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AB 673 Will Permit Employee to Keep All Penalties for Late Paid Wages

Assembly Bill No. 673 which amends Section 210 of the Labor Code which permits employees to recover penalties previously available by the California Labor Commissioner.   Currently 75% of the penalty goes to the State.  This change permits the employee to recover the penalties under a civil lawsuit.

AB 673 will afford an employee the choice to either recover statutory penalties under Section 210, or enforce civil penalties under PAGA – Private Attorney General Act, but not both, for the same violation.

Employees will be able to keep all penalties, in the amount of $100 for the first violation and $200 for each subsequent violation, along with 25 % of the amount unlawfully withheld during their employment.

Don’t be confused that this new law that took effect January 1, 2020 is a Job Killer.  It reinforces the importance of due process when an employer terminates the relationship with their employee.  Please read the entire structure and amounts an employer will be fined in order to make the appropriate changes when dealing with personnel issues.