LIEN BILL PASSES COMMITTEE

As reported last week, a bill that had previously died in a legislative committee has been revived by a renewed push by union groups and passed through the Appropriations Committee on a party-line vote.

Despite strong opposition from a large business coalition and the CalChamber declaring the bill a “Job Killer,” AB 1164 (Lowenthal; D-Long Beach) now moves to the Assembly Floor.

This bill would allow an employee to file a wage lien on any “property upon which the employee bestowed labor for the benefit of the property owner and with the owner’s consent and knowledge that such labor was being provided.” This directly allows an employee who performs work in an off-site location to file a wage lien against a third party. Under this bill, a cable installer could file a wage lien against any building in which he installed cable.

AB 1164 would cripple California businesses by allowing any employee, employee representative, or the Labor Commissioner to file wage liens on an employer’s real property, personal property, or any property where an employee “bestowed labor” for unproven wage claims.”

Amendments taken in committee do not alleviate our concerns.  Click here to read the text of AB 1164

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