BILL NUMBER: AB 197	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 5, 2012
	AMENDED IN SENATE  JUNE 2, 2011

INTRODUCED BY   Assembly Member Monning

                        JANUARY 27, 2011

   An act to  amend   add  Section 
1194.2 of   1698.9 to  the Labor Code, relating to
 employment   farm labor contractors  .


	LEGISLATIVE COUNSEL'S DIGEST


   AB 197, as amended, Monning.  Recovery of wages:
liquidated damages.   Farm labor contractors:
successors: wages and penalties.  
   Existing law provides for the regulation and licensure of farm
labor contractors by the Labor Commissioner. Under existing law, a
violation of these provisions is a misdemeanor, punishable as
specified.  
   This bill would also provide that a successor to any licensed or
unlicensed farm labor contractor that owed wages or penalties to the
predecessor's former employee or employees is liable for those wages
or penalties if the successor meets certain criteria. Because failing
to discharge the liabilities would be a crime, this bill would
impose a state-mandated local program.  
   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.  
   Under existing law, in a court action to recover wages unpaid in
violation of the minimum wage set by the Industrial Welfare
Commission within the Department of Industrial Relations, the court
may award liquidated damages to an employee equal to the amount of
wages unlawfully unpaid, plus interest.  
   This bill would increase the amount of liquidated damages that may
be awarded to an employee to twice the amount of the wages
unlawfully unpaid, plus interest.  
   This bill would incorporate additional changes in Section 1194.2
of the Labor Code proposed by AB 240, to be operative only if AB 240
and this bill are both enacted and become effective on or before
January 1, 2012, both bills amend Section 1194.2, and this bill is
enacted after AB 240. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 1698.9 is added to the 
 Labor Code   , to read:  
   1698.9.  A successor to any licensed or unlicensed farm labor
contractor that owed wages or penalties to the predecessor's former
employee or employees is liable for those wages or penalties if the
successor meets any of the following criteria:
   (a) Uses substantially the same facilities or workforce to offer
substantially the same services as the predecessor employer.
   (b) Shares in the ownership, management, control of the workforce,
or interrelations of business operations with the predecessor
employer.
   (c) Employs in a managerial capacity any person who directly or
indirectly controlled the wages, hours, or working conditions of the
employees owed wages or penalties by the predecessor employer.
   (d) Is an immediate family member of any owner, partner, officer,
licensee, or director of the predecessor employer or of any person
who had a financial interest in the predecessor employer. For
purposes of this section, "immediate family member" means spouse,
father, mother, brother, sister, son, daughter, uncle, aunt, nephew,
niece, or grandparent. 
   SEC. 2.    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.  
  SECTION 1.    Section 1194.2 of the Labor Code is
amended to read:
   1194.2.  (a) In any action under Section 1193.6 or Section 1194 to
recover wages because of the payment of a wage less than the minimum
wage fixed by an order of the commission, an employee shall be
entitled to recover liquidated damages in an amount equal to twice
the wages unlawfully unpaid and interest thereon. Nothing in this
subdivision shall be construed to authorize the recovery of
liquidated damages for failure to pay overtime compensation.
   (b) Notwithstanding subdivision (a), if the employer demonstrates
to the satisfaction of the court that the act or omission giving rise
to the action was in good faith and that the employer had reasonable
grounds for believing that the act or omission was not a violation
of any provision of the Labor Code relating to minimum wage, or an
order of the commission, the court may, in its discretion, refuse to
award liquidated damages or award any amount of liquidated damages
not exceeding the amount specified in subdivision (a).
   (c) This section only applies to civil actions commenced on or
after January 1, 1992.  
  SEC. 1.5.    Section 1194.2 of the Labor Code is
amended to read:
   1194.2.  (a) In any action under Section 98, 1193.6, or 1194 to
recover wages because of the payment of a wage less than the minimum
wage fixed by an order of the commission or by statute, an employee
shall be entitled to recover liquidated damages in an amount equal to
twice the wages unlawfully unpaid and interest thereon. Nothing in
this subdivision shall be construed to authorize the recovery of
liquidated damages for failure to pay overtime compensation.
   (b) Notwithstanding subdivision (a), if the employer demonstrates
to the satisfaction of the court or the Labor Commissioner that the
act or omission giving rise to the action was in good faith and that
the employer had reasonable grounds for believing that the act or
omission was not a violation of any provision of the Labor Code
relating to minimum wage, or an order of the commission, the court or
the Labor Commissioner may, as a matter of discretion, refuse to
award liquidated damages or award any amount of liquidated damages
not exceeding the amount specified in subdivision (a).
   (c) This section applies only to civil actions commenced on or
after January 1, 1992.  
  SEC. 2.    Section 1.5 of this bill incorporates
amendments to Section 1194.2 of the Labor Code proposed by both this
bill and AB 240. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2012, (2) each
bill amends Section 1194.2 of the Labor Code, and (3) this bill is
enacted after AB 240, in which case Section 1 of this bill shall not
become operative.