California Gov. Gavin Newsom signed into law on Sept. 27 a bill that makes intentional “wage theft” by employers a form of grand theft and thus a felony in the state of California, JD Supra reports. In addition to direct hires, the law applies to companies’ independent contractors as well.
Wage theft under AB 1003 occurs when an employer fails to pay workers their full wages, whether salaries, commission, tips, or other forms of compensation due and owed to the employee. An employer’s intentional wage theft of more than $950 from one employee, or $2,350 total from at least two employees, within a 12-month period, will be punishable as grand theft. This crime carries a potential prison sentence of up to three years. Employees or the state’s labor commissioner can seek redress under this bill through civil action.
Read more about the law from JD Supra.