CaliforniaJudgment debtor employers: Employment Development Department.
What it does
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.
More detail
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.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 2Veto sustained.Latest
- Mar 2Stricken from file.
- 2025
- Oct 13In Senate. Consideration of Governor's veto pending.
- Oct 13Vetoed by the Governor Gavin Newsom.Major
- Sep 16Enrolled and presented to the Governor at 3 p.m.To Governor
- Sep 9Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2713.) Ordered to engrossing and enrolling.Major
- Vote recorded Unfinished Business SB355 Pérez et al. Concurrence. Result: pass.Upper
- Sep 8In Senate. Concurrence in Assembly amendments pending.
- Vote recorded SB 355 Pérez Senate Third Reading By Ortega. Result: pass.Lower
- Sep 8Read third time. Passed. (Ayes 79. Noes 0. Page 2991.) Ordered to the Senate.Passed Assembly
- Sep 2Read second time. Ordered to third reading.Minor
- Aug 29From committee: Do pass. (Ayes 15. Noes 0.) (August 29).Minor
- Vote recorded Do pass. Result: pass.Lower
- Aug 20August 20 set for first hearing. Placed on APPR. suspense file.
- Jul 3Re-referred to Com. on APPR. pursuant to Assembly Rule 96.Minor
- Jun 26From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.Major
- Jun 26From 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.Minor
- Jun 25
- Vote recorded Do pass and be re-referred to the Committee on [Judiciary] with recommendation: To Consent Calendar. Result: pass.Lower
- Jun 5Referred to Coms. on L. & E. and JUD.Minor
- May 29In Assembly. Read first time. Held at Desk.Minor
- Vote recorded Special Consent SB355 Pérez et al. Result: pass.Upper
- May 29Read third time. Passed. (Ayes 38. Noes 0. Page 1325.) Ordered to the Assembly.Passed Senate
- May 27Ordered to special consent calendar.
- May 23Read second time. Ordered to third reading.Minor
- Vote recorded Do pass. Result: pass.Upper
- May 23From committee: Do pass. (Ayes 6. Noes 0. Page 1197.) (May 23).Minor
- May 16Set for hearing May 23.
- May 12May 12 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- May 2Set for hearing May 12.
- Apr 30From 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.Minor
- Apr 29
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar. Result: pass.Upper
- Apr 23Re-referred to Com. on JUD.Minor
- Apr 10Set for hearing April 29 in JUD. pending receipt.
- Apr 9From committee: Do pass and re-refer to Com. on RLS. (Ayes 5. Noes 0. Page 739.) (April 9). Re-referred to Com. on RLS.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Rules]. Result: pass.Upper
- Apr 2From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.Major
- Mar 28From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.Major
- Mar 26Set for hearing April 9.
- Feb 19Referred to Coms. on L., P.E. & R. and TRANS.Minor
- Feb 13From printer. May be acted upon on or after March 15.
- Feb 12Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced