BILL NUMBER: AB 854 CHAPTERED
BILL TEXT
CHAPTER 256
FILED WITH SECRETARY OF STATE OCTOBER 11, 2009
APPROVED BY GOVERNOR OCTOBER 11, 2009
PASSED THE SENATE SEPTEMBER 2, 2009
PASSED THE ASSEMBLY SEPTEMBER 8, 2009
AMENDED IN SENATE AUGUST 17, 2009
AMENDED IN SENATE JULY 14, 2009
AMENDED IN SENATE JUNE 29, 2009
AMENDED IN ASSEMBLY JUNE 1, 2009
AMENDED IN ASSEMBLY MARCH 31, 2009
INTRODUCED BY Assembly Member Arambula
FEBRUARY 26, 2009
An act to add Section 273 to the Labor Code, relating to
employment.
LEGISLATIVE COUNSEL'S DIGEST
AB 854, Arambula. Employment regulation and supervision: unpaid
wages.
Existing law provides for the regulation of farm labor contractors
and of garment manufacturers by the Labor Commissioner and for their
licensure and registration, respectively, by the commissioner.
This bill would require an applicant for licensure as a farm labor
contractor, for registration as a garment manufacturer, for renewal
or reinstatement of the license or registration, and for a change in
key personnel, to submit a statement as to whether he or she has
satisfied all requirements involving unpaid wages in a final court
judgment, as defined, a final order issued by the commissioner, or an
accord. The bill would subject any person who provides false
information on the statement to a civil penalty, as specified. The
bill would require the commissioner to deny the application if the
statement shows unpaid wages, unless the applicant submits a bond or
cash deposit to guarantee payment of the wages or a notarized accord
demonstrating satisfaction of the obligation. The bill would require
the commissioner to suspend the license or registration of a farm
labor contractor or a garment manufacturer who made a false
representation in the statement and would make reinstatement
contingent on the applicant demonstrating compliance with the unpaid
wages requirements or submitting an accord showing satisfaction of
that obligation. The bill would require a licensee or registrant to
notify the commissioner within 90 days of a final court judgment,
final order issued by the commissioner, or an accord imposing
requirements relating to unpaid wages and submit with the notice
security, as previously described, for the unpaid wages. The bill
would prohibit a licensee or registrant from having a person who is a
named judgment debtor in a final court order or order issued by the
commissioner for unpaid wages serving in a key personnel capacity and
would require the commissioner to suspend the license or
registration of a person who violates this prohibition. The bill
would require a licensee or registrant to pay to the Labor
Commissioner all reasonable costs incurred in adverse license or
registration activities, as defined, under its provisions.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 273 is added to the Labor Code, to read:
273. (a) The following definitions apply for purposes of this
section:
(1) "All activities relating to an adverse license or registration
action" includes, but is not limited to, all of the following which
occur as a result of a failure to comply with this section:
(A) Denial of a new application or a renewal application for
licensure or registration.
(B) Denial of reinstatement of a license or registration.
(C) Suspension of a license or registration.
(D) Assessment and recovery of civil penalties for knowingly
providing false information in the statement required by paragraph
(1) of subdivision (b).
(2) "Farm labor contractor" has the same meaning as set forth in
Section 1682.
(3) "Final judgment issued by a court" means a judgment with
respect to which all possibility of a direct attack, by way of
appeal, motion for a new trial, or motion pursuant to Section 663 of
the Code of Civil Procedure to vacate the judgment, has been
exhausted and also includes any final arbitration award where the
time to file a petition for a trial de novo or a petition to vacate
or correct the arbitration award has expired, and no petition is
pending.
(4) "Garment manufacturer" means a person engaged in garment
manufacturing as described in Section 2671.
(5) "Involving unpaid wages" means all amounts required to be paid
by a final judgment, order, or accord involving a failure of the
licensee or registrant to pay required wages.
(6) "Licensee" has the same meaning as set forth in Section 1682.
(7) "Registrant" means a person who holds a valid and unrevoked
garment manufacturer registration.
(b) (1) The Labor Commissioner shall require an applicant for any
of the following to submit a statement as to whether the applicant
has satisfied all requirements imposed by a final judgment issued by
a court or by a final order issued by the Labor Commissioner or by an
accord involving unpaid wages:
(A) Licensure as a farm labor contractor.
(B) Registration as a garment manufacturer.
(C) Renewal or reinstatement of a farm labor contractor license or
a garment manufacturer registration.
(D) A change in the persons identified pursuant to Section 1689 or
subparagraph (B) of paragraph (1) of subdivision (a) of Section
2675.
(2) A person who knowingly provides false information in the
statement submitted pursuant to this subdivision shall be subject to
a civil penalty of no less than one thousand dollars ($1,000) nor
more than twenty-five thousand dollars ($25,000), in addition to any
civil remedies available to the Labor Commissioner. The penalty shall
be recovered by the Labor Commissioner as part of a hearing relating
to a denial of an application for a license or registration, a
hearing relating to a denial of a renewal or reinstatement of a
license or registration, a hearing to contest the civil penalties
assessed under this section by the Labor Commissioner, 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
the attorneys thereof may proceed and act for and on behalf of the
people in bringing these actions.
