BILL NUMBER: AB 197	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 2, 2011

INTRODUCED BY   Assembly Member Monning

                        JANUARY 27, 2011

   An act to amend Section 1194.2 of the Labor Code, relating to
employment.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 197, as amended, Monning. Recovery of wages: liquidated
damages.
   Under existing law, in a court action to recover wages unpaid in
violation of the minimum wage set by the Industrial Welfare
Commission within the Department of Industrial Relations, the court
may award liquidated damages to an employee equal to the amount of
wages unlawfully unpaid, plus interest.
   This bill would increase the amount of liquidated damages that may
be awarded to an employee to twice the amount of the wages
unlawfully unpaid, plus interest. 
   This bill would incorporate additional changes in Section 1194.2
of the Labor Code proposed by AB 240, to be operative only if AB 240
and this bill are both enacted and become effective on or before
January 1, 2012, both bills amend Section 1194.2, and this bill is
enacted after AB 240. 
   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 1194.2 of the Labor Code is amended to read:
   1194.2.  (a) In any action under Section 1193.6 or Section 1194 to
recover wages because of the payment of a wage less than the minimum
wage fixed by an order of the commission, an employee shall be
entitled to recover liquidated damages in an amount equal to twice
the wages unlawfully unpaid and interest thereon. Nothing in this
subdivision shall be construed to authorize the recovery of
liquidated damages for failure to pay overtime compensation.
   (b) Notwithstanding subdivision (a), if the employer demonstrates
to the satisfaction of the court that the act or omission giving rise
to the action was in good faith and that the employer had reasonable
grounds for believing that the act or omission was not a violation
of any provision of the Labor Code relating to minimum wage, or an
order of the commission, the court may, in its discretion, refuse to
award liquidated damages or award any amount of liquidated damages
not exceeding the amount specified in subdivision (a).
   (c) This section only applies to civil actions commenced on or
after January 1, 1992.
   SEC. 1.5.    Section 1194.2 of the   Labor
Code   is amended to read: 
   1194.2.  (a) In any action under Section  98,  1193.6
 ,  or  Section  1194 to recover wages
because of the payment of a wage less than the minimum wage fixed by
an order of the commission  or by statute  , an employee
shall be entitled to recover liquidated damages in an amount equal to
 twice  the wages unlawfully unpaid and interest thereon.
Nothing in this subdivision shall be construed to authorize the
recovery of liquidated damages for failure to pay overtime
compensation.
   (b) Notwithstanding subdivision (a), if the employer demonstrates
to the satisfaction of the court  or the Labor Commissioner 
that the act or omission giving rise to the action was in good faith
and that the employer had reasonable grounds for believing that the
act or omission was not a violation of any provision of the Labor
Code relating to minimum wage, or an order of the commission, the
court  or the Labor Commissioner  may,  in its
  as a matter of  discretion, refuse to award
liquidated damages or award any amount of liquidated damages not
exceeding the amount specified in subdivision (a).
   (c) This section  applies  only  shall apply
 to civil actions commenced on or after January 1, 1992.
   SEC. 2.    Section 1.5 of this bill incorporates
amendments to Section 1194.2 of the Labor Code proposed by both this
bill and AB 240. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2012, (2) each
bill amends Section 1194.2 of the Labor Code, and (3) this bill is
enacted after AB 240, in which case Section 1 of this bill shall not
become operative.