When an employee brings a wage claim before the Division of Labor Standards Enforcement (Labor Board) asserting the non-payment of minimum wage, a determination can be made that the employer must pay a civil penalty, the unpaid wages due and liquidated damages. An employer may appeal such determination by seeking a writ of mandate.
As of January 1, 2017, any employer seeking a writ of mandate contesting the Labor Commissioner’s ruling must post a bond with the Labor Commissioner in an amount equal to the unpaid wages assessed under the citation, excluding penalties.
The bond is to be issued in favor of the unpaid employee and ensures that the person seeking the writ makes prescribed payments pursuant to the proceedings.
The total amount of the bond is to be forfeited to the employee if the employer fails to pay the amounts owed within 10 days from the conclusion of the proceedings.
(AB 2899, Amends Labor Code Section 1197.1)