SB 261 California Senate · 2025-2026 Regular Session

Division of Labor Standards Enforcement: orders, decisions, and awards.

Summary
Existing law establishes the Division of Labor Standards Enforcement, under the direction of the Labor Commissioner, within the Department of Industrial Relations and sets forth its powers and duties regarding the enforcement of labor laws. Existing law authorizes the commissioner to investigate employee complaints and to provide for a hearing in any action to recover wages, penalties, and other demands for compensation, as specified. Existing law provides that the judgment creditor, or the commissioner, as assignee of the judgment creditor, is entitled to court costs and reasonable attorney's fees for enforcing the judgment, as specified. This bill would instead require that the judgment creditor, or the Labor Commissioner or public prosecutor as assignee of the judgment creditor, be awarded the above-described court costs and reasonable attorney's fees. Existing law provides for enforcement if a final judgment against an employer arising from the employer's nonpayment of wages for work performed in this state remains unsatisfied after specified periods of time, including prohibiting the employer from conducting business in the state, as specified, if a final judgment against the employer remains unsatisfied for 30 days. This bill would additionally require the judgment debtor to be subject to a civil penalty not to exceed 3 times the outstanding judgment amount if a final judgment arising from the nonpayment of work performed in this state remains unsatisfied after a period of 180 days, as provided. The bill would require a court to award a prevailing plaintiff all reasonable attorney's fees and costs in any action brought by a judgment creditor, the commissioner, or a public prosecutor to enforce a final judgment arising from the nonpayment of wages, penalties, or other amounts owed arising from work performed in this state, as provided. This bill would also make findings and declarations related to its provisions.
Bill status signed all 5 stages cleared
Introduction
Feb 2025
Committee Review
Jul 2025
Senate Passage
Jun 2025
Assembly Passage
Sep 2025
Signed into Law
Oct 2025
Introduced Feb 3, 2025 Signed Oct 13, 2025
Maddy AI version diff · 8 comparisons

What changed between versions

09/02/25 - Amended Assembly 09/12/25 - Enrolled · 4 edits · Sep 12, 2025
MODERATE
The enrolled version of SB 261 removes the entire public posting (shaming list) provision that would have required the Labor Standards Enforcement division to publish names and addresses of employers with unsatisfied wage judgments on its website. Additionally, the civil penalty and attorney's fees provisions are broadened from applying only to 'employers' to applying to any 'judgment debtor,' expanding who can be penalized for nonpayment. The state-mandated local program reimbursement clause is also removed since it was tied to the now-deleted posting provision.
ENFORCEMENT

Section 98.15 is entirely deleted. This section would have required the Division of Labor Standards Enforcement to post on its website the names, addresses, and essential information (including fictitious business names) of any employer with an unsatisfied order, decision, or award. It included notice requirements (15 business days by certified mail), removal procedures (full payment plus certification under penalty of perjury that violations were remedied), an exemption for port drayage motor carriers, and a provision making waivers void as contrary to public policy.

SCOPE

Section 238.05 (civil penalty up to 3x the outstanding judgment amount after 180 days of nonpayment) is broadened from applying only to 'an employer' to applying to any 'judgment debtor.' The penalty can now be assessed against any party who fails to satisfy a final judgment arising from nonpayment of wages, not just employers.

Section 238.10 (mandatory attorney's fees and costs for prevailing plaintiff in enforcement actions) is broadened from applying to actions against 'an employer' to applying to any 'judgment debtor.' This means the fee-shifting provision now covers enforcement actions against any party owing a wage judgment, not just employers.

FISCAL

Section 6 (the state-mandated local program reimbursement clause) is removed. This provision stated that no reimbursement was required under Article XIIIB of the California Constitution because the only costs incurred by local agencies would be from creating a new crime or infraction. It was tied to the perjury certification requirement in the now-deleted Section 98.15.

Floor votes · Senate Jun 4, 2025 · Assembly Sep 8, 2025

How they voted

296
Passed · 5 other
Total votes 40
Jun 4, 2025
D Democratic30
29 Yea 1
96% Yea
R Republican10
6 Nay 4
60% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
32
Key actions
15
Committee
4
Amendments
11
Oct 13, 2025
Signed into law
Approved by the Governor.
legislature
Sep 9, 2025
Upper · Passed
Assembly amendments concurred in. (Ayes 30. Noes 6. Page 2710.) Ordered to engrossing and enrolling.
upper
Sep 8, 2025
Introduced
In Senate. Concurrence in Assembly amendments pending.
upper
Sep 8, 2025
Lower · Passed
Read third time. Passed. (Ayes 71. Noes 1. Page 2997.) Ordered to the Senate.
lower
Sep 2, 2025
Lower · Passed
Read second time and amended. Ordered to second reading.
lower
Aug 29, 2025
Lower · Passed
From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).
lower
Jul 16, 2025
Lower · Passed
From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (July 15). Re-referred to Com. on APPR.
lower
Jul 10, 2025
Lower · Passed
From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (July 9). Re-referred to Com. on JUD.
lower
Jun 16, 2025
Committee
Referred to Coms. on L. & E. and JUD.
lower
Jun 4, 2025
Upper · Passed
Read third time. Passed. (Ayes 29. Noes 6. Page 1514.) Ordered to the Assembly.
upper
May 23, 2025
Upper · Passed
Read second time and amended. Ordered to second reading.
upper
May 23, 2025
Upper · Passed
From committee: Do pass as amended. (Ayes 5. Noes 0. Page 1193.) (May 23).
upper
Apr 10, 2025
Upper · Passed
Read second time and amended. Re-referred to Com. on APPR.
upper
Apr 9, 2025
Upper · Passed
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0. Page 705.) (April 8).
upper
Mar 27, 2025
Upper · Passed
Read second time and amended. Re-referred to Com. on JUD.
upper
Mar 26, 2025
Upper · Passed
From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 4. Noes 1. Page 567.) (March 26).
upper
Mar 17, 2025
Upper · Passed
From committee with author's amendments. Read second time and amended. Re-referred to Com. on L., P.E. & R.
upper
Feb 14, 2025
Committee
Referred to Coms. on L., P.E. & R. and JUD.
upper
Feb 3, 2025
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.
upper
1 primary · 3 co-sponsors

Sponsors