Law Office of Rick Morin

(916) 333-2222

Legislation Update: AB 2416 Failed to Pass from Senate

A few months ago I wrote about AB 2416 which would allow employees to place liens on real and personal property of their employer if they received a labor board judgement.

According to the Sacramento Bee, the bill failed to pass from the Senate Floor on a 13 to 15 vote. The bill is eligible for reconsideration, which means that the Senate may take up the bill one more time for a vote.

The bill has been heavily lobbied against by business interests, and for good reason. Many judgements from the Labor Commissioner here in Sacramento are truly abhorrent. Many employers feel that the Labor Commissioner’s office is strongly biased against employees. In my own experience, the hearing officers at the Labor Board do not give much weight to employer testimony.

Additionally, the quick nature of the hearing process creates problems for business owners. While this is good for employees who have actually suffered harm at the hands of unscrupulous business owners, honest employers face the prospect of quickly proving their cases in hostile territory. This is the exact opposite of the measured civil litigation process by which most claims are heard and decided.

As a result, many Labor Commissioner judgements go unpaid. The bill tries to rectify this process the wrong way. Instead of revamping the Labor Commissioner process to make it more fair and impartial, the bill would allow dissatisfied employees to place liens on real property. This would create a huge headache for hard-working business owners throughout the state.

Let’s hope that the Senate does not pass this bill in its current form. AB 2416 would only hurt California’s business climate and make it more difficult to run a business in this state.

If you have any questions regarding AB 2416 or the Labor Commissioner process, please call my office at (916) 258-5435.