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Governor Vetoes Bill to Extend Collections Period for Labor Code Penalties

California Governor Arnold Schwarzenegger has vetoed SB 903. Existing law provides that an action by the Division of Labor Standards Enforcement for collection of a statutory penalty or fee must be commenced within one year after the penalty or fee becomes final. SB 903 would have extended the period within which the division may commence a collection action, as defined, from one year to 3 years.

The Governor's veto message reads:

To the Members of the California State Senate:

I am returning Senate Bill 903 without my signature. This bill would extend the period of time within which the Division of Labor Standards Enforcement (DLSE) may commence a collection action for recovery of civil penalties from one year to three years from the date the penalty or fee became final.

While I appreciate the author’s attempts to ensure that DLSE is afforded enough time to initiate legal proceedings to collect penalties, there has been no clear demonstration that existing law presents any significant difficulty for the division.

Since an extension of the statute of limitations is unnecessary, I am returning this bill without my signature.

The bill would not have affected limitations periods for private actions to collect penalties.

Comments

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Solicitors`

Conveyancing Solicitors

I have read The Governor's veto message, in my notion it's very effective about To the Members of the California State Senate....

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jenny

Conveyancing Solicitors

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