New Law Combats Wage Theft by Granting Local Governments Subpoena Power

Ervin Cohen & Jessup LLP
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In response to the increasing number of cities and counties that have enacted minimum wage ordinances setting wage rates at levels higher than state and federal requirements, last year Assembly Bill 970 was added to the Labor Code allowing the California Labor Commissioner the right to enforce local minimum wage and overtime provisions.  This year the California Legislature looked to enforcement at the local level and passed Senate Bill 1342. Specifically, SB 1342 increases local enforcement to combat wage theft by authorizing cities and counties to issue subpoenas in cases of suspected wage problems, including failure to pay minimum wage and failure to pay overtime.  The law became effective on July 25, 2016.

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