Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. Subscribe to CA Labor Code Section 2814. (d) The civil penalties provided for in this section are in addition to any other civil or criminal penalty provided by law. Labor Code Section 558.1 Legislative Updates Employers Should Know About to Avoid Wringing in the New Year. For years, employees relied on Section 558 to recover unpaid wages as part of the civil penalty provided by Section 558, per California Court of Appeal decisions like Thurman v. Bayshore Transit Mgmt., Inc., 203 Cal. Civil penalties recovered under PAGA are distributed 75% to the state and 25% to the aggrieved employees.3, Since PAGA’s enactment, a split has arisen in California courts over the scope of a “civil penalty” under Section 558, given that this section permits citations for both civil penalties and underpaid wages. . (c) In a jurisdiction where a local entity has the legal authority to issue a citation against an employer for a violation of any applicable local overtime law, the Labor Commissioner, pursuant to a request from the local entity, may issue a citation against an employer for a violation of any applicable local overtime law if the local entity has not cited the employer for the same violation. CA Labor Code Section 2814. 2019). Dist. App. 2012). By Jeffrey D. Polsky on December 1, 2015. Next ». We recommend using It held that “unpaid wages” to be collected under Section 558 were never intended to be part of a civil penalty recoverable by the state to influence employer conduct, but instead were damages intended to compensate the aggrieved employees for wages they were owed.9  While the Labor Commissioner could still use the citation process in section 558(c) to assess civil penalties and collect unpaid wages, a PAGA plaintiff is limited to the collection of civil penalties only. Dist. For more detailed codes research information, including annotations and citations, please visit Westlaw. The California legislature played an active role in 2015 by enacting new rules and amendments in many employment areas. Are We Opening a Pandora's Box in Criticizing Law Firms Challenging the 2020 Election? And when the parties are bound by an arbitration agreement, such wage claims may undoubtedly be compelled to arbitration. Go To ICD9 ICD10 Code Converter Tool ICD-10 Equivalent of 558.4: As of October 2015, ICD-9 codes are no longer used for medical coding. A PAGA plaintiff may collect civil penalties either through civil penalty statutes covering the specific violation or, if there is no specific civil penalty statute, through the default penalties of PAGA. Section 1197.1 (3) Wages recovered pursuant to this section shall be paid to the affected employee. … In Iskanian v. CLS Transportation Los Angeles, LLC, the California Supreme Court held that while an employee may waive her right to participate in a class action by agreeing to individual arbitration, she cannot be required to waive her right to bring a PAGA action on behalf of the state.6 Therefore, even under the Federal Arbitration Act, employers may not compel arbitration of PAGA civil penalty claims. FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Labor Code Section 558.1. CA Labor Code § 558 (2017) (a) Any employer or other person acting on behalf of an employer who violates, or causes to be violated, a section of this chapter or any provision regulating hours and days of work in any order of the Industrial Welfare Commission shall be subject to a civil penalty as follows: § 558.1 (a) Any employer or other person acting on behalf of an employer, who violates, or causes to be violated, any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or violates, or causes to be violated, Sections 203, 226, 226.7, 1193.6, 1194, or 2802, may be held liable as the employer for such violation. Code, §§ 203, 218) - Free Legal Information - … Under Labor Code section 558.1, anyone who is an owner, director, officer or managing agent of an employer and who violates the Labor Code, or causes it to be violated, “ may be held liable as the employer for such violation .”. Subscribe to Labor Code 558. A plaintiff may still seek unpaid wages, e.g., under Labor Code Section 1194. Rather than rule on this issue, the court addressed the issue of whether unpaid wages under Section 558 are recoverable under PAGA at all. CA Labor Code § 558 (through 2012 Leg Sess) What's This? v. Superior Court (Lawson) (Sept. 12, 2019), the California Supreme Court held that plaintiffs cannot recover the unpaid wages described in Labor Code section 558 in a Private Attorneys General Act of 2004 (PAGA) claim. Copyright © 2020, Thomson Reuters. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs. In the context of arbitration, whether “underpaid wages” fall within the scope of Section 558’s civil penalties provision is significant. Read Section 558, Cal. New California Employment Laws for 2016 — Ready or Not, Here They Come. 7 Esparza v. KS Industries, L.P., 13 Cal. 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