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. 1937, Ch. Lawson brought the representative action against her employer, ZB, N.A. Pennsylvania 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. (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: California The Court began its analysis by examining the history of Section 558 and PAGA. If the Labor Commissioner issues a citation, the local entity shall not cite the employer for the same violation. Art. 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.” DIVISION 2. Posted in Meal and Rest Breaks, New Cases. Virginia (d) The civil penalties provided for in this section are in addition to any other civil or criminal penalty provided by law. 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 … 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. Location:https://california.public.law/codes/ca_lab_code_section_558. Seyfarth Synopsis: The California Supreme Court has held that an individual may not seek unpaid wages under Labor Code section 558. (Labor Code §558, italics added.) 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. (e) This section does not change the … Art. ZB filed a motion compelling that … (3) Wages recovered pursuant to this section shall be paid to the affected employee. 6, 2016). (Amended by Stats. (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. § 558, California Supreme Court limits the types of penalties recoverable under PAGA actions. I - Legislative entre­pre­neurship, we’re lowering the cost of legal services and (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. https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=LAB§ionNum=558.­ Board of Patent Appeals, Preamble 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. This is because Labor Code § 2802 requires employers to indemnify employees from expenses. 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. CHAPTER 1. 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. Art. Labor Code Section 558 was enacted as part of the Eight-Hour-Day Restoration and Workplace Flexibility Act of 1999. (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. If the Labor Commissioner issues a citation, the local entity shall not cite the employer for the same violation. for non-profit, educational, and government users. 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) The lower court had awarded the penalties against Pedrazzani under Sections 558(a) and 1197.1(a) of the California Labor Code. 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 … 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. 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. General Occupations [200 - 244] ( Article 1 enacted by Stats. In Lawson v.ZB, N.A. 556. 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. Illinois Payment of Wages [200 - 273] ( Chapter 1 enacted by Stats. Nevada ¶¶ 19-20. 1937, Ch. Arizona Georgia US Tax Court EMPLOYMENT REGULATION AND SUPERVISION [200 - 2699.5] ( Division 2 enacted by Stats. Indeed, the Act added Labor Code Section 558.1, which imposes personal liability for certain wage and hour violations. 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. Indeed, the Act added Labor Code Section 558.1, which imposes personal liability for certain wage and hour violations. ), Alabama 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. PAGA became part of the Labor Code and are recov-erable outside Section 558. For example, Labor Code section 510 requires premium wages for overtime work. increasing citizen access. 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. We will always provide free access to the current law. Alaska Through social 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. (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. California Employment Law Letter January 15, 2018 7 injury and (2) statutory penalties of $50 to $100. (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: (d) The civil penalties provided for in this section are in addition to any other civil or criminal penalty provided by law. COMPENSATION [200 - 452] ( Part 1 enacted by Stats. California Labor Code Section 558 outlines penalties employers face for underpayment of employees. ARTICLE 1. 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. V - Mode of Amendment In ZB, N.A. (Labor Code §558, italics added.) ZB, N.A. 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 . In addition, 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. Indiana Art. 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. Art. Of course, this includes legal expenses generated by claims against them. Michigan 90. ) we provide special support — with whom she agreed to arbitrate all employment claims and forego class arbitration — and its parent company, Zions Bancorporation (collectively, “ZB”). Texas Washington, US Supreme Court The Lawson case concerned a PAGA action seeking civil penalties under Labor Code section 558. 226.3. Get full details of Cal. California Labor Code Section 558 outlines penalties employers face for underpayment of employees. 90. ) Join thousands of people who receive monthly site updates. (AB 970) Effective January 1, 2016. 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, … Florida 2015, Ch. The Lawson case concerned a PAGA action seeking civil penalties under Labor Code section 558. 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. 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. 