorize a stop order to issue against the employer, and prohibit the continuation of business until the employer posts a bond, as specified.
This bill would also prohibit renewal of the license of a long-term care facility that fails to satisfy the judgment after the time to appeal has expired. This bill would make entities contracting with the employer for property services (janitorial, security guard, valet parking, landscaping, and gardening) and long-term care facility industries jointly and severally liable for the unpaid judgment, as specified.
BACKGROUND
Wage theft is a term used to describe labor law violations such as not paying an employee minimum wages or overtime, not paying for off-the-clock work, tip stealing, and not paying final wages. As the author of this bill reports, wage theft is on the rise and California workers are not being paid money earned.
Several high profile wage theft cases have been reported in recent years. In February 2009, the Los Angeles City Attorney filed criminal charges against two car wash owners for failing to pay 250 workers the minimum wage and for denying them legally required meal and rest breaks. The filing alleged that, in violation of minimum wage laws, workers were paid a flat rate of $35.00 to $40.00 a day for shifts of more than eight hours, that their lunch breaks were as little as fifteen minutes a day, they received no pay for overtime work, and no medical care was provided for lacerations and acid burns caused by the machinery and chemicals they used on the job. The owners were charged with failing to pay a total of $450,000 in back wages over five years. (Cathcart, Carwashes Accused of Labor Violations (Feb. 11, 2009) New York Times <http://www.nytimes.com/2009/02/11/us/11carwash.html> [as of Apr. 24, 2015].)
A similar lawsuit against a builder employing residential construction workers in California, Nevada, and Arizona alleged that the company failed to pay employees for hours they worked, did not pay legally required overtime or provide breaks, and kept workers off the clock while they traveled between job sites and awaited materials. The suit was settled in October 2009, providing over $242,000 in unpaid wages to 85 workers. (McDonnell, Builder to Settle with 85 Workers in Overtime Case (Oct. 13, 2009) Los Angeles Times <http://www.latimes.com/entertainment/news/arts/la-me-construction13-2009oct13,0,7344863.story> [as of Apr. 24, 2015].)
The problem is not limited to small businesses like car washes or garment subcontractors. In 2008, Wal-Mart announced a settlement of 63 cases in 42 states, which involved charges that the company had forced employees to work off the clock without pay after their official shifts ended. The settlement totaled $352 million in unpaid wages and involved hundreds of thousands of current and former Wal-Mart hourly employees across the country. In California, a jury ordered Wal-Mart to pay $172 million for making employees miss meal breaks. (Associated Press, Wal-Mart Settles Workers’ Suit for $54.25M (Dec. 9, 2008) CBS News <http://www.cbsnews. com/stories/2008/12/09/business/main4657472.shtml> [as of Apr. 24, 2015].)
A recent University of California Los Angeles (UCLA) study found that an estimated 654,914 workers in L.A. County suffer at least one pay-based violation every week. Front-line workers in low-wage industries lose more than $26.2 million per week as a result of employment and labor law violations. The study noted the societal ills of wage theft in that “[w]age theft not only depresses the already meager earnings of low-wage workers, it also adversely impacts their communities and the local economies of which they are a part. Low-income families spend the bulk of their earnings on basic necessities like food, clothing, and housing. Their expenditures circulate through local economies, supporting businesses and jobs. Wage theft robs local communities of this spending and ultimately limits economic growth.” (Milkman, González, Narro, Wage Theft and Workplace Violations in Los Angeles, The Failure of Employment and Labor Law for Low-Wage Workers (2010) Institute for Research on Labor and Employment, University of California, Los Angeles, p. 58.) Further, only 17 percent of California workers who succeed in a wage claim filed with the California Division of Labor Standards Enforcement were able to recover any payment, leaving 83 percent of wage claimants unpaid. (National Employment Law Project and UCLA Labor Center, Hollow Victories, the Crisis in Collecting Unpaid Wages for California’s Workers (June 27, 2013) <http://nelp.3cdn.net/b5cea6550994c2358d_15m6id1ha.pdf> [as of Apr. 24, 2015] p. 2.)
In December 2014, the United States Department of Labor reported that California had an estimated 372,000 minimum wage violations each week, which were associated with $22.5 million in weekly lost income or 49.3 percent of the earned income of the workers experiencing the violations. (U.S. Dept. of Labor, The Social and Economic Effects of Wage Violations: Estimates For California and New York (Dec. 2014) <http://www.dol. gov/asp/evaluation/completed-studies/WageViolationsReportDecember2014.pdf> [as of Apr. 24, 2015] p. ES-2.)
To address the significant wage theft issues in New York, that state enacted, as of February 27, 2015, the Wage Theft Prevention Act, which served as the model to this bill. Recent California legislation has attempted to address the wage theft problem. AB 2416 (Stone, 2014) would have enacted the California Wage Theft Recovery Act to allow an employee to place a lien on the employer’s real and personal property at the time of filing a complaint for wages and prior to judgment. AB 2416 died on the Senate Floor Third Reading File. AB 2416 was substantially similar to AB 1164 (Lowenthal, 2013), which died on the Assembly Floor Inactive File.
