Division of Labor Standards Enforcement: orders, decisions, and awards.

Labor

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Wahab (S) , Wiener
Last action: 2025-10-13
Official status: Chaptered by Secretary of State. Chapter 747, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The exact amounts for civil penalties are not specified beyond the maximum limit.

Labor Standards Enforcement: Orders, Decisions, and Awards

The law requires employers who do not pay their workers' wages on time to face penalties and additional costs.

What This Bill Does

Requires the judgment creditor or the Labor Commissioner or public prosecutor as assignee of the judgment creditor to be awarded court costs and reasonable attorney’s fees for enforcing judgments for unpaid wages, penalties, or other compensation.
Adds a civil penalty not exceeding three times the amount of an outstanding judgment if an employer does not pay their workers' wages within 180 days after a final judgment is issued.
Requires courts to award prevailing plaintiffs all reasonable attorney’s fees and costs in actions brought by judgment creditors, the commissioner, or public prosecutors to enforce judgments for unpaid wages, penalties, or other amounts owed.

Who It Names or Affects

Employers who do not pay their employees' wages on time
Employees who have unpaid wages, penalties, or compensation from their employers

Terms To Know

Judgment Creditor: A person or entity that is owed money by a court order.
Civil Penalty: A fine imposed by the government for breaking laws, rules, or regulations.

Limits and Unknowns

The bill does not specify exact amounts for civil penalties beyond stating they cannot exceed three times the outstanding judgment.
It is unclear what specific actions will be taken to enforce these new requirements and penalties.

Bill History

2025-10-13 California Legislative Information
Chaptered by Secretary of State. Chapter 747, Statutes of 2025.
2025-10-13 California Legislative Information
Approved by the Governor.
2025-09-16 California Legislative Information
Enrolled and presented to the Governor at 3 p.m.
2025-09-09 California Legislative Information
Assembly amendments concurred in. (Ayes 30. Noes 6. Page 2710.) Ordered to engrossing and enrolling.
2025-09-08 California Legislative Information
In Senate. Concurrence in Assembly amendments pending.
2025-09-08 California Legislative Information
Read third time. Passed. (Ayes 71. Noes 1. Page 2997.) Ordered to the Senate.
2025-09-03 California Legislative Information
Read second time. Ordered to third reading.
2025-09-02 California Legislative Information
Read second time and amended. Ordered to second reading.
2025-08-29 California Legislative Information
From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).
2025-08-20 California Legislative Information
August 20 set for first hearing. Placed on APPR. suspense file.
2025-07-16 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 15). Re-referred to Com. on APPR.
2025-07-16 California Legislative Information
Coauthors revised.
2025-07-10 California Legislative Information
From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (July 9). Re-referred to Com. on JUD.
2025-06-16 California Legislative Information
Referred to Coms. on L. & E. and JUD.
2025-06-05 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-06-04 California Legislative Information
Read third time. Passed. (Ayes 29. Noes 6. Page 1514.) Ordered to the Assembly.
2025-05-27 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
Read second time and amended. Ordered to second reading.
2025-05-23 California Legislative Information
From committee: Do pass as amended. (Ayes 5. Noes 0. Page 1193.) (May 23).
2025-05-16 California Legislative Information
Set for hearing May 23.
2025-04-28 California Legislative Information
April 28 hearing: Placed on APPR. suspense file.
2025-04-17 California Legislative Information
Set for hearing April 28.
2025-04-10 California Legislative Information
Read second time and amended. Re-referred to Com. on APPR.
2025-04-09 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0. Page 705.) (April 8).
2025-04-01 California Legislative Information
Set for hearing April 8.
2025-03-27 California Legislative Information
Read second time and amended. Re-referred to Com. on JUD.
2025-03-26 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 4. Noes 1. Page 567.) (March 26).
2025-03-18 California Legislative Information
Set for hearing March 26.
2025-03-17 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.
2025-02-14 California Legislative Information
Referred to Coms. on L., P.E. & R. and JUD.
2025-02-04 California Legislative Information
From printer. May be acted upon on or after March 6.
2025-02-03 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 261, Wahab.
Division of Labor Standards Enforcement: orders, decisions, and awards.
Existing law establishes the Division of Labor Standards Enforcement, under the direction of the Labor Commissioner, within the Department of Industrial Relations and sets forth its powers and duties regarding the enforcement of labor laws. Existing law authorizes the commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation, as specified.
Existing law provides that the judgment creditor, or the commissioner, as assignee of the judgment creditor, is entitled to court costs and reasonable attorney’s fees for enforcing the judgment, as specified.
This bill would instead require that the judgment creditor, or the Labor Commissioner or public prosecutor as assignee of the judgment creditor, be awarded the above-described court costs and reasonable attorney’s fees.
Existing law provides for enforcement if a final judgment against an employer arising from the employer’s
nonpayment of wages for work performed in this state remains unsatisfied after specified periods of time, including prohibiting the employer from conducting business in the state, as specified, if a final judgment against the employer remains unsatisfied for 30 days.
This bill would additionally require the judgment debtor to be subject to a civil penalty not to exceed 3 times the outstanding judgment amount if a final judgment arising from the nonpayment of work performed in this state remains unsatisfied after a period of 180 days, as provided. The bill would require a
court to award a prevailing plaintiff all reasonable attorney’s fees and costs in any action brought by a judgment creditor, the commissioner, or a public prosecutor to enforce a final judgment arising from the nonpayment of wages, penalties, or other amounts owed arising from work performed in this state, as provided.
This bill would also make findings and declarations related to its provisions.

Current Bill Text

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