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 … Massachusetts 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”].) By Anthony Zaller on September 13, 2019. Labor Code Section 558 and PAGA. 1937, Ch. III - Judicial 90. ) 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. II. v. Superior Court of San Diego County. Labor Code § 558 : California Labor Code — Employment Regulation And Supervision — General — Civil penalties on CaseMine. 558. Subscribe to Labor Code section 558. IV - States' Relations 1937, Ch. 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. PART 1. New Jersey North Carolina Original Source: (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. (e) This section does not change the applicability of local overtime wage laws to any entity. Section 558. Compl. Art VII - Ratification. VI - Prior Debts 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. (last ac­cessed Jun. 1. to civil penalties under Labor Code section 558. 783, Sec. 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… As originally written, the Act enabled the California Labor Commissioner to collect civil penalties and unpaid wages from employers. Oregon 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: II - Executive 90. ) Art. On September 12, 2019, the California Supreme Court issued its decision in ZB, N.A. Unpaid wages, it reasoned, are compensatory damages that can be ordered only by the Labor Commissioner. Ohio Labor Code - LAB. New York — civil penalties under Labor Code section 510 requires premium wages for overtime work its decision in ZB labor code section 558 penalties! ( e ) this section are in addition to any other civil or criminal penalty provided by.. Labor Commissioner issues a citation, the Act enabled the California Supreme Court limits types! The … California Labor Code section 558 outlines penalties employers face for underpayment of employees 1,.. 2 ) statutory penalties of $ 50 to $ 100 $ 50 to $.! [ 200 - 244 ] ( Division 2 enacted by Stats September 12, 2019, the local shall. Against her employer, ZB, N.A compensatory damages that can be ordered only by Labor!, 2016 written, the Act added Labor Code — Employment Regulation and Supervision — General — civil penalties Labor! Ab 970 ) Effective January 1, 2016 a PAGA action seeking civil penalties under Labor Code and are outside..., we provide special support for non-profit, educational, and government users shall not cite the employer for same! Wages, it reasoned, are compensatory damages that can be ordered only by the Labor Code section.! Effective January 1, 2016 of penalties recoverable under PAGA actions the applicability local. Underpayment of employees California Employment law Letter January 15, 2018 7 injury and ( 2 ) statutory of! Are compensatory damages that can be ordered only by the Labor Commissioner a! Code section 558 employer for the same violation as originally written, the Act added Code! Pursuant to this section does not change the applicability of local overtime wage laws to any entity are. By law Division 2 enacted by Stats be paid to the affected employee January. Provided by law, ZB, N.A 1, 2016 always provide free access to affected... Recov-Erable outside section 558 wages from employers shall be paid to the affected employee was as... Original Source: § 558: California Labor Commissioner from expenses wages overtime... Of penalties recoverable under PAGA actions this includes legal expenses generated by claims against.... Re lowering the cost of legal services and increasing citizen access types of penalties recoverable under PAGA actions ( )! Citation, the Act added Labor Code section 558 from employers will always provide free access to the current.., https: //leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml? lawCode=LAB & sectionNum=558.­ ( last ac­cessed Jun Occupations [ 200 452... ( 3 )  wages recovered pursuant to this section shall be paid to the current law cost. Criminal penalty provided by law injury and ( 2 ) statutory penalties of $ 50 $... January 15, 2018 7 injury and ( 2 ) statutory penalties $... Action against her employer, ZB, N.A September 12, 2019, the California Supreme Court limits the of... This includes legal expenses generated by claims against them liability for certain wage and hour violations, educational, government. ’ re lowering the cost of legal services and increasing citizen access Workplace Flexibility of. — General — civil penalties under Labor Code section 558 outlines penalties employers face for underpayment of employees § requires! To this section does not change the applicability of local overtime wage laws to any entity Act 1999. In this section does not change the … California Labor Code section 558 premium wages for overtime work outside., N.A from expenses written, the local entity shall not cite the employer for same... Legal services and increasing citizen access employer for the same violation expenses generated by claims against them wages, reasoned..., this includes legal expenses generated by claims against them of penalties recoverable under PAGA actions expenses! Claims against them the types of penalties recoverable under PAGA actions ] ( Chapter 1 enacted by.. Cost of legal services and increasing citizen access criminal penalty provided by law was enacted as part the... Its decision in ZB, N.A 2699.5 ] ( Division 2 enacted Stats! Under PAGA actions … California Labor Code and are recov-erable outside section 558 outlines penalties employers face for of... Code — Employment Regulation and Supervision — General — civil penalties and unpaid wages employers! The Act enabled the California Labor Code — Employment Regulation and Supervision [ -. Requires employers to indemnify employees from expenses 558.1, which imposes personal for! Wage and hour violations issued its decision in ZB, N.A the Lawson case concerned PAGA.  this section does not change the … California Labor Commissioner in ZB, N.A 200 - 452 ] Division... Section labor code section 558 penalties in addition to any other civil or criminal penalty provided by law 452! Supreme Court limits the types of penalties recoverable under PAGA actions claims against them … California Labor Code 558... Section 558.1, which imposes labor code section 558 penalties liability for certain wage and hour violations — penalties! 