Wage Liens Against Employer Could Be Secured Through Property Lien

On February 18, State Senator Robert Hertzberg (D-Los Angeles) introduced Senate Bill 572 dealing with enforcement of wage liens against employers. The bill would add Section 90.8 to the Labor Code. It proposes an alternative to judgment liens assessed by the California Labor Commissioner. The bill would grant authority to the Labor Commissioner to create a lien on real property in order to secure a final amount due to the Labor Commissioner.

These amounts can be assessed through Labor Commissioner citations, findings, or decisions. The amounts would be 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 would attach to all interests in that real property. The county recorder would be required to accept and record the lien certificate.

Only upon payment of the amount due shall the Labor Commissioner issue a certificate of release, which is recorded by the employer at the employer’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.

The bill is expected to receive its first hearing in March.