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Committee advances bill to link unpaid wage judgments to license denials
Summary
AB 485 would allow state agencies to deny or withhold business licenses from employers with unpaid wage theft judgments. The committee passed the bill to Appropriations after testimony from workers, labor unions, hospitals and housing groups.
Assemblymember Ortega presented AB 485 at the March 19 Labor and Employment Committee hearing, saying the bill would help workers collect on wage theft judgments by making outstanding judgments a basis to deny or withhold state licenses.
"Even when workers prevail in their wage theft claims, they are often unsuccessful in recovering the stolen money," Ortega said, citing a state auditor finding that the Labor Commissioner's enforcement unit recovered the entire amount in 12% of referred cases between 2018 and 2023. Ortega said the measure is not intended to close businesses but to "encourage compliance with labor and wage laws and to make sure that employees can recover stolen wages." He referenced county programs in the Bay Area and San Diego and a New Jersey policy as precedents.
A caregiver, Teresa Brillante, testified in support for the Santa Clara County Wage Theft Coalition and described a multi-year experience pursuing unpaid wages; she told the committee that many caregivers who win Labor Commissioner rulings still cannot collect and said, "We need AB 485 so care homeowners that if they don't pay wage theft claims, they won't be able to get a license from the state to open a business and won't be able to renew their license."
Labor unions and worker organizations — including the California Nurses Association, California State Association of Electrical Workers, California Federation of Labor Unions and SEIU California — registered in support. Opponents included the California Hospital Association, which said it does not condone wage theft but worried the bill could put hospital licenses at risk and thereby threaten patient access to care. Housing-sector representatives and other groups urged that the bill not shift liability to affordable housing providers when contractors fail to pay workers.
Committee members discussed the bill's leverage and practical effects. One member said licensing actions in Santa Clara County successfully prompted payment in most cases; Ortega and supporters said licensing authority provides one of the few levers to secure collection when civil judgments go unpaid. The author agreed to continue discussions with stakeholders to refine language.
The committee voted to pass AB 485 to the Appropriations Committee. On the record, the tally included roll-call statements such as "Ortega, aye; Chen, not voting; El Hawari, aye; Cora, aye; Lee, aye."
