Today's Law As Amended


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SB-505 Wages: withholdings: written authorizations.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 224.1 is added to the Labor Code, to read:

224.1.
 (a) Absent fraud, misrepresentation, or theft, a public employer shall make a good faith effort to consult with an employee to obtain a written authorization allowed under Section 224 to resolve a monetary obligation before utilizing third-party collection services or commencing a civil action.
(b) A written authorization under this section shall include a mutual agreement between the public employer and employee and, to the extent possible, shall not place an undue financial burden upon the employee. If the written authorization involves a withholding or diversion of an employee’s wages over a designated period of months, the amount withheld or diverted shall not exceed 5 percent of the employee’s monthly gross wages unless this requirement is expressly waived by the employee or it would be inconsistent with a wage agreement, collective bargaining agreement, judgment, other legal agreement, or other legal requirement. The period of time in which the public employer and employee are engaging in consultation is not a part of the time limited for the commencement of a civil action, which shall not exceed one year from the date this consultation commenced.
(c) This section shall not apply to the resolution of monetary obligations pursuant to Section 19838 of the Government Code.
(d) For purposes of this section, a “public employer” shall mean the state, every state entity, and any political subdivision of the state, including, but not limited to, municipal corporations, municipalities, school districts, community college districts, joint powers authorities, joint powers agencies, and other public agencies.