Labor Commissioner Liens on Real Property

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EmpBlog-4.28.2014-Building Exterior-iStock-PAID-RESIZEDOne of the laws that was passed in California in 2013 that did not receive much media attention was Assembly Bill 1386. AB 1386 amended Labor Code section 98.2 to give the Labor Commissioner additional means to collect wages and penalties on behalf of workers. Existing law had authorized the Labor Commissioner to issue orders, decisions, or awards in connection with employee complaints governed by the Labor Code. As amended by AB 1386, Labor Code section 98.2 now provides that any amount due under a final Labor Commissioner order, decision, or award permits the Labor Commissioner to record a Certificate of Lien against the employer’s real property. This represents an expeditious alternative to the Labor Commissioner seeking a judgment lien thru superior court.

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