BILL NUMBER: AB 1386	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Labor and Employment (Roger Hernández
(Chair), Alejo, Chau, and Holden)

                        MARCH 4, 2013

   An act to amend Section 98.2 of the Labor Code, relating to
employment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1386, as introduced, Committee on Labor and Employment.
Employment: employee complaints: final orders.
   Existing law vests with the Labor Commissioner the authority to
hear employee complaints regarding the payment of wages and other
employment-related issues. Existing law requires the Labor
Commissioner to file an order, decision, or award within 15 days of
hearing an employee complaint. If no party to the action appeals the
order, decision, or award within 10 days after its service, existing
law provides that the order, decision, or award becomes the final
order for the action. The Labor Commissioner is required to file the
final order with the clerk of the superior court of the appropriate
county within 10 days of the order, decision, or award becoming the
final order for the action, unless the parties reach a settlement
approved by the Labor Commissioner. Existing law then requires the
clerk of the superior court to enter judgment in conformity with the
final order, which has the same force and effect as a judgment
entered in a civil action.
   This bill would authorize the Labor Commissioner to file a
certified copy of the order within 10 days of its becoming final with
the county recorder of any county in which the employer's property
may be located. The bill would provide that the amount due under the
final order shall be a lien on the employer's personal and real
property, as specified, and would require the county recorder to
record and index the order as a mortgage on real estate and to file
and index the order as a security interest, as specified. By
requiring a higher level of service on a local agency, this bill
would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 98.2 of the Labor Code is amended to read:
   98.2.  (a) Within 10 days after service of notice of an order,
decision, or award the parties may seek review by filing an appeal to
the superior court, where the appeal shall be heard de novo. The
court shall charge the first paper filing fee under Section 70611 of
the Government Code to the party seeking review. The fee shall be
distributed as provided in Section 68085.3 of the Government Code. A
copy of the appeal request shall be served upon the Labor
Commissioner by the appellant. For purposes of computing the 10-day
period after service, Section 1013 of the Code of Civil Procedure is
applicable.
   (b) As a condition to filing an appeal pursuant to this section,
an employer shall first post an undertaking with the reviewing court
in the amount of the order, decision, or award. The undertaking shall
consist of an appeal bond issued by a licensed surety or a cash
deposit with the court in the amount of the order, decision, or
award. The employer shall provide written notification to the other
parties and the Labor Commissioner of the posting of the undertaking.
The undertaking shall be on the condition that, if any judgment is
entered in favor of the employee, the employer shall pay the amount
owed pursuant to the judgment, and if the appeal is withdrawn or
dismissed without entry of judgment, the employer shall pay the
amount owed pursuant to the order, decision, or award of the Labor
Commissioner unless the parties have executed a settlement agreement
for payment of some other amount, in which case the employer shall
pay the amount that the employer is obligated to pay under the terms
of the settlement agreement. If the employer fails to pay the amount
owed within 10 days of entry of the judgment, dismissal, or
withdrawal of the appeal, or the execution of a settlement agreement,
a portion of the undertaking equal to the amount owed, or the entire
undertaking if the amount owed exceeds the undertaking, is forfeited
to the employee.
   (c) If the party seeking review by filing an appeal to the
superior court is unsuccessful in the appeal, the court shall
determine the costs and reasonable attorney's fees incurred by the
other parties to the appeal, and assess that amount as a cost upon
the party filing the appeal. An employee is successful if the court
awards an amount greater than zero.
   (d) If no notice of appeal of the order, decision, or award is
filed within the period set forth in subdivision (a), the order,
decision, or award shall, in the absence of fraud, be deemed the
final order.
   (e) The Labor Commissioner shall file, within 10 days of the order
becoming final pursuant to subdivision (d), a certified copy of the
final order with the clerk of the superior court of the appropriate
county unless a settlement has been reached by the parties and
approved by the Labor Commissioner. Judgment shall be entered
immediately by the court clerk in conformity therewith. The judgment
so entered has the same force and effect as, and is subject to all of
the provisions of law relating to, a judgment in a civil action, and
may be enforced in the same manner as any other judgment of the
court in which it is entered. Enforcement of the judgment shall
receive court priority.
   (f) (1) In order to ensure that judgments are satisfied, the Labor
Commissioner may serve upon the judgment debtor, personally or by
first-class mail at the last known address of the judgment debtor
listed with the division, a form similar to, and requiring the
reporting of the same information as, the form approved or adopted by
the Judicial Council for purposes of subdivision (a) of Section
116.830 of the Code of Civil Procedure to assist in identifying the
nature and location of any assets of the judgment debtor.
   (2) The judgment debtor shall complete the form and cause it to be
delivered to the division at the address listed on the form within
35 days after the form has been served on the judgment debtor, unless
the judgment has been satisfied. In case of willful failure by the
judgment debtor to comply with this subdivision, the division or the
judgment creditor may request the court to apply the sanctions
provided in Section 708.170 of the Code of Civil Procedure. 
   (g) The Labor Commissioner may file, within 10 days of the order
becoming final pursuant to subdivision (d), a certified copy of the
final order with the county recorder of any county in which the
employer's property may be located. The order may be filed in any and
all counties of the state, at the Labor Commissioner's discretion
and depending upon information the Labor Commissioner obtains
concerning the employer's assets. The amount found due under the
order shall be a lien in favor of the employee named in the order,
and against the personal and real property of the employer named in
the order, within the county in which the order is filed. The
recorder shall accept and file the order and record it as a mortgage
on real estate, shall file the same as a security interest, and shall
index the same as a mortgage on real estate and as a security
interest. The recorder shall include all charges for the services to
be performed by him or her, as required by this section, in the
amount due under the lien.  
   (g) 
    (h)  Notwithstanding subdivision (e), the Labor
Commissioner may stay execution of any judgment entered upon an
order, decision, or award that has become final upon good cause
appearing therefor and may impose the terms and conditions of the
stay of execution. A certified copy of the stay of execution shall be
filed with the clerk entering the judgment. 
   (h) 
    (i)  When a judgment is satisfied in fact, other than by
execution, the Labor Commissioner may, upon the motion of either
party or on its own motion, order entry of satisfaction of judgment.
The clerk of the court shall enter a satisfaction of judgment upon
the filing of a certified copy of the order. 
   (i) 
    (j)  The Labor Commissioner shall make every reasonable
effort to ensure that judgments are satisfied, including taking all
appropriate legal action and requiring the employer to deposit a bond
as provided in Section 240. 
   (j) 
    (k)  The judgment creditor, or the Labor Commissioner as
assignee of the judgment creditor, is entitled to court costs and
reasonable attorney's fees for enforcing the judgment that is
rendered pursuant to this section.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.