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Bill > AB1234


CA AB1234

CA AB1234
Employment: nonpayment of wages: complaints.


summary

Introduced
02/21/2025
In Committee
08/29/2025
Crossed Over
06/04/2025
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to amend Sections 98, 98.1, and 98.2 of the Labor Code, relating to employment.

AI Summary

This bill revises and updates the process for the Labor Commissioner to investigate and resolve employee wage complaints in California. The bill establishes specific timelines and procedures for handling wage claims, including requirements for employers to respond to complaints within 30 days and for the Labor Commissioner to investigate and issue formal complaints within 90 days. The legislation introduces a new administrative fee of up to 30% that can be imposed on wage claims, which will be deposited into a newly created Wage Recovery Fund. The fund can be used to compensate workers who have been damaged by wage theft, with the Labor Commissioner having discretion to disburse funds. The bill also allows the Labor Commissioner to waive the administrative fee under certain circumstances, such as when the employer has no prior wage violation history. Additionally, the bill clarifies that appeals of Labor Commissioner decisions will be classified as unlimited civil cases, and courts hearing these appeals will have jurisdiction over the entire wage dispute, including related claims not originally raised. The legislation aims to streamline the wage claim process, provide more structure to investigations, and create additional mechanisms to ensure workers receive owed wages.

Committee Categories

Budget and Finance, Justice, Labor and Employment

Sponsors (4)

Last Action

Ordered to inactive file at the request of Senator Smallwood-Cuevas. (on 09/03/2025)

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