California Labor Code

§ 238.05

LAB § 238.05 Effective Jan 1, 2026Div. 2 · Part 1 · Ch. 1 · Art. 1

Statute text

(a)If a final judgment arising from nonpayment of wages for work performed in this state remains unsatisfied after a period of 180 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the judgment debtor shall be subject to a civil penalty not to exceed three times the outstanding judgment amount, including postjudgment interest then due, provided that a judgment debtor shall not be subject to a penalty under this subdivision if the judgment debtor reaches an accord described in subdivision (b) of Section 238 before the 180th day and then remains in full compliance with the accord until its full satisfaction. The court may assess this penalty in any action brought to enforce the judgment or to otherwise induce compliance by or impose lawful consequences on a judgment debtor.

(b)In any action brought to enforce the judgment or to otherwise induce compliance by or impose lawful consequences on a judgment debtor, the court shall assess against the judgment debtor the entire amount of the requested penalty except to the extent that the court finds that the judgment debtor has demonstrated by clear and convincing evidence good cause to reduce the amount of the penalty.

(c)Penalties assessed by a court pursuant to this section shall be distributed as follows:

…

Legislative history

Added by Stats. 2025, Ch. 747, Sec. 3. (SB 261) Effective January 1, 2026.