Minimum Wage Citations Issued by the Labor Commissioner Now Include any Applicable “Waiting Time” Penalties

Employment Law  

October 8, 2014

AB 1723 expands the Labor Commissioner’s power to issue citations for underpayment of wages to include waiting-time penalties. This is not a new penalty, but a different method of enforcement.

While the Labor Code previously provided three mechanisms to pursue such violations (e.g., through a “Berman Hearing” before the Labor Commissioner, through a civil action, or through a Labor Commissioner citation), section 1197.1 initially authorized waiting time penalties under section 203 only for the first two mechanisms, and not for Labor Commissioner citations. This new law amends section 1197.1 to harmonize these three recovery mechanisms and authorize waiting time penalties in all three scenarios if an employer fails to timely pay wages of a resigned or discharged employee. Employers should keep in mind that they can request an administrative hearing to contest the citation and/or the proposed assessment of waiting-time penalties.