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    AB-1234
    Labor & Employment

    Employment: nonpayment of wages: complaints.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Revises the Labor Commissioner's process for investigating and resolving wage theft complaints with strict timelines.
    • Creates a new Wage Recovery Fund funded by administrative fees of up to 30% on wage violation awards.
    • Requires employers appealing decisions to post a bond equal to the full amount of wages and penalties owed.
    • Strengthens enforcement by allowing property liens and mandating employer responses within 30 days.

    Summary

    Assembly Member Ortega's wage enforcement legislation revises California's process for investigating and resolving employee wage complaints, establishing strict timelines and enhanced powers for the Labor Commissioner while creating a new fund to support wage recovery efforts.

    The bill mandates specific deadlines throughout the complaint process, requiring the Labor Commissioner to notify parties of complaints within 60 days and defendants to respond within 30 days by either paying the claimed amount or filing a detailed answer. For cases proceeding to investigation, the Commissioner must complete the review within 90 days of receiving the defendant's response, including making wage determinations and identifying liable parties.

    A new administrative fee of up to 30 percent of awarded amounts will fund the newly established Wage Recovery Fund, which provides compensation to workers harmed by wage violations. Defendants may request fee waivers if they have no penalties assessed and no prior wage violations or settlements within the past decade. The legislation also expands the Commissioner's enforcement tools, allowing subpoenas for employment records and creation of property liens to secure judgments.

    For appeals, the bill classifies wage claim appeals as unlimited civil cases and requires defendants to post bonds equal to the awarded amount. Courts gain jurisdiction over all wage disputes related to the original claim but cannot consolidate unrelated actions without agreement from all parties. The Labor Commissioner retains authority to investigate claims and issue orders beyond the specified procedural deadlines, with all notices permitted through various service methods including electronic delivery.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Appropriations
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Appropriations
    Hearing has not been scheduled yet
    Senate Judiciary Hearing
    Senate Committee
    Senate Judiciary Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
    Senate Labor, Public Employment and Retirement Hearing
    Senate Committee
    Senate Labor, Public Employment and Retirement Hearing
    Do pass, but first be re-referred to the Committee on [Judiciary]
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1234 Ortega Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Judiciary Hearing
    Assembly Committee
    Assembly Judiciary Hearing
    Do pass as amended and be re-referred to the Committee on [Appropriations]
    Assembly Labor And Employment Hearing
    Assembly Committee
    Assembly Labor And Employment Hearing
    Do pass and be re-referred to the Committee on [Judiciary]
    Introduced
    Assembly Floor
    Introduced
    Introduced. To print.

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 11 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Liz OrtegaD
    Assemblymember
    Bill Author
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Robert GarciaD
    Assemblymember
    Bill Author
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    Senator
    Bill Author
    Profile
    Laura RichardsonD
    Senator
    Committee Member

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Liz Ortega
    Liz OrtegaD
    California State Assembly Member
    Co-Authors
    Ash Kalra
    Ash KalraD
    California State Assembly Member
    Sasha Renee Perez
    Sasha Renee PerezD
    California State Senator
    Robert Garcia
    Robert GarciaD
    California State Assembly Member
    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/4/2025)

    Latest Voting History

    View History
    July 15, 2025
    PASS
    Senate Committee
    Senate Judiciary Hearing
    AyesNoesNVRTotalResult
    112013PASS

    Key Takeaways

    • Revises the Labor Commissioner's process for investigating and resolving wage theft complaints with strict timelines.
    • Creates a new Wage Recovery Fund funded by administrative fees of up to 30% on wage violation awards.
    • Requires employers appealing decisions to post a bond equal to the full amount of wages and penalties owed.
    • Strengthens enforcement by allowing property liens and mandating employer responses within 30 days.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Liz Ortega
    Liz OrtegaD
    California State Assembly Member
    Co-Authors
    Ash Kalra
    Ash KalraD
    California State Assembly Member
    Sasha Renee Perez
    Sasha Renee PerezD
    California State Senator
    Robert Garcia
    Robert GarciaD
    California State Assembly Member

    Summary

    Assembly Member Ortega's wage enforcement legislation revises California's process for investigating and resolving employee wage complaints, establishing strict timelines and enhanced powers for the Labor Commissioner while creating a new fund to support wage recovery efforts.

    The bill mandates specific deadlines throughout the complaint process, requiring the Labor Commissioner to notify parties of complaints within 60 days and defendants to respond within 30 days by either paying the claimed amount or filing a detailed answer. For cases proceeding to investigation, the Commissioner must complete the review within 90 days of receiving the defendant's response, including making wage determinations and identifying liable parties.

    A new administrative fee of up to 30 percent of awarded amounts will fund the newly established Wage Recovery Fund, which provides compensation to workers harmed by wage violations. Defendants may request fee waivers if they have no penalties assessed and no prior wage violations or settlements within the past decade. The legislation also expands the Commissioner's enforcement tools, allowing subpoenas for employment records and creation of property liens to secure judgments.

    For appeals, the bill classifies wage claim appeals as unlimited civil cases and requires defendants to post bonds equal to the awarded amount. Courts gain jurisdiction over all wage disputes related to the original claim but cannot consolidate unrelated actions without agreement from all parties. The Labor Commissioner retains authority to investigate claims and issue orders beyond the specified procedural deadlines, with all notices permitted through various service methods including electronic delivery.

    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/4/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Appropriations
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Appropriations
    Hearing has not been scheduled yet
    Senate Judiciary Hearing
    Senate Committee
    Senate Judiciary Hearing
    Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]
    Senate Labor, Public Employment and Retirement Hearing
    Senate Committee
    Senate Labor, Public Employment and Retirement Hearing
    Do pass, but first be re-referred to the Committee on [Judiciary]
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 1234 Ortega Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Judiciary Hearing
    Assembly Committee
    Assembly Judiciary Hearing
    Do pass as amended and be re-referred to the Committee on [Appropriations]
    Assembly Labor And Employment Hearing
    Assembly Committee
    Assembly Labor And Employment Hearing
    Do pass and be re-referred to the Committee on [Judiciary]
    Introduced
    Assembly Floor
    Introduced
    Introduced. To print.

    Latest Voting History

    View History
    July 15, 2025
    PASS
    Senate Committee
    Senate Judiciary Hearing
    AyesNoesNVRTotalResult
    112013PASS

    Contacts

    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Megan DahleR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 11 row(s) selected.
    Page 1 of 3
    Select All Legislators
    Profile
    Anna CaballeroD
    Senator
    Committee Member
    Profile
    Ash KalraD
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Megan DahleR
    Senator
    Committee Member
    Profile
    Kelly SeyartoR
    Senator
    Committee Member
    Profile
    Liz OrtegaD
    Assemblymember
    Bill Author
    Profile
    Aisha WahabD
    Senator
    Committee Member
    Profile
    Robert GarciaD
    Assemblymember
    Bill Author
    Profile
    Christopher CabaldonD
    Senator
    Committee Member
    Profile
    Sasha Renee PerezD
    Senator
    Bill Author
    Profile
    Laura RichardsonD
    Senator
    Committee Member