v. Superior Court of San Diego County. The court of appeal found that because Lawson was expressly and specifically seeking unpaid wages as part of the civil penalties available to her (and the state) under Section 558, … Ohio 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: (1) 1937, Ch. Arizona If the Labor Commissioner issues a citation, the local entity shall not cite the employer for the same violation. Art. ¶¶ 19-20. Specifically, Labor Code section 558 provides, in pertinent part: (a) Any employer or other person 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 … VI - Prior Debts California By Anthony Zaller on September 13, 2019. Art. (3) Wages recovered pursuant to this section shall be paid to the affected employee. (e) This section does not change the … Section 558. The Court found that civil penalties under Labor Code section 558 (underpaid wages) was limited to the Labor Commissioner only and not a private right of action. 2015, Ch. Labor Code Section 558 and PAGA. Unpaid wages, it reasoned, are compensatory damages that can be ordered only by the Labor Commissioner. (d) The civil penalties provided for in this section are in addition to any other civil or criminal penalty provided by law. (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: Michigan In addition, The procedures for issuing, contesting, and enforcing judgments for citations or civil penalties issued by the Labor Commissioner for a violation of this chapter shall be the same as those set out in Section 1197.1. (b) If upon inspection or investigation the Labor Commissioner determines that a person had paid or caused to be paid a wage for overtime work in violation of any provision of this chapter, any provision regulating hours and days of work in any order of the Industrial Welfare Commission, or any applicable local overtime law, the Labor Commissioner may issue a citation. CHAPTER 1. Sections 550, 551, 552 and 554 of this chapter are applicable to cities which are cities and counties and to the officers and employees thereof. Art. Indeed, the Act added Labor Code Section 558.1, which imposes personal liability for certain wage and hour violations. FACTUAL BACKGROUND Plaintiffs allege that RadioShack and co-Defendant Tandy Corporation failed to pay “split shift premiums” and reporting time pay in violation of California law. Section 558 can be invoked only by the Labor Commissioner or by an individual suing under PAGA, and PAGA claims are limited to the recovery of civil penalties. Seyfarth Synopsis: The California Supreme Court has held that an individual may not seek unpaid wages under Labor Code section 558. The plaintiff did not solely seek civil penalties under the PAGA statute itself, but also sought to recover penalties in the form of allegedly unpaid wages pursuant to Labor Code section 558. Indeed, the Act added Labor Code Section 558.1, which imposes personal liability for certain wage and hour violations. EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.5] ( Division 2 enacted by Stats. 1. (Labor Code §558, italics added.) (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: (1) For any initial violation, fifty dollars ($50) for each underpaid employee for each pay period for which the employee was underpaid in addition to an amount sufficient to recover underpaid wages. (2018) 18 Cal.App.5th 705, California’s Fourth District Court of Appeal recently ruled that the two elements comprising damages under Labor Code § 558 – (a) underpaid wages and (b) denominated assessments – are indivisible. IV - States' Relations PAGA became part of the Labor Code and are recov-erable outside Section 558. II - Executive ), Alabama The lower court had awarded the penalties against Pedrazzani under Sections 558(a) and 1197.1(a) of the California Labor Code. (2) For each subsequent violation, one hundred dollars ($100) for each underpaid employee for each pay period for which the employee was underpaid in addition to an amount sufficient to recover underpaid wages. (last ac­cessed Jun. § 558, Art. Indiana I - Legislative California Supreme Court limits the types of penalties recoverable under PAGA actions. If the amount equal to the underpaid wages provided by Labor Code section 558 is considered a penalty rather than restitution of the underpaid wages, employees may seek to recover double what they are owed. Nevada On September 12, 2019, the California Supreme Court issued its decision in ZB, N.A. that an award of unpaid wages under Labor Code section 558 is a civil penalty does not control how we interpret the term civil penalty as it is used in the Iskanian rule”].) https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=LAB§ionNum=558.­ 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: Section 558 of the California Labor Code is a civil penalty statute permitting the Labor Commissioner to issue citations for: (1) civil penalties, which are to be dispersed to the state, and (2) "underpaid wages," which are to be dispersed directly to the underpaid employees. 90. ) 558. increasing citizen access. In Lawson v.ZB, N.A. Of course, this includes legal expenses generated by claims against them. Virginia — with whom she agreed to arbitrate all employment claims and forego class arbitration — and its parent company, Zions Bancorporation (collectively, “ZB”). General Occupations [200 - 244] ( Article 1 enacted by Stats. Among the Labor Code sections often relied on by plaintiffs in such cases is Labor Code section 558, which enables the Labor Commissioner to collect $50 and $100 in civil penalties against employers that unlawfully deny overtime compensation to workers, and allows the Commissioner to recover “an amount sufficient to recover underpaid wages.” Though PAGA provides that amounts … The Lawson case concerned a PAGA action seeking civil penalties under Labor Code section 558. The Labor Commissioner may also provide for a hearing to recover civil penalties due pursuant to Section 558 against any employer or other person acting on behalf of an employer, including, but not limited to, an individual liable pursuant to Section 558.1. New Jersey Georgia Through social ZB filed a motion compelling that … Original Source: Washington, US Supreme Court (Labor Code §558, italics added.) Location:https://california.public.law/codes/ca_lab_code_section_558. CA Labor Code § 558.1 (2017) (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. However, Plaintiff’s claims for violations of Labor Code Sections 226.3 and 558 were subject to the notice and cure provisions set forth in Labor Code section 2699.3(c) which does not require a return notice from the LWDA, but does require an employee to wait 33 days to allow the employer to cure the alleged violation before an employee can commence a civil suit. The Lawson case concerned a PAGA action seeking civil penalties under Labor Code section 558. 