SB 592 – Good Faith Defense in Labor Code

On February 15, Senate Bill 592 (Newman) was introduced regarding labor standards information and enforcement by amending Labor Code Section 105 and adding Labor Code Section 98.71.

Section 1 of the bill would add Labor Code Section 98.71 to provide that any person who relies upon a published opinion letter or an enforcement policy of the Division of Labor Standards Enforcement (DLSE) that is displayed on its internet website would not be liable for costs or subject to punishment, except for restitution of unpaid wages, for a violation of a statute or regulation in a judicial or administrative proceeding, so long as that person pleads and proves to the trier of fact that, at the time the alleged act or omission occurred, the person, acting in good faith: (1) relied upon, and conformed to, the applicable opinion letter or enforcement policy published by the DLSE, and (2) provided true and correct information to the DLSE in seeking an opinion letter or enforcement policy.

The above provision would also apply even if, after the alleged act or omission occurred, the opinion letter or enforcement policy upon which the person relied is modified, rescinded, or determined by judicial authority to be invalid or of no legal effect. However, the above provision would not apply if the alleged act or omission occurred after the opinion letter or enforcement policy upon which the person relied is modified, rescinded, or determined by judicial authority to be invalid or of no legal effect.

In addition, this section applies to all actions and proceedings that commence on or after January 1, 2024. A person who claimed to have relied upon an opinion letter or enforcement policy of the DLSE to post a bond issued by a licensed surety qualified to do business in California or a cash deposit with the court or administrative body in the amount of the reasonable estimate of alleged unpaid wages resulting from that reliance.

Moreover, the DLSE would not be required to issue an order, ruling, approval, interpretation, or enforcement policy. Naturally, the DLSE would be prohibited from issuing an order, ruling, approval, interpretation, or enforcement policy that is contrary to an existing state statute or regulation.

Section 2 of the bill would amend Labor Code Section 105 to require the Labor Commissioner to translate each of its internet websites in their entirety, and make all of their materials available on their internet websites, into Spanish, Chinese, Tagalog, and Vietnamese by January 1, 2026.