BILL ANALYSIS Ó AB 442 Page 1 Date of Hearing: May 1, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 442 (Nazarian) - As Introduced: February 19, 2013 Policy Committee: Labor and Employment Vote: 7-0 Judiciary 10-0 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill allows an employee to recover liquidated wages for citations issued by the Labor Commissioner (LC) for minimum wage violations, as specified. FISCAL EFFECT Minor, absorbable costs to the Department of Industrial Relations (DIR) to implement this measure. COMMENTS Purpose . Existing law subjects an employer who pays an employee less than the minimum wage to a civil penalty and restitution, as specified. Statute further authorizes the LC, upon inspection or investigation, to issue a citation to a person who is paying less than the minimum wage. According to DIR, it issued 133 citations for minimum wage violations in the 2011-12 fiscal year. Current law specifies an employee who is paid less than the minimum wage is entitled to recover the unpaid balance of the full amount of the minimum wage and interest, where applicable. Whether or not the employee is entitled to liquidated damages depends on the manner in which the minimum wage violation was determined (i.e., via a civil action, an administrative wage claim hearing, or a citation issued by the LC). For example, an employee who is paid less than the minimum wage is entitled to recover in a civil action, the unpaid balance of the full amount of the minimum wage, liquidated damages in an amount equal to AB 442 Page 2 the wages unlawfully paid and interest, reasonable attorney's fees and costs of the suit. AB 240 (Bonilla), Chapter 272, Statutes of 2011, authorized the LC to award liquidated damages to an employee via an administrative wage claim hearing. Chapter 272 established parity to employees in awarding liquidated damages between the two wage proceedings - civil action and administrative hearings. This bill, sponsored by the California Rural Legal Assistance Foundation, extends this parity to minimum wage violations determined by citations issued by the LC, as specified. Analysis Prepared by : Kimberly Rodriguez / APPR. / (916) 319-2081