Bill Text: CA SB261 | 2025-2026 | Regular Session | Introduced
Bill Title: Division of Labor Standards Enforcement: orders, decisions, and awards.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2025-02-14 - Referred to Coms. on L., P.E. & R. and JUD. [SB261 Detail]
Download: California-2025-SB261-Introduced.html
CALIFORNIA LEGISLATURE—
2025–2026 REGULAR SESSION
Senate Bill
No. 261
| Introduced by Senator Wahab (Coauthor: Senator Cortese) |
February 03, 2025 |
An act to amend Sections 98.1 and 98.2 of, and to add Sections 98.15, 238.05, and 238.10 to, the Labor Code, relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
SB 261, as introduced, Wahab.
Division of Labor Standards Enforcement: orders, decisions, and awards.
Existing law establishes the Division of Labor Standards Enforcement, under the direction of the Labor Commissioner, within the Department of Industrial Relations and sets forth its powers and duties regarding the enforcement of labor laws. Existing law authorizes the commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation, as specified. Existing law requires the commissioner to provide to the parties, among other things, notice advising the parties of their right to appeal, as specified.
This bill would require the commissioner to post a copy of the order, decision, or award on the division’s internet website, as specified, no later than 15 days after the time to appeal from the order, decision, or award has expired and no appeal therefrom is
pending. The bill would require the division to redact the name, address, and personal contact information of any employee or other complainant from the order, decision, or award before posting the order, decision, or award on the division’s internet website, as provided. The bill would require the division to post on its internet website specified information about any employer with an unsatisfied order, decision, or award issued under the above-described provisions, as prescribed. The bill would require the posting pursuant to these provisions to be removed if, among other conditions, the employer has submitted certification, under penalty of perjury, that all violations identified in the posted information have been remedied or abated. By expanding the crime of perjury, the bill would impose a state-mandated local program.
Existing law provides that the judgment creditor, or the commissioner, as assignee of the judgment creditor, is entitled to court costs and
reasonable attorney’s fees for enforcing the judgment, as specified.
This bill would instead require that the judgment creditor, or the Labor Commissioner or public prosecutor as assignee of the judgment creditor, be awarded the above-described court costs and reasonable attorney’s fees.
Existing law provides for enforcement if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after specified periods of time, including prohibiting the employer from conducting business in the state, as specified, if a final judgment against the employer remains unsatisfied for 30 days.
This bill would additionally require the employer to be subject to a civil penalty not to exceed 3 times the outstanding judgment amount if a final judgment against an employer arising from the employer’s nonpayment of work
performed in this state remains unsatisfied after a period of 180 days, as provided. The bill would require a court to award a prevailing plaintiff all reasonable attorney’s fees and costs in any action brought by a judgment creditor, the commissioner, or a public prosecutor, as defined, to enforce a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state, as provided.
This bill would also make findings and declarations related to its provisions.
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
constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
(a) The Legislature finds and declares all of the following:(1) The full and prompt payment of wages due to workers is, and has long been, a fundamental public policy of this state. Vindication of this policy, including, where necessary, through effective enforcement, is critical to ensuring that California’s economy is vibrant and equitable for all Californians. The failure to timely pay all wages due not only robs the individual workers of what they have earned, but also harms the public at large, including by placing additional burdens on public services and unfairly disadvantaging businesses that comply with the law.
(2) Wage theft is a pervasive
issue statewide, especially for low-income workers. A report from Rutgers University estimated that in four of California’s largest metropolitan areas, employers unlawfully failed to pay low-wage workers $2.3 to $4.6 billion in earned wages each year between 2014 to 2023. Studies, including by the Economic Policy Institute, also show that workers lose far more through wage theft than retailers lose through shoplifting, drivers lose through carjacking, or residents lose through burglaries.
(3) Provisions of the Labor Code and Civil Code that allow collection of simple interest for nonpayment of a judgment are inadequate to deter prospective violators and ensure workers are promptly paid the judgments they are owed.
(4) The Labor Code and Business and Professions Code authorize public prosecutors to pursue actions against employers based on their failure to satisfy wage theft
judgments, but information about the underlying violations is often needed to make these actions effective.
(b) Therefore, it is the intent of the Legislature to provide additional tools to enhance enforcement and collection of wage judgements to ensure workers who are victims of wage theft are paid in a timely manner, consistent with public policy of this state.
SEC. 2.
Section 98.1 of the Labor Code is amended to read:98.1.
(a) (1) Within 15 days after the hearing is concluded, the Labor Commissioner shall file in the office of the division a copy of the order, decision, or award. The order, decision, or award shall include a summary of the hearing and the reasons for the decision. Upon filing of the order, decision, or award, the Labor Commissioner shall serve a copy of the decision personally, by first-class mail, or in the manner specified in Section 415.20 of the Code of Civil Procedure on the parties. The notice shall also advise the parties of their right to appeal the(2) No later than 15 days after the time to appeal from the order, decision, or award has expired and no appeal therefrom is pending, the commissioner shall post a copy of the order, decision, or award on the division’s internet website. The commissioner shall redact the name, address, and personal contact information of any employee or other complainant from the order, decision, or award before posting the order, decision, or award on the division’s internet website. Upon the written request of any employee or other complainant associated with the order, decision, or award, the commissioner shall
publish the name, address, and personal contact information of the employee or other complainant making the request.
