Senator Pérez introduces legislation to strengthen enforcement against wage theft

Sacramento – Senator Sasha Renée Pérez has introduced legislation to help California workers who have been the victims of wage theft collect their unpaid earnings.

SB 355 would give the State Labor Commissioner’s Office (LCO) a new enforcement tool to suspend or revoke the driver’s licenses and vehicle registrations for employers who fail to pay outstanding wage theft judgments. This type of enforcement action is currently used in cases of unpaid child support and unpaid state taxes.

“Wage theft is a massive problem in California.  In Los Angeles every week, an estimated $26 million dollars in pay is stolen from workers by bad employers. Unfortunately, these white-collar criminals are rarely held accountable,” said Senator Sasha Renée Pérez (D-Pasadena). “Even when a worker is able to secure a judgment for back pay, bad actors will often drag their feet or outright refuse to pay causing added harm to workers. This legislation would finally hold bad employers accountable - by revoking their drivers license until they pay back the wages they have stolen from workers.”

Currently, wage theft claims submitted to the LCO can take more than 850 days to process-- six times longer than the statutory limit of 135 days. Often, judgments for back wages are never recovered. From 2018-2023, employers with judgments against them only paid in 12% of the cases that were referred to the state for enforcement, according to the California State Auditor. 

SB 355 will provide additional tools to increase recoveries. This legislation is sponsored by the California Labor Federation and the Sheet Metal Workers’ Local Union 105.

“Wage theft takes billions of dollars out of workers’ paychecks every year in California," said Lorena Gonzalez, President of the California Federation of Labor Unions, AFL-CIO representing over 1,300 unions with 2.3 million union members. "Even when workers succeed in getting a judgment in their favor, employers can delay and avoid paying workers back. This bill gives the Labor Commissioner a powerful tool to compel the worst employers to make workers whole and to deliver the justice workers deserve.”

“For too long, wage theft has been a low-risk, high-reward crime for unscrupulous employers, hurting not just workers, but their families, communities, and the honest businesses that follow the law,” said Steve Hinson, Business Manager/President of Sheet Metal, Air, Rail, and Transportation Workers Local Union 105, representing thousands of workers in the construction and manufacturing industries. “We see workers at all levels in our sector—whether making just minimum wage or six figures—being taken advantage of. No employer should be allowed to ignore wage theft judgments and continue doing business as usual. This bill ensures real and immediate personal consequences for those who steal from workers, helping to protect California’s workforce and uphold fair competition in our industries.”

"Only 12% of workers who've won their claims for back wages collect those wages. It's too easy for employers to evade or simply ignore orders to pay back wages,” said Tia Koonse, Legal and Policy Research Manager at the UCLA Labor Center. “We need new tools to enforce our most basic rights. Revoking employer drivers' licenses promises prompt recovery of hard-earned wages."

“Bet Tzedek Legal Services has represented hundreds of low-wage workers at the California Labor Commissioner’s Office. Many workers fight long and hard to prove that they are owed their stolen wages, only to obtain a judgment that the employer fails to pay,” said Yvonne Medrano, Staff Attorney with Bet Tzedek Legal Services’ Employment Rights Project. “For low-wage workers, the Labor Commissioner’s Office provides the only hope for collection, the State deserves to have every tool at its disposal to help collect wages for workers, and this bill provides that.” 

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Senator Sasha Renée Pérez is Chair of the Senate Education Committee and represents the 25th Senate District that includes the communities of Glendale, Pasadena, Alhambra, Altadena, Arcadia, Claremont, Glendora, La Cañada Flintridge, La Crescenta-Montrose, Monrovia, Monterey Park, Rosemead, San Gabriel, San Marino, Sierra Madre, South Pasadena, Temple City, Fontana, Rancho Cucamonga, Upland, and San Antonio Heights.