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Bill > SB261


CA SB261

CA SB261
Division of Labor Standards Enforcement: orders, decisions, and awards.


summary

Introduced
02/03/2025
In Committee
08/29/2025
Crossed Over
06/04/2025
Passed
10/13/2025
Dead
Signed/Enacted/Adopted
10/13/2025

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to amend Section 98.2 of, and to add Sections 238.05 and 238.10 to, the Labor Code, relating to employment.

AI Summary

This bill addresses wage theft by strengthening enforcement mechanisms for unpaid wage judgments in California. It introduces several key provisions that aim to protect workers and incentivize employers to promptly pay wage judgments. The bill requires that if a wage judgment remains unsatisfied after 180 days, the employer can be subject to a civil penalty of up to three times the outstanding judgment amount, with half of the penalty going to the affected employees and half to the Division of Labor Standards Enforcement. Additionally, the bill mandates that courts must award reasonable attorney's fees and costs to prevailing plaintiffs in wage judgment enforcement actions, making it easier for workers to pursue legal remedies. The legislation stems from findings that wage theft is a significant problem, with estimates suggesting that employers in California's largest metropolitan areas unlawfully withhold between $2.3 and $4.6 billion in wages annually. The bill also allows public prosecutors to assist in enforcing wage judgments and requires employers to post an undertaking (like a bond) when appealing a wage judgment, ensuring that workers have a higher likelihood of receiving their owed wages. The overall intent is to create stronger deterrents against wage theft and provide more effective tools for workers to recover unpaid wages.

Committee Categories

Budget and Finance, Justice, Labor and Employment

Sponsors (4)

Last Action

Chaptered by Secretary of State. Chapter 747, Statutes of 2025. (on 10/13/2025)

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