Under a bill that threatens to cripple California businesses, workers with wage disputes — but no evidence to support their claims — could record liens on the real property of landlords and other employers.
AB 2416 by Assemblyman Mark Stone, D-Monterey, awaits consideration in the Senate Appropriations Committee, where it faces opposition from the California Apartment Association, as well as hundreds of business owners and other industry groups.
The scope of AB 2416 goes far beyond grievances over hourly pay. It would allow liens for disputes regarding overtime, meal and rest periods, vacation and commissions, and more. The bill also sets no limit on the number of liens an employee can record against a property owner.
CAA members know that litigation is constantly filed for wage-related disputes, from whether an employee has been properly classified as exempt versus non-exempt or as an independent contractor versus an employee.
If workers can record a lien without an iota of evidence that an employer violated the law, California’s real estate market, and other business sectors, will certainly suffer.
In the Legislature, AB 2416 has thus far garnered support from Democrats and opposition from Republicans. Read about CAA’s opposition in this coalition letter.