AB 673, which was signed into law in October goes into effect on January 1, 2020. The Center for Workers’ Rights sponsored this bill which provides for an enforceable penalty when workers are not paid on time.
CWR first proposed this legislation in 2018 after years of talking to workers in dire financial positions as a result of their employer paying them late. Workers lacked any recourse to untimely paychecks. Now, employees can recover penalties for a late paycheck through a hearing before the Labor Commissioner. For an initial violation, the employee would recover a one hundred dollar ($100) penalty. For each subsequent violation, or any willful or intentional violation, the employee would recover two hundred dollars ($200), plus 25 percent of the amount unlawfully withheld.
CWR will begin to add late paycheck penalties to its claim filed as part of its Wage Claim Clinic. For more information on AB 673 or how to recover your unpaid wages, call us at 916-905-5857.