SB22-161 Summary

• Modernizes wage and labor law enforcement by replacing certain criminal misdemeanor penalties with civil penalties and administrative procedures for violations of employer-employee relationship laws.

• Establishes automatic penalties for employers who fail to pay wages: on or after January 1, 2023, employers must pay the greater of 2x unpaid wages (up to $7,500) or $1,000, or 3x unpaid wages exceeding $7,500; penalties increase to 3x if employer's failure is willful or is a second violation within 5 years.

• Creates the Worker and Employee Protection Unit within the Department of Law to investigate wage theft, employee misclassification, and retaliation claims, with authority to bring civil actions and enforce wage determinations.

• Authorizes the Division of Labor to issue administrative liens and levies on employer assets when wages, fines, or penalties remain unpaid 60 days after determination, with priority given to employee wages over state fines.

• Adds $345,069 in appropriations for 2022-23 to the Department of Labor and Employment and Department of Law; takes effect January 1, 2023 for wage-related sections and upon voter approval for remaining provisions.