This bill seeks to address wage theft by authorizing the Labor Commissioner to enforce judgments, as specified, against an employer arising from the employer’s nonpayment of wages for work performed in this state.
If this bill is approved by this Committee, it will be referred to the Senate Committee on Labor and Industrial Relations.
CHANGES TO EXISTING LAW
Existing law requires the Labor Commissioner and his or her deputies and representatives authorized by him or her in writing, upon the filing of a claim by an employee, or an employee representative authorized in writing by an employee, with the Labor Commissioner, to take assignments of, among other things, wage claims and incidental expense accounts and advances and mechanics and other liens of employees. (Lab. Code Sec. 96.)
Existing law authorizes the Labor Commissioner, after investigation and upon determination that wages or monetary benefits are due and unpaid to any worker in the State of California, to collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the Labor Commissioner. (Lab. Code Sec. 96.7.)
Existing law authorizes the Labor Commissioner to investigate employee complaints and provide for a hearing in any action to recover wages, penalties, and other demands for compensation, including liquidated damages if the complaint alleges payment of a wage less than the minimum wage fixed by an order of the Industrial Welfare Commission or by statute, and requires the Labor Commissioner to determine all matters arising under his or her jurisdiction. (Lab. Code Sec. 98.)
Existing law authorizes the Labor Commissioner to prosecute all actions for the collection of wages, penalties, and demands of persons who are financially unable to hire counsel and the Labor Commissioner believes have claims which are valid and enforceable. (Lab. Code Sec. 98.3.)
Existing law provides working hour regulations and protections against the underpayment of wages, and prescribes civil penalties against any employer or other person acting on behalf of an employer for working hour and underpayment violations. (Lab. Code Sec. 500 et seq.)
Existing law provides that, within 10 days after service of notice of an order, decision, or award, the parties to an action to recover wages, penalties, and other demands for compensation may seek review of the order, decision, or award by filing an appeal to the superior court. (Lab. Code Sec. 98.2(a).) As a condition to filing an appeal, existing law requires the employer to first post an appeal bond or cash deposit with the court in the amount of the order, decision, or award. (Lab. Code Sec. 98.2(b).)
Existing law provides that if an employer has been convicted of a wage violation, or if any judgment against an employer for nonpayment of wages remains unsatisfied for a period of 10 days after the time to appeal therefrom has expired, and no appeal therefrom is then pending, the Labor Commissioner may require the employer to deposit a bond in such sum as the Labor Commissioner may deem sufficient and adequate in the circumstances, to be approved by the Labor Commissioner. (Lab. Code Sec. 240(a).)
Existing law requires the Labor Commissioner to make every reasonable effort to ensure that judgments are satisfied, including taking all appropriate legal action, and requiring the employer to deposit a bond, as specified. (Lab. Code Sec. 98.2(j).)
Existing law, as an alternative to a judgment lien, authorizes the Labor Commissioner to record a certificate of lien on the employer’s real property for amounts due to the employee under the final order, which establishes a claim of an interest in the property that continues for 10 years unless the lien is satisfied or released. (Lab. Code Sec. 98.2(g).)
Existing law provides that the judgment creditor, or the Labor Commissioner as assignee of the judgment creditor, is entitled to court costs and reasonable attorney’s fees for enforcing the judgment. (Lab. Code Sec. 98.2(k).)
Existing law provides various creditor’s remedies for the enforcement of money judgments. (Code Civ. Proc. Sec. 708.010 et seq.)
Existing law provides that, except as otherwise provided by law, all property of the judgment debtor is subject to enforcement of a money judgment. (Code Civ. Proc. Sec. 695.010(a).)
Existing law authorizes a judgment debtor to claim specified property as exempt from enforcement of a money judgment. (Code Civ. Proc. Sec. 703.010 et seq.)
Existing law provides procedures for levy (seizure) of a judgment debtor’s property in order satisfy a judgment. (Code Civ. Proc. Sec. 699.010 et seq.)
Existing law authorizes a judgment creditor to garnish the judgment debtor’s wages (require the judgment debtor’s employer to hold back money from being paid to the debtor in order to give that money to the judgment creditor). (Code Civ. Proc. Sec. 706.010 et seq.)
Existing law authorizes a judgment creditor to levy accounts receivable and money from a judgment debtor’s deposit accounts to satisfy the judgment. (Code Civ. Proc. Secs. 700.140, 700.170.)
Existing law authorizes a third person claiming ownership or the right to possession of a judgment debtor’s property to make a third-party claim if the interest claimed is superior to the judgment creditor’s lien on the property. (Code Civ. Proc. Sec. 720.010.)
This bill would authorize the Labor Commissioner to provide for a hearing against any employer or other person acting on behalf of an employer for a violation involving underpayment of wages.
This bill, after a judgment is entered by a court of competent jurisdiction in favor of the Labor Commissioner or in favor of any employee as specified, would authorize the Labor Commissioner to, with the consent of any employee in whose favor the judgment is entered, collect any outstanding amount of the judgment by mailing a notice of levy upon all persons having in their possession, or who will have in their possession or under their control, any credits, money, or property, other than the debtor’s interest in real property, belonging to the judgment debtor, or who owe any debt to the judgment debtor at the time they receive the notice of levy.
