BILL ANALYSIS �
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1386|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: AB 1386
Author: Assembly Labor and Employment Committee
Amended: 9/4/13 in Senate
Vote: 21
SENATE LABOR & INDUSTRIAL RELATIONS COMMITTEE : 4-0, 6/12/13
AYES: Monning, Leno, Padilla, Yee
NO VOTE RECORDED: Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 70-0, 5/16/13 (Consent) - See last page for
vote
SUBJECT : Employment: employee complaints: final orders
SOURCE : Author
DIGEST : This bill provides, as an alternative to a judgment
lien, upon an order becoming final, a lien on real property may
be created by the Labor Commissioner (LC) recording a
certificate of lien, for amounts due under the final order, and
in favor of the employee(s) named in the order, with the county
recorder of any county in which the employer's real property may
be located, at the LC's discretion and depending upon
information the LC obtains concerning the employer's assets, as
specified.
Senate Floor Amendments of 9/4/13 delete the provisions of the
bill which would have allowed the LC to file a lien in favor of
CONTINUED
AB 1386
Page
2
an employee named in an order, and against the personal and real
property of the employer named, within the county in which the
order is filed, and insert language which authorizes the LC, as
an alternative to a judgment lien, to create a lien on real
property only for amounts due under the final order with the
county recorder of any county in which the employer's real
property may be located, at the LC's discretion and depending
upon information obtained containing the employer's assets.
ANALYSIS : Existing law allows an employee to bring a claim
for unpaid wages, penalties, and damages before the LC.
Existing law vests with the LC the authority to hear employee
complaints regarding the payment of wages and other
employment-related issues. Among other things, existing law
requires the LC to do the following:
1.File an order, decision, or award within 15 days of hearing an
employee complaint. If no party to the action appeals within
10 days after its service, the order, decision, or award
becomes the final order for the action.
An employer seeking to appeal a decision must first
post an undertaking (bond or cash deposit) with the
reviewing court in the amount of the order, decision or
award.
1.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 final, unless the parties reach a settlement
agreement approved by the LC.
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:
1.As an alternative to a judgment lien, upon an order becoming
final, a lien on real property may be created by the LC
recording a certificate of lien, for amounts due under the
final order and in favor of the employee or employees named in
the order, with the county recorder of any county in which the
employer's real property may be located, at the LC's
discretion and depending upon information the LC obtains
CONTINUED
AB 1386
Page
3
concerning the employer's assets.
2.The lien attaches to all interests in real property of the
employer located in the county where the lien is created to
which a judgment lien may attach.
3.The recorder shall accept and record the certificate of lien
and shall index it as prescribed by law.
4.Upon payment of the amount due under the final order, the LC
will issue a certificate of release. The certificate of
release may be recorded by the employer at the employer's
expense.
5.Unless the lien is satisfied or released, a lien under this
bill shall continue until 10 years from the date of its
creation.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 9/5/13)
California Rural Legal Assistance Foundation
OPPOSITION : (Verified 9/5/13)
Commercial Transactions Committee of the California Business Law
Section of the
California State Bar
ASSEMBLY FLOOR : 70-0, 5/16/13
AYES: Achadjian, Alejo, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Ian
Calderon, Campos, Chau, Ch�vez, Chesbro, Conway, Cooley,
Dahle, Daly, Dickinson, Donnelly, Fong, Fox, Frazier, Garcia,
Gatto, Gomez, Gordon, Gorell, Gray, Hagman, Hall, Harkey,
Roger Hern�ndez, Jones, Jones-Sawyer, Levine, Linder, Logue,
Lowenthal, Maienschein, Mansoor, Medina, Mitchell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,
V. Manuel P�rez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Ting, Torres, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, Yamada, John A. P�rez
NO VOTE RECORDED: Allen, Buchanan, Eggman, Beth Gaines, Grove,
CONTINUED
AB 1386
Page
4
Holden, Melendez, Morrell, Stone, Vacancy
PQ:nl 9/5/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED