California Legislature—2013–14 Regular Session

Assembly Bill No. 2271

Introduced by Assembly Member Ian Calderon

February 21, 2014

An act to amend Section 98 of the Labor Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

AB 2271, as introduced, Ian Calderon. Employment: employee complaints.

Existing law authorizes the Labor Commissioner to investigate and enforce statutes and orders of the Industrial Welfare Commission that, among other things, specify the requirements for the payment of wages by employers. Existing law provides for criminal and civil penalties for violations of statutes and orders of the commission regarding payment of wages.

This bill would make technical, nonsubstantive changes to this provision.

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 98 of the Labor Code is amended to read:

98.  

(a) The Labor Commissioner is authorized to investigate
employee complaints. The Labor Commissioner may provide for
a hearing in begin delete any end delete begin insert an end insert action to recover wages, penalties, and other
demands for compensation, including liquidated damages if the
complaint alleges payment of a wage less than the minimum wage
fixed by an order of the Industrial Welfare Commission or by
statute, properly before the division or the Labor Commissioner,
including orders of the Industrial Welfare Commission, and shall
determine all matters arising under his or her jurisdiction. It is
within the jurisdiction of the Labor Commissioner to accept and
determine claims from holders of payroll checks or payroll drafts
returned unpaid because of insufficient funds, if, after a diligent
search, the holder is unable to return the dishonored check or draft
to the payee and recover the sums paid out. Within 30 days of the
filing of the complaint, the Labor Commissioner shall notify the
parties as to whether a hearing will be held, whether action will
be taken in accordance with Section 98.3, or whether no further
action will be taken on the complaint. If the determination is made
by the Labor Commissioner to hold a hearing, the hearing shall
be held within 90 days of the date of that determination. However,
the Labor Commissioner may postpone or grant additional time
before setting a hearing if the Labor Commissioner finds that it
would lead to an equitable and just resolution of the dispute. A
party who has received actual notice of a claim before the Labor
Commissioner shall, while the matter is before the Labor
Commissioner, notify the Labor Commissioner in writing of begin delete any end delete
begin insert a end insert change in that party’s business or personal address within 10
days after the change in address occurs.

It is the intent of the Legislature that hearings held pursuant to
this section be conducted in an informal setting preserving the
rights of the parties.

(b) When a hearing is set, a copy of the complaint, which shall
include the amount of compensation requested, together with a
notice of time and place of the hearing, shall be served on all
parties, personally or by certified mail, or in the manner specified
in Section 415.20 of the Code of Civil Procedure.

(c) Within 10 days after service of the notice and the complaint,
a defendant may file an answer with the Labor Commissioner in
begin delete any end delete begin insert a end insert form as the Labor Commissioner may prescribe, setting forth
the particulars in which the complaint is inaccurate or incomplete
and the facts upon which the defendant intends to rely.

(d)  begin delete No end delete begin insert A end insert pleading other than the complaint and answer of the
defendant or defendants shall begin insert not end insert be required. Both shall be in
writing and shall conform to the form and the rules of practice and
procedure adopted by the Labor Commissioner.

(e) Evidence on matters not pleaded in the answer shall be
allowed only on terms and conditions the Labor Commissioner
shall impose. In all these cases, the claimant shall be entitled to a
continuance for purposes of review of the new evidence.

(f) If the defendant fails to appear or answer within the time
allowed under this chapter, begin delete no end delete begin insert a end insert default shall begin insert not end insert be taken against
him or her, but the Labor Commissioner shall hear the evidence
offered and shall issue an order, decision, or award in accordance
with the evidence. A defendant failing to appear or answer, or
subsequently contending to be aggrieved in begin delete any end delete begin insert a end insert manner by want
of notice of the pendency of the proceedings, may apply to the
Labor Commissioner for relief in accordance with Section 473 of
the Code of Civil Procedure. The Labor Commissioner may afford
this relief. begin delete No end delete begin insert A end insert right to relief, including the claim that the findings
or award of the Labor Commissioner or judgment entered thereon
are void upon their face, shall begin insert not end insert accrue to the defendant in any
court unless prior application is made to the Labor Commissioner
in accordance with this chapter.

(g)  begin delete All hearings end delete begin insert A hearing end insert conducted pursuant to this chapter
begin delete are end delete begin insert is end insert governed by the division and by the rules of practice and
procedure adopted by the Labor Commissioner.

(h) (1) Whenever a claim is filed under this chapter against a
person operating or doing business under a fictitious business
name, as defined in Section 17900 of the Business and Professions
Code, which relates to the person’s business, the division shall
inquire at the time of the hearing whether the name of the person
is the legal name under which the business or person has been
licensed, registered, incorporated, or otherwise authorized to do
business.

(2) The division may amend an order, decision, or award to
conform to the legal name of the business or the person who is the
defendant to a wage claim, if it can be shown that proper service
was made on the defendant or his or her agent, unless a judgment
had been entered on the order, decision, or award pursuant to
subdivision (d) of Section 98.2. The Labor Commissioner may
apply to the clerk of the superior court to amend a judgment that
has been issued pursuant to a final order, decision, or award to
conform to the legal name of the defendant, if it can be shown that
proper service was made on the defendant or his or her agent.