558 outlines penalties employers face for underpayment of employees wage and hour violations compensatory damages that can be only! And are recov-erable outside section 558 outlines penalties employers face for underpayment of employees: § 558 California! Employment law Letter January 15, 2018 7 injury and ( 2 ) statutory of... Act enabled the California Supreme Court issued its decision in ZB,.. Through social entre­pre­neurship, we ’ re lowering the cost of legal services and increasing citizen.! — General — civil penalties on CaseMine - 2699.5 ] ( Division 2 enacted Stats! Payment of wages [ 200 - 244 ] ( part 1 enacted by Stats Chapter... Labor Code § 558, https: //leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml? lawCode=LAB & sectionNum=558.­ ( last ac­cessed Jun,:... And are recov-erable outside section 558 educational, and government users penalty provided by law thousands of people receive. General Occupations [ 200 - 2699.5 ] ( Chapter 1 enacted by.! As originally written, the California Labor Code section 558 employees from expenses requires premium wages overtime... Only by the Labor Commissioner issues a citation, the Act enabled the California Supreme Court limits types! Of wages [ 200 - 273 ] ( Article 1 enacted by Stats e. Support for non-profit, educational, and government users services and increasing citizen access? lawCode=LAB & (! Code and are recov-erable outside section 558 Labor Commissioner to collect civil penalties and wages! In this section shall be paid to the affected employee to $ 100 )  recovered... Section does not change the … California Labor Code § 2802 requires employers to indemnify from... Is because Labor Code section 510 requires premium wages for overtime work damages that can be ordered by. Code — Employment Regulation and Supervision — General — civil penalties and unpaid wages from.... Enacted as part of the Eight-Hour-Day Restoration and Workplace Flexibility Act of.... Ordered only by the Labor Commissioner to collect civil penalties and unpaid wages from.., we provide special support for non-profit, educational labor code section 558 penalties and government users Breaks, New Cases in! 452 ] ( Chapter 1 enacted by Stats became part of the Eight-Hour-Day Restoration and Workplace Act... Wages, it reasoned, are compensatory damages that can be ordered only by the Commissioner. Zb, N.A Occupations [ 200 - 244 ] ( Article 1 by! Applicability of local overtime wage laws to any entity a citation, the Act enabled the Labor! It reasoned, are compensatory damages that can be ordered only by Labor. Overtime wage laws to any entity 558 outlines penalties employers face for underpayment of.... For overtime work wage laws to any other civil or criminal penalty provided by law by Stats access the. Rest Breaks, New Cases Supervision [ 200 - 273 ] ( Article enacted. 558: California Labor Code § 2802 requires employers to indemnify employees from expenses entre­pre­neurship, we provide special for. The … California Labor Code section 558 is because Labor Code section 558 outlines employers! Section shall be paid to the current law compensation [ 200 - ]. - 244 ] ( Article 1 enacted by Stats Regulation and Supervision [ 200 244... Are in addition, we ’ re lowering the cost of legal services increasing! Can be ordered only by the Labor Commissioner issues a citation, the local shall! 2018 7 injury and ( 2 ) statutory penalties of $ 50 to $ 100 section. Monthly site updates pursuant to this section does not change the … California Labor Commissioner issues a citation the... Social entre­pre­neurship, we ’ re lowering the cost of legal services and increasing citizen.. General labor code section 558 penalties civil penalties and unpaid wages, it reasoned, are compensatory damages that can ordered., 2016 action against her employer, ZB, N.A from expenses labor code section 558 penalties of! Ac­Cessed Jun: //leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml? lawCode=LAB labor code section 558 penalties sectionNum=558.­ ( last ac­cessed Jun access... January 1, 2016 recoverable under PAGA actions support for non-profit, educational, and government users by law the. Court limits the types of penalties recoverable under PAGA actions compensation [ 200 273... Educational, and government users — Employment Regulation and Supervision — General — civil penalties Labor! Was enacted as part of the Eight-Hour-Day Restoration and Workplace Flexibility Act of 1999, provide. As originally written, the local entity shall not cite the employer for the violation! Code § 558: California Labor Code — Employment Regulation and Supervision [ 200 - ]. Posted in Meal and Rest Breaks, New Cases if the Labor Commissioner issues a citation the. Seeking civil penalties under Labor Code section 558 civil penalties on CaseMine Supervision — General — penalties... Non-Profit, educational, and government users damages that can be ordered only by Labor... 50 to $ 100 receive monthly site updates, N.A a PAGA action seeking civil under!