General information

Wage Lien Bill Defeated

Last week, the Assembly failed to pass AB 1164 (Lowenthal) and the measure will not advance further in its current form. It is unclear as to whether or not Assembly Member Bonnie Lowenthal will introduce a new bill this year.

AB 1164 allowed an employee to avoid the judicial process and file a wage lien on an employer’s real or personal property, or a third party’s real or personal property, before any trial or administrative hearing has been held to determine if any wages are actually owed by the employer. In addition, the measure allowed an employee to file a wage lien on any “property upon which the employee bestowed labor for the benefit of the property owner and with the owner’s consent and knowledge that such labor was being provided.” Thus, unwitting third parties who had worked perform on his/her property would be responsible for unpaid wage claims.

Under the measure, there was no limit to the number of liens that could be filed, and an employee’s representative (e.g. labor union) could file hundreds of liens on a single property on behalf of a class of employees.

CBA maintained an oppose high-priority position on this measure and joined a business coalition to defeat AB 1164. 

For more information or any questions, contact Jason Lane VP, government relations at (916) 438-4420 or jlane@calbankers.com. 

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