On October 11, 2015, Governor Jerry Brown approved Senate Bill 588, the Fair Day’s Pay Act and filed it with the California Secretary of State. This law is aimed at cracking down on employers that fail to pay wages to employees even after a judgment in the employee’s favor has been entered.

The change in law was effective January 1, 2016. Prior to the passage of the Fair Day’s Pay Act, employers got out of paying wages to employees even after judgments against the employers were entered. Employers could get out of paying these wages by hiding behind subcontractors, hiding assets, or changing the corporate identity, effectively shielding them from the judgments.

The Fair Day’s Pay Act empowers the California Labor Commissioner to hold hearings to determine if other individuals may be responsible for satisfying the judgments. The passage of SB 588 also provides new methods of securing payment of the judgment such as levying bank accounts and other property held by those found liable for satisfaction of the judgment.

If you have a wage or hour dispute with a current or former employer, you need to speak with an employment law attorney. An experienced wage and hour attorney will know the law and how it applies to your circumstances. You may be entitled to back pay. With the passage of the Fair Day’s Pay Act there are new methods of collecting judgments. Contact the knowledgeable and experienced employment law attorneys at Aiman-Smith & Marcy today.

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