BILL ANALYSIS Ó
AB 1386
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1386 (Labor and Employment Committee)
As Amended September 4, 2013
Majority vote
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|ASSEMBLY: |70-0 |(May 16, 2013) |SENATE: |25-10|(September 9, |
| | | | | |2013) |
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Original Committee Reference: L. & E.
SUMMARY : Streamlines the collection procedure for employee
wage claims that are final.
The Senate amendments revise the bill to provide as follows:
1)As an alternative to a judgment lien, upon an order becoming
final, a lien on real property may be created by the Labor
Commissioner 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 Labor Commissioner's discretion and depending upon
information the Labor Commissioner obtains 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
Labor Commissioner shall 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.
EXISTING LAW :
AB 1386
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1)Vests with the Labor Commissioner the authority to hear
employee complaints regarding the payment of wages and other
employment-related issues.
2)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.
3)Requires the Labor Commissioner 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.
4)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.
FISCAL EFFECT : According to the Senate Appropriations
Committee pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS : This bill would streamline the collection process for
final orders issued by the Labor Commissioner for unpaid wages.
Under current law, an employee may bring a claim for unpaid
wages, penalties, and damages before the Labor Commissioner
under Labor Code Section 98. If the Labor Commissioner issues
an order, decision or award (ODA) in the employee's favor and
against the employer and the employer fails to appeal within 10
days, the order of the Labor Commissioner becomes final. The
Labor Commissioner is required to file a certified copy of that
order with the Superior Court to be entered as a judgment
against the employer and for the employee in the amount of the
order. A judgment is the legal determination of rights, but a
judgment, in and of itself, does not create a legal obligation
to pay the judgment amount.
Under the current procedure, the Labor Commissioner files a
certified copy of the ODA with the clerk of the superior court
who then enters it as a judgment on the judgment rolls of the
court. This is a ministerial act of the clerk and does not
require any action by the court itself in oversight or approval.
AB 1386
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The invocation of judiciary power is minimal, yet the use of
the judicial procedure is the same as if a civil action was
adjudicated. Since both parties are entitled to judicial review
of the ODA if they so choose, the delay caused by having to use
judicial procedures in order for the employee to collect wages
when neither side desires to resort to the judicial process is
unnecessary and wasteful of executive and judicial resources.
Therefore, this bill would allow the Labor Commissioner to
simply record a final ODA with the local county recorder,
eliminating the two-step process requiring ministerial action by
the Superior Court. This will speed collection activity and
will help ensure that employees are able to collect on their
wage claims before an unscrupulous employer is able to move or
hide their assets.
Supporters argue that this bill is an important step in the
direction of ensuring that all Labor Commissioner final orders,
decisions and awards are actually collected by the aggrieved
workers.
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0002428