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TAKE ACTION: Tell your Legislators to OPPOSE AB 2416 - Employee Wage Liens

AB 2416 (Stone) is a reintroduction of a bill that was defeated earlier this year in the Assembly which allows employees and their representatives to file pre-judgment wage liens against their employers. Unfortunately, AB 2416 passed the Assembly on a 43-27 vote and is now pending on the Senate Floor. If passed by the Senate, it will need to go back to the Assembly for concurrence. This bill is sponsored by the SEIU and supported by all of the labor organizations. The CalChamber has labeled it a “Job Killer,” and AGC is participating in a coalition with the entire business community to oppose it.

The provisions of the bill include:

  1. Allows employees, a governmental agency or an employee’s representative to file pre-judgment wage liens against their employer’s real property or against any property where an employee “performed work”.
  2. Violates due process as it does not provide a realistic opportunity for an employer or third party to prevent the taking of their property through a pre-judgment wage lien.
  3. Forces employers and innocent third parties to incur costs and attorney’s fees to remove liens from real and personal property.
  4. Not limited to minimum wage violations – but includes all wage violations and all penalties under the Labor Code, as determined by the employee.
  5. No limit on the number of liens that can be filed by the same employee against the same employer or third party.
  6. Interferes with financing opportunities for third party homeowners and employers on their property.

Last year, AB1386 was enacted which allows the Labor Commissioner to file a lien on an employer’s property after a final order has been issued. It would make more sense to assess the Labor Commissioner’s use of this authority to collect unpaid wages for a while before extending pre-judgment wage lien authority to employees.

Action Needed:

AB 2416 will be heard on the Senate Floor as early as next week for a vote. 

Please contact your Legislators and tell them to OPPOSE AB 2416 when the measure comes for a vote. We have already prepared a letter for you. It takes less than one minute to complete. Thank you for helping to oppose this bill.