CWR Sponsors Legislation to Compensate Workers for Late Paychecks

On April 18, 2018, Center for Workers’ Rights Executive Director, Daniela Urban, testified before the Assembly Labor and Employment Committee urging members’ support of AB 2613 (Reyes), which would impose a penalty on employers, payable to each effective employee, when wages are not paid on time.  This is the Center for Workers’ Rights first sponsorship of a bill in the California legislature and joins partner organizations, the California Employment Lawyers Association and Legal Aid at Work, in introducing this bill.

 

AB 2613 seeks to impose liability on employers who fail to pay their employees on the date designated as payday by the employer as required by law. A late paycheck could have potentially devastating results, especially for workers who live paycheck to paycheck, and currently the law does not provide an immediate penalty payable to the employee for late payments of wages, so that they can pay for food, rent, and other daily necessities.

 

AB 2613 is meant to aid all California workers in the deterring the late payment of wages and in providing a fixed remuneration to employees who may have incurred their own personal costs as a result of an employer failing to pay wages on time.  When businesses struggle financially and face the decision whether to pay their employees or to pay other creditors, AB 2613 seeks to incentivize the option to foremost honor its pay obligations to its employees.

 

The Center for Workers’ Rights is working with Assembly Member Reyes (D – District 47) and hopes to see this bill become law in 2018.

 

Katie Fiester (LAAW) and Daniela Urban (CWR) after the hearing.

Katie Fiester (LAAW) and Daniela Urban (CWR) after the hearing.