SB 390, as amended, Wright. Employee wage withholdings: failure to remit.
(1) Existing law makes it a crime for an employer to fail to make agreed-upon payments to health and welfare funds, pension funds, or various benefit plans. Existing law provides that the crime be punished asbegin insert aend insert felony or a misdemeanor, as specified, if the amount unpaid exceeds $500, and as a misdemeanor, if the amount is less than $500.
This bill would make it a crime, as described above, for an employer to fail to remit withholdings from an employee’s wages that were made pursuant to state, local, or federal law.begin insert The bill would prescribe how recovered withholdings or court-imposed restitution, if any, are to be forwarded or paid.end insert
(2) 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 227 of the Labor Code is amended to
2read:
If an employer has made withholdings from an employee’s
4wages pursuant to state, local, or federal law, or has agreed with
5any employee to make payments to a health or welfare fund,
6pension fund, or vacation plan, or other similar plan for the benefit
7of the employees, or a negotiated industrial promotion fund, or
8has entered into a collective bargaining agreement providing for
9these payments, it shall be unlawful for that employer willfully or
10with intent to defraud to fail to remit the withholdings to the proper
11agency or to fail to make the payments required by the terms of
12that agreement. A violation of any provision of this section when
13the amount the employer failed to pay into the fund or funds
14exceeds five hundred dollars ($500) shall be punishable by
15
imprisonment pursuant to subdivision (h) of Section 1170 of the
16Penal Code, or in a county jail for a period of not more than one
17year, by a fine of not more than one thousand dollars ($1,000), or
18by both that imprisonment and fine. All other violations shall be
19punishable as a misdemeanor.begin insert In a criminal proceeding under this
20section, any withholdings that are recovered from an employer
21shall be forwarded to the appropriate fund or plan and, if
22restitution is imposed, the court shall direct to which agency, entity,
23or person it shall be paid.end insert
No reimbursement is required by this act pursuant to
25Section 6 of Article XIII B of the California Constitution because
26the only costs that may be incurred by a local agency or school
27district will be incurred because this act creates a new crime or
28infraction, eliminates a crime or infraction, or changes the penalty
29for a crime or infraction, within the meaning of Section 17556 of
30the Government Code, or changes the definition of a crime within
31the meaning of Section 6 of Article XIII B of the California
32Constitution.
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