Existing law establishes the Division of Labor Standards Enforcement, under the direction of the Labor Commissioner, within the Department of Industrial Relations and sets forth its powers and duties regarding the enforcement of labor laws. Existing law authorizes the Labor Commissioner to investigate employee complaints and to take various actions against an employer with respect to unpaid wages.

Existing law generally prohibits an employer with an unsatisfied final judgment for nonpayment of wages from continuing to conduct business in California, unless that employer has obtained a bond from a surety company and filed that bond with the Labor Commissioner, as prescribed. Under existing law, if an employer in the long-term care industry that is also required to obtain a license from the State Department of Public Health or the State Department of Social Services has violated the above provision governing unsatisfied judgments (unsatisfied judgment provision), either of those departments may deny a new license or the renewal of an existing license for that employer. Existing law further requires the Labor Commissioner, upon finding that an employer in the long-term care industry is violating the unsatisfied judgment provision, to notify those departments.

This bill would repeal the above-described provision applicable to employers in the long-term care industry. The bill would require a state agency, if an employer that is required to obtain a license or permit from that state agency is found to have violated the unsatisfied judgment provision, to deny a new license or permit or the renewal of an existing license or permit for that employer. The bill would also require the Labor Commissioner, upon finding that an employer is conducting business in violation of that provision, to notify the applicable state agency with jurisdiction over that employee’s license or permit.

The bill would additionally permit the State Public Health Officer to exempt a hospital employer from the bill’s requirements upon a determination that a denial, suspension, or revocation of the hospital’s license, permit, or renewal could have imminent or substantial adverse effects upon public health or safety or would violate constitutional law.