Labor & Employment (Labor Standards)

Existing law creates the Department of Industrial Relations, and establishes within the department the Division of Labor Standards Enforcement (DLSE) , which is headed by the Labor Commissioner. The DLSE is generally charged with enforcing employment statutes and regulations, either in administrative actions or through litigation. Existing law imposes various administrative sanctions, civil fines and penalties, and criminal penalties for violations of employment statutes or regulations. Existing law prohibits an employer or agent from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer, and requires the Department of Industrial Relations to enforce these provisions. This bill would authorize the Labor Commissioner to investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of the above-described provisions, as prescribed.

Existing law requires that, except as specified, not less than the general prevailing rate of per diem wages, determined by the Director of Industrial Relations, be paid to workers employed on public works projects. Existing law requires the body awarding a contract for a public work to obtain from the director the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is to be performed, and the general prevailing rate of per diem wages for holiday and overtime work, for each craft, classification, or type of worker needed to execute the contract. Under existing law, if the director determines during any quarterly period that there has been a change in any prevailing rate of per diem wages in a locality, the director is required to make that change available to the awarding body and their determination is final. Under existing law, that determination does not apply to public works contracts for which the notice to bidders has been published. This bill would instead state, commencing July 1, 2027, that if the director determines, within a semiannual period, that there is a change in any prevailing rate of per diem wages in a locality, that determination applies to any public works contract that is awarded or for which notice to bidders is published after July 1, 2027, if the awarded value of the contract is $35,000,000 or greater. The bill would authorize any contractor, awarding body, or specified representative affected by a change in rates on a particular contract to, within 20 days, file with the director a verified petition to review the determination of that rate, as specified. The bill would require the director to, upon notice to the interested parties, initiate an investigation or hold a hearing, and, within 20 days after the filing of that petition, except as specified, make a final determination and transmit the determination in writing to the awarding body and to the interested parties. The bill would make that determination issued by the director effective 10 days after its issuance, and until it is modified, rescinded, or superseded by the director. The bill would exempt certain housing projects from these provisions, including, among others, projects that are restricted by deed or subject to regulatory restrictions contained in an agreement with a governmental agency or other recorded document, as specified.

The Personal Income Tax Law, in modified conformity with federal law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. This bill would, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, exclude from the gross income of a qualified taxpayer, as defined, for qualified overtime wages, defined to mean overtime wages paid to a qualified taxpayer in relation to work performed directly in response to, or in support of, emergency operations, as specified. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

The Personal Income Tax Law, in modified conformity with federal law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. This bill would, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, exclude from the gross income of a qualified taxpayer, as defined, qualified overtime wages, defined to mean overtime wages paid to a qualified taxpayer in relation to work performed directly in response to, or in support of, emergency operations, as specified. Existing law requires a bill authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.

