Red_alertC.A.R. is OPPOSING AB 2416 (Stone), a bill that creates a new kind of lien for wage claim disputes because it denies due process to the owner of the property, and unnecessarily clouds title. The bill was just amended to remove a provision allowing an employee of a tenant to record a lien against a property. C.A.R. continues to opposed the bill. It does not give adequate protections to property owners and allow unscrupulous creditors to abuse the process.
Let your senator know that you remain opposed to the bill ABand ask that they vote NO on AB 2416!
Under existing law, trades people and others who have conducted work to improve a property have the right to record a mechanics lien against the property for payment for that work. This bill is not like a mechanics’ lien. Additionally, if an employee has a wage dispute with their employer there are multiple legal remedies available to them to seek fair compensation. With AB2416, This is a new and different remedy.
AB 2416 seeks to create a new wage lien, without the procedural protections of the mechanics lien so that an employee may record a lien against any property owned by the employer, even property that has NO connection to the dispute. The new rule purports to exempt principal residences, but the bill invites “shotgun” recordings that will hit all properties.
• Property owners are denied due process. AB 2416 allows an employee to record a lien against an employer’s property without adequate notice or opportunity to contest the claim before the lien attaches.
• The bill invites misuse by unscrupulous creditors of an employee. Allowing unscrupulous creditors to take over the employee’s wage claim, without even the need for a garnishment order, invites employees (and property owners) to be victimized twice.
• AB 2416 allows an employee’s wage dispute to cloud title on ALL property owned by an employer even though the dispute does not involve the property, and even though there has been no hearing on the issue.
• There are already existing legal remedies for wage disputes. Between arbitration, grievance processes, and lawsuits, employees already have sufficient legal options at their disposal to address wage disputes without chilling the availability of mortgage finance and unnecessarily clouding title.
Considerations: Here in California, the state already has a very efficient process in place whereas an employee who disputes their pay with an employer can file a complaint and get a meeting with the employer, employee and third party to hear the case and make suggestions about a settlement. One meeting and alot of disputes are resolved. On the next level are lawsuits and attorneys should the employee choose to go that route, another viable option. Being an employee myself, I’m 100% for employee rights and believe there is a balance that needs to be maintained between employees and employers. It has to be worth it for an employer to have employees and it has to be worth it for employees to work somewhere. One thing holds true…
Without an employer, there is no ability to be an employee.
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