SB 310 Fails: California Keeps Current Rules for Late Wage Penalty Claims

California has some of the strictest wage and hour protections in the nation, but enforcing these rights can still be frustrating for workers waiting to recover unpaid or late wages. In early February this year, employees hoping for expanded legal options encountered a step back when the California Legislature decided not to pass Senate Bill 310 (SB 310), a proposed Bill which would have significantly changed how workers can recover penalties for late wage payments. 

What Would Have SB 310 Changed?

According to current California law, most non-exempt employees are required to be paid at least twice a month. When employers fail to meet these deadlines, Labor Code Section 210 allows employees to recover specific penalties. However, employees are currently unable to initiate lawsuits on their own in court to claim these penalties.

Instead, workers must either:

1. File a claim with the Labor Commissioner, also referred to as the Division of Labor Standards Enforcement (DLSE), or
2. Wait for the Labor Commissioner to initiate a lawsuit on their behalf. 

SB 310 would have introduced a new option. If it had been passed, the bill would have allowed employees to file lawsuits directly in court to recover Section 210 penalties for delayed wage payments.

Why Supporters Backed the Bill

Advocates of SB 310 argued that the existing system often operates too slowly. Claims submitted to the Labor Commissioner can remain unresolved for extended periods due to administrative backlogs. For many workers, this delay translates to waiting months or even longer before receiving any relief. 

Supporters also pointed out that the only other means of recovery, a claim under California’s Private Attorneys General Act (PAGA), does not fully compensate employees. In PAGA cases, workers receive only a portion (35%) of the penalties recovered, with the majority going to the state. 

Why the Bill Faced Opposition

On the other hand, opponents expressed concerns about potential unintended consequences. They warned that allowing direct lawsuits for wage-timing penalties could lead to an increase in class actions focused solely on penalty recovery. Critics also argued that these claims could be added or “stacked” onto existing PAGA lawsuits involving other labor violations, undermining recent PAGA reforms. 

What Does This Mean for Employees?

While SB 310 did not pass, California employees still have legal protections. Employers can still incur penalties for late wage payments through the Labor Commissioner process. The current penalties are as follows:

• $100 for an initial violation
• $200 for subsequent, willful, or intentional violations
• An additional 25% of the wages unlawfully withheld

Employees also retain the ability to pursue PAGA claims in court for violations involving the timing of wage payments, even though those cases distribute penalties differently.

California continues to focus on enforcing wage and hour laws, and lawmakers are expected to keep looking for new ways to regulate how employees are paid. For workers, the message is simple: wages must still be paid on time, and employers can still face penalties for violation even without SB 310. 

Contact The Finkel Firm Today

If you’re dealing with late paychecks or missing wages, it’s normal to feel stuck—especially when the process can seem slow and confusing. You don’t have to navigate it alone. The Finkel Firm represents California employees in wage-and-hour matters on a contingency basis, meaning you pay nothing unless we recover for you.

If your employer is paying you late, withholding wages, or retaliating when you ask questions about your pay, contact us to discuss your situation and what options may be available.