BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 2074
Author: Roger Hernández (D)
Amended: As introduced
Vote: 21
SENATE LABOR & INDUST. RELATIONS COMM. : 4-1, 6/11/14
AYES: Hueso, Leno, Padilla, Mitchell
NOES: Wyland
SENATE JUDICIARY COMMITTEE : 5-2, 6/24/14
AYES: Jackson, Corbett, Lara, Leno, Monning
NOES: Anderson, Vidak
ASSEMBLY FLOOR : 56-21, 5/15/14 - See last page for vote
SUBJECT : Recovery of wages: liquidated damages
SOURCE : Author
DIGEST : This bill clarifies that the statute of limitations
for a suit filed to pursue liquidated damages for the failure to
pay the minimum wage will run until the expiration of the
statute of limitations for the wages in which the penalties are
being sought.
ANALYSIS :
Existing law:
1.Provides for a statute of limitations for the collection of
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wages of three years and a statute of limitations for the
collection of penalties of one year, unless the statute
imposes a different statute of limitations.
2.Provides specified timelines for final payment by an employer
to an employee due to discharge, quitting employment, end of
temporary employment assignment, or other industry-specific
pay timelines.
3.Requires that, if an employer willfully fails to pay wages due
to an employee who is discharge or who quits, the wages of the
employee shall continue as a penalty from the due date thereof
at the same rate until paid or until an action therefor is
commenced for up to 30 days. Penalties for failure to timely
pay wages can be sought until the expiration of the statute of
limitations for the wages in which the penalties are being
sought.
4.Sets a minimum wage for all employees in California, with
limited exceptions, and prohibits employers, unless specified,
from paying less than the state minimum wage. The current
minimum wage is $9.00 per hour and will rise to $10.00 per
hour on January 1, 2016.
5.Provides the Labor Commissioner with the authority to
investigate employee complaints and allows the Labor
Commissioner to hold a hearing in any action to recover wages.
The Labor Commissioner may require an award in the amount of
the wages owed, plus interest. Existing Civil Code sets the
interest rate at 10%.
6.Permits an individual to seek recovery through a civil suit of
the unpaid balance of the minimum wage, including interest,
attorney fees, and costs of the suit.
7.Requires that if an employee is found to have been paid less
than the minimum wage, that employee must be paid liquidated
damages in an amount that is equal to the wages unlawfully
unpaid, plus interest. Existing Civil Code sets the interest
rate at 10%.
8.Provides that if an employer demonstrates to the satisfaction
of the court that the failure to pay the minimum wage was in
good faith and that the employer had reasonable grounds for
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believing that the act or omission was not a violation of
minimum wage law or regulations, the court may, in its
discretion, refuse to award liquidated damages or award a
lesser amount of liquidated damages to the employee.
This bill clarifies that the statute of limitations for a suit
filed to pursue liquidated damages for the failure to pay the
minimum wage will run until the expiration of the statute of
limitations for the wages in which the penalties are being
sought.
Prior Legislation
AB 240 (Bonilla, Chapter 272, Statutes of 2011) authorizes the
Labor Commissioner to recover liquidated damages for an employee
who brings a complaint alleging payment of less than the minimum
wage.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 6/26/14)
California Conference of Machinists
California Conference of the Amalgamated Transit Union
California Federation of Teachers, AFL-CIO
California Labor Federation, AFL-CIO
California Rural Legal Assistance Foundation
California School Employees Association, AFL-CIO
California State Association of Electrical Workers
California State Pipe Trades Council
California Teamsters Public Affairs Council
Engineers & Scientists, IFPTE Local 20
International Longshore and Warehouse Union, Coast Division
Professional & Technical Engineers, IFPTE Local 21
The Communications Workers of America, District 9, AFL-CIO
UNITE HERE
Utility Workers Union of America, Local 132
Western State Council of Sheet Metal Workers
ARGUMENTS IN SUPPORT : Supporters note that this bill will
bring consistency between the statute of limitations for claims
of liquidated damages for minimum wage violations and claims for
unpaid minimum wages, and supporters argue that restricting the
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ability to obtain liquidated damages dilutes the deterrent
effect on employers who fail to pay the minimum wage.
Supporters further argue that a liquidated damages structure
that only adds an additional liquidated damages award for one
year of an unpaid minimum wage claim sends a statement that
there is no real penalty for such worker exploitation beyond one
year.
ASSEMBLY FLOOR : 56-21, 5/15/14
AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta,
Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,
Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox,
Frazier, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gray, Hall,
Roger Hernández, Holden, Jones-Sawyer, Levine, Lowenthal,
Medina, Mullin, Muratsuchi, Nazarian, Pan, Perea, John A.
Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Weber,
Wieckowski, Wilk, Williams, Yamada, Atkins
NOES: Achadjian, Allen, Bigelow, Chávez, Conway, Dahle,
Donnelly, Beth Gaines, Gorell, Grove, Hagman, Harkey, Jones,
Logue, Maienschein, Melendez, Nestande, Olsen, Patterson,
Wagner, Waldron
NO VOTE RECORDED: Linder, Mansoor, Vacancy
PQ:e 6/26/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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