SB 572 Authorizes Labor Commissioner Enforcement of Wage Liens With Property Lien

On September 27, 2021, Governor Gavin Newsom signed into law Senate Bill 572 by Sen. Robert Hertzberg (D-Los Angeles), dealing with enforcement of wage liens against employers. The bill adds Section 90.8 to the Labor Code as an alternative to judgment liens assessed by the California Labor Commissioner. The bill grants authority to the Labor Commissioner to create a lien on real property in order to secure a final amount due to the Labor Commissioner’s Bureau of Field Enforcement (BOFE) division.

These amounts can be assessed through Labor Commissioner citations, findings, or decisions. The amounts are subject to the real property lien once they become final and may be entered as a judgment. This new lien on real property may be created by the Labor Commissioner by recording a certificate of lien with the county recorder in which the party has real property. As a result, the lien could attach to all interests in that real property. The county recorder is required to accept and record the lien certificate.

Only upon payment of the amount due must the Labor Commissioner issue a certificate of release, which is recorded by any person at the person’s expense. Finally, the bill provides that, unless the lien is satisfied or released, a lien under this new section of law would continue until 10 years from the date of its creation. Moreover, the lien may be renewed for additional periods of 10 years by recording a renewal of certificate of lien or a copy of the renewed judgment at any time prior to its expiration.