Bill Text: CA AB1723 | 2013-2014 | Regular Session | Chaptered
Bill Title: Employees: wages.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Passed) 2014-09-30 - Chaptered by Secretary of State - Chapter 886, Statutes of 2014. [AB1723 Detail]
Download: California-2013-AB1723-Chaptered.html
BILL NUMBER: AB 1723 CHAPTERED
BILL TEXT
CHAPTER 886
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2014
APPROVED BY GOVERNOR SEPTEMBER 30, 2014
PASSED THE SENATE AUGUST 21, 2014
PASSED THE ASSEMBLY MAY 28, 2014
INTRODUCED BY Assembly Member Nazarian
FEBRUARY 14, 2014
An act to amend Section 1197.1 of the Labor Code, relating to
employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 1723, Nazarian. Employees: wages.
Existing law authorizes the Labor Commissioner to investigate and
enforce statutes and orders of the Industrial Welfare Commission
that, among other things, specify the requirements for the payment of
wages by employers. Existing law provides for criminal and civil
penalties for violations of statutes and orders of the commission
regarding payment of wages. Existing law authorizes the Labor
Commissioner to recover liquidated damages for an employee who brings
a complaint alleging payment of less than the minimum wage fixed by
an order of the commission or by statute.
Existing law subjects any employer, who pays or causes to be paid
to any employee a wage less than the minimum fixed by an order of the
commission to a citation that includes a civil penalty, the payment
of restitution of wages, and payment of liquidated damages to the
employee. Existing law also provides for a penalty imposed upon an
employer for the willful failure to timely pay wages of an employee
who resigns or is discharged.
This bill would expand that penalty, restitution, and liquidated
damages provision for a citation to also subject the employer to
payment of any applicable penalties for the willful failure to timely
pay wages of a resigned or discharged employee.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1197.1 of the Labor Code is amended to read:
1197.1. (a) Any employer or other person acting either
individually or as an officer, agent, or employee of another person,
who pays or causes to be paid to any employee a wage less than the
minimum fixed by an order of the commission shall be subject to a
civil penalty, restitution of wages, liquidated damages payable to
the employee, and any applicable penalties imposed pursuant to
Section 203 as follows:
(1) For any initial violation that is intentionally committed, one
hundred dollars ($100) for each underpaid employee for each pay
period for which the employee is underpaid. This amount shall be in
addition to an amount sufficient to recover underpaid wages,
liquidated damages pursuant to Section 1194.2, and any applicable
penalties imposed pursuant to Section 203.
(2) For each subsequent violation for the same specific offense,
two hundred fifty dollars ($250) for each underpaid employee for each
pay period for which the employee is underpaid regardless of whether
the initial violation is intentionally committed. This amount shall
be in addition to an amount sufficient to recover underpaid wages,
liquidated damages pursuant to Section 1194.2, and any applicable
penalties imposed pursuant to Section 203.
(3) Wages, liquidated damages, and any applicable penalties
imposed pursuant to Section 203, recovered pursuant to this section
shall be paid to the affected employee.
(b) If, upon inspection or investigation, the Labor Commissioner
determines that a person has paid or caused to be paid a wage less
than the minimum, the Labor Commissioner may issue a citation to the
person in violation. The citation may be served personally or by
registered mail in accordance with subdivision (c) of Section 11505
of the Government Code. Each citation shall be in writing and shall
describe the nature of the violation, including reference to the
statutory provision alleged to have been violated. The Labor
Commissioner promptly shall take all appropriate action, in
accordance with this section, to enforce the citation and to recover
the civil penalty assessed, wages, liquidated damages, and any
applicable penalties imposed pursuant to Section 203 in connection
with the citation.
(c) (1) If a person desires to contest a citation or the proposed
assessment of a civil penalty, wages, liquidated damages, and any
applicable penalties imposed pursuant to Section 203 therefor, the
person shall, within 15 business days after service of the citation,
notify the office of the Labor Commissioner that appears on the
citation of his or her request for an informal hearing. The Labor
Commissioner or his or her deputy or agent shall, within 30 days,
hold a hearing at the conclusion of which the citation or proposed
assessment of a civil penalty, wages, liquidated damages, and any
applicable penalties imposed pursuant to Section 203 shall be
affirmed, modified, or dismissed.
(2) The decision of the Labor Commissioner shall consist of a
notice of findings, findings, and an order, all of which shall be
served on all parties to the hearing within 15 days after the hearing
by regular first-class mail at the last known address of the party
on file with the Labor Commissioner. Service shall be completed
pursuant to Section 1013 of the Code of Civil Procedure. Any amount
found due by the Labor Commissioner as a result of a hearing shall
become due and payable 45 days after notice of the findings and
written findings and order have been mailed to the party assessed. A
writ of mandate may be taken from this finding to the appropriate
superior court. The party shall pay any judgment and costs ultimately
rendered by the court against the party for the assessment. The writ
shall be taken within 45 days of service of the notice of findings,
findings, and order thereon.
(d) A person to whom a citation has been issued shall, in lieu of
contesting a citation pursuant to this section, transmit to the
office of the Labor Commissioner designated on the citation the
amount specified for the violation within 15 business days after
issuance of the citation.
(e) When no petition objecting to a citation or the proposed
assessment of a civil penalty, wages, liquidated damages, and any
applicable penalties imposed pursuant to Section 203 is filed, a
certified copy of the citation or proposed civil penalty, wages,
liquidated damages, and any applicable penalties imposed pursuant to
Section 203 may be filed by the Labor Commissioner in the office of
the clerk of the superior court in any county in which the person
assessed has or had a place of business. The clerk, immediately upon
the filing, shall enter judgment for the state against the person
assessed in the amount shown on the citation or proposed assessment
of a civil penalty, wages, liquidated damages, and any applicable
penalties imposed pursuant to Section 203.
(f) When findings and the order thereon are made affirming or
modifying a citation or proposed assessment of a civil penalty,
wages, liquidated damages, and any applicable penalties imposed
pursuant to Section 203 after hearing, a certified copy of these
findings and the order entered thereon may be entered by the Labor
Commissioner in the office of the clerk of the superior court in any
county in which the person assessed has property or in which the
person assessed has or had a place of business. The clerk,
immediately upon the filing, shall enter judgment for the state
against the person assessed in the amount shown on the certified
order.
(g) A judgment entered pursuant to this section shall bear the
same rate of interest and shall have the same effect as other
judgments and be given the same preference allowed by the law on
other judgments rendered for claims for taxes. The clerk shall make
no charge for the service provided by this section to be performed by
him or her.
(h) The civil penalties provided for in this section are in
addition to any other penalty provided by law.
(i) This section shall not apply to any order of the commission
relating to household occupations.