This bill would authorize the Labor Commissioner to execute a levy on any bank account or account receivable, as specified, by mailing a notice of levy to the person against whom the levy is directed and serving a copy on the judgment debtor, and would require the notice of levy to contain all of the information required to be included in a writ of execution in a notice of levy.
This bill would require any person, upon whom a levy has been noticed having in his or her possession or under his or her control any credits, money, or property belonging to the judgment debtor or owing any debts to the judgment debtor at the time of receipt of the levy or coming into his or her possession or under his or her control within one year of receipt of the notice of levy, to surrender the credits, money, or property to the Labor Commissioner or pay to the Labor Commissioner the amount of any debt owing to the judgment debtor within 10 days of service of the levy, and surrender the credits or property, or the amount of any debt owing to the judgment debtor coming into his or her own possession or control within one year of receipt of the notice of levy within 10 days of the date of coming into possession or control of the credits or property or the amount of any debt owing to the judgment debtor.
This bill would provide that any person who surrenders to the Labor Commissioner any credits, money, or property, or pays the debts owing to the judgment debtor, shall be discharged from any obligation or liability to the judgment debtor to the extent of the amount paid to the Labor Commissioner as a result of the levy.
This bill would provide that if the levy is made on a deposit or credits, money, or property in the possession or under the control of a bank, savings and loan association, or other financial institution, as defined, the notice of levy may be delivered or mailed to a centralized location designated by the bank, savings and loan association, or other financial institution, as specified.
This bill would require any person who is noticed with a levy and who fails or refuses to surrender any credits, money, or property or pay any debts owing to the judgment debtor to be liable in his or her own person or estate to the Labor Commissioner in an amount equal to the value of the credits, money, or other property or in the amount of the levy, up to the amount specified in the levy.
This bill would provide that the fees, commissions, expenses, and the reasonable costs associated with the sale of property levied upon by warrant or levy, including, but not limited to, appraisers’ fees, auctioneers’ fees, and advertising fees are an obligation of the judgment debtor and may be collected from the judgment debtor by virtue of the warrant or levy or in any other manner as though these items were part of the judgment or award outstanding.
This bill would provide that whenever a warrant or notice of levy may properly be issued by the Labor Commissioner, and the warrant may be levied with the same effect as a levy pursuant to a writ of execution, the Labor Commissioner may use any of the remedies available to a judgment creditor.
This bill, with respect to the following provisions regarding the employer’s business, would assign jurisdiction over enforcement of creditor remedies to the superior court in the county where the employee resides, in the county where the judgment debtor resides, or in the county where the person against whom the levy or warrant was issued resides.
This bill, whenever the Labor Commissioner levies upon property pursuant to a warrant or notice of levy for the collection of an unsatisfied judgment or award, would authorize the debtor, who is a natural person, to claim the same exemptions to which a judgment debtor is entitled, and made, heard, and determined in the same manner as if the property were levied upon under a writ of execution, and made, heard, and determined in the same manner as if the property were levied upon under a writ of execution.
This bill would require a judgment debtor’s claim of exemption or a third-party claim to be filed with the Labor Commissioner, and be heard and determined in a superior court.
This bill, in the case of a writ of execution issued by a court of competent jurisdiction, would authorize the Labor Commissioner, when collecting an unsatisfied judgment or award, to perform the duties of the levying officer, except that the Labor Commissioner need not give himself or herself the notices that the levying officer is required to serve on a judgment creditor or the notices that a judgment creditor is required to give to the levying officer.
This bill, if the levy is for a deposit, credits, money, or property in the possession or under the control of a bank or savings and loan association or for an account receivable or other general intangible owed to the judgment debtor by an account debtor, would allow the Labor Commissioner to deliver or mail a notice of levy to a centralized location designated by the bank or savings and loan association or, in the case of an account receivable or other general intangible, to the agent for service of process of the account debtor.
This bill, if the notice of levy is received at the designated central location for the bank or savings and loan association, would provide that the notice of levy would apply to all deposits, credits, money, and personal property held by the bank or savings and loan association regardless of the location of that property.
This bill would allow the Labor Commissioner to issue the notice of levy, whether or not a court has issued a writ of execution, and require the notice of levy to contain all of the information required to be included in a writ of execution and in a notice of levy.
This bill, if a final judgment or final arbitration award, as specified, against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after a period of 10 days after the time to appeal therefrom has expired and no appeal therefrom is pending, would prohibit the employer from continuing to conduct business in this state related to that final judgment unless the employer has obtained a bond, in the principal sum of not less than $150,000, from a surety company admitted to do business in this state and has filed a copy of that bond with the Labor Commissioner.
This bill, in lieu of filing and maintaining the bond, would allow the employer to provide the Labor Commissioner with a notarized copy of an accord reached with an individual holding an unsatisfied final judgment.
