AB 1234: Employment: nonpayment of wages: complaints.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law authorizes the Labor Commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation. Existing law requires the Labor Commissioner to determine all matters arising under the commissioner’s jurisdiction. Existing law makes any employer or other person acting on behalf of an employer who violates or causes to be violated specified provisions regulating hours and days of work in any order of the Industrial Welfare Commission to be subject to a civil penalty, as specified.

This bill would revise and recast the provisions relating to the process for the Labor Commissioner to investigate, hold a hearing, and make determinations relating to an employee’s complaint. The bill would set forth timelines for the Labor Commissioner to notify parties of an employee complaint, as provided, and for the defendant to respond, as provided. The bill would require the Labor Commissioner, if the Labor Commissioner determines to prosecute the action or that no action will be taken, to notify the parties within 30 days of receipt of the defendant’s answer. If the Labor Commissioner does not make either of those determinations, the bill would require the Labor Commissioner, within 90 days of receipt of the defendant’s answer, to conduct an investigation of the employee complaint, make an estimated appraisal of the amount of wages, damages, penalties, expenses, and other compensation owed, and to determine all the parties liable for the assessment. The bill would set forth a process for the Labor Commissioner’s investigation, assessment, and determination, including authorizing the Labor Commissioner to issue a subpoena for records and requiring the Labor Commissioner to issue a formal complaint.

This bill would require the Labor Commissioner, within 90 days of the issuance of the formal complaint, to set a hearing date and would set forth procedures for the hearing. The bill would require the Labor Commissioner, within 15 days of the hearing, or upon a failure of the defendant to answer or appear, to file in the office of the Division of Labor Standards Enforcement a copy of the order, decision, or award.

This bill would authorize the Labor Commissioner, in an order, decision, or award granted pursuant to specified provisions to impose an administrative fee of up to 30% of the award, as provided. The bill would require the administrative fee to be deposited into the Wage Recovery Fund, which would be created by the bill. The bill would require the money in the fund, upon appropriation, to be disbursed by the Labor Commissioner only to persons determined by the Labor Commissioner to have been damaged by the failure to pay wages and penalties and for other damages by an employer. The bill would require a disbursement to be made pursuant to a claim for recovery from the fund in accordance with procedures prescribed by the Labor Commissioner and would require any disbursed funds subsequently recovered by the Labor Commissioner from a liable party, as provided, to be returned to the fund. The bill would require the Labor Commissioner to waive any or all of the administrative fee upon request by a defendant, if specified conditions are met.

This bill would classify an appeal filed in a superior court relating to the Labor Commissioner’s order, decision, or award as an unlimited civil case. The bill would grant a court hearing the action jurisdiction over the entire wage dispute, including related wage claims not raised in front of the Labor Commissioner, but would prohibit the court from consolidating the action with any other actions not arising out of, or related to, the underlying order, decision, or award, absent an executed agreement in writing by all parties.

Sponsors

Sponsors by party (alphabetical): Democratic 4

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 3, 2025Ordered to inactive file at the request of Senator Smallwood-Cuevas.
2. August 29, 2025Read second time. Ordered to third reading.
3. August 29, 2025From committee: Do pass. (Ayes 5. Noes 2.) (August 29).
4. August 18, 2025In committee: Referred to suspense file.
5. July 17, 2025Read second time and amended. Re-referred to Com. on APPR.
6. July 16, 2025From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (July 15).
7. June 25, 2025From committee: Do pass and re-refer to Com. on JUD. (Ayes 4. Noes 1.) (June 25). Re-referred to Com. on JUD.
8. June 18, 2025From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on L., P.E. & R.
9. June 18, 2025Referred to Coms. on L., P.E. & R. and JUD.
10. June 5, 2025In Senate. Read first time. To Com. on RLS. for assignment.
11. June 4, 2025Read third time. Passed. Ordered to the Senate. (Ayes 50. Noes 14. Page 2060.)
12. May 27, 2025Read second time. Ordered to third reading.