California employers should be aware of A.B. 1003, which is currently making its way through the state legislature. If passed, A.B. 1003 would expand the current law regarding grand theft to include the intentional theft of wages, gratuities, benefits, and other compensation, in an amount greater than $950 from a single employee, or $2,350 from two or more employees, within a 12-month period. The bill also includes independent contractors as “employees” and the hiring entity of an independent contract as “employers”. A.B. 1003 allows for recovery of wages through a civil action.

A.B. 1003 will likely pass as it has made its way through the legislature largely unopposed. If passed, employers (and potentially managers and executives) would be exposed to both criminal and civil liability for wage and hour Labor Code violations (e.g., failing to timely pay employees, failing to accurately pay wages, etc.). As a result, all California employers should immediately ensure their compensation policies and practices are fully compliant with existing compensation laws. Palmer Kazanjian is monitoring A.B. 1003 and offers beneficial guidance to facilitate compliance with these and other complex labor and employment law matters.