This bill would require the bond to be issued in favor of, and payable to, the people of the State of California, and for the benefit of any employee damaged by his or her employer’s failure to pay wages, including any interest, penalties, and attorney’s fees.
This bill would not require a bond in favor of employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the bond. This bill would also specify cancellation or termination requirements for the bond.
This bill, subject to written notice to a subsequent employer about any unsatisfied judgments against the employer for nonpayment of wages, would deem a subsequent employer similar in operation and ownership to an employer with an unsatisfied final judgment for unpaid wages to be the same employer and subject to bond requirements if (1) the employees of the subsequent employer are engaged in substantially the same work in substantially the same working conditions under substantially the same supervisors or (2) if the new entity has substantially the same production process or operations, produces substantially the same products or offers substantially the same services, and has substantially the same body of customers.
This bill would authorize civil fines against any employer, or other person acting on behalf of an employer, that conducts business in violation of this bill.
This bill would authorize the Labor Commissioner to issue and serve a stop order on an employer in violation of the bond requirements and prohibit the employer’s use of labor until the employer complies with the bond requirements, provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals. The stop order would also prohibit the employer from continuing to provide services by subcontracting for labor and would become effective immediately upon the service of the order. The bill would require the employer to pay any employee affected by the work stoppage for such time lost, not exceeding 10 days, pending compliance by the employer.
This bill would authorize the employer to protest the stop order by making and filing with the Labor Commissioner a written request for a hearing within 20 days after service of the stop order. This bill would require the hearing to be held within 5 days from the date of filing the request, and require the Labor Commissioner to notify the employer of the time and place of the hearing by mail. This bill would require the stop order to be immediately affirmed or dismissed at the conclusion of the hearing, and within 24 hours thereafter, the Labor Commissioner would be required to issue and serve on all parties to the hearing by registered or certified mail a written notice of findings, accompanied by written findings. This bill would authorize a writ of mandate to be taken from the findings to the appropriate superior court, and require the writ to be taken within 45 days after the mailing of the notice of findings.
This bill would provide criminal penalties for stop order violations and authorize the Labor Commissioner to obtain injunctive and other relief from the courts.
This bill would authorize the Labor Commissioner to create a lien, as specified, on any real property in California of an employer that is conducting business in violation of this bill’s bonding requirements for the full amount of any wages, interest, penalties, and attorney’s fees claimed to be owed to any employee.
This bill would require the Labor Commissioner to issue a certificate of release, releasing the lien, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond, and the certificate of release may be recorded by the employer at the employer’s expense.
This bill, unless the lien is satisfied or released, would require the lien to continue until 10 years from the date of its creation.
This bill, prior to using this lien procedure, would require the Labor Commissioner to provide at least 20 days’ preliminary notice to the employer, and require the preliminary notice to advise the employer of the nature and amount of the employee’s claim and of the Labor Commissioner’s authority to create a lien on the employer’s property to secure payment of the claim. This bill would require the Labor Commissioner to serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employer’s residence or place of business, with a copy of any notice of lien on the employer to be served in the same manner.
This bill, upon entry of a final order, decision, or award issued in an appeal against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, would authorize the Labor Commissioner to bring an action to foreclose on any lien, and this lien right would be in addition to any other lien rights available to an employee or to the Labor Commissioner without limiting those rights.
This bill would authorize the Labor Commissioner to create a lien on any personal property in California of an employer that conducts business in violation of this bill’s bonding requirements for the full amount of any wages, interest, penalties, and attorney’s fees claimed to be owed to any employee. This bill would authorize the Labor Commissioner to create the lien by filing a notice of lien with the Secretary of State on the standard form of initial financing statement, as specified, and would require the standard form to be completed in the following manner: (1) the Labor Commissioner shall be identified as the secured party; (2) the employer shall be identified as the debtor; and (3) the description of the collateral shall include the following statements:
a statement of the Labor Commissioner’s demand for payment of the wages, penalties, interest, and attorney’s fees, specifying the amount owed to the employee, and if the amount is estimated, providing an explanation for the basis of the estimate; and
a general statement of the kind of work furnished by the employee and the dates of employment.
This bill would provide that the attaches to all personal property that is owned by the employer at the time of the filing of the notice of lien, or that is subsequently acquired by the employer, that can be made subject to a security interest.
This bill would require the Labor Commissioner to file a termination statement, releasing the lien created under this section, upon final satisfaction of any judgment entered in favor of the employee, upon adjudication of the claim in favor of the employer, upon the filing of a surety bond in a form acceptable to the Labor Commissioner sufficient to secure the claim. This bill would provide that the notice of claim of lien would cease to be effective upon the filing of the termination statement with the office of the Secretary of State, and would allow a termination statement for a notice of lien to be filed in the same manner as a termination statement for a financing statement.
This bill, unless the lien is satisfied or released, would require the lien on personal property of the employer to continue until 10 years from the date of its creation.