(b) For the purpose of this section, an award shall include any sums found owing, damages proved, and any penalties awarded pursuant to this code.
(c) All awards granted pursuant to a hearing under this chapter shall accrue interest on all due and unpaid wages at the same rate as prescribed by subdivision (b) of Section 3289 of the Civil Code. The interest shall accrue until the wages are paid from the date that the wages were due and payable as provided in Part 1 (commencing with Section 200) of Division 2.
SEC. 3.
Section 98.15 is added to the Labor Code, immediately following Section 98.1, to read:98.15.
(a) (1) (A) The Division of Labor Standards Enforcement shall post on its internet website the names, addresses, and essential information, including, but not limited to, fictitious business names, of any employer with an unsatisfied order, decision, or award issued under this chapter as to which the time to appeal has expired and no appeal therefrom is pending, or with an unsatisfied final court judgment based on the order, decision, or award.(B) The division shall not post the information required under this paragraph on its internet website until the period for all judicial appeals from the order, decision, or award has expired.
(C) A
posting required by this paragraph shall be removed within 15 business days after the division determines that both of the following are true:
(i) There has been full payment of any unsatisfied judgment and any other financial liabilities for all violations identified pursuant to subparagraph (A) or that the employer has entered into an approved settlement dispensing of the judgment and any liabilities.
(ii) The employer has submitted certification, under penalty of perjury, that all violations identified pursuant to subparagraph (A) have been remedied or abated.
(2) No fewer than 15 business days before posting on its internet website the names, addresses, and essential information for any employer pursuant to paragraph (1), the division shall provide notification by certified mail to the employer that, at a
minimum, shall include all of the following:
(A) The name, email address, and telephone number of a contact person at the division.
(B) The alleged conduct and a copy of the citation, unsatisfied court judgment, assessment, order, decision, or award.
(C) A copy of the regulations or rules of practice or procedure adopted pursuant to subdivision (d) for removal of the posting.
(b) A waiver of this section is contrary to public policy, and is void and unenforceable.
(c) This section shall not apply to orders, decisions, or awards, or final court judgments issued against port drayage motor carriers, as defined in paragraph (5) of subdivision (a) of Section 2810.4.
(d) The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of this section that are under the commissioner’s jurisdiction. Unless and until the Labor Commissioner adopts regulations and rules of practice and procedure under this provision, for purposes of this section, the following apply:
(1) The term “essential information” shall have the meaning set forth in regulations adopted pursuant to subdivision (m) of Section 2810.4.
(2) “Sufficient documentation” shall conform to the description set forth in regulations adopted pursuant to clause (ii) of subparagraph (D) of paragraph (1) of subdivision (c) of Section 2810.4.
(3) An employer seeking removal under subparagraph (C) of
paragraph (1) of subdivision (a) may rely on the removal procedure set forth in the regulation entitled “Removal from Public List” adopted pursuant to subdivision (m) of Section 2810.4.
SEC. 4.
Section 98.2 of the Labor Code is amended to read:98.2.
(a) Within 10 days after service of notice of an order, decision, or(b) As a condition to filing an appeal pursuant to this section, an employer shall first post an undertaking with the reviewing court in the amount of the order, decision, or award. The undertaking shall consist of an appeal bond issued by a licensed surety or a cash deposit with the court in the amount of the order, decision, or award. The employer shall provide written notification to the other parties and the Labor Commissioner of the posting of the undertaking. The undertaking shall be on the condition that, if any judgment is entered in favor of the employee, the employer shall pay the amount owed pursuant to the judgment, and if the appeal is withdrawn or dismissed without entry of judgment, the employer shall pay the amount owed pursuant to the order, decision, or award of the Labor Commissioner unless the parties have executed a settlement agreement for payment of some other amount, in which case the employer shall pay the amount that the
employer is obligated to pay under the terms of the settlement agreement. If the employer fails to pay the amount owed within 10 days of entry of the judgment, dismissal, or withdrawal of the appeal, or the execution of a settlement agreement, a portion of the undertaking equal to the amount owed, or the entire undertaking if the amount owed exceeds the undertaking, is forfeited to the employee.
(c) If the party seeking review by filing an appeal to the superior court is unsuccessful in the appeal, the court shall determine the costs and reasonable attorney’s fees incurred by the other parties to the appeal, and assess that amount as a cost upon the party filing the appeal. An employee is successful if the court awards an amount greater than zero.
(d) If no notice of appeal of the order, decision, or award is filed within the period set forth in subdivision (a), the order,
decision, or award shall, in the absence of fraud, be deemed the final order.
