Effective January 1, 2015, AB 2743 Establishes New Wage Payment Penalties for California Entertainment Industry
Assembly Bill No. 2743 expands the availability of wage payment penalties or “waiting time penalties” for employers and employees that are part of a collective bargaining agreement in the entertainment industry. Per Labor Code section 203, employers face a penalty of up to 30 days' pay when they do not pay employees correctly and timely at termination of employment. Section 201.9 of the Labor Code allowed employers in the “live theatrical or concert” industry to pay final wages in accordance with a collective bargaining agreement. AB 2743 expands the availability of waiting time penalties to situations when the employer does not pay on time under that collective bargaining agreement.
AB 2743 passed the Assembly May 1, passed the Senate August 4, and was signed into law by the Governor on August 19, 2014. As set forth in the bill, Section 203 of the Labor Code is amended to read:
203. (a) If an employer willfully fails to pay, without abatement or reduction, in accordance with Sections 201, 201.3, 201.5, 201.9, 202, and 205.5, any wages of an employee who is discharged or who quits, the wages of the employee shall continue as a penalty from the due date thereof at the same rate until paid or until an action therefor is commenced; but the wages shall not continue for more than 30 days. An employee who secretes or absents himself or herself to avoid payment to him or her, or who refuses to receive the payment when fully tendered to him or her,
including any penalty then accrued under this section, is not entitled to any benefit under this section for the time during which he or she so avoids payment.
(b) Suit may be filed for these penalties at any time before the expiration of the statute of limitations on an action for the wages from which the penalties arise.
Have Questions about AB 2743 or any California Wage Law?
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