SB 362: Employment: unpaid wages and benefits: internet website.
- Session Year: 2019-2020
- House: Senate
- Latest Version Date: 2019-05-21
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Date
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Status
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|---|---|
| Jun 6, 2019 | Referred to Com. on L. & E. |
| May 28, 2019 | In Assembly. Read first time. Held at Desk. |
| May 28, 2019 | Read third time. Passed. (Ayes 38. Noes 0.) Ordered to the Assembly. |
| May 22, 2019 | Read second time. Ordered to third reading. |
| May 21, 2019 | Read third time and amended. |
| May 16, 2019 | From committee: Do pass. (Ayes 4. Noes 2.) (May 16). |
| May 10, 2019 | Set for hearing May 16. |
| Apr 22, 2019 | April 22 hearing: Placed on APPR. suspense file. |
| Apr 12, 2019 | Set for hearing April 22. |
| Apr 10, 2019 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 1.) (April 10). Re-referred to Com. on APPR. |
| Apr 5, 2019 | Set for hearing April 10. |
| Apr 3, 2019 | Re-referred to Com. on L., P.E. & R. |
| Mar 26, 2019 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Feb 28, 2019 | Referred to Com. on RLS. |
| Feb 21, 2019 | From printer. May be acted upon on or after March 23. |
| Feb 20, 2019 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| May 28, 2019 | Senate 3rd Reading SB362 Roth | Senate Floor |
Passed |
|
| May 16, 2019 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 22, 2019 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 10, 2019 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Labor, Public Employment and Retirement |
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.
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 362 |
THIRD READING
Bill No: SB 362
Amended: 5/21/19
SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 3-1, 4/10/19
AYES: Hill, Mitchell, Pan
NOES: Morrell
NO VOTE RECORDED: Jackson
SENATE APPROPRIATIONS COMMITTEE: 4-2, 5/16/19
AYES: Portantino, Bradford, Hill, Wieckowski
NOES: Bates, Jones
SUBJECT: Employment: unpaid wages and benefits: internet website
DIGEST:
This bill requires that the Division of Labor Standards Enforcement (DLSE) post on its Web site a database of all unpaid wages or benefits collected by DLSE on behalf of aggrieved workers.
Senate Floor Amendments of 5/21/19 strike the listing of an employer’s name from the Unpaid Wage Fund database.
Existing law:
- Authorizes the Labor Commissioner to investigate employee complaints and hold hearings 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. (Labor Code §98)
- Requires that, if a final judgment against an employer for nonpayment of wages remains unsatisfied after a period of 30 days after the time to appeal has expired, the employer shall not continue to conduct business in this state, unless the employer has obtained a surety bond and has filed a copy of that bond with the Labor Commissioner. (Labor Code 238)
- Provides that 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, may collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the commissioner. These funds must be deposited into the Industrial Relations Unpaid Wage Fund. (Labor Code §§96.6 & 96.7)
This bill requires that the Labor Commissioner establish a public database, posted on the DLSE’s Web site, of unpaid wages or benefits collected pursuant to this bill, indexed by employee name, the amount of the wages or benefits collected, and the date of deposit.
Comments
Need for this bill? The author states the following:
Currently, the California Labor Commissioner does not require the California Department of Industrial Relations (DIR) to publicly share the Unpaid Wage Fund on DIR’s website.
California Labor Commission statutes already require DIR to “make a diligent search to locate any worker for whom the Labor Commissioner has collected unpaid wages or benefits.” However, at this time, the DIR does not have an online index of the wages sitting unclaimed in the fund.
Most efforts to locate employees occur prior to deposit into the Unpaid Wage Fund as wages are held by the Labor Commissioner for six months before transmitting them to the unpaid wage.
According to DIR’s website, the Labor Commissioner will try to locate the employee and make payment of the wages. If these attempts are unsuccessful, the checks will be deposited into the State of California Unclaimed Wages Fund.
However, California Labor Code does not require the DIR to in any way advertise the fact that funds are being held for the benefit of particular employees, even those that have been determined by the Labor Commissioner to be owed.”
Related/Prior Legislation
AB 1513 (Williams, Chapter 754, Statutes of 2015) required, among other things, that employers use due diligence, including, but not limited to, the use of people locator services, to locate and pay former employees who no longer work for the employer that are owed back wages for piece rate compensation violations.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, the Department of Industrial Relations indicates that it would incur first-year costs of $1.2 million, and $444,000 annually thereafter, to implement this bill.
None received
OPPOSITION: (Verified 5/21/19)
None received
Prepared by: Gideon L. Baum / L., P.E. & R. / (916) 651-1556
5/22/19 15:37:31
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 362 |
THIRD READING
Bill No: SB 362
Amended: 3/26/19
SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 3-1, 4/10/19
AYES: Hill, Mitchell, Pan
NOES: Morrell
NO VOTE RECORDED: Jackson
SENATE APPROPRIATIONS COMMITTEE: 4-2, 5/16/19
AYES: Portantino, Bradford, Hill, Wieckowski
NOES: Bates, Jones
SUBJECT: Employment: unpaid wages and benefits: internet website
DIGEST:
This bill requires that the Division of Labor Standards Enforcement (DLSE) post on its Web site a database of all unpaid wages or benefits collected by DLSE on behalf of aggrieved workers.
Existing law:
- Authorizes the Labor Commissioner to investigate employee complaints and hold hearings 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. (Labor Code §98)
- Requires that, if a final judgment against an employer for nonpayment of wages remains unsatisfied after a period of 30 days after the time to appeal has expired, the employer shall not continue to conduct business in this state, unless the employer has obtained a surety bond and has filed a copy of that bond with the Labor Commissioner. (Labor Code 238)
- Provides that 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, may collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the commissioner. These funds must be deposited into the Industrial Relations Unpaid Wage Fund. (Labor Code §§96.6 & 96.7)
This bill requires that the Labor Commissioner establish a public database, posted on the DLSE’s Web site, of unpaid wages or benefits collected pursuant to this bill, indexed by employee name and listing the name of the employer, the amount of the wages or benefits collected, and the date of deposit.
Comments
Need for this bill? The author states the following:
Currently, the California Labor Commissioner does not require the California Department of Industrial Relations (DIR) to publicly share the Unpaid Wage Fund on DIR’s website.
California Labor Commission statutes already require DIR to “make a diligent search to locate any worker for whom the Labor Commissioner has collected unpaid wages or benefits.” However, at this time, the DIR does not have an online index of the wages sitting unclaimed in the fund.
Most efforts to locate employees occur prior to deposit into the Unpaid Wage Fund as wages are held by the Labor Commissioner for six months before transmitting them to the unpaid wage.
According to DIR’s website, the Labor Commissioner will try to locate the employee and make payment of the wages. If these attempts are unsuccessful, the checks will be deposited into the State of California Unclaimed Wages Fund.
However, California Labor Code does not require the DIR to in any way advertise the fact that funds are being held for the benefit of particular employees, even those that have been determined by the Labor Commissioner to be owed.”
Related/Prior Legislation
AB 1513 (Williams, Chapter 754, Statutes of 2015) required, among other things, that employers use due diligence, including, but not limited to, the use of people locator services, to locate and pay former employees who no longer work for the employer that are owed back wages for piece rate compensation violations.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, the Department of Industrial Relations indicates that it would incur first-year costs of $1.2 million, and $444,000 annually thereafter, to implement this bill.
None received
OPPOSITION: (Verified 5/16/19)
None received
Prepared by: Gideon L. Baum / L., P.E. & R. / (916) 651-1556
5/18/19 12:00:38
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anthony Portantino, Chair
2019 - 2020 Regular Session
SB 362 (Roth) - Employment: unpaid wages and benefits: internet website
Version: March 26, 2019 | Policy Vote: L., P.E. & R. 3 - 1 |
Urgency: No | Mandate: No |
Hearing Date: April 22, 2019 | Consultant: Robert Ingenito |
Bill Summary:
SB 362 would require that the Department of Industrial Relation (DIR) post on its internet site a database of all unpaid wages or benefits collected by the Division of Labor Standards Enforcement (DLSE) on behalf of aggrieved workers.
Fiscal Impact:
DIR indicates that it would incur first-year costs of $1.2 million, and $444,000 annually thereafter, to implement the bill (Labor Enforcement and Compliance Fund).
Background:
Current law authorizes the Labor Commissioner within DIR to (1) investigate employee complaints, and (2) hold hearings 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. If a final judgment against an employer for nonpayment of wages remains unsatisfied after a period of 30 days after the time to appeal has expired, the employer shall not continue to conduct business in the State unless it has obtained a surety bond and has filed a copy of that bond with the Labor Commissioner. Additionally, Labor Commissioner, after investigation and upon determination that wages or monetary benefits are due and unpaid to any worker, may collect such wages or benefits on behalf of the worker, as specified.
Proposed Law:
This bill would require DIR to establish a public database, posted on DLSE’s internet site, of unpaid wages or benefits collected pursuant to this section, indexed by employee name and listing the name of the employer, the amount of the wages or benefits collected, and the date of deposit.
Related Legislation:
AB 1513 (Williams, Chapter 754, Statutes of 2015) requires, among other things, that employers use due diligence, including, but not limited to, the use of people locator services, to locate and pay former employees who no longer work for the employer that are owed back wages for piece rate compensation violations.
Staff Comments:
As noted above, this bill would require DLSE to establish a searchable database of employees’ owed wages collected. DLSE does not currently have a digital database of wages collected, indexed by employee. Additionally, initial costs to input and compile this data would be substantial. Specifically, DLSE would require IT and staff resources to build and maintain the database, which the Division anticipates would be developed using cloud-based software already in use elsewhere within DIR, but would require modifications. DLSE would also require securing special software to scrub social security numbers or other personal identifiable information without compromising the integrity and usefulness of the database. DLSE reports that, in addition, compliance with the California Department of Technology’s Project Approval Lifecycle (PAL) process would also be a cost driver.
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SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT
Senator Jerry Hill, Chair
2019 - 2020 Regular
Bill No: SB 362 Hearing Date: April 10, 2019
Author: | Roth | ||
Version: | March 26, 2019 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Gideon Baum | ||
Subject: Employment: unpaid wages and benefits: internet website.
KEY ISSUE
Should the Legislature require that the Division of Labor Standards Enforcement (DLSE) post on its website a database of all unpaid wages or benefits collected by the Division on behalf of aggrieved workers?
ANALYSIS
Existing law:
- Authorizes the Labor Commissioner to investigate employee complaints and hold hearings 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. (Labor Code §98)
- Requires that, if a final judgment against an employer for nonpayment of wages remains unsatisfied after a period of 30 days after the time to appeal has expired, the employer shall not continue to conduct business in this state, unless the employer has obtained a surety bond and has filed a copy of that bond with the Labor Commissioner. (Labor Code 238)
- Provides that 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, may collect such wages or benefits on behalf of the worker without assignment of such wages or benefits to the commissioner. These funds must be deposited into the Industrial Relations Unpaid Wage Fund. (Labor Code §§96.6 & 96.7)
This bill:
- Requires that the Labor Commissioner establish a public database, posted on the DLSE’s website, of unpaid wages or benefits collected pursuant to this section, indexed by employee name and listing the name of the employer, the amount of the wages or benefits collected, and the date of deposit.
COMMENTS
- Need for this bill?
The author state the following:
“Currently, the California Labor Commissioner does not require the California Department of Industrial Relations (DIR) to publicly share the Unpaid Wage Fund on DIR’s website.
California Labor Commission statutes already require DIR to “make a diligent search to locate any worker for whom the Labor Commissioner has collected unpaid wages or benefits.” However, at this time, the DIR does not have an online index of the wages sitting unclaimed in the fund.
Most efforts to locate employees occur prior to deposit into the Unpaid Wage Fund as wages are held by the Labor Commissioner for six months before transmitting them to the unpaid wage.
According to DIR’s website, the Labor Commissioner will try to locate the employee and make payment of the wages. If these attempts are unsuccessful, the checks will be deposited into the State of California Unclaimed Wages Fund.
However, California Labor Code does not require the DIR to in any way advertise the fact that funds are being held for the benefit of particular employees, even those that have been determined by the Labor Commissioner to be owed.”
- Prior Legislation:
AB 1513 (Williams), Statutes of 2015, Chapter 754, requires, among other things, that employers use due diligence, including, but not limited to, the use of people locator services, to locate and pay former employees who no longer work for the employer that are owed back wages for piece rate compensation violations.
SUPPORT
None received.
OPPOSITION
None received.
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Bill Author
Bill Co-Author(s):