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California Workers Face Years-Long Delays in Wage Claims

June 20, 2024 | California State Assembly, House, Legislative, California



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This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

California Workers Face Years-Long Delays in Wage Claims
In a recent government meeting, significant concerns were raised regarding the California Labor Commissioner's office and its handling of wage claims. The discussion centered on three main points: the duration for workers to have their wage claims adjudicated, the sufficiency of staffing to manage the backlog, and the timeline for workers to receive payments after claims are validated.

The audit revealed alarming delays in the wage claim process. State law mandates that the Labor Commissioner's office must hold a hearing within 120 days of receiving a claim and issue a decision within 15 days thereafter, totaling 135 days. However, the audit found that the average time to issue a decision on wage claims has dramatically increased from 420 days in 2017-18 to an average of 890 days by 2022-23—over six times the legally prescribed period. The number of open wage claims has also surged, from 22,000 to approximately 47,000 during the same period, with nearly 33,000 claims pending for over three years.

Delays were pervasive across all 17 field offices, with some offices experiencing increases in backlogged claims exceeding 200%. For instance, San Bernardino saw a 515% rise in backlog claims, while Oakland and Los Angeles reported similar increases. The audit highlighted that delays occurred at every stage of the process, with an average of 386 days to determine if a hearing was necessary and 636 days to hold the hearing after that determination.

One particularly egregious case involved a worker who filed a claim in 2014 but faced a series of scheduling issues that delayed their hearing until 2023, resulting in nearly a decade of waiting for resolution. This worker, who claimed $71,000 in unpaid wages, has yet to receive a hearing date.

The meeting underscored the urgent need for the Labor Commissioner's office to address these delays and staffing shortages to ensure that California workers receive timely adjudication of their wage claims. The implications of these findings are significant, as prolonged delays can leave workers without the wages they are owed for extended periods, impacting their financial stability and well-being.

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