BILL NUMBER: SB 1305	CHAPTERED  09/30/00

	CHAPTER   990
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 29, 2000
	PASSED THE SENATE   AUGUST 25, 2000
	PASSED THE ASSEMBLY   AUGUST 23, 2000
	AMENDED IN ASSEMBLY   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   AUGUST 7, 2000
	AMENDED IN ASSEMBLY   AUGUST 31, 1999
	AMENDED IN ASSEMBLY   JULY 7, 1999
	AMENDED IN SENATE   APRIL 12, 1999

INTRODUCED BY   Senator Figueroa

                        MARCH 11, 1999

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



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1305, Figueroa.  Employer indemnification:  interest.
   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.
   This bill would require that awards for reimbursement of
expenditures by a court, or by the Division of Labor Standards
Enforcement, carry interest at the same rate as judgments in civil
actions, accruing from the date the necessary expenditures or losses
were incurred by the employee.
   This bill would define necessary expenditures to include all
reasonable costs, including attorney's fees incurred by the employee
enforcing the rights granted by this section.
   This bill would provide that it is not intended to establish the
right of the Division of Labor Standards Enforcement to be awarded
costs and attorney's fees.


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 or loss.
   (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.
  SEC. 2.  Nothing in this act is intended to establish the right of
the Division of Labor Standards Enforcement to be awarded costs and
attorney's fees.