Senate Bill 588 (Labor Commissioner’s Enforcement of Judgments)
SB 588 establishes new procedures for the Labor Commissioner to enforce judgments against employers who fail to satisfy a final judgment against them for nonpayment of wages and also in certain cases extends liability from companies to owners and officers.
Under this law the Labor Commissioner has greater ability to enforce judgments against employers who fail to satisfy a final judgment against them for nonpayment of wages:
- After a judgment for unpaid wages is entered by a court in favor of the Labor Commissioner or employee, the Labor Commissioner can mail a notice of levy to everyone who possess or control any money, or property belonging to the employer. Anyone who receives a levy must surrender the money, or property to the Labor Commissioner, or pay the Labor Commissioner the amount owed, within 10 days of service.
- If a final judgment against an employer for unpaid wages remains unsatisfied for 30 days after the time to appeal the judgment has expired and no appeal is pending, the employer must cease business operations in the state unless the employer has obtained a surety bond to cover the value of the judgment.
- AB 558 also adds a new provision to the law that says:
(a) Any employer or other person acting on behalf of an employer, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, Sections 203, 226, 226.7, 1193.6, 1194, or 2802 [willful failure to pay wages, provide a paystub, pay unpaid minimum wages or overtime, or indemnify an employee] may be held liable as the employer for such violation.
(b) For purposes of this section, the term “other person acting on behalf of an employer” is limited to a natural person who is an owner, director, officer, or managing agent of the employer, and the term “managing agent” has the same meaning as in subdivision (b) of Section 3294 of the Civil Code.
SB 588 amends Section 98 of, and to add Sections 96.8, 238, 238.1, 238.2, 238.3, 238.4, 238.5, and 558.1 to, the Labor Code.