This bill, prior to using this lien procedure, would require the Labor Commissioner to provide at least 20 days’ preliminary notice to the employer, and would require the preliminary notice to advise the employer of the nature and amount of the employee’s claim and of the Labor Commissioner’s authority to create a lien on the employer’s personal property to secure payment of the claim. This bill would require the Labor Commissioner to serve the preliminary notice on the employer by certified mail with return receipt requested, evidenced by a certificate of mailing, postage prepaid, addressed to the employer at the employer’s residence or place of business, with a copy of any notice of lien on the employer to be served in the same manner.
This bill, upon entry of a final order, decision, or award issued in an appeal against the employer for unpaid wages, or entry of a final judgment against the employer for unpaid wages in an action filed in the superior court, would allow the Labor Commissioner to bring an action to foreclose on any lien created on the employer’s personal property, and this lien right would be in addition to any other lien rights available to an employee or to the Labor Commissioner.
This bill would prohibit an employer in the long-term care industry that is also required to obtain a license from the State Department of Public Health or the State Department of Social Services, as specified, from obtaining a license or renewal of that license if the employer is conducting business in violation of this bill’s bonding requirements. This bill would define “long-term care” to mean the operation of a skilled nursing facility, intermediate care facility, congregate living facility, hospice facility, adult residential facility, residential care facility for persons with chronic life-threatening illness, residential care facility for the elderly, continuing care retirement community, home health agency, or home care organization, as specified.
This bill would make an individual, partnership, corporation, limited liability company, joint venture, or association that, as part of its business, contracts with an employer to perform services in the property services or long-term care industries jointly and severally liable, where the individual, partnership, corporation, limited liability company, joint venture, or association has been named as a defendant and provided notice of the original hearing and complaint, with the employer for any unpaid wages, including interest, and the employer was found liable for those unpaid wages by an order, decision or award issued, to the extent the amounts are for services performed under that contract. This bill would authorize the Labor Commissioner to determine the issue of joint and several liability.
This bill would not apply joint and several liability to unpaid wages owed to employees covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, and a waiver of the joint and several liability.
This bill would require an employer that contracts to provide services in the property services or long-term care industries shall, prior to entering into such a contract, to provide written notice, as specified, to the other party to the prospective contract of any unsatisfied final judgments against the employer for nonpayment of wages. This bill would require the employer to provide, within thirty (30) days of the entry of the judgment, written notice of any unsatisfied final judgments against the employer for nonpayment of wages to any parties with which the employer is presently under contract to provide services in the property services or long-term care industries, and the failure of the employer to provide such notices shall not be a defense to the joint and several liability. This bill would define “property services” to mean janitorial, security guard, valet parking, landscaping and gardening services.
This bill would make any person liable for any working hour or wage underpayment violations also liable for unpaid wages, penalties, and other compensation, as specified.
COMMENT
1. Stated need for the bill
The author writes:
According to a 2013 study by the National Employment Law Project and the UCLA Labor Center, it is difficult and rare for workers in California to recover stolen wages. Even if a worker wins their case before the California Division of Labor Standards Enforcement (DLSE) and received a judgment, only 17 [percent] were able to collect any payment.
This is possible, because many of the businesses that are the worst violators of our labor laws simply roll up their operations and close shop when workers try to hold them accountable, thus avoiding any responsibility for their exploitative employment practices. In fact, in over 60 [percent] of the cases where DLSE found an employer owed wages, the employer was listed as non-active, i.e., defunct.
SB 588 gives the Labor Commissioner additional tools to collect from employers who have exhausted all appeals for their non-payment of wages and have final judgments owed. . . . SB 588 also gives the Labor Commissioner the authority to hold individual business owners accountable for their debts to workers. By applying an existing enforcement law to wage claims, responsible individuals can be issued citations personally. This will discourage business owners from rolling up their operations and walking away from their debts to workers and starting a new company.
SB 588 updates and improves collection methods by giving the Labor Commissioner greater flexibility in choosing how to secure the assets needed to pay the wages a business owes. In addition SB 588 targets two high-risk sectors – property services and long-term care – by establishing procedures to ensure parties are held individually responsible to ensure that employers can’t evade the law through contracting and subcontracting arrangements.
2. Expanding lien and levy authority of Labor Commissioner
Existing law authorizes the Labor Commissioner to investigate wage complaints, prosecute those complaints, and enforce wage judgments, which may include placing liens on an employer’s property. (Lab. Code Secs. 98, 98.2, 98.3.) This bill would further authorize the Labor Commissioner to file liens on an employer’s real and personal property to secure an employee’s interest for amounts owed following final judgment. This bill would also authorize the Labor Commissioner to levy the employer’s bank accounts and accounts receivable to take possession of deposits, credits, money, property, and money owed to the employer in order to enforce an employee’s wage judgment.
According to a recent study based on a comprehensive review of records released by the DLSE, “[n]on-payment or underpayment of wages . . . remains rampant nationwide. As a landmark survey of low-wage workers found in 2008, 26 percent of low-wage workers were paid less than the minimum wage in the prior week; 76 percent of those who worked more than 40 hours were not paid the legally required overtime rate. . . . The inability of workers and state authorities to enforce judgments and collect payment from unscrupulous employers has widespread effects.” (National Employment Law Project and UCLA Labor Center, Hollow Victories: The Crisis in Collecting Unpaid Wages for California’s Workers (June 27, 2013) <http://nelp.3cdn.net/b5cea6550994c2358d_ 15m6id1ha.pdf> [as of Apr. 24, 2015] p. 2.) This study recommended strengthening California’s wage lien provisions, noting that “California already allows workers to file a post-judgment lien on employer property. However, for many workers, this is too late. A temporary pre-judgment hold would discourage unscrupulous employers from selling, hiding, or disposing of property while a court evaluates the wage claim or releases the lien. An employer’s business could continue to operate while the validity of the lien is decided.” (Id. at p. 19.) The study also notes that “[m]any states have wage lien laws in some form, providing good experience and success with this mechanism, including Georgia, Idaho, Maryland, New Hampshire, Texas, and Wisconsin . . . where pre-judgment wage liens are available to workers [and] 80 percent of workers are able to recover at least some of their wages.” (Id.)
The United States Department of Labor’s December 2014 report found that minimum wage violations against employees directly impacts the poverty rate, the State’s collection of payroll taxes, and earned income tax credits. (U.S. Dept. of Labor, The Social and Economic Effects of Wage Violations: Estimates For California and New York (Dec. 2014) <http://www.dol.gov/asp/evaluation/completed-studies/ WageViolationsReportDecember2014.pdf> [as of Apr. 24, 2015], p. ES-4.) According to the report, the direct impact of minimum wage violations resulted in 41,000 California families living below the poverty line, $14 million in lost payroll taxes to the State, and $4.5 million lost by employees in earned income tax credits. (Id.)
In addition to those impacts, Human Impact Partners, in support, points out that:
Though people do not typically associate labor policies with health, they actually impact health greatly. Human Impact Partners has conducted extensive research on wage theft specifically, and our findings indicate that existing laws fail to protect workers from wage theft, which leads to multiple adverse health impacts.
As a result of wage theft, many adults find themselves having to work multiple jobs or additional hours to make up for lost wages. Based on an analysis we conducted in Los Angeles, we could expect the following impacts for the state should SB 588 pass and be properly implemented:
Income for those currently experiencing wage theft would increase and this would result in a reduction in the negative health impacts associated with poverty.
Children of those currently experiencing wage theft would have better living conditions, food security, and parental involvement in their educational development. This would result in better developmental and physical and mental health outcomes for those children.
The additional work time required to make up for stolen wages would be reduced and more time would be available for self-care, leisure, and family. The alleviation of time poverty would reduce levels of stress and resulting insomnia, anxiety, depression, and other mental and socio-emotional health problems.
Low-wage workers who experience wage theft would experience lower levels of stress as a result of not feeling [threatened] or retaliated against for reporting wage theft. This will leave workers feeling less helpless and improve mental health.
In summary, our research shows that SB 588 would improve the health and wellbeing of workers, their families, and communities. By passing this policy out of committee, the state has an opportunity to move towards mitigating many health issues faced by low-wage workers who are the backbone of our state’s economy. (Emphasis in original.)
To address the inability of wage claimants to collect on judgments and deter employers from withholding money earned by their employees, this bill would authorize the Labor Commissioner to utilize lien and levy procedures, based on existing lien and levy statutes for judgment creditors in civil actions, to enforce the employee’s judgment against the employer. This bill would extend existing judgment debtor exemptions that would allow the employer to exempt specified property, including a homestead, from lien or levy. This bill would also extend the existing process for a third party, who claims an interest in the judgment debtor’s property, to establish the third party’s interest in the property. It is important to note that under existing law, an employee may pursue a wage claim in civil court and enforce a judgment through existing judgment creditor statutes. However, the civil process is cost-prohibitive for most employees, who, instead, are able to rely on the Labor Commissioner’s enforcement capabilities provided under the Labor Code. This bill would supplement the Labor Commissioner’s ability to assist these employees. By using existing judgment creditor remedies for the enforcement of the employee’s judgment, this bill would provide robust protections for employees harmed by wage theft.
3. Due process protections
This bill would provide due process protections for judgment debtors through notice, hearing, and bonding requirements. Existing law provides that, within 15 days following a hearing and the determination that an employer is liable for wages owed to an employee, the Labor Commissioner is required to file the order, decision, or award, and provide notice of the order by personal, mail, or other services, as specified, to the employer. The employer (judgment debtor) has 10 days after service of the order to file an appeal of the order. Pending the appeal, the employer is required to post a bond in the amount of the award. If the employer does not appeal the decision, the order becomes final and the Labor Commissioner files the final order with the superior court. By this point, the employer is aware of its legal responsibilities to the employee, and the bill would require additional notices to be sent to the employer if the Labor Commissioner proceeds to collect on the judgment through the levy or lien processes provided in the bill. The author also notes that the levy procedures provided in this bill are modeled on the levy procedures provided with respect to collection by local child support agencies of child support debt.
