BILL NUMBER: AB 2517 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MARCH 29, 2012
INTRODUCED BY Assembly Member Eng
FEBRUARY 24, 2012
An act to add Chapter 3 (commencing with Section 3000) to
Title 14 of Part 4 of Division 3 of the Civil Code, relating
to employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 2517, as amended, Eng. Employment: payment of wages: liens.
Existing law provides that specified persons, including laborers,
as defined, who contribute labor, skill, or services to a work of
improvement, shall have a mechanic's lien upon the property so
improved.
This bill would declare the intent of the Legislature to enact
legislation that would allow employees and workers to record a lien
on the real or personal property of their employer if that employer
refuses to pay their wages.
This bill would authorize an employee to record and enforce a wage
lien upon specified real and personal property for wages and related
penalties and damages owed the employee. The bill would prescribe
requirements relating to the recording and enforcement of the wage
lien.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 3 (commencing with Section
3000) is added to Title 14 of Part 4 of Division 3 of the
Civil Code , to read:
CHAPTER 3. WAGE LIENS
3000. (a) If all of the requirements of this chapter are met, an
employee has a lien for the amount of wages and related penalties and
damages owed the employee by his or her employer on all of the
following:
(1) Real and personal property owned by the employer that is
located within the state.
(2) Real and personal property that is located within the state
upon which the employee performed work or for which the employee
furnished materials, as part of the employee's employment, at the
request of the owner or a person acting under the owner's authority.
A lien as to the property described in this paragraph may attach only
for the time that the employee performed work on or furnished
materials for that property.
(b) (1) To establish the lien described in subdivision (a) upon
real property, the employee, employee representative, or the Labor
Commissioner shall record a notice of lien with the county recorder
in the county where the real property is located.
(2) The notice of lien shall include all of the following:
(A) A statement of the claimant's demand after deducting all just
credits and offsets.
(B) The name of the owner or reputed owner, if known.
(C) A general statement of the kind of work furnished by the
claimant.
(D) The name of the person by whom the claimant was employed or to
whom the claimant furnished work.
(E) A description of the site sufficient for identification.
(F) The claimant's address.
(3) The employee, employee representative, or the Labor
Commissioner shall serve the notice of lien on the real property
owner, as follows:
(A) For an owner or reputed owner to be notified who resides in or
outside this state, by registered mail, certified mail, or
first-class mail, evidenced by a certificate of mailing, postage
prepaid, addressed to the owner or reputed owner at the owner's or
reputed owner's residence or place of business address.
(B) If the owner or reputed owner cannot be served by this method,
the notice may be given by registered mail, certified mail, or
first-class mail, evidenced by a certificate of mailing, postage
prepaid, addressed to the construction lender or to the original
contractor, if applicable.
(c) (1) To establish the lien described in subdivision (a) upon
personal property, the employee, employee representative, or the
Labor Commissioner shall record a notice of lien with the Secretary
of State. The notice shall specify the nature and amount of the wage
claim, describe the property on which the lien is made, and state
that a lien is claimed on the property. Except as otherwise provided
in this chapter, the manner, form, and place of filing shall be as
described in Chapter 5 (commencing with Section 9501) of Division 9
of the Commercial Code. The notice of the lien shall be placed in the
same file as financing statements pursuant to Section 9522 of the
Commercial Code.
(2) The employee, employee representative, or the Labor
Commissioner shall serve a copy of the notice by personal service to
the owner in the same manner as a summons or by mail as described in
paragraph (3) of subdivision (b).
(d) (1) If treble damages are owed pursuant to subdivision (b) of
Section 206 of the Labor Code, the Labor Commissioner shall record a
lien for those damages, which will be separate and apart from any
other lien under this section.
(2) Failure to record or perfect a lien for damages under
subdivision (b) of Section 206 of the Labor Code shall have no effect
on the enforceability or perfection of any other lien under this
section.
(e) A lien under this section is perfected when the lien is
recorded and noticed as described in this section.
(f) A lien may be filed pursuant to this section at any time
before the expiration of the statute of limitations for the wage
claim the lien would enforce.
(g) Mistakes or errors in the claimed amount owed that the lien
would enforce do not invalidate the lien unless made with the intent
to defraud.
3001. (a) An action to enforce a lien under this chapter may be
brought by the employee, employee representative, or the Labor
Commissioner, and may be included in any action brought under Chapter
5 (commencing with Section 17200) of Part 2 of Division 7 of the
Business and Professions Code, any action brought by collective
bargaining representatives, or any class action or representative
action.
(b) If the action is brought in an administrative proceeding
before the Labor Commissioner pursuant to Section 98 of the Labor
Code, the Labor Commissioner shall determine the validity of the
lien. If no lien has been recorded at the time the administrative
claim is filed, the Labor Commissioner shall record and notice a lien
pursuant to Section 3000 on behalf of the employee.
(c) Actions pursuant to this chapter against the same employer may
be joined in a single proceeding, but the court may order separate
trials or hearings.
3002. (a) If a lien is recorded pursuant to Section 3000 and an
action to recover wages and related penalties and damages owed the
employee has already been filed, that action shall also be deemed an
action to enforce the lien upon any property subject to the recorded
lien. In the judgment resulting from the action, the court may order
the sale at a public auction, or the transfer to the plaintiff of
title or possession, of any property subject to the lien. Regardless
of whether the order is made part of the judgment, a writ of sale may
be issued for any property subject to the lien at any point after a
judgment for unpaid wages is issued.
(b) If judgment is entered in favor of the employer in an action
to recover wages and related penalties and damages owed the employee
or if the case is dismissed with prejudice, any applicable lien shall
be extinguished upon expiration of the appeals period if no appeal
is filed. If an appeal is filed, the lien shall continue in force
until all issues on appeal have been decided. If the lien is
extinguished, upon demand and 15 days' notice by any affected party,
the employee, employee representative, or Labor Commissioner shall
file a release of the lien in the manner prescribed by Sections
697.370 and 697.650 of the Code of Civil Procedure.
(c) To enforce the lien, an action shall be brought within one
year of the recording of the lien. If an action to enforce the lien
is not brought within one year of the recording of the lien, the lien
shall be extinguished. Upon demand and 15 days' notice by any
affected party, the employee, employee representative, or Labor
Commissioner shall file a release of the lien in the manner
prescribed by Sections 697.370 and 697.650 of the Code of Civil
Procedure.
3003. A lien established pursuant to this chapter takes
precedence over all other debts, judgments, decrees, liens, or
mortgages perfected on or after January 1, 2013, except a tax lien,
against the employer, regardless as to whether the debts, judgments,
decrees, liens, or mortgages originated before or after the wage lien
or were perfected prior to the wage lien. An employee's lien is
effective against the employer, the estate of the employer, or a
subsequent bona fide purchaser of the property subject to the
employee's lien.
3004. The employee, employee representative, or Labor
Commissioner may recover court costs and reasonable attorney's fees
in a successful action to enforce a lien brought pursuant to this
chapter.
SECTION 1. It is the intent of the Legislature
to enact legislation that would allow employees and workers to record
a lien on the real or personal property of their employer if that
employer refuses to pay their wages.