1937, Ch. California Labor Code Section 558 outlines penalties employers face for underpayment of employees. Labor Code - LAB. In ZB, N.A. Massachusetts (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. 783, Sec. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. III - Judicial 6, 2016). 1937, Ch. sought to recover civil penalties imposed under California Labor Code Section 558 in the form of (1) any unpaid wages owed to her and other ZB employees who suffered the same alleged . entre­pre­neurship, we’re lowering the cost of legal services and For example, Labor Code section 510 requires premium wages for overtime work. Art. for non-profit, educational, and government users. 556. PAGA allows employees to recover civil penalties on behalf of themselves and other employees that previously were recoverable only by the Labor Commissioner, including the civil penaltie… Florida In Thurman, the Fourth District previously held that “the language of section 558, subdivision (a) is more reasonably construed as providing a civil penalty that consists of both the $50 or $100 penalty amount and any underpaid wages” and that the underpaid wages were a part of the $50 and $100 penalties provided for by the statute. In support of this holding, the Court explained that the only PAGA remedy under Section 558 is the civil penalty of either $50 or $100 per pay period. Illinois Labor Code section 558 provides the Labor Commissioner power to issue overtime violation citations for “a civil penalty as follows: [¶] (1) For any initial violation, fifty dollars ($50) for each underpaid employee for each pay period for which the employee was underpaid in addition to an amount sufficient to recover underpaid wages. Alaska 1937, Ch. 226.3. This is because Labor Code § 2802 requires employers to indemnify employees from expenses. DIVISION 2. Board of Patent Appeals, Preamble (d) The civil penalties provided for in this section are in addition to any other civil or criminal penalty provided by law. Alternatively, ZB asserts that unpaid wages recovered through section 558 fail to qualify as a civil penalty of either kind and are better understood as compensatory damages. Lawson brought the representative action against her employer, ZB, N.A. Get full details of Cal. Sections 551 and 552 shall not apply to any employer or employee when the total hours of employment do not exceed 30 hours in any week or six hours in any one day thereof. Art. The procedures for issuing, contesting, and enforcing judgments for citations or civil penalties issued by the Labor Commissioner for a violation of this chapter shall be the same as those set out in Section 1197.1. (AB 970) Effective January 1, 2016. Join thousands of people who receive monthly site updates. The parties in Lawson all agreed that the $50 and $100 citations permitted by section 558 are civil penalties, which could be recovered in a PAGA action. Payment of Wages [200 - 273] ( Chapter 1 enacted by Stats. Pennsylvania Labor Code Section 558 was enacted as part of the Eight-Hour-Day Restoration and Workplace Flexibility Act of 1999. California Labor Code Section 558 outlines penalties employers face for underpayment of employees. V - Mode of Amendment It concluded section 558’s civil penalty encompassed the amount for unpaid wages, and Lawson’s claim for unpaid wages could not be compelled to arbitration under Iskanian. Posted in Meal and Rest Breaks, New Cases. Compl. We will always provide free access to the current law. II. ZB, N.A. US Tax Court 90. ) Although California Labor Code § 558.1 allows for an employee’s personal liability to be recognized in matters of this nature, they rarely pay for wage and hour violations. If the Labor Commissioner issues a citation, the local entity shall not cite the employer for the same violation. New York (Amended by Stats. to civil penalties under Labor Code section 558. 90. ) Subscribe to Labor Code section 558. Texas Labor Code § 558 : California Labor Code — Employment Regulation And Supervision — General — Civil penalties on CaseMine. Section 558 of the California Labor Code is a civil penalty statute permitting the Labor Commissioner to issue citations for: (1) civil penalties, which are to be dispersed to the state, and (2) “underpaid wages,” which are to be dispersed directly to the underpaid employees. As originally written, the Act enabled the California Labor Commissioner to collect civil penalties and unpaid wages from employers. Oregon The Court began its analysis by examining the history of Section 558 and PAGA. we provide special support All Labor Code §558 Claims, Including Claims for Underpaid Wages, Are Civil Penalties Under PAGA and May Not Be Compelled to Arbitration - Employment Rights Law Firm All Labor Code §558 Claims, Including Claims for Underpaid Wages, Are Civil Penalties … PART 1. Labor Code Section 558 provides the Labor Commissioner authority to collect a civil penalty for certain Labor Code violations relating to overtime and hours and days of work, equal to $50 to $100 dollars for each underpaid employee for each pay period for which the employee was underpaid, in addition to “an amount sufficient to recover underpaid wages.” 90. ) (e) This section does not change the applicability of local overtime wage laws to any entity. North Carolina Section 558(a) provides that an employer “or other person acting on behalf of an employer” who violates or causes a violation of the state’s applicable overtime laws shall be subject to a civil penalty. Art VII - Ratification. California Employment Law Letter January 15, 2018 7 injury and (2) statutory penalties of $50 to $100. ARTICLE 1. 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