Existing law makes a farm labor contractor successor to any predecessor farm labor contractor that owed wages or penalties to a former employee of the predecessor, whether or not the predecessor was licensed by the Labor Commissioner to carry on the business, activities, or operations of a farm labor contractor, liable for those wages and penalties, if the successor farm labor contractor meets one or more specified criteria including using substantially the same facilities or workforce to offer substantially the same services as the predecessor. Existing law provides an exception and an affirmative defense to the liability for wages and penalties owed to a former employee of the predecessor farm labor contractor if the farm labor contractor has operated for at least the preceding 3 years, and certain conditions apply. Existing law makes a person who violates farm labor contractor requirements guilty of a misdemeanor punishable by specified fines, or imprisonment in the county jail for not more than 6 months, or both. This bill would decrease the amount of time that a farm labor contractor would be required to have operated with a valid license in order to have an affirmative defense to liability for wages and penalties owed to a former employee of the predecessor farm labor contractor to a least the preceding year and would make other related changes. Existing law also makes a farm labor contractor successor liable for wages and penalties owed to a former employee, as described above, if the successor farm labor contractor is an immediate family member, as defined, of any owner, partner, officer, licensee, or director of the predecessor farm labor contractor or of any person who had a financial interest in the predecessor farm labor contractor. This bill would expand the definition of "immediate family member" for purposes of the provision described above that makes a farm labor contractor successor liable for wages and penalties owed to a former employee of the predecessor farm labor contractor to include a step-parent, adoptive parent, foster parent, half-sibling, and step-grandparent. By expanding the requirements placed upon farm labor contractor successors, the violation of which would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the establishment of apprenticeship programs in various trades, to be approved by the Chief of the Division of Apprenticeship Standards within the Department of Industrial Relations in any trade in the state or in a city or trade area whenever the apprentice training needs justify the establishment. This bill would require the division, upon appropriation by the Legislature, to establish and administer a Quick Service Restaurant Young Workforce Apprenticeship Program to provide grants, reimbursements, or other funding to apprenticeship programs for the support of quick-service restaurant youth apprenticeship programs, as described. The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws. This bill, for taxable years beginning on or after January 1, 2026, and before January 1, 2031, would allow a credit against those taxes in the amount of $1,000 for each registered apprentice employed for at least 6 months by a qualified taxpayer, as defined, not to exceed 100 registered apprentices per taxable year per qualified taxpayer. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. The bill would require the Franchise Tax Board to provide information to the Division of Apprenticeship Standards to complete a report relating to the tax credit that would be established by the bill. The bill would make any information shared by the Franchise Tax Board subject to limitations relating to the sharing of taxpayer information, the violation of which is a crime. By expanding the scope of a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law requires the Attorney General to publish model policies limiting assistance with immigration enforcement to the fullest extent possible consistent with federal and state law at public schools, public libraries, health facilities operated by the state or a political subdivision of the state, courthouses, Division of Labor Standards Enforcement facilities, the Agricultural Labor Relations Board, the Division of Workers Compensation, and shelters, and ensuring that they remain safe and accessible to all California residents, regardless of immigration status. Existing law requires the Attorney General to publish guidance, audit criteria, and training recommendations aimed at ensuring that any databases operated by state and local law enforcement agencies, including databases maintained for the agency by private vendors, are governed in a manner that limits the availability of information therein to the fullest extent practicable and consistent with federal and state law, to anyone or any entity for the purpose of immigration enforcement. Existing law, the California Values Act, prohibits California law enforcement agencies from using agency or department moneys or personnel to investigate, interrogate, detain, detect, or arrest persons for immigration enforcement purposes, including, among other things, providing personal information about an individual, making or intentionally participating in arrests based on civil immigration warrants, or performing the functions of an immigration officer, as specified. This bill would prohibit a state or local government agency from collecting immigration-related personally identifiable information unless it is explicitly required by law to do so and the collection is justified by a legitimate government purpose. The bill would prohibit a state or local government agency from sharing personally identifiable information with federal immigration enforcement agencies without a judicial warrant or court order. The bill would require any contract, agreement, or memorandum of understanding that facilitate data sharing between a state or local government agency and federal immigration enforcement authorities to comply with oversight mechanisms to ensure compliance with civil rights and privacy protections and be subject to review by the State Auditor, as described below. Because the bill would require local agencies to perform additional duties, it would impose a state-mandated local program. The bill would make these provisions enforceable by administrative action or by imposition of a civil penalty recovered by an action brought by the Attorney General. This bill would require the State Auditor to conduct audits of all state and local government agency data-sharing agreements at least every 2 years to ensure compliance with existing laws protecting privacy and civil rights. The bill would require the Office of the Attorney General to establish an oversight task force to review complaints and violations related to unauthorized data collection and sharing that would report to the Legislature annually on data privacy trends, risks, and policy recommendations. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

The California Constitution grants the retirement board of a public employee retirement system plenary authority and fiduciary responsibility for investment of moneys and administration of the retirement fund and system. These provisions qualify this grant of powers by reserving to the Legislature the authority to prohibit investments if it is in the public interest and the prohibition satisfies standards of fiduciary care and loyalty required of a retirement board. Existing law prohibits the boards of the Public Employees' Retirement System (PERS) and the State Teachers' Retirement System (STRS) from making certain new investments or renewing existing investments of public employee retirement funds, including in a thermal coal company, as defined. Existing law provides that a board is not required to take any action regarding those investments unless the board determines in good faith that the action is consistent with the board's fiduciary responsibilities established in the California Constitution. This bill would request the University of California, Berkeley, Labor Center to conduct an independent study to analyze the extent of labor standards protections in California real estate and infrastructure development projects funded through the real asset portfolios of PERS and STRS. The bill would request that the study and a report of its findings be completed and provided to the Legislature and the Department of Finance by January 1, 2028, as specified.

Existing law makes every person who fails to pay the wages of each employee subject to a specified penalty. Existing law makes the initial violation subject to a $100 penalty and each subsequent violation, or any willful or intentional violation, subject to a $200 penalty plus 25% of the amount unlawfully withheld. Existing law requires the penalty to either be recovered by an employee as a statutory penalty or by the Labor Commissioner as a civil penalty, as prescribed. This bill also would permit the $200 penalty for each subsequent violation, or any willful or intentional violation, to be recovered through an independent civil action, as specified.

Existing law prohibits an employer from requiring an employee to work during a mandated meal or rest or recovery period, as specified. Existing law requires an employer who fails to provide an employee a mandated meal or rest or recovery period to pay the employee one additional hour of pay at the employee's regular rate of compensation for each workday that the meal or rest or recovery period was not provided. Existing law provides, until January 1, 2026, an exemption from the rest period requirements for specified employees who hold a safety-sensitive position at a petroleum facility, as defined, to the extent that the employee is required to carry and monitor a communication device and to respond to emergencies or is required to remain on employer premises to monitor the premises and respond to emergencies. Existing law requires another rest period to be authorized in the case of an interrupted rest period, as prescribed, and, if circumstances do not allow for the employee to take a rest period, requires the employer to pay the employee one hour of pay at the employee's regular rate of pay for the rest period that was not provided. This bill would extend that exemption indefinitely. The bill would specify that the exemption also applies to employees who hold a safety-sensitive position at a refinery that produces fuel through the processing of alternative feedstock.