AB1870 - Private Attorneys General Act: penalties: reduction.

Amended IN Assembly March 16, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1870 Introduced by Assembly Member Flora February 12, 2026 An act to amend Section 50067 of the Public Utilities Code, relating to transportation. An act to amend Section 2699 of the Labor Code, relating to employment. LEGISLATIVE COUNSEL'S DIGEST AB 1870, as amended, Flora. San Joaquin Regional Transit District: board of directors. Private Attorneys General Act: penalties: reduction. The Labor Code Private Attorneys General Act of 2004 authorizes an aggrieved employee, as defined, to bring a civil action on behalf of that employee, and other current or former employees against whom a violation of the same provision of the Labor Code was committed, to enforce a violation of any provision of the Labor Code that provides for a civil penalty to be assessed and collected by the Labor and Workforce Development Agency, as specified, pursuant to certain notice and cure provisions, as prescribed. In a civil action under the act, existing law caps the civil penalty that may be recovered at 15%, if, prior to receiving the notice of violation, or prior to receiving a certain request for records from the aggrieved employee or the employee’s counsel, the employer has taken all reasonable steps to be in compliance with all provisions identified in the notice, as specified. Similarly, existing law caps the civil penalty at 30% if within 60 days of receiving the notice of violation, the employer has taken all reasonable steps to prospectively be in compliance with all provisions identified in the notice. The act requires an evaluation of whether the employer’s conduct was reasonable to be based on a totality of the circumstances. This bill would specify certain practices that may support a finding that the employer took all reasonable steps. Notwithstanding the above-described totality of the circumstances evaluation requirement, the bill would create a rebuttable presumption that the employer took all reasonable steps if they comply with specified compliance activities within the 24 months preceding the alleged violation period, provide documentation to the Labor and Workforce Development Agency, and certify under penalty of perjury that the violation has been cured, as specified. By expanding the scope of the existing crime of perjury, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. The San Joaquin Regional Transit District Act authorizes the creation of the San Joaquin Regional Transit District and vests the government of the district in a board of 5 directors. The act establishes a 4-year term of office for each director, except for the directors first appointed to the board, as provided. This bill would authorize a director to continue serving as a director if the director leaves the legislative body that appointed the director to the board, as specified. The bill would provide that no incompatibility of office results from an elected official serving on the governing board of a legislative body within the district’s service area and as a director. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO YES Local Program: NO YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 2699 of the Labor Code is amended to read: 2699. (a) Notwithstanding any other provision of law, any provision of this code that provides for a civil penalty to be assessed and collected by the Labor and Workforce Development Agency or any of its departments, divisions, commissions, boards, agencies, or employees, for a violation of this code, may, as an alternative, be recovered through a civil action brought by an aggrieved employee on behalf of the employee and other current or former employees against whom a violation of the same provision was committed pursuant to the procedures specified in Section 2699.3. (b) For purposes of this part, “person” has the same meaning as defined in Section 18. (c) (1) For purposes of this part, “aggrieved employee” means any person who was employed by the alleged violator and personally suffered each of the violations alleged during the period prescribed under Section 340 of the Code of Civil Procedure, except that for purposes of actions brought pursuant to paragraph (2), “aggrieved employee” means any person who was employed by the alleged violator against whom one or more of the alleged violations was committed within the period prescribed under Section 340 of the Code of Civil Procedure. (2) Notwithstanding paragraph (1), a nonprofit legal aid organization that has obtained Section 501(c)(3) tax-exempt status, is a qualified legal services project or qualified support center, as defined in Section 6213 of the Business and Professions Code, and has served as counsel of record in civil actions under this part for at least five years prior to January 1, 2025, may file a civil action pursuant to this part as counsel of record for an aggrieved employee on behalf of the employee and one or more current or former employees against whom one or more of the alleged violations was committed. Nothing in this provision establishes standing for the nonprofit legal aid organization as a party in the civil action. (d) (1) For purposes of subdivisions (c) and (f) of Section 2699.3, and except for violations of subdivision (a) of Section 226, “cure” means that the employer corrects the violation alleged by the aggrieved employee, is in compliance with the underlying statutes specified in the notice required by this part, and each aggrieved employee is made whole. An employee who is owed wages is made whole when the employee has received an amount sufficient to recover any owed unpaid wages due under the underlying statutes specified in the notice dating back three years from the date of the notice, plus 7 percent interest, any liquidated damages as required by statute, and reasonable lodestar attorney’s fees and costs to be determined by the agency or the court. In case of a dispute over the amount of unpaid wages due, nothing in this part prohibits an employer from curing the alleged violations by paying amounts sufficient to cover any unpaid wages that the agency or court determine could reasonably be owed to the aggrieved employees based on the violations alleged in the notice. (2) (A) A violation of paragraph (8) of subdivision (a) of Section 226 shall be considered cured only upon a showing that the employer has provided written notice of the correct information to each aggrieved employee. Such notice may be provided in summary form but shall identify correct information for each pay period in which a violation occurred. (B) A violation of paragraphs (1) to (7), inclusive, and (9) of subdivision (a) of Section 226 shall be considered cured only upon a showing that the employer has provided, at no cost to the employee, a fully compliant, itemized wage statement or, if such information is customarily provided in digital form, reasonable access to a digital or computer-generated record or records maintained in the ordinary course of business containing the same information required on a fully compliant, itemized wage statement, to each aggrieved employee for each pay period during which the violation occurred during the three years prior to the date of the notice. Nothing in this subdivision will impact