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California Labor Code Section 240

Legal Research Home > California Laws > Labor Code > California Labor Code Section 240

240.  (a) If any employer has been convicted of a violation of any
provision of this article, or if any judgment against an employer for
nonpayment of wages remains unsatisfied for a period of 10 days
after the time to appeal therefrom has expired, and no appeal
therefrom is then pending, the Labor Commissioner may require the
employer to deposit a bond in such sum as the Labor Commissioner may
deem sufficient and adequate in the circumstances, to be approved by
the Labor Commissioner. The bond shall be payable to the Labor
Commissioner and shall be conditioned that the employer shall, for a
definite future period, not exceeding two years, pay the employees in
accordance with the provisions of this article, and shall be further
conditioned upon the payment by the employer of any judgment which
may be recovered against the employer pursuant to the provisions of
this article.
   (b) If an order to post a bond issued against an employer under
this section remains unsatisfied for a period of 10 days after the
time to appeal therefrom has expired, and no appeal from the order is
then pending, the Labor Commissioner may require the employer to
provide an accounting of assets of the employer, including a list of
all bank accounts, accounts receivable, personal property, real
property, automobiles or other vehicles, and any other assets, in a
form and manner as prescribed by the Labor Commissioner. An employer
shall provide an amended accounting of assets, if ordered by the
Labor Commissioner to do so. If, within 10 days after a demand for an
accounting of assets, made by certified or registered mail, the
employer fails to provide an accounting, or if the employer fails to
provide an amended accounting after receiving a demand by the Labor
Commissioner to do so, the Labor Commissioner may bring an action in
the name and on behalf of the people of the State of California
against such employer to compel the employer to furnish the
accounting. An employer who fails to provide an accounting as
required by this subdivision shall be subject to a civil penalty not
to exceed ten thousand dollars ($10,000).
   (c) If, within 10 days after demand for the bond, which demand may
be made by mail, the employer fails to deposit the bond, the Labor
Commissioner may bring an action in the name and on behalf of the
people of the State of California against the employer in a court of
competent jurisdiction to compel the employer to furnish the bond or
to cease doing business until the employer has done so. The employer
has the burden of proving either that the bond is unnecessary or that
the amount demanded is excessive. If the court finds that there is
just cause for requiring the bond, and that the bond is reasonably
necessary or proper to secure prompt payment of the wages of the
employees of the employer and the employer's compliance with the
provisions of this article, the court may enjoin the employer,
whether an individual, partnership, corporation, company, trust, or
association, and such other person or persons as may have been or may
be concerned with or in any way participating in the failure to pay
the wages resulting in the conviction or in the judgment, from doing
business until the requirement is met, and make other and further
orders appropriate to compel compliance with the requirement.

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Last modified: March 17, 2014