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California Labor Code Section 243

Legal Research Home > California Laws > Labor Code > California Labor Code Section 243

243.  (a) If, within 10 years of either a conviction for a violation
of this article or failing to satisfy a judgment for nonpayment of
wages, or of both, it is alleged that an employer on a second
occasion has been convicted of again violating this article or is
failing to satisfy a judgment for nonpayment of wages, an employee or
the employee's legal representative, an attorney licensed to
practice law in this state, may, on behalf of himself or herself and
others, bring an action in a court of competent jurisdiction for a
temporary restraining order prohibiting the employer from doing
business in this state unless the employer deposits with the court a
bond to secure compliance by the employer with this article or to
satisfy the judgment for nonpayment of wages.
   (b) Upon the filing of an affidavit that, to the satisfaction of
the court, shows reasonable proof that an employer, for the second
time within 10 years, has been convicted of violating this article or
has failed to satisfy a judgment for the nonpayment of wages, or
both, the court may grant an order that prohibits the employer within
30 days from conducting any business within the state unless the
employer deposits a bond payable to the Labor Commissioner, with the
condition that the employer make wage payments in accordance with
this article, or that the employer pay any unsatisfied judgment for
nonpayment of wages, or both. The court shall order that the bond be
on deposit with the Labor Commissioner at all times within a
five-year period from the date of the order, that the employer
employs more than 10 employees. The court shall order that the bond
be in an amount equal to twenty-five thousand dollars ($25,000) or 25
percent of the weekly gross payroll of the employer at the time of
the posting of the bond, whichever is greater, and that the term of
the bond be for the duration of the service of the employee who
brought the action, until past due wages have been paid, or until
satisfaction of all judgments for nonpayment of wages. The bond shall
also be payable for wages, interest on wages and for any damages
arising from any violation of orders of the Industrial Welfare
Commission, and for any other monetary relief awarded to an employee
as a result of a violation of this code. To aid in the enforcement of
this section, upon a request by the Labor Commissioner or an
employee bringing an action pursuant to this section, the court may
additionally 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 court. An employer shall provide an amended accounting of assets
if ordered by the court to do so. If, within 10 days after a demand
for an accounting of assets, which demand may be made by certified or
registered mail, the employer shall fail to provide an accounting,
or if the employer fails to provide an amended accounting being
ordered to do so, the court may take all appropriate action to
enforce its order, including the imposition of appropriate sanctions.
   (c) For purposes of subdivision (b), an employer shall be deemed
to have been convicted of having violated this article or to have
failed to satisfy a judgment for the second time within 10 years if,
to secure labor or personal services in connection with his or her
business, the employer uses the services of an agent, contractor, or
subcontractor who is convicted of a violation of this article or
fails to satisfy a judgment for wages respecting those employees, or
both, but only if the employer had actual knowledge of the person's
failure to pay wages. In issuing a temporary restraining order
pursuant to this section, the court, in determining the amount and
term of the bond, shall count the agent's, contractor's, or
subcontractor's employees as part of the employer's total workforce.
This subdivision shall not apply where a temporary restraining order
against the agent, contractor, or subcontractor as an employer has
been issued pursuant to subdivision (b).
   (d) An employer who, for the third time within 10 years of the
first occurrence, is alleged to have violated this article or to have
failed to satisfy a judgment for nonpayment of wages, or both, shall
be deemed by the court to have commenced a new five-year period for
which the posting of a bond may be ordered in accordance with
subdivision (b), except that the court may, in its discretion,
require the posting of a bond in a greater amount as it determines
appropriate under the circumstances.
   (e) A former employee who was a party to an earlier action against
an employer in which a judgment for the payment of wages was
obtained, and who alleges that the employer has failed to satisfy the
judgment for the payment of wages, in addition to any other
available remedy, may petition the court pursuant to subdivision (b)
for a temporary restraining order against the employer to cease doing
business in this state unless the employer posts a bond with the
court.
   (f) Actions brought pursuant to this section shall be set for
trial at the earliest possible date, and shall take precedence over
all other cases, except older matters of the same character and
matters to which special precedence may be given by law.
   (g) Nothing in this section shall be construed to impose any
mandatory duties on the Labor Commissioner.

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Last modified: March 17, 2014