any right the employee has to request copies of employment records pursuant to Sections 226, 432, and 1198.5. (e) (1) For purposes of this part, whenever the Labor and Workforce Development Agency, or any of its departments, divisions, commissions, boards, agencies, or employees, has discretion to assess a civil penalty or seek injunctive relief, a court is authorized to exercise the same discretion, subject to the same limitations and conditions, to assess a civil penalty and award injunctive relief. (2) In any action by an aggrieved employee seeking recovery of a civil penalty available under subdivision (a) or (f), a court may award a lesser amount than the maximum civil penalty amount specified by this part, including the penalty amounts in subdivisions (g) and (h), or may, notwithstanding the limitations set forth in subdivisions (g) and (h) exceed the limitations set forth in those subdivisions, if, based on the facts and circumstances of the particular case, to do otherwise would result in an award that is unjust, arbitrary and oppressive, or confiscatory. (f) For all provisions of this code except those for which a civil penalty is specifically provided, there is established a civil penalty for a violation of these provisions, as follows: (1) If, at the time of the alleged violation, the person does not employ one or more employees, the civil penalty is five hundred dollars ($500). (2) If, at the time of the alleged violation, the person employs one or more employees, the civil penalty is as follows: (A) One hundred dollars ($100) for each aggrieved employee per pay period, except that: (i) If, at the time of the alleged violation, the person employs one or more employees, and the alleged violation is a violation of paragraphs (1) to (7), inclusive, or paragraph (9) of subdivision (a) of Section 226, the only civil penalty applicable under this part is twenty-five dollars ($25) for each aggrieved employee per pay period if the employee could promptly and easily determine from the wage statement alone the accurate information specified by subdivision (a) of Section 226. If the alleged violation is a violation of paragraph (8) of subdivision (a) of Section 226, the civil penalty applicable under this part for the violation is twenty-five dollars ($25) for each aggrieved employee per pay period if the employee would not be confused or misled about the correct identity of their employer or, if their employer is a farm labor contractor, the legal entity that secured the services of that employer. This subdivision does not apply if the employer has failed to provide an itemized payroll statement during any of the pay periods at issue. (ii) The civil penalty is fifty dollars ($50) for each aggrieved employee per pay period if the alleged violation resulted from an isolated, nonrecurring event that did not extend beyond the lesser of 30 consecutive days or four consecutive pay periods. (B) The civil penalty is two hundred dollars ($200) for each aggrieved employee per pay period if either of the following are met: (i) Within the five years preceding the alleged violation, the agency or any court issued a finding or determination to the employer that its policy or practice giving rise to the violation was unlawful. (ii) The court determines that the employer’s conduct giving rise to the violation was malicious, fraudulent, or oppressive. (3) If the alleged violation is a failure to act by the Labor and Workforce Development Agency, or any of its departments, divisions, commissions, boards, agencies, or employees, there shall be no civil penalty. (g) (1) In any civil action under this part for an alleged violation of this code, if, prior to receiving the notice of violation required by Section 2699.3, or prior to receiving a request for records pursuant to Section 226, 432, or 1198.5 from the aggrieved employee or the employee’s counsel, the person alleged to have committed the noticed violation has taken all reasonable steps to be in compliance with all provisions identified in the notice, the civil penalty that may be recovered in a civil action pursuant to this part shall not be more than 15 percent of the penalty sought under subdivision (a) or (f). (2) (A) For purposes of paragraph (1), “all reasonable steps” may include, but are not limited to, any of the following: conducted periodic payroll audits and took action in response to the results of the audit, disseminated lawful written policies, trained supervisors on applicable Labor Code and wage order compliance, or took appropriate corrective action with regard to supervisors. (2) For purposes of paragraph (1), “all reasonable steps” may include, but are not limited to, any of the following: conducted periodic payroll audits and took action in response to the results of the audit, disseminated lawful written policies, trained supervisors on applicable Labor Code and wage order compliance, or took appropriate corrective action with regard to supervisors. Whether (B) Whether the employer’s conduct was reasonable shall be evaluated by the totality of the circumstances and take into consideration the size and resources available to the employer, and the nature, severity, and duration of the alleged violations. The existence of a violation, despite the steps taken, is insufficient to establish that an employer failed to take all reasonable steps. The following practices may further support a conclusion that the employer has taken all reasonable steps: (i) Conducting payroll on a weekly basis. (ii) Utilizing automated timekeeping with daily meal period attestation. (iii) Translating policies into the primary languages of the employees. (iv) Providing quarterly sessions for employees to provide feedback on scheduling and breaks. (C) (i) Notwithstanding subparagraph (B), there is a rebuttable presumption that the employer has taken all reasonable steps if the employer complies with all of the following compliance activities within the 24 months preceding the alleged violation period: (I) Conducts internal payroll or wage statement audits at least once per quarter that verify compliance with wage payment requirements set forth in Sections 201 to 204, inclusive, meal and rest period premiums set forth in Section 226.7, and wage statement content and accuracy requirements set forth in subdivision (a) of Section 226. The employer has a policy to retain records of the audits for at least four years and is in compliance with that policy. (II) Provides annual training for managers and supervisors on wage and hour requirements, meal and rest period compliance, and antiretaliation protections. The employer retains records of attendance and agendas of the trainings. (III) Maintains a written policy allowing employees to report pay or break issues without retaliation through multiple reporting channels, including anonymously. The employer provides written acknowledgment and resolution of any complaints received pursuant to that policy. (IV) Engages a qualified third party, including an attorney or compliance consultant, every two years to review wage and hour compliance. The employer implements a corrective action plan within 60 days of receiving a report on that review. (V) Has a policy to maintain accurate payroll and time records fo [Text truncated for display. Full text available on Congress.gov.]