BILL NUMBER: AB 1591 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 14, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member Yamada
JANUARY 4, 2010
An act to amend Section 212 of Sections
215 and 22 5.5 of, and to add Section 212.5 to, the
Labor Code, relating to wages.
LEGISLATIVE COUNSEL'S DIGEST
AB 1591, as amended, 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, in addition, require that the
established place of business in the state at which the instrument is
payable is also a reasonable distance from the place of employment
or the residence of the employee prohibit an employer
from using a payroll card, as defined, to pay an employee's wages
unless the employee voluntarily signs a written agreement to do so
and the employer also provides the employee another lawful option for
receiving his or her wages .
A violation of the existing provisions constitutes a
misdemeanor. By adding a new requirement to these
provisions , this bill would expand the
scope of constitute a crime, thereby imposing a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
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 that is a reasonable distance from the place of
employment or the residence of the employee, the name and address of
that place of business appears 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) 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.
SECTION 1. Section 212.5 is added to the
Labor Code , to read:
212.5. (a) An employer shall not require an employee to receive
his or her wages by payroll card unless the employee voluntarily
agrees in writing to do so and the employer offers the employee an
alternative lawful method to receive his or her wages.
(b) For purposes of this section, "payroll card" means a
stored-value card, or other access mechanism, issued to an employee
by an employer, or other entity on behalf of the employer, onto which
the employer provides the employee access to his or her wages for
withdrawal or transfer by the employee.
SEC. 2. Section 215 of the Labor Code
is amended to read:
215. Any person, or the agent, manager, superintendent or officer
thereof, who violates any provision of Section 201.3, 204, 204b,
205, 207, 208, 209, or 212 , or 212.5
is guilty of a misdemeanor. Any failure to keep posted any notice
required by Section 207 is prima facie evidence of a violation of
these sections.
SEC. 3. Section 225.5 of the Labor Code
is amended to read:
225.5. In addition to, and entirely independent and apart from,
any other penalty provided in this article, every person who
unlawfully withholds wages due any employee in violation of Section
212, 212.5, 216, 221, 222, or 223 shall be subject to a
civil penalty as follows:
(a) For any initial violation, one hundred dollars ($100) for each
failure to pay each employee.
(b) For each subsequent violation, or any willful or intentional
violation, two hundred dollars ($200) for each failure to pay each
employee, plus 25 percent of the amount unlawfully withheld.
The penalty shall be recovered by the Labor Commissioner as part
of a hearing held to recover unpaid wages and penalties or in an
independent civil action. The action shall be brought in the name of
the people of the State of California and the Labor Commissioner and
attorneys thereof may proceed and act for and on behalf of the people
in bringing the action. Twelve and one-half percent of the penalty
recovered shall be paid into a fund within the Labor and Workforce
Development Agency dedicated to educating employers about state labor
laws, and the remainder shall be paid into the State Treasury to the
credit of the General Fund.
SEC. 2. SEC. 4. No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because the only costs that may be incurred
by a local agency or school district will be incurred because this
act creates a new crime or infraction, eliminates a crime or
infraction, or changes the penalty for a crime or infraction, within
the meaning of Section 17556 of the Government Code, or changes the
definition of a crime within the meaning of Section 6 of Article XIII
B of the California Constitution.