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AB-572 California Workforce Development Board: employment policies.(2021-2022)

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Date Published: 03/18/2021 09:00 PM
AB572:v98#DOCUMENT

Amended  IN  Assembly  March 18, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 572


Introduced by Assembly Member Kalra

February 11, 2021


An act to amend Section 1197.1 of the Labor Code, add Section 14017.2 to the Unemployment Insurance Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 572, as amended, Kalra. Minimum wage violations. California Workforce Development Board: employment policies.
Existing law establishes the California Workforce Development Board as the body responsible for assisting the Governor in the development, oversight, and continuous improvement of California’s workforce investment system and the alignment of the education and workforce investment systems to the needs of the 21st century economy and workforce.
This bill would require the board, upon appropriation of funds by the Legislature for this purpose, to establish and maintain an outreach, education, and certification program, with specified purposes, including training restaurant employees, managers, and employers to identify and address disparities in their workforce and implementing high-road employment policies that promote equity of income and career pathways for people of color, immigrants, women, and people who are transgender, nonbinary, or intersex.
This bill would require the board to contract with one or more qualified community-based organizations, chosen on a competitive basis, to provide education, certification, and technical support services that promote equity of income and career pathways in the restaurant industry for certain groups. The bill would require the community-based organization to be responsible for developing, in consultation with the board, the core assessment and education and outreach materials, as provided. The bill would require the board to have final approval over the education and outreach materials.

Existing law establishes, within the Labor and Workforce Development Agency, the Department of Industrial Relations, which is under the control of the Director of Industrial Relations, and establishes within the department the Division of Labor Standards Enforcement, which is under the control of the Labor Commissioner (commissioner). Existing law vests with the commissioner the authority to receive, investigate, and hear employee complaints regarding the payment of wages and other employment-related issues and authorizes citations to be served, as specified. Under existing law, any employer or other person acting either individually or as an officer, agent, or employee of another person, who pays or causes to be paid to any employee a wage less than the minimum fixed by applicable state or local law or an order of the Industrial Welfare Commission, is subject to a civil penalty, restitution of wages, liquidated damages payable to the employee, and applicable specified penalties, as provided.

This bill, would make a nonsubstantive change to these provisions.

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 14017.2 is added to the Unemployment Insurance Code, to read:

14017.2.
 (a) For purposes of this section the following terms have the following meanings:
(1) “Board” means the California Workforce Development Board.
(2) “CBO” means a community-based organization that shall be a nonprofit corporation as described in subsection (c) of Section 501 of the Internal Revenue Code of the United States (26 U.S.C. 501(c)).
(3) “High-road employment policies” mean employment policies that promote equity of income and career pathways for people of color, immigrants, women, and people who are transgender, nonbinary, or intersex.
(b) The California Workforce Development Board, upon appropriation of funds by the Legislature to the board for purposes of this section, shall establish and maintain an outreach, education, and certification program. The purposes of the program shall be to do both of the following:
(1) To train restaurant employees, managers, and employers to identify and address disparities in their workforce, and implement high-road employment policies that promote equity of income and career pathways for people of color, immigrants, women, and people who are transgender, nonbinary, or intersex.
(2) To certify restaurants that have completed the training and have implemented the high-road employment policies.
(c) The board shall contract with one or more CBOs, chosen on a competitive basis, to provide education, certification, and technical support services that promote equity of income and career pathways in the restaurant industry for the following prioritized groups: people of color, immigrants, women, and people who are transgender, nonbinary, or intersex.
(1) The CBO shall have a demonstrated capacity to assist employers and employees to identify patterns of discrimination in the workplace, a demonstrated history of assisting restaurant employees to redress claims of discrimination, and a demonstrated capacity to develop and support employer perspectives and strategies that promote safe, equitable workplaces that are profitable to employers.
(2) The CBO shall have a demonstrated capacity to assist employers in completing an equity assessment for the groups prioritized, to move employers to a commitment to wage equity, to address implicit biases, to cultivate a just workplace, and to build an equitable team, including, but not limited to, policies related to advertising, outreach, and recruitment, the application and hiring process, training, and promotions, and how to stop harassment and microaggressions.
(3) The CBO shall also demonstrate an ability to certify that the participating restaurants have completed the training and implemented policies that are intended to improve equity of income and equity of opportunity for employees.
(d) The CBO shall be responsible for developing, and consulting with the board regarding, the outreach, core assessment, and education materials. The CBO shall be responsible for all costs related to the development, printing, advertising, or distribution of the outreach and education materials, supported by grant or contract funding from the board. The materials shall be translated into non-English languages, as may be appropriate and as determined by the applicable CBO in consultation with the board.
(e) The board shall have final approval over the outreach and education materials.
(f) In consultation with the board, the CBO shall develop approved signage, including, but not limited to, window films or placards that restaurants that are certified by the CBO to have implemented the high-road employment policies may display. The signage would designate a certified restaurant as a “High-Road Restaurant.”

SECTION 1.Section 1197.1 of the Labor Code is amended to read:
1197.1.

(a)Any employer or other person acting either individually or as an officer, agent, or employee of another person, who pays or causes to be paid to any employee a wage less than the minimum fixed by an applicable state or local law, or by an order of the commission, shall be subject to a civil penalty, restitution of wages, liquidated damages payable to the employee, and any applicable penalties imposed pursuant to Section 203 as follows:

(1)For any initial violation that is intentionally committed, one hundred dollars ($100) for each underpaid employee for each pay period for which the employee is underpaid. This amount shall be in addition to an amount sufficient to recover underpaid wages, liquidated damages pursuant to Section 1194.2, and any applicable penalties imposed pursuant to Section 203.

(2)For each subsequent violation for the same specific offense, two hundred fifty dollars ($250) for each underpaid employee for each pay period for which the employee is underpaid regardless of whether the initial violation is intentionally committed. This amount shall be in addition to an amount sufficient to recover underpaid wages, liquidated damages pursuant to Section 1194.2, and any applicable penalties imposed pursuant to Section 203.

(3)Wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203, recovered pursuant to this section, shall be paid to the affected employee.

(b)If, upon inspection or investigation, the Labor Commissioner determines that a person has paid or caused to be paid a wage less than the minimum under applicable law, the Labor Commissioner may issue a citation to the person in violation. In addition, if, upon inspection or investigation, the Labor Commissioner determines that an employer has paid or caused to be paid a wage less than the wage set by contract in excess of the applicable minimum wage, the Labor Commissioner may issue a citation to the employer in violation to recover restitution of those amounts owed. The citation may be served personally, in the same manner as provided for service of a summons as described in Chapter 4 (commencing with Section 413.10) of Title 5 of Part 2 of the Code of Civil Procedure, by certified mail with return receipt requested, or by registered mail in accordance with subdivision (c) of Section 11505 of the Government Code. Each citation shall be in writing and shall describe the nature of the violation, including reference to the statutory provision alleged to have been violated, if contract wages are unpaid, or both. The Labor Commissioner shall promptly take all appropriate action, in accordance with this section, to enforce the citation and to recover the civil penalty assessed, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 in connection with the citation.

(c)(1)If a person desires to contest a citation or the proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 therefor, the person shall, within 15 business days after service of the citation, notify the office of the Labor Commissioner that appears on the citation of their appeal by a request for an informal hearing. The Labor Commissioner or their deputy or agent shall, within 30 days, hold a hearing at the conclusion of which the citation or proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 shall be affirmed, modified, or dismissed.

(2)The decision of the Labor Commissioner shall consist of a notice of findings, findings, and an order, all of which shall be served on all parties to the hearing within 15 days after the hearing by regular first-class mail at the last known address of the party on file with the Labor Commissioner. Service shall be completed pursuant to Section 1013 of the Code of Civil Procedure. Any amount found due by the Labor Commissioner as a result of a hearing shall become due and payable 45 days after notice of the findings, written findings, and order have been mailed to the party assessed. A writ of mandate may be taken from this finding to the appropriate superior court. The party shall pay any judgment and costs ultimately rendered by the court against the party for the assessment. The writ shall be taken within 45 days of service of the notice of findings, findings, and order thereon.

(3)As a condition to filing a petition for a writ of mandate, the petitioner seeking the writ shall first post a bond with the Labor Commissioner equal to the total amount of any minimum wages, contract wages, liquidated damages, and overtime compensation that are due and owing as determined pursuant to subdivision (b) of Section 558, as specified in the citation being challenged. The bond amount shall not include amounts for penalties. The bond shall be issued by a surety duly authorized to do business in this state, shall be issued in favor of unpaid employees, and shall ensure that the petitioner makes payments as set forth in this paragraph. If a decision is entered which affirms or modifies the amounts for minimum wages, contract wages, liquidated damages, or overtime compensation, the petitioner shall pay the amounts owed for the specified items included in a clerk’s judgment entered under subdivision (f) based on the decision, or pursuant to a court judgment in a writ of mandate proceeding under paragraph (2). If the request for a writ is withdrawn or dismissed without entry of judgment, the petitioner shall pay the amounts owed for the specified items pursuant to the citation, or the administrative decision if a pending writ of mandate is dismissed prior to a court decision, unless the parties have executed a settlement agreement for payment of some other amount. In the case of a settlement agreement, the petitioner shall pay the amount they are obligated to pay under the terms of the settlement.

(4)If the employer fails to pay the amount of minimum wages, contract wages, liquidated damages, or overtime compensation owed within 10 days of the entry of judgment, dismissal or withdrawal of writ, or the execution of a settlement agreement, a portion of the undertaking, described in paragraph (3), equal to the amount owed, or the entire undertaking if the amount owed exceeds the undertaking, shall be forfeited to the Labor Commissioner for appropriate distribution.

(d)A person to whom a citation has been issued shall, in lieu of contesting a citation pursuant to this section, transmit to the office of the Labor Commissioner designated on the citation the amount specified for the violation within 15 business days after issuance of the citation.

(e)When no petition objecting to a citation or the proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 is filed, a certified copy of the citation or proposed civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 may be filed by the Labor Commissioner in the office of the clerk of the superior court in any county in which the person assessed has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the state against the person assessed in the amount shown on the citation or proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203.

(f)When findings and the order thereon are made affirming or modifying a citation or proposed assessment of a civil penalty, wages, liquidated damages, and any applicable penalties imposed pursuant to Section 203 after hearing, a certified copy of these findings and the order entered thereon may be entered by the Labor Commissioner in the office of the clerk of the superior court in any county in which the person assessed has property or in which the person assessed has or had a place of business. The clerk, immediately upon the filing, shall enter judgment for the state against the person assessed in the amount shown on the certified order.

(g)A judgment entered pursuant to this section shall bear the same rate of interest and shall have the same effect as other judgments and be given the same preference allowed by the law on other judgments rendered for claims for taxes. The clerk shall make no charge for the service provided by this section to be performed by them.

(h)In a jurisdiction where a local entity has the legal authority to issue a citation against an employer for a violation of any applicable local minimum wage law, the Labor Commissioner, pursuant to a request from the local entity, may issue a citation against an employer for a violation of any applicable local minimum wage law if the local entity has not cited the employer for the same violation. If the Labor Commissioner issues a citation, the local entity shall not cite the employer for the same violation.

(i)The civil penalties provided for in this section are in addition to any other penalty provided by law.

(j)This section does not apply to any order of the commission relating to household occupations.

(k)This section does not change the applicability of local minimum wage laws to any entity.

(l)“Contract wages,” as used in this section, means wages based upon an agreement, in excess of the applicable minimum wage, for regular, nonovertime hours.