BILL NUMBER: AB 469	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Swanson

                        FEBRUARY 15, 2011

   An act to amend  Section 1197.1 of   Sections
98, 226, 240, 243, and 1174 of, and to add Sections 1194.3, 1197.2,
1206, and 2811 to,  the Labor Code, relating to employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 469, as amended, Swanson.  Wages: civil penalties.
  Employees: wages.  
   (1) Existing law authorizes the Labor Commissioner to investigate
and enforce statutes and orders of the Industrial Welfare Commission
that, among other things, specify the requirements for the payment of
wages by employers. Existing law provides for criminal and civil
penalties for violations of statutes and orders regarding payment of
wages.  
   This bill would make it a felony if an employer is convicted of a
willful violation of specified wage statutes and the total amount of
unpaid wages is more than $1,000.  
   (2) Existing law permits the Labor Commissioner to require an
employer who has been convicted of a subsequent wage violation or who
has failed to satisfy a judgment to post a bond in order to continue
business operations.  
   This bill would extend the time required for a subsequently
convicted employer to maintain a bond from 6 months to 2 years and
would require that a subsequently convicted employer provide an
accounting of assets, as specified, to the Labor Commissioner. 

   (3) Existing law requires an employer to post specified wage and
hour information in a location where it can be viewed by employees.
 
   This bill would require an employer to provide each employee, at
the time of hiring, with a notice in English and in the employee's
primary language that specifies the rate and the basis, whether
hourly, salary, commission, or otherwise, of the employee's wages.
 
   (4) Because this bill would create a new crime or expand the
definition of a crime, it would impose a state-mandated local
program.  
   (5) 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.  
   Existing law requires that employees be paid no less than the
minimum wage set by the Industrial Welfare Commission, and declares
that the payment of a less wage than the minimum so fixed is
unlawful. Existing law provides that any employer or other person
acting either individually or as an officer, agent, or employee of
another person, who pays or causes to be paid to any employee a wage
less than the minimum fixed by an order of the commission is subject
to a specified civil penalty.  
   This bill would make nonsubstantive changes to those provisions.

   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.    This act shall be known and may be
cited as the Wage Theft Prevention Act of 2011. 
   SEC. 2.    Section 98 of the  Labor Code
  is amended to read: 
   98.  (a) The Labor Commissioner  shall have the authority
  is authorized  to investigate employee
complaints. The Labor Commissioner may provide for a hearing in any
action to recover wages, penalties, and other demands for
compensation properly before the division or the Labor Commissioner,
including orders of the Industrial Welfare Commission, and shall
determine all matters arising under his or her jurisdiction. It
 shall be   is  within the jurisdiction of
the Labor Commissioner to accept and determine claims from holders of
payroll checks or payroll drafts returned unpaid because of
insufficient funds, if, after a diligent search, the holder is unable
to return the dishonored check or draft to the payee and recover the
sums paid out. Within 30 days of the filing of the complaint, the
Labor Commissioner shall notify the parties as to whether a hearing
will be held, whether action will be taken in accordance with Section
98.3, or whether no further action will be taken on the complaint.
If the determination is made by the Labor Commissioner to hold a
hearing, the hearing shall be held within 90 days of the date of that
determination. However, the Labor Commissioner may postpone or grant
additional time before setting a hearing if the Labor Commissioner
finds that it would lead to an equitable and just resolution of the
dispute.  A party who   has received actual notice of a
claim before the Labor Commissioner shall, while the matter is before
the Labor Commissioner, notify the Labor Commissioner in writing of
any change in that party's business or personal address within 10
days after the change in address occurs. 
   It is the intent of the Legislature that hearings held pursuant to
this section be conducted in an informal setting preserving the
right of the parties.
   (b) When a hearing is set, a copy of the complaint, which shall
include the amount of compensation requested, together with a notice
of time and place of the hearing, shall be served on all parties,
personally or by certified mail, or in the manner specified in
Section 415.20 of the Code of Civil Procedure.
   (c) Within 10 days after service of the notice and the complaint,
a defendant may file an answer with the Labor Commissioner in any
form as the Labor Commissioner may prescribe, setting forth the
particulars in which the complaint is inaccurate or incomplete and
the facts upon which the defendant intends to rely.
   (d) No pleading other than the complaint and answer of the
defendant or defendants shall be required. Both shall be in writing
and shall conform to the form and the rules of practice and procedure
adopted by the Labor Commissioner.
   (e) Evidence on matters not pleaded in the answer shall be allowed
only on terms and conditions the Labor Commissioner shall impose. In
all these cases, the claimant shall be entitled to a continuance for
purposes of review of the new evidence.
   (f) If the defendant fails to appear or answer within the time
allowed under this chapter, no default shall be taken against him or
her, but the Labor Commissioner shall hear the evidence offered and
shall issue an order, decision, or award in accordance with the
evidence. A defendant failing to appear or answer, or subsequently
contending to be aggrieved in any manner by want of notice of the
pendency of the proceedings, may apply to the Labor Commissioner for
relief in accordance with Section 473 of the Code of Civil Procedure.
The Labor Commissioner may afford this relief. No right to relief,
including the claim that the findings or award of the Labor
Commissioner or judgment entered thereon are void upon their face,
shall accrue to the defendant in any court unless prior application
is made to the Labor Commissioner in accordance with this chapter.
   (g) All hearings conducted pursuant to this chapter are governed
by the division and by the rules of practice and procedure adopted by
the Labor Commissioner.
   (h) (1) Whenever a claim is filed under this chapter against a
person operating or doing business under a fictitious business name,
as defined in Section 17900 of the Business and Professions Code,
which relates to the person's business, the division shall inquire at
the time of the hearing whether the name of the person is the legal
name under which the business or person has been licensed,
registered, incorporated, or otherwise authorized to do business.
   (2) The division may amend an order, decision, or award to conform
to the legal name of the business or the person who is the defendant
to a wage claim, if it can be shown that proper service was made on
the defendant or his or her agent, unless a judgment had been entered
on the order, decision, or award pursuant to subdivision (d) of
Section 98.2. The Labor Commissioner may apply to the clerk of the
superior court to amend a judgment that has been issued pursuant to a
final order, decision, or award to conform to the legal name of the
defendant, if it can be shown that proper service was made on the
defendant or his or her agent.
   SEC. 3.    Section 226 of the   Labor Code
  is amended to read: 
   226.  (a) Every employer shall, semimonthly or at the time of each
payment of wages, furnish each of his or her employees, either as a
detachable part of the check, draft, or voucher paying the employee's
wages, or separately when wages are paid by personal check or cash,
an accurate itemized statement in writing showing (1) gross wages
earned, (2) total hours worked by the employee, except for any
employee whose compensation is solely based on a salary and who is
exempt from payment of overtime under subdivision (a) of Section 515
or any applicable order of the Industrial Welfare Commission, (3) the
number of piece-rate units earned and any applicable piece rate if
the employee is paid on a piece-rate basis, (4) all deductions,
provided that all deductions made on written orders of the employee
may be aggregated and shown as one item, (5) net wages earned, (6)
the inclusive dates of the period for which the employee is paid, (7)
the name of the employee and his or her social security number,
except that by January 1, 2008, only the last four digits of his or
her social security number or an employee identification number other
than a social security number may be shown on the itemized
statement, (8) the name and address of the legal entity that is the
employer, and (9) all applicable hourly rates in effect during the
pay period and the corresponding number of hours worked at each
hourly rate by the employee. The deductions made from payments of
wages shall be recorded in ink or other indelible form, properly
dated, showing the month, day, and year, and a copy of the statement
 or a   and the  record of the deductions
shall be kept on file by the employer for at least three years at the
place of employment or at a central location within the State of
California.
   (b) An employer that is required by this code or any regulation
adopted pursuant to this code to keep the information required by
subdivision (a) shall afford current and former employees the right
to inspect or copy the records pertaining to that current or former
employee, upon reasonable request to the employer. The employer may
take reasonable steps to assure the identity of a current or former
employee. If the employer provides copies of the records, the actual
cost of reproduction may be charged to the current or former
employee.
   (c) An employer who receives a written or oral request to inspect
or copy records pursuant to subdivision (b) pertaining to a current
or former employee shall comply with the request as soon as
practicable, but no later than 21 calendar days from the date of the
request. A violation of this subdivision is an infraction.
Impossibility of performance, not caused by or a result of a
violation of law, shall be an affirmative defense for an employer in
any action alleging a violation of this subdivision. An employer may
designate the person to whom a request under this subdivision will be
made.
   (d) This section does not apply to any employer of any person
employed by the owner or occupant of a residential dwelling whose
duties are incidental to the ownership, maintenance, or use of the
dwelling, including the care and supervision of children, or whose
duties are personal and not in the course of the trade, business,
profession, or occupation of the owner or occupant.
   (e) An employee suffering injury as a result of a knowing and
intentional failure by an employer to comply with subdivision (a) is
entitled to recover the greater of all actual damages or fifty
dollars ($50) for the initial pay period in which a violation occurs
and one hundred dollars ($100) per employee for each violation in a
subsequent pay period, not exceeding an aggregate penalty of four
thousand dollars ($4,000), and is entitled to an award of costs and
reasonable attorney's fees.
   (f) A failure by an employer to permit a current or former
employee to inspect or copy records within the time set forth in
subdivision (c) entitles the current or former employee or the Labor
Commissioner to recover a seven-hundred-fifty-dollar ($750) penalty
from the employer.
   (g) An employee may also bring an action for injunctive relief to
ensure compliance with this section, and is entitled to an award of
costs and reasonable attorney's fees.
   (h) This section does not apply to the state, to any city, county,
city and county, district, or to any other governmental entity,
except that if the state or a city, county, city and county,
district, or other governmental entity furnishes its employees with a
check, draft, or voucher paying the employee's wages, the state or a
city, county, city and county, district, or other governmental
entity shall, by January 1, 2008, use no more than the last four
digits of the employee's social security number or shall use an
employee identification number other than the social security number
on the itemized statement provided with the check, draft, or voucher.

   SEC. 4.    Section 240 of the   Labor Code
  is amended to read: 
   240.  (a) If any employer has been convicted of a violation of any
provision of this article, or if any judgment against an employer
for nonpayment of wages remains unsatisfied for a period of 10 days
after the time to appeal therefrom has expired, and no appeal
therefrom is then pending, the Labor Commissioner may require the
employer to deposit a bond in such sum as the Labor Commissioner may
deem sufficient and adequate in the circumstances, to be approved by
the Labor Commissioner. The bond shall be payable to the Labor
Commissioner and shall be conditioned that the employer shall, for a
definite future period, not exceeding  six months 
 two years  , pay the employees in accordance with the
provisions of this article, and shall be further conditioned upon the
payment by the employer of any judgment which may be recovered
against the employer pursuant to the provisions of this article. 

   (b) If an order to post a bond issued against an employer under
this section remains unsatisfied for a period of 10 days after the
time to appeal therefrom has expired, and no appeal from the order is
then pending, the Labor Commissioner may require the employer to
provide an accounting of assets of the employer, including a list of
all bank accounts, accounts receivable, personal property, real
property, automobiles or other vehicles, and any other assets, in a
form and manner as prescribed by the Labor Commissioner. An employer
shall provide an amended accountings of assets, if ordered by the
Labor Commissioner to do so. If, within 10 days after a demand for an
accounting of assets, made by certified or registered mail, the
employer fails to provide an accounting, or if the employer fails to
provide an amended accounting after receiving a demand by the Labor
Commissioner to do so, the Labor Commissioner may bring an action in
the name and on behalf of the people of the state of California
against such employer to compel the employer to furnish the
accounting. An employer who fails to provide an accounting as
required by this subdivision shall be subject to a civil penalty not
to exceed ten thousand dollars ($10,000). 
   (b) 
    (c)  If  ,  within 10 days after demand for the
bond, which demand may be made by mail, the employer fails to
deposit the bond, the Labor Commissioner may bring an action in the
name and on behalf of the people of the State of California against
the employer in a court of competent jurisdiction to compel the
employer to furnish the bond or to cease doing business until the
employer has done so. The employer has the burden of proving either
that the bond is unnecessary or that the amount demanded is
excessive. If the court finds that there is just cause for requiring
the bond, and that the bond is reasonably necessary or proper to
secure prompt payment of the wages of the employees of the employer
and the employer's compliance with the provisions of this article,
the court may enjoin the employer, whether an individual,
partnership, corporation, company, trust, or association, and such
other person or persons as may have been or may be concerned with or
in any way participating in the failure to pay the wages resulting in
the conviction or in the judgment, from doing business until the
requirement is met, and make other and further orders appropriate to
compel compliance with the requirement.
   SEC. 5.    Section 243 of the   Labor Code
 is amended to read: 
   243.  (a) If, within 10 years of either a conviction for a
violation of this article or failing to satisfy a judgment for
nonpayment of wages, or of both, it is alleged that an employer on a
second occasion has been convicted of again violating this article or
is failing to satisfy a judgment for nonpayment of wages, an
employee or the employee's legal representative, an attorney licensed
to practice law in this state, may, on behalf of himself or herself
and others, bring an action in a court of competent jurisdiction for
a temporary restraining order prohibiting the employer from doing
business in this state unless the employer deposits with the court a
bond to secure compliance by the employer with this article or to
satisfy the judgment for nonpayment of wages.
   (b) Upon the filing of an affidavit that, to the satisfaction of
the court, shows reasonable proof that an employer, for the second
time within 10 years, has been convicted of violating this article or
has failed to satisfy a judgment for the nonpayment of wages, or
both, the court  , pursuant to Section 527 of the Code of
Civil Procedure,  may grant  a temporary restraining
  an  order that prohibits the employer within 30
days from conducting any business within the state  ,
 unless the employer deposits a bond payable to the Labor
Commissioner  that is conditioned on   , 
 with the condition that  the employer  making
  make  wage payments in accordance with this
article, or  upon satisfaction by   that 
the employer  of   pay  any 
unsatisfied  judgment for nonpayment of wages, or both. The
court shall order that the bond be deposited  
on deposit  with the  court by the employer at any point
in time that,   Labor Commissioner   at all
times  within a five-year period from the date of the order,
 that  the employer employs more than 10 employees. The
court shall order that the bond be in an amount equal to twenty-five
thousand dollars ($25,000) or 25 percent of the weekly gross payroll
of the employer at the time of the posting of the bond, whichever is
greater, and that the term of the bond be for the duration of the
service of the employee who brought the action, until past due wages
have been paid, or until satisfaction of  a judgment
  all judgments  for nonpayment of wages.  The
bond shall also be payable for wages, interest on wages and for any
damages arising from any violation of orders of the Industrial
Welfare Commission, and for any other monetary relief awarded to an
employee as a result of a violation of this code. To aid in the
enforcement of this section, upon a request by the Labor Commissioner
or an employee bringing an action pursuant to this section, the
court may additionally require the employer to provide an accounting
of assets of the employer, including a list of all bank accounts,
accounts receivable, personal property, real property, automobiles or
other vehicles, and any other assets, in a form and manner as
prescribed by   the court. An employer shall provide an
amended accountings of assets if ordered by the court to do so. If,
within 10 days   after a demand for an accounting of assets,
which demand may be made by certified or registered mail, the
employer shall fail to provide an accounting, or if the employer
fails to provide an amended accounting being ordered to do so, the
court may take all appropriate action to enforce its order, including
the imposition of appropriate sanctions. 
   (c) For purposes of subdivision (b), an employer shall be deemed
to have been convicted of having violated this article or to have
failed to satisfy a judgment for the second time within 10 years if,
to secure labor or personal services in connection with his or her
business, the employer uses the services of an agent, contractor, or
subcontractor who is convicted of a violation of this article or
fails to satisfy a judgment for wages respecting those employees, or
both, but only if the employer had actual knowledge of the person's
failure to pay wages. In issuing a temporary restraining order
pursuant to this section, the court, in determining the amount and
term of the bond, shall count the agent's, contractor's, or
subcontractor's employees as part of the employer's total work force.
This subdivision shall not apply where a temporary restraining order
against the agent, contractor, or subcontractor as an employer has
been issued pursuant to subdivision (b).
   (d) An employer who, for the third time within 10 years of the
first occurrence, is alleged to have violated this article or to have
failed to satisfy a judgment for nonpayment of wages, or both, shall
be deemed by the court to have commenced a new five-year period for
which the posting of a bond may be ordered in accordance with
subdivision (b), except that the court may, in its discretion,
require the posting of a bond in a greater amount as it determines
appropriate under the circumstances.
   (e) A former employee who was a party to an earlier action against
an employer in which a judgment for the payment of wages was
obtained, and who alleges that the employer has failed to satisfy the
judgment for the payment of wages, in addition to any other
available remedy, may petition the court pursuant to subdivision (b)
for a temporary restraining order against the employer to cease doing
business in this state unless the employer posts a bond with the
court.
   (f) Actions brought pursuant to this section shall be set for
trial at the earliest possible date, and shall take precedence over
all other cases, except older matters of the same character and
matters to which special precedence may be given by law.
   (g) Nothing in this section shall be construed to impose any
mandatory duties on the Labor Commissioner.
   SEC. 6.    Section 1174 of the   Labor Code
  is amended to read: 
   1174.  Every person employing labor in this state shall:
   (a) Furnish to the commission, at its request, reports or
information that the commission requires to carry out this chapter.
The reports and information shall be verified if required by the
commission or any member thereof.
   (b) Allow any member of the commission or the employees of the
Division of Labor Standards Enforcement free access to the place of
business or employment of the person to secure any information or
make any investigation that they are authorized by this chapter to
ascertain or make. The commission may inspect or make excerpts,
relating to the employment of employees, from the books, reports,
contracts, payrolls, documents, or papers of the person.
   (c) Keep a record showing the names and addresses of all employees
employed and the ages of all minors.
   (d) Keep, at a central location in the state or at the plants or
establishments at which employees are employed, payroll records
showing the hours worked daily by and the wages paid to, and the
number of piece-rate units earned by and any applicable piece rate
paid to, employees employed at the respective plants or
establishments. These records shall be kept in accordance with rules
established for this purpose by the commission, but in any case shall
be kept on file for not less than  two   three
 years.  An employer shall not prohibit an employee from
maintaining a personal record of hours worked, or, if paid on a
piece-rate bas   is, piece-   rate units earned.

   SEC. 7.    Section 1194.3 is added to the  
Labor Code   , to read:  
   1194.3.  An employee may recover attorney's fees and costs
incurred to enforce a court judgment for unpaid wages due pursuant to
this code. 
   SEC. 8.    Section 1197.2 is added to the  
Labor Code   , to read:  
   1197.2.  (a) In addition to any other penalty imposed by law, an
employer who willfully violates provisions of this code or orders of
the Industrial Welfare Commission requiring payment of the legal
minimum wage or the legal overtime compensation applicable to an
employee shall be guilty of a misdemeanor if the total amount of
unpaid wages is less than one thousand dollars ($1,000), and, upon
conviction therefor, shall be fined not less than one thousand
dollars ($1,000) nor more than ten thousand dollars ($10,000) or
imprisoned in the county jail for not more than six months, or both
the fine and imprisonment, and, if the total amount of unpaid wages
is more than one thousand dollars ($1,000), shall be guilty of a
felony and, upon conviction therefor, shall be fined not less than
ten thousand dollars ($10,000) nor more than twenty thousand dollars
($20,000), or imprisoned in the state prison for 16 months, or two or
three years, or both the fine and imprisonment, for each offense. If
there are multiple violations of this code or orders of the
Industrial Welfare Commission involving more than one employee, the
total amount of unpaid wages owed to all employees shall be
aggregated together for purposes of determining whether an offense is
a misdemeanor or a felony.
   (b) In addition to any other penalty imposed by law, an employer,
or other person acting either individually or as an officer, agent,
or employee of another person, who willfully fails to pay and has the
ability to pay all wages due to an employee who has been discharged
or who has quit within 90 days of the date that those wages became
due is guilty of a misdemeanor if the total amount of wages due is
less than one thousand dollars ($1,000), and, upon conviction
therefor, shall be fined not less than one thousand dollars ($1,000)
nor more than ten thousand dollars ($10,000) or imprisoned in the
county jail for not more than six months, or both, and, if the total
amount of wages due is more than one thousand dollars ($1,000), shall
be guilty of a felony, and upon conviction therefor, shall be fined
not less than ten thousand dollars ($10,000) nor more than twenty
thousand dollars ($20,000), or imprisoned in the state prison for 16
months, or two or three years, or both the fine and imprisonment for
each offense. If there are multiple failures to pay wages involving
more than one employee, the total amount of wages due to all
employees shall be aggregated together for purposes of determining
whether an offense is a misdemeanor or a felony.
   (c)  This section does not apply if the employee's entitlement to
unpaid wages is disputed by the employer in a civil action or
proceeding by the Labor Commissioner unless a final judgment is
entered with respect to that dispute in favor of the employee.
   (d) As used in this section, "willfully" has the same meaning as
provided in Section 7 of the Penal Code.
   (e) An employer or other person guilty of a misdemeanor or felony
under subdivision (a) or (b) shall pay, in addition to any criminal
fines, restitution to the aggrieved employee or employees in an
amount equal to the total amount of unpaid wages. 
   SEC. 9.    Section 1206 is added to the  
Labor Code   , to read:  
   1206.  Nothing in this code preempts, limits, or otherwise affects
the applicability of any other state or local law, ordinance,
regulation, requirement, policy, or standard that prohibits the same
or similar conduct, imposes more severe penalties for failing to
comply with wage-related payment requirements, requires payment of
wages on a more accelerated timeline, or imposes penalties on a more
accelerated timeline. 
   SEC. 10.    Section 2811 is added to the  
Labor Code   , to read:  
   2811.  (a) (1) At the time of hiring, an employer shall provide
each employee, in writing in English and in the language identified
by the employee as his or her the primary language, a notice
containing the following information:
   (A) The rate or rates of pay and basis thereof, whether paid by
the hour, shift, day, week, salary, piece, commission, or otherwise
including any rates for overtime, as applicable.
       (B) Allowances, if any, claimed as part of the minimum wage,
including meal or lodging allowances.
   (C) The regular pay day designated by the employer in accordance
with the requirements of this code.
   (D) The name of the employer, including any "doing business as"
names used by the employer.
   (E) The physical address of the employer's main office or
principal place of business, and a mailing address, if different.
   (F) The telephone number of the employer.
   (G) Any other information the Labor Commissioner deems material
and necessary.
   (2) When providing the notice to an employee, the employer shall
obtain from the employee a signed and dated acknowledgment, in
English and in the primary language of the employee, of receipt of
the notice, which the employer shall preserve and maintain for three
years. The acknowledgment shall include an affirmation by the
employee that the employee accurately identified his or her primary
language to the employer, and that the notice provided by the
employer to the employee was in the language so identified, and shall
conform to any additional requirements established by the Labor
Commissioner with regard to content and form.
   (3) The Labor Commissioner shall prepare templates that comply
with the requirements of paragraphs (1) and (2). Each template shall
be in English and one additional language. The Labor Commissioner
shall determine, in his or her discretion, which languages to provide
in addition to English, based on the size of the state population
that speaks each language and any other factor that the Labor
Commissioner shall deem relevant. All templates shall be made
available to employers in such manner as determined by the Labor
Commissioner.
   (4) When an employee identifies as his or her primary language a
language for which a template is not available from the Labor
Commissioner, the employer may comply with this subdivision by
providing the employee an English-language notice or acknowledgment.
   (5) An employer shall not be penalized for errors or omissions in
the non-English portions of any notice provided by the Labor
Commissioner.
   (b) An employer shall notify his or her employees in writing of
any changes to the information set forth in the notice, or in the
terms or conditions of employment, within seven calendar days after
the time of the changes, unless all changes are reflected on the wage
statement furnished in accordance with Section 226. 
   SEC. 11.    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 1197.1 of the Labor Code is
amended to read:
   1197.1.  (a) Any employer or other person acting either
individually or as an officer, agent, or employee of another person,
who pays or causes to be paid to any employee a wage less than the
minimum fixed by an order of the commission shall be subject to a
civil penalty as follows:
   (1) For any initial violation that is intentionally committed, one
hundred dollars ($100) for each underpaid employee for each pay
period for which the employee is underpaid.
   (2) For each subsequent violation for the same specific offense,
two hundred fifty dollars ($250) for each underpaid employee for each
pay period for which the employee is underpaid regardless of whether
the initial violation is intentionally committed.
   (b) If, upon inspection or investigation, the Labor Commissioner
determines that a person has paid or caused to be paid a wage less
than the minimum, the Labor Commissioner may issue a citation to the
person in violation. The citation may be served personally or by
registered mail in accordance with subdivision (c) of Section 11505
of the Government Code. The Labor Commissioner shall issue each
citation in writing and shall describe the nature of the violation,
including reference to the statutory provision alleged to have been
violated. The Labor Commissioner promptly shall take all appropriate
action, in accordance with this section, to enforce the citation and
to recover the civil penalty assessed in connection with the
citation.
   (c) (1) If a person desires to contest a citation or the proposed
assessment of a civil penalty therefor, the person shall, within 15
business days after service of the citation, notify the office of the
Labor Commissioner that appears on the citation of his or her
request for an informal hearing. The Labor Commissioner or his or her
deputy or agent shall, within 30 days, hold a hearing at the
conclusion of which the citation or proposed assessment of a civil
penalty shall be affirmed, modified, or dismissed.
   (2) The decision of the Labor Commissioner shall consist of a
notice of findings, findings, and an order, all of which shall be
served on all parties to the hearing within 15 days after the hearing
by regular first-class mail at the last known address of the party
on file with the Labor Commissioner. Service shall be completed
pursuant to Section 1013 of the Code of Civil Procedure. Any amount
found due by the Labor Commissioner as a result of a hearing is due
and payable 45 days after notice of the findings and written findings
and order have been mailed to the party assessed. A writ of mandate
may be taken from this finding to the appropriate superior court. The
party shall pay any judgment and costs ultimately rendered by the
court against the party for the assessment. The writ shall be taken
within 45 days of service of the notice of findings, findings, and
order thereon.
   (d) A person to whom a citation has been issued shall, in lieu of
contesting a citation pursuant to this section, transmit to the
office of the Labor Commissioner designated on the citation the
amount specified for the violation within 15 business days after
issuance of the citation.
   (e) When no petition objecting to a citation or the proposed
assessment of a civil penalty is filed, a certified copy of the
citation or proposed civil penalty may be filed by the Labor
Commissioner in the office of the clerk of the superior court in any
county in which the person assessed has or had a place of business.
The clerk, immediately upon the filing, shall enter judgment for the
state against the person assessed in the amount shown on the citation
or proposed assessment of a civil penalty.
   (f) When findings and the order thereon are made affirming or
modifying a citation or proposed assessment of a civil penalty after
hearing, a certified copy of these findings and the order entered
thereon may be entered by the Labor Commissioner in the office of the
clerk of the superior court in any county in which the person
assessed has property or in which the person assessed has or had a
place of business. The clerk, immediately upon the filing, shall
enter judgment for the state against the person assessed in the
amount shown on the certified order.
   (g) A judgment entered pursuant to this section shall bear the
same rate of interest and shall have the same effect as other
judgments and be given the same preference allowed by the law on
other judgments rendered for claims for taxes. The clerk shall make
no charge for the service provided by this section to be performed by
him or her.
   (h) The civil penalties provided for in this section are in
addition to any other penalty provided by law.
   (i) This section shall not apply to any order of the commission
relating to household occupations.