If no appeal is filed by the employer challenging the wage award to the employee, this bill would also provide that, when the order is final and the judgment for nonpayment of wages remains unsatisfied, 10 days after the time to appeal has expired, the employer would be prohibited from conducting business in the state unless the employer has obtained a bond in the amount of $150,000 or reached an agreement regarding the unsatisfied judgment with the employee. The California Rural Legal Assistance Foundation (CRLA), in support, notes the importance of the bond requirements in this bill as a condition to continuing to conduct business. According to CRLA, current surety bond amounts required of farm labor contractors “have not been adjusted upward for more than a decade and are usually only adequate in the smallest of wage claim cases, involving only individual workers. . . . [In] 15 pending cases involving multiple workers’ wage claim cases, the total amount of wages due is between $5,490,000 and $6,120,000, while the maximum total amount of all of the 15 [farm labor contractor] defendants’ individual surety bonds is $1,125,000. For our farm worker clients, the reality is that much of what is owed to them will never be recoverable from the small bonds required by California as a condition of doing business here. For them, SB 588 will be a major step forward.” If the employer continues to conduct business without satisfying the judgment or posting a bond, the Labor Commissioner would be authorized to issue a stop order, which would become effective immediately upon the service of the order, provided that the stop order would not compromise or imperil public safety or the life, health, and care of vulnerable individuals.
It is important to note that the bill would also protect the employees of the business required to cease operations pursuant to the stop order because the bill would require that any employee affected by the work stoppage to be paid by the employer for such time lost, not exceeding 10 days, pending compliance by the employer. The bill also provides an appeal process for the employer regarding the stop order. Through hearing, notice, and appeal provisions, this bill would provide due process protections to the employer throughout the judgment debt enforcement process.
4. Joint and several liability for property services and long-term care industries
This bill would prohibit a long-term care industry employer from obtaining or renewing a state license if the employer had not satisfied a wage judgment and failed to post a bond. This bill would also make entities, who were named as defendants and provided notice of the original hearing and complaint, contracting for property services or long-term care services with a judgment creditor who owes unpaid wages jointly and severally liable for the payment of the judgment. This bill would also make any person liable for any working hour or wage underpayment violations also liable for unpaid wages, penalties, and other compensation, as specified.
The author notes that the recent report from the United States Department of Labor contained “industry specific statistics on the prevalence of wage theft. This data showed that over 95 percent of home health care workers and 80 percent of property services workers suffered an overtime violation in the previous week. The report also showed that over 97 percent of home health care workers and over 77 percent of property service workers were forced to work off-the-clock in the previous week. The prevalence of wage theft in these industries warrants enhanced safeguards in these industries.” (See also National Employment Law Project and UCLA Labor Center, Hollow Victories, the Crisis in Collecting Unpaid Wages for California’s Workers (June 27, 2013) <http://nelp.3cdn.net/b5cea6550994c2358d_15m6id1ha.pdf> [as of Apr. 24, 2015] p. 2.).)
A review by the Department of Labor Standards Enforcement (DLSE) of 1,433 unpaid wage cases revealed that, in 60 percent of those cases, by the time judgment was entered against the employer, the employer was found to be a non-active business entity, and, on average, employers who ceased operations did so within 7.7 months of a wage claim being filed. (National Employment Law Project and UCLA Labor Center, Hollow Victories, the Crisis in Collecting Unpaid Wages for California’s Workers (June 27, 2013) <http://nelp.3cdn.net/b5cea6550994c2358d_15m6id1ha.pdf> [as of Apr. 24, 2015] p. 11.) When the employer closes its doors, the employee may be unable to locate the employer, which prevents wage judgment collection. According to a recent news article, “[s]ome businesses ignore the penalties and the judgments, shut their doors and reopen under a different name or file for bankruptcy, leaving the workers high and dry.” (S. Stock, J. Putnam, F. Escamilla, California’s wage theft problem, NBC Bay Area (Feb. 13, 2015) <http://www.nbcbayarea. com/investigations/Californias-Wage-Theft-Problem-291921621.html> [as of Apr. 25, 2015].)
According to the author, enforcement of existing wage laws “is made more difficult because so much of the low-wage sector is now structured using layers of contractors and subcontractors, allowing the actual employers of record and beneficiaries of the work provided [] to avoid legal responsibility. These employers who cheat their workers out of their hard-earned wages are essentially thieves. But due to systematic schemes designed to skirt existing laws, these ‘bad actor’ employers are allowed to get away with it.”
To better protect low-wage workers, this bill would target two high-risk sectors to ensure those parties do not evade payment of wage judgments through contracting and subcontracting arrangements.
5. Attorneys’ fees
Existing law provides that the judgment creditor, or the Labor Commissioner as assignee of the judgment creditor, is entitled to court costs and reasonable attorney’s fees for enforcing the judgment. (Lab. Code Sec. 98.2(k).) This bill would continue the existing ability of the judgment creditor, or the Labor Commissioner as assignee, to receive attorney’s fees and costs for collection of the judgment through the real or personal property lien process.
This bill would also provide for collection from the judgment debtor for fees, commissions, expenses, and reasonable costs associated with the sale of property levied by the Labor Commissioner, including appraiser’s fees, auctioneer’s fees, and advertising fees. This provision builds on the existing ability of a judgment creditor to levy personal property and receive attorney’s fees and costs associated with additional attempts to collect the property. (See Code Civ. Proc. Sec. 699.030.)