(c) Notwithstanding any other provision of law, the Labor
Commissioner shall not approve an application described in
subdivision (b) if the statement submitted with it shows that the
applicant has failed to satisfy all requirements imposed by a final
judgment issued by a court or by a final order issued by the Labor
Commissioner or by an accord involving unpaid wages, as described in
subdivision (b), unless the applicant submits either of the following
to the Labor Commissioner:
(1) A bond or a cash deposit, in addition to any required by
Section 240, 1684, 1688, 2675, or 2679, in an amount sufficient to
guarantee payment of all amounts due under a final judgment issued by
a court or by a final order issued by the Labor Commissioner
involving unpaid wages.
(2) A notarized accord between the applicant and the other parties
to the judgment, order, or accord demonstrating that the applicant
has satisfied all requirements imposed by the judgment, order, or
accord involving unpaid wages.
(d) Notwithstanding any other provision of law, if the Labor
Commissioner determines after granting an application described in
subdivision (b), that the applicant made a false representation on
the statement he or she submitted, the Labor Commissioner shall
suspend the farm labor contractor license or garment manufacturer
registration effective on the date of its issuance, renewal, or
reinstatement. The license or registration shall remain suspended
until the applicant satisfies either of the following requirements:
(1) Documents to the satisfaction of the Labor Commissioner that
he or she has satisfied all requirements imposed by a final judgment
issued by a court or by a final order of the Labor Commissioner or by
an accord involving unpaid wages.
(2) Files with the Labor Commissioner a notarized accord as
described in paragraph (2) of subdivision (c).
(e) (1) A licensee or registrant shall notify the Labor
Commissioner in writing within 90 days of the date of a final
judgment issued by a court, a final order issued by the Labor
Commissioner, or an accord that imposes on the licensee or registrant
requirements involving unpaid wages. If the licensee or registrant
fails to comply with this notification requirement, the Labor
Commissioner shall suspend the license or registration on the date
that the Labor Commissioner is informed, or is made aware of, the
judgment, order, or accord. The suspension shall remain in effect
until the licensee or registrant satisfies either of the requirements
described in subdivision (d).
(2) A licensee or registrant who notifies the Labor Commissioner
of a judgment, order, or accord pursuant to paragraph (1), shall file
with the notice a bond or a cash deposit meeting the criteria of
paragraph (1) of subdivision (c).
(f) (1) The Labor Commissioner may reduce the amount of a bond or
cash deposit required by this section upon proof, to the satisfaction
of the Labor Commissioner, of partial satisfaction of the
requirements imposed by a final judgment issued by a court, a final
order issued by the Labor Commissioner, or an accord involving unpaid
wages. The Labor Commissioner shall not reduce the bond or cash
deposit amount below the balance of the entire amount involving
unpaid wages. Upon full satisfaction of the requirements involving
unpaid wages, the Labor Commissioner may terminate the bond or cash
deposit requirement.
(2) Notwithstanding paragraph (1), within one year from the date
of filing the bond or cash deposit pursuant to paragraph (1) of
subdivision (c) or paragraph (2) of subdivision (e), a licensee or
registrant shall submit a notarized accord between the licensee or
registrant and the other parties to the judgment, order, or accord
demonstrating satisfaction of all requirements imposed by the
judgment, order, or accord involving unpaid wages. The Labor
Commissioner shall suspend the license or registration of a person
who fails to file the notarized accord within that timeframe.
Notwithstanding paragraph (1) of subdivision (c), a person who has
failed to file a notarized accord within the timeframe required by
this subdivision shall have his or her license or registration
reinstated only after demonstrating that he or she has satisfied all
requirements imposed by a final judgment, order, or accord involving
unpaid wages. As an alternative to payment in full of all debts
involving unpaid wages, a person may submit a notarized copy of an
accord between the licensee or registrant and the other parties to
the accord.
(g) The failure of a licensee or registrant to maintain a bond
required by this section or to abide by all requirements imposed on a
licensee or registrant by an accord involving unpaid wages between
the licensee or registrant and the other parties to the accord shall
result in the automatic suspension of his or her license or
registration.
(h) (1) A licensee or registrant shall not allow a person who is a
judgment debtor in a final judgment issued by a court or in a final
order issued by the Labor Commissioner involving unpaid wages that
imposes requirements that have not been satisfied in their entirety
to serve in a capacity described in Section 1689 or subparagraph (B)
of paragraph (1) of subdivision (a) of Section 2675.
(2) The Labor Commissioner shall suspend the license of a farm
labor contractor or the registration of a garment manufacturer who
violates the provisions of paragraph (1). The Labor Commissioner
shall reinstate the license or registration upon the resignation of
the person named as a judgment debtor or complete satisfaction of the
unpaid wages requirements.
(i) A person whose license or registration is suspended pursuant
to this section, who is denied issuance or reinstatement of a license
or registration, or who has been assessed a civil penalty for
knowingly providing false information in the statement required by
paragraph (1) of subdivision (b) shall pay to the Labor Commissioner
all reasonable costs incurred by the Labor Commissioner in all
activities relating to the adverse license or registration action,
commencing with the first notice issued by the Labor Commissioner
that he or she has taken any adverse action under this section
relative to a license or registration. The Labor Commissioner shall
not reinstate a license or registration unless the person has paid
all costs assessed by the Labor Commissioner or has entered into an
accord with the Labor Commissioner that establishes a payment plan.
(j) This section shall not apply to an applicant for a farm labor
contractor license or a garment manufacturer registration or to a
licensee or registrant when the unpaid wages, as described by this
section, have been discharged in a bankruptcy proceeding.