AB 2416 Summary: California Wage Theft Recovery Act

• Establishes wage liens allowing employees to request that the Labor Commissioner record liens on employer property (real and personal) for unpaid wages, penalties, interest, and costs.

• Requires employees to provide 20 days' advance written notice to property owners before recording liens and to commence enforcement actions within 45 days of recording or the lien becomes permanently extinguished.

• Exempts from liens: employer principal residences, properties covered by adequate surety bonds or insurance, labor performed under certain collective bargaining agreements paying at least 30% above minimum wage, and claims by exempt administrative/executive/professional employees.

• Allows employers to petition the Labor Commissioner to release or reduce liens if certain conditions are met (wages paid, bond obtained, notice not provided, or action dismissed), with procedures requiring certified mail notice and 30-day response periods.

• Requires the Department of Industrial Relations to report to the Legislature by January 1, 2019, on the number of wage liens filed, foreclosures resulting from liens, and impact on unpaid wage collection.