(e) The Labor Commissioner shall file, within 10 days of the order becoming final pursuant to subdivision (d), a certified copy of the final order with the clerk of the superior court of the appropriate county unless a settlement has been reached by the parties and approved by the Labor Commissioner. Judgment shall be entered immediately by the court clerk in conformity therewith. The judgment so entered has the same force and effect as, and is subject to all of the provisions of law relating to, a judgment in a civil action, and may be enforced in the same manner as any other judgment of the court in which it is entered. Enforcement of the judgment shall receive court priority.
(f) (1) In order to ensure that judgments are satisfied, the Labor Commissioner may serve upon the
judgment debtor, personally or by first-class mail at the last known address of the judgment debtor listed with the division, a form similar to, and requiring the reporting of the same information as, the form approved or adopted by the Judicial Council for purposes of subdivision (a) of Section 116.830 of the Code of Civil Procedure to assist in identifying the nature and location of any assets of the judgment debtor.
(2) The judgment debtor shall complete the form and cause it to be delivered to the division at the address listed on the form within 35 days after the form has been served on the judgment debtor, unless the judgment has been satisfied. In the case of a willful failure by the judgment debtor to comply with this
subdivision, the division or the judgment creditor may request the court to apply the sanctions provided in Section 708.170 of the Code of Civil Procedure.
(g) (1) As an alternative to a judgment lien, upon the order becoming final pursuant to subdivision (d), a lien on real property may be created by the Labor Commissioner recording a certificate of lien, 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, at the Labor Commissioner’s discretion and depending upon information the Labor Commissioner obtains concerning the employer’s assets. The lien attaches to all interests in real property of the employer located in the county where the lien is created to which a judgment lien may attach pursuant to Section 697.340 of the Code of Civil Procedure.
(2) The certificate of lien shall include information as prescribed by Section 27288.1 of the Government Code.
(3) The recorder shall accept and record the certificate of lien and shall index it as prescribed by law.
(4) Upon payment of the amount due under the final order, the Labor Commissioner shall issue a certificate of release, releasing the lien created under paragraph (1). The certificate of release may be recorded by the employer at the employer’s expense.
(5) Unless the lien is satisfied or released, a lien under this section shall continue until 10 years from the date of its creation.
(h) Notwithstanding subdivision (e), the Labor Commissioner may stay execution of any judgment
entered upon an order, decision, or award that has become final upon good cause appearing therefor and may impose the terms and conditions of the stay of execution. A certified copy of the stay of execution shall be filed with the clerk entering the judgment.
(i) When a judgment is satisfied in fact, other than by execution, the Labor Commissioner may, upon the motion of either party or on its own motion, order entry of satisfaction of judgment. The clerk of the court shall enter a satisfaction of judgment upon the filing of a certified copy of the order.
(j) The Labor Commissioner shall 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 provided in Section 240.
(k) The judgment creditor, or the Labor Commissioner
Commissioner or a public prosecutor, as defined in Section 180, as assignee of the judgment creditor, is entitled to shall be awarded court costs and reasonable attorney’s fees for enforcing the judgment that is rendered pursuant to this section.
SEC. 5.
Section 238.05 is added to the Labor Code, to read:238.05.
(a) 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 180 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the employer shall be subject to a civil penalty not to exceed three times the outstanding judgment amount, including postjudgment interest then due. The court may assess this penalty in any action brought to enforce the judgment or to otherwise induce compliance by or impose lawful consequences on a judgment debtor.(b) In any action brought to enforce the judgment or to otherwise induce compliance by or impose lawful consequences on a judgment debtor, the court shall assess against the
employer the entire amount of the requested penalty except to the extent that the court finds that the employer has demonstrated by clear and convincing evidence good cause to reduce the amount of the penalty.
(c) Penalties assessed by a court pursuant to this section shall be distributed as follows:
(1) Fifty percent to the employee or employees in whose favor the judgment was rendered, shared proportionally according to the amount due to each employee in the judgment entered in superior court.
(2) Fifty percent to the Division of Labor Standards Enforcement for enforcement of labor laws, including the administration of this part, and for education of employers and employees about their rights and responsibilities under this code, to be continuously appropriated to supplement and not supplant the funding to the
division for those purposes.
(d) A successor to a judgment debtor, as defined in subdivision (a) of Section 200.3 or by any other law, shall be jointly and severally liable for penalties assessed pursuant to this section.
(e) Penalties assessed pursuant to this section shall be in addition to any other penalties or fines permitted by law.
SEC. 6.
Section 238.10 is added to the Labor Code, immediately following Section 238.05, to read:238.10.
The court shall award a prevailing plaintiff all reasonable attorney’s fees and costs in any action brought by a judgment creditor, the Labor Commissioner, or a public prosecutor, as defined in Section 180, to enforce a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state, or to otherwise induce compliance by or impose lawful consequences on a judgment debtor for nonsatisfaction of a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state.SEC. 7.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution.SEC. 8.
The Legislature finds and declares that Section 2 of this act, which amends Section 98.1 of the Labor Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the privacy of employees and complainants, while also seeking redress for wage theft, it is necessary to preserve the confidentiality of this information.
