Amended in Senate April 12, 2016

Senate Bill No. 1342

Introduced by Senator Mendoza

February 19, 2016

An act to add Section begin delete 1176.5 to the Labor Code, end delete begin insert 53060.4 to the Government Code, end insert relating to wages.

LEGISLATIVE COUNSEL’S DIGEST

SB 1342, as amended, Mendoza. Wages: investigations: subpoenas.

Existing law authorizes the Industrial Welfare Commission to subpoena witnesses. Existing law provides that if a person fails to comply with an order or subpoena of the commission or a witness refuses to testify to any matter regarding which he or she may lawfully be interrogated before any wage board or the commission, it shall be the duty of the superior court to compel obedience in a manner by which such obedience could be compelled in a proceeding pending before the court.

This bill would begin delete authorize a board of supervisors of a county or end delete begin insert specify that end insert a legislative body of a city begin insert or county is authorized end insert to delegate that begin delete board or end delete body’s authority to issue begin delete subpoenas, by resolution or ordinance, end delete begin insert subpoena end insert begin insert s and to report noncompliance thereof to the judge of the superior court of the county, end insert to a county or city begin delete officer end delete begin insert official end insert or department head begin delete for the purpose of conducting investigations end delete begin insert in order end insert to enforce local wage laws. begin delete The bill would require these subpoenas to only be issued for purposes of obtaining records and testimony reasonably necessary to determine if a local wage ordinance was violated, to be reviewed by the county counsel or city attorney, and signed by the designated officer or department head before it is issued. The bill would provide that if any person so duly subpoenaed to appear and give evidence or to produce any books or papers before the designated officer or department head, neglects or refused to appear, or to produce any books or papers, as required by the subpoena, or refuses to testify or answer any questions that the designated officer or department head decides are proper and pertinent, he or she shall be in contempt, and the designated officer or department head shall report that fact to the judge of the superior court of the county. end delete begin insert The bill would provide legislative findings in support of this provision. end insert

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.  

(a) The Legislature finds and declares all of the
following:

(1) Wage theft is prevalent among immigrant and low-wage
workers in California.

(2) Los Angeles County, where approximately $26.6 million in
wages begin delete are end delete begin insert is end insert stolen from laborers every week, has been dubbed by
some as the “wage theft capital” of the United States.

(3) The Economic Roundtable and the University of California,
Los Angeles, indicate that violations of wage laws in Los Angeles
are pervasive, with 30 percent of low-wage workers in Los Angeles
receiving less than the minimum wage and 88.5 percent of workers
experiencing some sort of wage theft.

(4) Wage theft can cause workers extreme financial hardship,
making it harder for workers experiencing wage theft to take care
of their families and contribute to the state economy.

(5) According to the Milton Marks “Little Hoover” Commission
on California State Government Organization and Economy, wage
enforcement resources in California have not kept pace with
increases in the number of employers and increased complexity
of the employer-employee relationship. Local jurisdictions,
including the City and County of San Francisco, the City of Los
Angeles, and the County of Los Angeles, have addressed the need
for additional wage enforcement resources by establishing local
wage enforcement agencies.

(6) In California, 14 local jurisdictions have enacted minimum
wage ordinances. The majority of these jurisdictions have
designated or created begin delete a local agency end delete begin insert local agencies end insert to enforce local
wage laws.

(7) Local wage enforcement is an effective means of combating
wage theft. For example, San Francisco’s Office of Labor Standards
Enforcement recovered 90.5 percent of wages and interest owed
to workers between 2003 and 2013.

begin insert

(8) Pursuant to Sections 25207, 27721, and 37104, and Dibb
v. County of San Diego, (8 Cal. 4th 1200), cities and counties are
authorized to delegate to local officials the authority to issue
subpoenas in support of enforcing local wage ordinances.

end insert

(b) It is the intent of the Legislature in enacting this measure to
promote honest pay for fair work by giving local wage enforcement
programs all of the tools necessary to conduct successful wage
claim investigations in order to recover unpaid back wages for
begin delete hard working end delete begin insert hardworking end insert Californians.

begin insert

(c) Cities and counties are encouraged to develop and enact
specific measures to target and remedy wage theft.

end insert

begin delete

SEC. 2.  

Section 1176.5 is added to the Labor Code, to read:

1176.5.  

(a) (1) The board of supervisors of a county may
delegate the board’s authority to issue subpoenas, by resolution
or ordinance, to a county officer or department head for the purpose
of conducting investigations to enforce local wage laws.

(2) The subpoena shall only be for purposes of obtaining records
and testimony reasonably necessary to determine if a local wage
ordinance was violated. The subpoena shall be reviewed by the
county counsel and signed by the designated county officer or
department head before it is issued. The subpoena shall be served
in the same manner as subpoenas are served in civil actions.

(3) If a county and a city contract for purposes of the county
conducting investigations to enforce local wage laws within the
boundaries of a city, that contract may provide a county officer or
department head with the authority to issue subpoenas within the
contracting city’s boundaries with the same force and effect as if
issued in unincorporated areas of that county. A subpoena issued
pursuant to this subdivision shall be reviewed by the county counsel
before being issued.

(b) (1) The legislative body of a city may delegate that body’s
authority to issue subpoenas, by resolution or ordinance, to a county
officer or department head for the purpose of conducting
investigations to enforce local wage laws.

(2) The subpoena shall only be for purposes of obtaining records
and testimony reasonably necessary to determine if a local wage
ordinance was violated. The subpoena shall be reviewed by the
city attorney and signed by the designated city officer or
department head before it is issued. The subpoena shall be served
in the same manner as subpoenas are served in civil actions.

(3) If a county and a city contract for purposes of the city
conducting investigations to enforce local wage laws within the
unincorporated areas of the county, that contract may provide a
city officer or department head with the authority to issue
subpoenas within the contracting county’s unincorporated areas
with the same force and effect as if issued within the city’s
boundaries. A subpoena issued pursuant to this subdivision shall
be reviewed by the city attorney before being issued.

(c) If any person duly subpoenaed pursuant to this section to
appear and give evidence or to produce any books or papers before
the designated officer or department head, neglects or refused to
appear, or to produce any books or papers, as required by the
subpoena, or refuses to testify or answer any questions that the
designated officer or department head decides are proper and
pertinent, he or she shall be in contempt, and the designated officer
or department head shall report the that fact to the judge of the
superior court of the county.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 53060.4 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 53060.4. end insert   

(a) The legislative body of a city or county may
delegate to a county or city official or department head its authority
to issue subpoenas and to report noncompliance thereof to the
judge of the superior court of the county, in order to enforce local
wage laws.

(b) The Legislature finds and declares that these provisions do
not constitute a change in, but are declaratory of, existing law.

end insert