BILL NUMBER: AB 1591	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Yamada

                        JANUARY 4, 2010

   An act to amend Section 212 of the Labor Code, relating to wages.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1591, as introduced, Yamada. Wages: prohibited forms of
payment.
   Existing law prohibits a person from issuing certain instruments
in payment of wages due unless certain circumstances are met, as
specified.
   This bill would make a technical, nonsubstantive change to that
provision.
   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 212 of the Labor Code is amended to read:
   212.  (a) No person, or agent or officer thereof, shall issue in
payment of wages due, or to become due, or as an advance on wages to
be earned:
   (1) Any order, check, draft, note, memorandum, or other
acknowledgment of indebtedness, unless it is negotiable and payable
in cash, on demand, without discount, at some established place of
business in the state, the name and address of which must appear on
the instrument, and at the time of its issuance and for a reasonable
time thereafter, which must be at least 30 days, the maker or drawer
has sufficient funds in, or credit, arrangement, or understanding
with the drawee for its payment.
   (2) Any scrip, coupon, cards, or other thing redeemable, in
merchandise or purporting to be payable or redeemable otherwise than
in money.
   (b)  Where   When  an instrument
mentioned in subdivision (a) is protested or dishonored, the notice
or memorandum of protest or dishonor is admissible as proof of
presentation, nonpayment and protest and is presumptive evidence of
knowledge of insufficiency of funds or credit with the drawee.
   (c) Notwithstanding paragraph (1) of subdivision (a), if the
drawee is a bank, the bank's address need not appear on the
instrument and, in that case, the instrument shall be negotiable and
payable in cash, on demand, without discount, at any place of
business of the drawee chosen by the person entitled to enforce the
instrument.