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Measure SB 355
Authors Pérez  
Coauthors: Rubio   Strickland   Ortega  
Subject Judgment debtor employers: Employment Development Department.
Relating To relating to employment.
Title An act to add Section 96.9 to the Labor Code, relating to employment.
Last Action Dt 2025-09-12
State Enrolled
Status In Floor Process
Active? Y
Vote Required Majority
Appropriation No
Fiscal Committee Yes
Local Program No
Substantive Changes None
Urgency No
Tax Levy No
Leginfo Link Bill
Actions
2025-10-13     In Senate. Consideration of Governor's veto pending.
2025-10-13     Vetoed by the Governor.
2025-09-16     Enrolled and presented to the Governor at 3 p.m.
2025-09-09     Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2713.) Ordered to engrossing and enrolling.
2025-09-08     Read third time. Passed. (Ayes 79. Noes 0. Page 2991.) Ordered to the Senate.
2025-09-08     In Senate. Concurrence in Assembly amendments pending.
2025-09-02     Read second time. Ordered to third reading.
2025-08-29     From committee: Do pass. (Ayes 15. Noes 0.) (August 29).
2025-08-20     August 20 set for first hearing. Placed on APPR. suspense file.
2025-07-03     Re-referred to Com. on APPR. pursuant to Assembly Rule 96.
2025-06-26     From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
2025-06-26     From committee: Do pass and re-refer to Com. on JUD. with recommendation: To consent calendar. (Ayes 7. Noes 0.) (June 25). Re-referred to Com. on JUD.
2025-06-05     Referred to Coms. on L. & E. and JUD.
2025-05-29     Read third time. Passed. (Ayes 38. Noes 0. Page 1325.) Ordered to the Assembly.
2025-05-29     In Assembly. Read first time. Held at Desk.
2025-05-27     Ordered to special consent calendar.
2025-05-23     From committee: Do pass. (Ayes 6. Noes 0. Page 1197.) (May 23).
2025-05-23     Read second time. Ordered to third reading.
2025-05-16     Set for hearing May 23.
2025-05-12     May 12 hearing: Placed on APPR. suspense file.
2025-05-02     Set for hearing May 12.
2025-04-30     From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 13. Noes 0. Page 939.) (April 29). Re-referred to Com. on APPR.
2025-04-23     Re-referred to Com. on JUD.
2025-04-10     Set for hearing April 29 in JUD. pending receipt.
2025-04-09     From committee: Do pass and re-refer to Com. on RLS. (Ayes 5. Noes 0. Page 739.) (April 9). Re-referred to Com. on RLS.
2025-04-02     From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.
2025-03-28     From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.
2025-03-26     Set for hearing April 9.
2025-02-19     Referred to Coms. on L., P.E. & R. and TRANS.
2025-02-13     From printer. May be acted upon on or after March 15.
2025-02-12     Introduced. Read first time. To Com. on RLS. for assignment. To print.
Keywords
Tags
Versions
Enrolled     2025-09-12
Amended Assembly     2025-06-26
Amended Senate     2025-04-02
Amended Senate     2025-03-28
Introduced     2025-02-12
Last Version Text 
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		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Pérez</ns0:AuthorText>
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		<ns0:Title> An act to add Section 96.9 to the Labor Code, relating to employment.</ns0:Title>
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			<ns0:Subject>Judgment debtor employers: Employment Development Department.</ns0:Subject>
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			<html:p>Existing law establishes in the Department of Industrial Relations the Division of Labor Standards Enforcement under the direction of the Labor Commissioner and authorizes the Labor Commissioner to investigate employee complaints and recover civil penalties for violations of labor law, as prescribed. Existing law requires an employer who pays wages to a resident employee for services performed either within or without this state, or to a nonresident employee for services performed in this state, to deduct and withhold from those wages a sum which is substantially equivalent to the amount of tax reasonably estimated to be due under the Personal Income Tax Law resulting from the inclusion in the gross income of the employee of the wages which were subject to withholding. Existing law requires the Employment Development Department to have the powers and duties necessary to administer the
			 reporting, collection, refunding to the employer, and enforcement of taxes required to be withheld by employers, as described above.</html:p>
			<html:p>This bill would require, within 60 days of a final judgment being entered against an employer requiring payment to an employee or to the state, as specified, the judgment debtor employer to provide documentation to the Labor Commissioner that the judgment is fully satisfied, a certain bond has been posted, or the judgment debtor entered into an agreement for the judgment to be paid in installments, as prescribed, and is in compliance with that agreement. The bill would make a judgment debtor employer who fails to comply with that provision liable for a civil penalty. The bill would require, if a judgment debtor employer does not comply with that provision, the Labor Commissioner to provide written notice to the judgment debtor employer that the Labor Commissioner will submit the unsatisfied judgment to the Tax Support Division of the
			 Employment Development Department as a notice of potential tax fraud, as prescribed, and that the civil penalty is due within 90 days of the notice.</html:p>
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		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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				Section 96.9 is added to the 
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				, to read:
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								(a)
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								Notwithstanding any other law, within 60 days of a final judgment being entered against an employer requiring payment to an employee or to the state pursuant to Section 98.2, the judgment debtor employer shall provide documentation to the Labor Commissioner that any of the following is true:
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								(1)
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								The judgment is fully satisfied.
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								(2)
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								The bond required by subdivision (a) of Section 238 has been posted.
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								(3)
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								The judgment debtor has entered into an agreement for the judgment to be paid in installments pursuant to subdivision (b) of Section 238 and is in compliance with that agreement.
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								(b)
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								A judgment debtor employer who fails to comply with subdivision (a) shall be liable for a civil penalty of two thousand five hundred dollars ($2,500) in a citation issued by the Labor Commissioner.
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								(c)
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								(1)
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								If a judgment debtor employer does not comply with subdivision (a), the Labor Commissioner shall, no later than 30 days from the
						passing of the deadline set forth in subdivision (a), provide written notice to the judgment debtor employer that the Labor Commissioner will submit the unsatisfied judgment to the Tax Support Division of the Employment Development Department as a notice of potential tax fraud, and that the civil penalty prescribed by subdivision (b) is due within 90 days of the notice required by this subdivision.
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								(2)
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								The Labor Commissioner shall provide the written notice required by paragraph (1) by first-class mail at the last known address of the judgment debtor listed with the division.
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								(d)
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								If the judgment debtor employer does not both comply with subdivision (a) and pay the civil penalty prescribed by subdivision (b) within 90 days from the date of the notice required by subdivision (c), the Labor Commissioner shall, within 30 days, provide to the Employment Development Department a notice that includes both of the following:
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								(1)
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								A summary of the final judgment.
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								(2)
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								The names and identifying information of the persons or entities liable for payment of the judgment, including social security numbers, taxpayer identification numbers, and addresses.
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Last Version Text Digest Existing law establishes in the Department of Industrial Relations the Division of Labor Standards Enforcement under the direction of the Labor Commissioner and authorizes the Labor Commissioner to investigate employee complaints and recover civil penalties for violations of labor law, as prescribed. Existing law requires an employer who pays wages to a resident employee for services performed either within or without this state, or to a nonresident employee for services performed in this state, to deduct and withhold from those wages a sum which is substantially equivalent to the amount of tax reasonably estimated to be due under the Personal Income Tax Law resulting from the inclusion in the gross income of the employee of the wages which were subject to withholding. Existing law requires the Employment Development Department to have the powers and duties necessary to administer the reporting, collection, refunding to the employer, and enforcement of taxes required to be withheld by employers, as described above. This bill would require, within 60 days of a final judgment being entered against an employer requiring payment to an employee or to the state, as specified, the judgment debtor employer to provide documentation to the Labor Commissioner that the judgment is fully satisfied, a certain bond has been posted, or the judgment debtor entered into an agreement for the judgment to be paid in installments, as prescribed, and is in compliance with that agreement. The bill would make a judgment debtor employer who fails to comply with that provision liable for a civil penalty. The bill would require, if a judgment debtor employer does not comply with that provision, the Labor Commissioner to provide written notice to the judgment debtor employer that the Labor Commissioner will submit the unsatisfied judgment to the Tax Support Division of the Employment Development Department as a notice of potential tax fraud, as prescribed, and that the civil penalty is due within 90 days of the notice.