California 2025-2026 Regular Session

California Senate Bill SB261

Introduced
2/3/25  
Refer
2/14/25  
Refer
3/17/25  
Report Pass
3/26/25  
Refer
3/27/25  
Report Pass
3/26/25  
Report Pass
4/9/25  
Refer
3/27/25  
Refer
4/10/25  
Report Pass
4/9/25  
Refer
4/10/25  
Report Pass
5/23/25  
Report Pass
5/23/25  
Engrossed
6/4/25  
Refer
6/16/25  
Engrossed
6/4/25  
Refer
6/16/25  
Report Pass
7/10/25  
Refer
7/10/25  
Report Pass
7/16/25  
Refer
7/16/25  

Caption

Division of Labor Standards Enforcement: orders, decisions, and awards.

Impact

The legislation aims to address the pervasive issue of wage theft in California, particularly affecting low-income workers who are often denied their rightful earnings. By imposing harsher penalties, including potential civil penalties up to three times the outstanding judgment amount for employers who fail to comply within 180 days, the bill seeks to deter future violations of wage laws. This expanded authority for DLSE and increased penalties for non-compliance are expected to facilitate better compliance among employers and quicker compensation for workers who have been victimized by wage theft.

Summary

Senate Bill 261, introduced by Senators Wahab and Wiener, seeks to enhance the enforcement mechanisms regarding wage theft and labor standards in California. The bill features several significant amendments to the Labor Code, focusing on the Division of Labor Standards Enforcement's (DLSE) capabilities to manage cases involving unsatisfied judgments against employers. It stipulates that any employer with an unsatisfied order or award must have their information posted on the DLSE's website until all penalties are resolved, aiding in increasing transparency for employees regarding their workers' rights and protections.

Sentiment

Overall, the reception of SB 261 appears to be supportive among advocates for labor rights, who view it as a crucial step toward protecting workers against wage theft. However, there are concerns raised regarding the implications of the penalties and the burden it might place on employers, particularly small businesses. A balance is sought in ensuring that the law does not inadvertently stifle economic activity while still providing robust protections for employees.

Contention

A notable point of contention within the discourse surrounding SB 261 includes the implications of posting employer information for unsatisfied judgments publicly. Critics argue that while transparency is essential, this may unjustly stigmatize businesses before they have had a chance to rectify their wage issues. On the other hand, proponents assert that the visibility will pressure employers to comply with wage orders and make timely payments, furthering the bill's goal of reducing wage theft across the state.

Companion Bills

No companion bills found.

Previously Filed As

CA SB592

Labor standards information and enforcement.

CA AB380

Division of Labor Standards Enforcement: Labor Trafficking Unit.

CA AB594

Labor Code: alternative enforcement.

CA AB2738

Labor Code: alternative enforcement: occupational safety.

CA SB892

Public contracts: automated decision systems: procurement standards.

CA ACA6

University of California: basic state labor standards.

CA AB2754

Employment contracts and agreements: sufficient funds: liability.

CA AB520

Employment: public entities.

CA AB2696

Labor-related liabilities: direct contractor and subcontractor.

CA AB2288

Labor Code Private Attorneys General Act of 2004.

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