Update Applicable to:
All employers in California.
On September 27, 2021, Governor Newsom signed AB 1003 into law.
What are the details?
The law, effective January 1, 2022, enacts protections for employees (including independent contractors) regarding the intentional theft of wages in an amount greater than $950 from one employee, or $2,350 from a combined two or more employees in a 12-month period. The new legislation allows wages, tips, or other compensation that are the subject of a prosecution to be recovered as restitution.
The law can be read here.
An article on the bill can be read here.
What do employers need to do?
Employers should read the law and review their payroll policies to make any applicable changes to ensure that they are in compliance with the new law once it becomes active.