BILL ANALYSIS Ó
AB 2899
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Date of Hearing: May 18, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2899 (Roger Hernández) - As Amended May 4, 2016
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|Policy |Labor and Employment |Vote:|6 - 0 |
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill establishes a wage bond requirement for the filing of
a writ of mandate with the superior court by an employer
challenging a citation and decision by the Labor Commissioner
finding a violation of the law. Specifically, this bill:
1)Requires, as a condition to filing a petition for a writ of
mandate, the employer seeking the writ to first post a bond
AB 2899
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with the Labor Commissioner equal to the total amount of any
minimum wages, liquidated damages, and overtime compensation
that are due and owing as specified in the citation being
challenged. Specifies the bond amount cannot include amounts
for penalties.
2)Requires the bond to be issued by a surety duly authorized to
do business in this state, to be issued in favor of unpaid
employees, and ensures that the employer makes payments as
specified.
3)Specifies, if the employer fails to pay money owed, within 10
days of an entry of judgement, dismissal or withdrawal of
writ, or pursuant to a settlement agreement, the amount owed
to the employee shall be paid from the bond.
FISCAL EFFECT:
No significant fiscal impact to the Department of Industrial
Relations.
COMMENTS:
1)Purpose. This bill establishes an "appeal bond" requirement
for an employer who seeks a writ of mandate challenging a
decision of the Labor Commissioner following a citation by the
Bureau of Field Enforcement (BOFE). The bond established by
this bill is similar to a bond required of employers who
appeal an adverse decision following an employee wage claim
filed with the Labor Commissioner.
2)Background. Statute was enacted in 2000, and later clarified
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in 2010, that an employer wishing to appeal a Labor
Commissioner decision with the superior court must first post
a bond in the amount of the judgment rendered in the
administrative hearing. This law was enacted in response to
complaints by some worker advocates that unscrupulous
employers, particularly those in the underground economy, were
filing "frivolous" appeals of Labor Commissioner decisions
with the superior court in an effort to drag out litigation
and hide assets so that workers would not be able to collect
on judgments, even if ultimately successful on appeal.
The author is addressing similar concerns around writ of
mandate filings against a Labor Commissioner citations
(operating through BOFE).
Analysis Prepared by:Misty Feusahrens / APPR. / (916) 319-2081