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, 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 assessment 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 require an award granted by the Labor Commissioner pursuant to specified provisions to impose an administrative fee payable in the amount of 30% of the order, decision, or award. 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 authorize the money in the fund to be available, upon appropriation, to the Labor Commissioner to compensate the Labor Commissioner for the staffing required to investigate and recover wages and penalties owed to aggrieved employees.
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.

Statutes affected:
AB 1234: 98 LAB, 98.1 LAB, 98.2 LAB
02/21/25 - Introduced: 98 LAB, 98.1 LAB, 98.2 LAB