Bill > SB261

This bill addresses wage theft and enhances enforcement mechanisms for unpaid wage judgments in California. It introduces several key provisions to protect workers and penalize employers who fail to pay court-ordered wages. Specifically, the bill requires that if a final wage judgment remains unsatisfied for 180 days, the employer can be subject to a civil penalty of up to three times the outstanding judgment amount. The penalty will be split equally between the affected employees and the Division of Labor Standards Enforcement. The legislation also mandates that courts award reasonable attorney's fees and costs to prevailing plaintiffs in wage judgment enforcement actions, whether brought by the employee, Labor Commissioner, or public prosecutor. The bill's motivation stems from studies showing significant wage theft, particularly among low-income workers, with estimates suggesting employers unlawfully withhold between $2.3 to $4.6 billion in earned wages annually in California's largest metropolitan areas. The Legislature views prompt wage payment as a fundamental public policy and aims to provide stronger tools to ensure workers receive the compensation they have legally earned, while also deterring future wage theft by implementing more significant financial consequences for non-compliant employers.

Budget and Finance, Justice, Labor and Employment

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB261