BILL NUMBER: AB 469	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 31, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 6, 2011
	AMENDED IN SENATE  AUGUST 29, 2011
	AMENDED IN SENATE  AUGUST 15, 2011
	AMENDED IN SENATE  JULY 12, 2011
	AMENDED IN SENATE  JUNE 27, 2011
	AMENDED IN SENATE  JUNE 14, 2011
	AMENDED IN ASSEMBLY  MAY 27, 2011
	AMENDED IN ASSEMBLY  MAY 3, 2011
	AMENDED IN ASSEMBLY  APRIL 14, 2011
	AMENDED IN ASSEMBLY  APRIL 7, 2011
	AMENDED IN ASSEMBLY  MARCH 31, 2011

INTRODUCED BY   Assembly Member Swanson
   (Coauthor: Assembly Member Huffman)

                        FEBRUARY 15, 2011

   An act to amend Sections 98, 226, 240, 243, 1174, and 1197.1 of,
and to add Sections 200.5, 1194.3, 1197.2, 1206, and 2810.5 to, the
Labor Code, relating to employment.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 469, Swanson. 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 of the commission
regarding payment of wages.
   This bill would provide that in addition to being subject to a
civil penalty, any employer 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 paying restitution of wages to the
employee.
   This bill would make it a misdemeanor if an employer willfully
violates specified wage statutes or orders, or willfully fails to pay
a final court judgment or final order of the Labor Commissioner for
wages due.
   (2) Existing law provides that an action by the Division of Labor
Standards Enforcement within the Department of Industrial Relations
for collection of a statutory penalty or fee must be commenced within
one year after the penalty or fee became final.
   This bill would extend the period within which the division may
commence a collection action, as defined, from one year to 3 years.
   (3) 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.
   (4) 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 that specifies the rate and the
basis, whether hourly, salary, commission, or otherwise, of the
employee's wages and to notify each employee in writing of any
changes to the information set forth in the notice within 7 calendar
days of the changes unless such changes are reflected on a timely
wage statement or another writing, as specified. No notice would be
required for an employee who is employed by the state or any
subdivision thereof, exempt from the payment of overtime, or covered
by a collective bargaining agreement containing specified
information.
   (5) In addition to the crime and employer obligations imposed by
this bill, the Labor Code provides for other work-related standards
and duties that, upon violation, are subject to specified penalties.
   This bill would state that the Labor Code establishes minimum
penalties for failure to comply with wage-related statutes and
regulations.
   Because this bill would create a new crime or expand the
definition of a crime, it would impose a state-mandated local
program.
   (6) This bill would incorporate additional changes to Section 98
of the Labor Code proposed by AB 240, that would become operative
only if AB 240 and this bill are both enacted, both bills become
effective on or before January 1, 2012, and this bill is enacted
last.
   This bill would also incorporate additional changes to Section 226
of the Labor Code proposed by AB 243, that would become operative
only if AB 243 and this bill are both enacted, both bills become
effective on or before January 1, 2012, and this bill is enacted
last.
   (7) 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.


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 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 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
rights 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. 2.5.  Section 98 of the Labor Code is amended to read:
   98.  (a) The Labor Commissioner 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, including liquidated damages if the complaint alleges
payment of a wage less than the minimum wage fixed by an order of the
Industrial Welfare Commission or by statute, 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 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
rights 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 200.5 is added to the Labor Code, to read:
   200.5.  (a) Notwithstanding any provision of this code or Section
340 of the Code of Civil Procedure, to collect a civil penalty, fee,
or penalty fee under this division, the Division of Labor Standards
Enforcement shall commence an action within three years from the date
the penalty or fee became final. Upon commencement of an action, the
clerk of the superior court shall enter judgment immediately in
conformity therewith.
   (b) This section applies only to penalty assessments or fees that
became final on or after the effective date of the act adding this
section.
   (c) For purposes of this section, "commence an action" means to
file a request for entry of judgment on a civil penalty or fee with
the clerk of the superior court of the relevant county.
   (d) For purposes of this section, "final" means the time to appeal
has expired and there is no appeal pending.
  SEC. 4.  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
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 ensure 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. 4.5.  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 the last four digits of his or her
social security number or an employee identification number other
than a social security number, (8) the name and address of the legal
entity that is the employer and, if the employer is a farm labor
contractor, as defined in subdivision (b) of Section 1682, the name
and address of the legal entity that secured the services of 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 payment 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
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 records pertaining to their employment, upon
reasonable request to the employer. The employer may take reasonable
steps to ensure 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) The listing by an employer of the name and address of the
legal entity that secured the services of the employer in the
itemized statement required by subdivision (a) shall not create any
liability on the part of that legal entity.
   (h) 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.
   (i) 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 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. 5.  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 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 accounting 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).
   (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. 6.  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 may grant 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, with the
condition that the employer make wage payments in accordance with
this article, or that the employer pay any unsatisfied judgment for
nonpayment of wages, or both. The court shall order that the bond be
on deposit with the 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 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 accounting 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 workforce.
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. 7.  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 three years. An employer shall not
prohibit an employee from maintaining a personal record of hours
worked, or, if paid on a piece-rate basis, piece-rate units earned.
  SEC. 8.  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. 9.  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 and restitution of wages payable to the employee, 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. This amount shall be in
addition to an amount sufficient to recover underpaid wages.
   (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. This amount shall
be in addition to an amount sufficient to recover underpaid wages.
   (3) Wages recovered pursuant to this section shall be paid to the
affected employee.
   (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. Each citation shall be 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 and wages in connection with the citation.

   (c) If a person desires to contest a citation or the proposed
assessment of a civil penalty and wages 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 and wages shall be affirmed, modified, or dismissed.
   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 shall become 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 and wages is filed, a certified copy of
the citation or proposed civil penalty and wages 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 and
wages.
   (f) When findings and the order thereon are made affirming or
modifying a citation or proposed assessment of a civil penalty and
wages 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.
  SEC. 10.  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 fails to pay and has the ability to pay a
final court judgment or final order issued by the Labor Commissioner
for all wages due to an employee who has been discharged or who has
quit within 90 days of the date that the judgment was entered or the
order became final is guilty of a misdemeanor. For purposes of this
section, "final court judgment or final order" means a court judgment
or order as to which the time to appeal has expired and there is no
appeal pending. If the total amount of wages due is less than one
thousand dollars ($1,000), upon conviction therefor, the employer
shall be fined not less than one thousand dollars ($1,000) nor more
than ten thousand dollars ($10,000) or imprisoned in a county jail
for not more than six months, for each offense. If the total amount
of wages due is more than one thousand dollars ($1,000) upon
conviction therefor, the employer shall be fined not less than ten
thousand dollars ($10,000) nor more than twenty thousand dollars
($20,000), or imprisoned in a county jail for not less than six
months, nor more than one year, 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 the level of fine and the term of imprisonment.
   (b) As used in this section, "willfully" has the same meaning as
provided in Section 7 of the Penal Code.
   (c) Nothing in this section precludes prosecution under any other
provision of law.
  SEC. 11.  Section 1206 is added to the Labor Code, to read:
   1206.  Notwithstanding any other provision of law, this code
establishes minimum penalties for failure to comply with wage-related
statutes and regulations.
  SEC. 12.  Section 2810.5 is added to the Labor Code, to read:
   2810.5.  (a) (1) At the time of hiring, an employer shall provide
each employee a written notice, in the language the employer normally
uses to communicate employment-related information to the employee,
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 payday 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) The name, address, and telephone number of the employer's
workers' compensation insurance carrier.
   (H) Any other information the Labor Commissioner deems material
and necessary.
   (2) The Labor Commissioner shall prepare a template that complies
with the requirements of paragraph (1). The template shall be made
available to employers in such manner as determined 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 within seven
calendar days after the time of the changes, unless one of the
following applies:
   (1) All changes are reflected on a timely wage statement furnished
in accordance with Section 226.
   (2) Notice of all changes is provided in another writing required
by law within seven days of the changes.
   (c) For purposes of this section, "employee" does not include any
of the following:
   (1) An employee directly employed by the state or any political
subdivision thereof, including any city, county, city and county, or
special district.
   (2) An employee who is exempt from the payment of overtime wages
by statute or the wage orders of the Industrial Welfare Commission.
   (3) An employee who is covered by a valid collective bargaining
agreement if the agreement expressly provides for the wages, hours of
work, and working conditions of the employee, and if the agreement
provides premium wage rates for all overtime hours worked and a
regular hourly rate of pay for those employees of not less than 30
percent more than the state minimum wage.

  SEC. 13.  (a) Section 2.5 of this bill incorporates amendments to
Section 98 of the Labor Code proposed by both this bill and Assembly
Bill 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 98 of the Labor Code, and (3) this bill is
enacted after Assembly Bill 240, in which case Section 2 of this bill
shall not become operative.
   (b) Section 4.5 of this bill incorporates amendments to Section
226 of the Labor Code proposed by both this bill and Assembly Bill
243. 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 226 of the Labor Code, and (3) this bill is enacted after
Assembly Bill 243, in which case Section 4 of this bill shall not
become operative.
  SEC. 14.  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.