(a) In the event of a dispute about the status of an employee as a full-time eligible employee, part-time eligible employee, the retention payment amount, or the covered entity’s or covered service employer’s failure to make a retention payment, the employee or a labor organization that represents the employee may write to the employer and request a review of the employee’s eligibility status, retention payment amount, or the employer’s failure to make a retention payment. The employer shall have 30 days to review the employee’s request, disclose to the employee the amount received from the department subject to the methodology described in subdivision (d) of Section 1492, and cure any alleged deficiency without damages.

(b) If the covered entity or covered services employer does not conclude the retention payment review described in subdivision (a) within 30 days of receipt of the review request, or the employer does not cure the alleged deficiency within 30 days of receipt of the review request, and the alleged deficiency is five hundred dollars ($500) or less the employee may file a complaint with the Labor Commissioner as provided in Section 98. If the Labor Commissioner finds that the covered entity or covered services employer is liable for failing to make a required retention payment, the covered entity or covered services employer shall be ordered to make full payment of the unpaid amount, plus interest at the rate of interest specified in subdivision (b) of § 3289 of the Civil Code, which shall accrue from the date that the retention payment funds were transmitted to the covered entity or covered services employer by the department as provided in Section 1492. A covered entity or covered services employer that willfully fails to make a full retention payment after receiving a request for review described in subdivision (a) shall be liable to the employee for liquidated damages in an amount equal to the unpaid amount.

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(c) If the covered entity or covered services employer does not conclude the retention payment review described in subdivision (a) within 30 days of receipt of the review request, or does not cure the alleged deficiency within 30 days of receipt of the review request, and the alleged deficiency is greater than five hundred dollars ($500) the employee may file a complaint with the Labor Commissioner as provided in Section 98 or the employee may file a civil action in court to recover the deficiency. If the Labor Commissioner or court finds that the covered entity or covered services employer is liable for failing to make a required retention payment, or designate an employee for such payment, the covered entity or covered services employer shall be ordered to make full payment of the unpaid amount, plus interest at the rate of interest specified in subdivision (b) of § 3289 of the Civil Code, which shall accrue from the date that the retention payment funds were transmitted to the covered entity or covered services employer by the department as provided in Section 1492 or from the date a covered employer or covered services employer should have designated an employee for such payment. A covered entity or covered services employer that willfully fails to make a full retention payment after receiving a request for review described in subdivision (a) shall be liable to the employee for liquidated damages in an amount equal to the unpaid amount. In any civil action brought by an employee for the nonpayment of retention payments, the court shall award reasonable attorney’s fees and costs to a prevailing employee.

(d) Notwithstanding any other law, the Department shall not be liable for any payment, interest, liquidated damages or attorney’s fees and costs awarded to an employee pursuant to this section, and shall not be required to indemnify a covered entity or covered services employer for any such liability they incur pursuant to this section.

(e) The Labor Commissioner shall enforce this part, including investigating an alleged violation, and ordering appropriate temporary relief to mitigate the violation or to maintain the status quo pending the completion of a full investigation or hearing through the procedures set forth in Sections 98, 98.3, or 1197.1, including by issuance of a citation against an employer who violates this article, and by filing a civil action. If a citation is issued, the procedures for issuing, contesting, and enforcing judgments for citations and civil penalties issued by the Labor Commissioner shall be the same as those set out in Section 1197.1, as appropriate.

(Added by Stats. 2022, Ch. 47, Sec. 37. (SB 184) Effective June 30, 2022.)