6. Author’s amendments
The author offers the following technical and clarifying amendments:
Author’s amendments:
Strike and replace nine references to “commissioner” with “Labor Commissioner”
On page 6, in lines 16, remove “it” and insert “the notice of levy”
On page 7, in line 6, after “judgment” insert “debtor”
On page 7, in line 11, strike “owing” and insert “owed to”
On page 7, in line 17, strike “owing” and insert “owed”
On page 7, in line 20, strike “owing” and insert “owed to”
On page 7, in line 33, strike “owing” and insert “owed”
On page 10, in line 23, strike “related to that final judgment”
On page 11, in lines 14 through 16, delete “Subject to written notice to a subsequent employer about any unsatisfied judgments against the employer for nonpayment of wages, a subsequent” and insert “An”
On page 11, in line 18, after “shall” insert “, upon receiving written notice of the unsatisfied judgment,”
On page 11, in line 28, strike “fine” and insert “penalty”
On page 11, in line 30, strike “fine” and insert “penalty”
On page 12, in line 19, strike “and findings” and insert “, accompanied by written findings”
On page 15, in line 39, strike “(c)” and insert “(b) of Section 98.”
Should this bill pass out of Committee, these amendments would be taken in the Senate Labor and Industrial Relations Committee.
7. Concerns raised
The Chamber of Commerce, California Justice Association of California, and California Land Title Association (coalition) have raised several concerns with the bill. First, they are concerned that a small business may not be able to raise funds within the 10-day time frame required to establish a $150,000 bond following the filing of the final judgment. The coalition requests that the bill be amended to authorize the Labor Commissioner to determine the amount of the surety bond, up to a maximum of $150,000, and extend the 10-day time frame to 25 days. Second, the coalition states that attorney’s fees are not available in Labor Commissioner actions and request that the provisions for attorney’s fees be struck from the bill.
Third, the coalition raises concern with the joint and several liability provisions of the bill. The coalition requests that the bill be amended to take into consideration and reconcile the bill with the joint and several liability imposed under Labor Code Section 2810.3, which requires a client employer, as specified, to be civilly liable for a labor contractor’s failure to pay wages to or secure worker’s compensation insurance for workers supplied by the labor contractor.
Support: 9to5, National Association of Working Women; Alliance of Californians for Community Empowerment Action; Alliance San Diego; Asian Americans Advancing Justice- Los Angeles; California Employment Lawyers Association; California Immigrant Policy Center; California Labor Federation, AFL-CIO; California Professional Firefighters; California Rural Legal Assistance Foundation, Inc.; Center on Policy Initiatives; Central American Resource Center – Los Angeles; Centro Legal de la Raza; Chinese Progressive Association; CHIRLA-Coalition for Humane Immigrant Rights of Los Angeles; CLEAN Car Wash Campaign; Clergy and Laity United for Economic Justice; Coalition For A Safe Environment; Coalition to Abolish Slavery & Trafficking; Community Action Board of Santa Cruz County Inc.; Day Labor Center Hayward/ Oakland; Day Worker Center of Mountain View; Dignity Campaign; Dolores Street Community Services; Employment Rights Center; Equal Rights Advocates; Filipino Advocates for Justice; Filipino Migrant Center; Fresno County Democrats; Garment Worker Center; Gender Justice LA; Graton Day Labor Center; Holman United Methodist Church; Housing Long Beach; Human Impact Partners; InnerCity Struggle; Instituto de Educacion Popular del Sur de California; Katharine & George Alexander Community Law Center; Khmer Girls in Action; La Colectiva De Mujeres; Liberty Hill Foundation; Los Angeles Alliance for a New Economy; LA Black Worker Center; Los Angeles Fight for $15 Organizing Committee; Maintenance Cooperation Trust Fund; Making Change at Walmart; Mi Familia Vota; National Day Laborer Organizing Network; National Employment Law Project; One LA-IAF; Pacoima Beautiful; Pilgrim United Church of Christ; Pilipino Association of Workers and Immigrants - Silicon Valley; Restaurant Opportunities Center of Los Angeles; Sacramento Area Congregations Together; San Diego and Imperial Counties Labor Council, AFL-CIO; San Francisco Day Labor Program & Women’s Collective, a program of Dolores Street; Community Services; San Francisco Progressive Workers Alliance; SoCalCosh, Southern California Coalition for Occupational Safety and Health; Social Justice Learning Institute; Street Level Health Project; T.R.U.S.T. South LA; The Institute of Popular Education of Southern California; The Wage Justice Center, UCLA Labor Center; Union de Vecinos; Workplace Justice Initiative; Worksafe, Inc.
Opposition: None Known
HISTORY
Source: Koreatown Immigrant Workers Alliance; Service Employees International Union California; Wage Justice Center
Related Pending Legislation: None Known
Prior Legislation:
AB 2416 (Stone, 2014) See Background.
AB 1164 (Lowenthal, 2013) See Background.
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Bill Author
