SB 355 California Senate · 2025-2026 Regular Session

Judgment debtor employers: Employment Development Department.

Summary
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.
Bill status vetoed 4 of 5 stages cleared
Introduction
Feb 2025
Committee Review
Aug 2025
Senate Passage
May 2025
Assembly Passage
Sep 2025
Vetoed
Mar 2026
Introduced Feb 12, 2025 Vetoed Mar 2, 2026
Maddy AI version diff · 5 comparisons

What changed between versions

09/12/25 - Enrolled SB355 · 1 edit
MINOR
No substantive policy changes were made between these two versions of SB 355. The difference is purely presentational: the enrolled version (with formal signature blocks, governor receipt line, and traditional legislative formatting) was replaced by a web page rendering that includes navigation elements, search tools, and version history links. The statutory text of Section 96.9 is identical in both versions.
TECHNICAL

The document changed from a formal enrolled bill format (with Secretary of the Senate, Chief Clerk, and Governor signature blocks) to a web page layout with navigation menus, search functionality, and version history. No changes to the actual legal provisions.

Floor votes · Senate May 29, 2025 · Assembly Sep 8, 2025

How they voted

380
Passed · 2 other
Total votes 40
May 29, 2025
D Democratic30
28 Yea 2
93% Yea
R Republican10
10 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
33
Key actions
11
Committee
9
Amendments
5
Mar 2, 2026
Vetoed
Veto sustained.
upper
Oct 13, 2025
Vetoed
In Senate. Consideration of Governor's veto pending.
upper
Oct 13, 2025
Vetoed
Vetoed by the Governor.
upper
Sep 9, 2025
Upper · Passed
Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2713.) Ordered to engrossing and enrolling.
upper
Sep 8, 2025
Introduced
In Senate. Concurrence in Assembly amendments pending.
upper
Sep 8, 2025
Lower · Passed
Read third time. Passed. (Ayes 79. Noes 0. Page 2991.) Ordered to the Senate.
lower
Aug 29, 2025
Lower · Passed
From committee: Do pass. (Ayes 15. Noes 0.) (August 29).
lower
Jul 3, 2025
Committee
Re-referred to Com. on APPR. pursuant to Assembly Rule 96.
lower
Jun 26, 2025
Lower · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
lower
Jun 26, 2025
Lower · Passed
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.
lower
Jun 5, 2025
Committee
Referred to Coms. on L. & E. and JUD.
lower
May 29, 2025
Upper · Passed
Read third time. Passed. (Ayes 38. Noes 0. Page 1325.) Ordered to the Assembly.
upper
May 23, 2025
Upper · Passed
From committee: Do pass. (Ayes 6. Noes 0. Page 1197.) (May 23).
upper
Apr 30, 2025
Upper · Passed
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.
upper
Apr 23, 2025
Committee
Re-referred to Com. on JUD.
upper
Apr 9, 2025
Upper · Passed
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.
upper
Apr 2, 2025
Upper · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.
upper
Mar 28, 2025
Upper · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.
upper
Feb 19, 2025
Committee
Referred to Coms. on L., P.E. & R. and TRANS.
upper
Feb 12, 2025
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.
upper
1 primary · 3 co-sponsors

Sponsors