What's Happening?
On February 2, 2026, the California Legislature decided not to pass Senate Bill (SB) 310, which aimed to establish a private right of action for employees to sue employers over penalties for untimely wage payments. Currently, under California Labor Code
section 210, employees can recover penalties for late wages by filing a complaint with the Labor Commissioner or through an action initiated by the Labor Commissioner. SB 310 proposed allowing employees to directly file lawsuits in court to recover these penalties. Proponents of the bill argued that the existing process is slow due to a backlog of claims, and that a private right of action would expedite recovery. Opponents, however, expressed concerns that this could lead to an increase in class action lawsuits and complicate existing reforms under the Private Attorneys General Act (PAGA). Despite the bill's failure, employers are still required to adhere to timely wage payment regulations, as violations can incur penalties through the Labor Commissioner.
Why It's Important?
The rejection of SB 310 holds significant implications for both employees and employers in California. For employees, the decision means they must continue to rely on the Labor Commissioner to address untimely wage payments, which can be a lengthy process. This could delay financial recovery for workers who depend on timely wages. For employers, the decision alleviates the potential burden of facing increased litigation and class action lawsuits, which could have resulted from the bill's passage. However, employers must remain diligent in complying with wage payment laws to avoid penalties. The ongoing legislative focus on wage and hour laws indicates that further regulatory changes could be forthcoming, impacting how businesses manage payroll and compliance.
What's Next?
Although SB 310 did not pass, the issue of timely wage payments remains a priority in California's legislative agenda. Employers should anticipate continued efforts by the legislature to introduce measures that address wage payment compliance. This could include new bills or amendments aimed at enhancing employee protections and streamlining the claims process. Businesses should stay informed about potential legislative changes and consider proactive measures to ensure compliance with existing wage laws. Additionally, employees and advocacy groups may continue to push for reforms that provide more direct avenues for wage recovery.
