Wage lien bill defeated

By CMTA Staff

Capitol Update, Jan. 30, 2014

AB 1164 by Assemblymember Bonnie Lowenthal (D- Long Beach) would have allowed an employee to file a lien against an employer’s property for unproven wage claims. Due to a concerted effort from the business community, including CMTA, and the attentiveness of several members of the State Assembly, the bill stalled this week on the Assembly Floor. 

California has some of the most complex and onerous wage and hour laws in the country and AB 1164 would have added to that burden. Among its many challenges, the bill allowed an employee, their representative or the state Labor Commissioner to file a lien against the employer’s real or personal property before it had been determined by trial or administrative hearing that wages or other compensation are actually owed. It also allowed an employee to file a lien on property where work had been done, subjecting innocent third parties that have no control over the employee’s work or wages to having their property encumbered as well. 

The bill was supported by labor who deemed it as a priority for this legislative session.

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