AB 673 Will Permit Employee to Keep All Penalties for Late Paid Wages

Effective January 1, 2020, employees will be able to keep all penalties, in the amount of $100 for the first violation and $200 for each subsequent violation, along with 25 % of the amount unlawfully withheld during their employment. On October 10, 2019, Governor Newsom signed Assembly Bill No. 673 which amends Section 210 of the Labor Code to permit employees to recover penalties previously available by the California Labor Commissioner seeking such, or by the employee seeking such under the Private Attorney Generals Act. But under PAGA, 75% of the penalty recovered goes to the State. AB 673 will afford an employee the choice to either recover statutory penalties under Section 210, or enforce civil penalties under PAGA, but not both, for the same violation.