BILL NUMBER: AB 1978	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gonzalez

                        FEBRUARY 16, 2016

   An act to amend Section 2802 of the Labor Code, relating to
employment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1978, as introduced, Gonzalez. Employee indemnification.
   Existing law requires an employer to indemnify his or her
employees for all that the employee necessarily expends or loses in
direct consequence of the discharge of the employee's duties or as a
result of obeying the employer's directions. Existing law provides an
aggrieved employee with a private right of action to recover these
expenditures and authorizes the Labor Commissioner to enforce these
provisions by issuing citations and penalties to employers for
violations of this requirement, as specified. Existing law provides
for interest on awards by the court or the Division of Labor
Standards Enforcement for reimbursement.
   This bill would make nonsubstantive changes to those interest
provisions.
   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 2802 of the Labor Code is amended to read:
   2802.  (a) An employer shall indemnify his or her employee for all
necessary expenditures or losses incurred by the employee in direct
consequence of the discharge of his or her duties, or of his or her
obedience to the directions of the employer, even though unlawful,
unless the employee, at the time of obeying the directions, believed
them to be unlawful.
   (b) All awards made by a court or by the Division of Labor
Standards Enforcement for reimbursement of necessary expenditures
under this section shall carry interest at the same rate as judgments
in civil actions. Interest shall accrue from the date on which the
employee incurred the necessary  expenditure  
expenditures  or  loss.   losses. 
   (c) For purposes of this section, the term "necessary expenditures
or losses" shall include all reasonable costs, including, but not
limited to, attorney's fees incurred by the employee enforcing the
rights granted by this section.
   (d) In addition to recovery of penalties under this section in a
court action or proceedings pursuant to Section 98, the commissioner
may issue a citation against an employer or other person acting on
behalf of the employer who violates reimbursement obligations for an
amount determined to be due to an employee under this section. The
procedures for issuing, contesting, and enforcing judgments for
citations or civil penalties issued by the commissioner shall be the
same as those set forth in Section 1197.1. Amounts recovered pursuant
to this section shall be paid to the affected employee.