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AB-1073 • 2026

Employment Development Department: disclosure of wage information: qualified third-party vendors.

Employment Development Department: disclosure of wage information: qualified third-party vendors.

Crime Labor Small Business
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Ávila Farías
Last action
Official status
Assembly - Died - Insurance
Effective date
Not listed

Plain English Breakdown

The official text does not specify an effective date; it only lists action dates in 2026.

AB-1073: Wage Data Sharing and Appellate Court Judge Disqualification

This law allows employees to share their wage data with approved third-party vendors for a fee, while also extending rules that let parties request new judges in appellate courts if they believe the current justices are biased.

What This Bill Does

  • Requires the Employment Development Department (EDD) to release an employee's wage information to a qualified vendor only after receiving written permission from that employee.
  • Allows employees to request electronic transmission of their wage data directly to or through a qualified third-party vendor for specific allowed uses.
  • Prohibits the EDD from using state funds for these agreements and requires vendors to pay fees covering startup costs and administrative expenses.
  • Extends existing rules so parties can ask appellate court justices to step down if they show prejudice against a party or attorney, preventing a fair trial.
  • Requires courts to assign new panels of three justices when cases are sent back from the California Supreme Court after certain motions are made.
  • Makes it a crime (misdemeanor) for anyone to knowingly access, use, or share this wage information without proper authorization.

Who It Names or Affects

  • Employees who want their wage data shared with third-party vendors.
  • Qualified third-party vendors that handle electronic transmission of wage data.
  • Parties and attorneys involved in appellate court cases seeking to disqualify justices.
  • The Employment Development Department (EDD) and California courts.

Terms To Know

Qualified third-party vendor
A company approved by the EDD to receive and use employee wage information for specific allowed purposes defined in the law.
Permissible uses
The specific reasons defined in the law that allow a vendor to access or share an employee's wage data.
Remittitur
A document sent by a higher court returning a case to a lower court for further action after reversing a decision.

Limits and Unknowns

  • The law does not specify which companies qualify as vendors or how much they must charge employees.
  • It is unclear exactly what 'prejudice' means in practice, though the bill states it prevents fair trials.
  • The effective date for when these rules begin is listed as blank in the provided text.

Bill History

  1. California Legislative Information

    Assembly - Died - Insurance

Official Summary Text

Employment Development Department: disclosure of wage information: qualified third-party vendors.