California Legislature—2013–14 Regular Session

Assembly Bill No. 2074

Introduced by Assembly Member Roger Hernández

February 20, 2014

An act to amend Section 1194.2 of the Labor Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

AB 2074, as introduced, Roger Hernández. Recovery of wages: liquidated damages.

Existing law authorizes an employee to bring a civil lawsuit against his or her employer for the unpaid balance of wages or compensation owed to that employee.

Existing law permits an employee to recover liquidated damages equal to the unpaid wages plus interest in a court action alleging payment of less than the state minimum wage.

This bill would provide that a suit for liquidated damages may be filed at any time before the expiration of the statute of limitations for bringing the underlying action alleging payment of less than the state minimum wage.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 1194.2 of the Labor Code is amended to
read:

1194.2.  

(a) In any action under Section 98, 1193.6, 1194, or
1197.1 to recover wages because of the payment of a wage less
than the minimum wage fixed by an order of the commission or
by statute, an employee shall be entitled to recover liquidated
damages in an amount equal to the wages unlawfully unpaid and
interest thereon. Nothing in this subdivision shall be construed to
authorize the recovery of liquidated damages for failure to pay
overtime compensation. begin insert A suit may be filed for liquidated damages
at any time before the expiration of the statute of limitations on
an action for wages from which the liquidated damages arise. end insert

(b) Notwithstanding subdivision (a), if the employer
demonstrates to the satisfaction of the court or the Labor
Commissioner that the act or omission giving rise to the action
was in good faith and that the employer had reasonable grounds
for believing that the act or omission was not a violation of any
provision of the Labor Code relating to minimum wage, or an order
of the commission, the court or the Labor Commissioner may, as
a matter of discretion, refuse to award liquidated damages or award
any amount of liquidated damages not exceeding the amount
specified in subdivision (a).

(c) This section applies only to civil actions commenced on or
after January 1, 1992.