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SB 355

Paulding County; school district ad valorem taxes for educational purposes; provide a homestead exemption

2025-2026 Regular Session Introduced by Jason Anavitarte and 1 co-sponsor

SB 355 requires employers to document compliance with court-ordered payments within 60 days, imposing penalties for non-compliance to protect employee rights.

House Withdrawn, Recommitted
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Bill Summary · SB 355

Summary of SB 355: Judgment Debtor Employers - Employment Development Department

Bill Number: SB 355
Introduced: February 12, 2025
Status: In Senate; consideration of Governor's veto pending
Author: Pérez
Subject: Employment Development Department, Judgment Debtor Employers

Purpose and Intent

SB 355 aims to enhance compliance among employers who have been ordered by a court to pay judgments to employees or the state. The bill seeks to ensure that judgment debtor employers fulfill their financial obligations promptly and transparently, thereby protecting employees' rights and state interests.

Key Provisions

  1. Documentation Requirement:

    • Within 60 days of a final judgment against an employer, the employer must provide documentation to the Labor Commissioner indicating one of the following:
      • The judgment is fully satisfied.
      • A bond has been posted as required.
      • The employer has entered into an installment payment agreement and is complying with it.
  2. Civil Penalty:

    • Employers who fail to comply with the documentation requirement will incur a civil penalty of $2,500.
  3. Notice of Potential Tax Fraud:

    • If an employer does not comply within the specified timeframe, the Labor Commissioner must notify the employer that the unsatisfied judgment will be reported to the Tax Support Division of the Employment Development Department as a potential tax fraud case. This notice must be sent within 30 days after the compliance deadline.
  4. Further Actions:

    • If the employer does not comply and pay the civil penalty within 90 days of receiving the notice, the Labor Commissioner is required to provide the Employment Development Department with:
      • A summary of the final judgment.
      • Identifying information of the liable parties, including social security numbers and addresses.

Impact

  • Affected Parties: This bill primarily affects employers who have been ordered to pay judgments, as well as employees awaiting payment. It also impacts the Labor Commissioner and the Employment Development Department in their enforcement and compliance roles.
  • Enforcement: The bill empowers the Labor Commissioner to take necessary actions against non-compliant employers, thereby strengthening the enforcement of labor laws and protecting employee rights.

Procedural Aspects

  • The bill has undergone various committee reviews and amendments since its introduction, with significant actions including:
    • Passed by the Assembly and Senate with unanimous support.
    • Enrolled and presented to the Governor on September 16, 2025.
    • Vetoed by the Governor on October 13, 2025, with pending consideration of the veto in the Senate.

Conclusion

SB 355 represents a legislative effort to ensure that employers meet their financial obligations following court judgments, thereby enhancing accountability and protecting employee rights in California. The bill's provisions for penalties and notifications aim to deter non-compliance and promote timely resolution of judgments.

Compiled from official sources — confirm details with the bill’s official record.

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