California Bill Seeks Stronger Enforcement Against Wage Theft (Senate Bill 355)

In February 2025, a bill introduced in the California Senate aims to strengthen enforcement against employers who fail to pay workers their legally owed wages. Senate Bill 355 (SB 355), authored by Senator Sasha Renée Pérez (D-Pasadena), would grant the California Labor Commissioner’s Office (LCO) the authority to suspend or revoke driver’s licenses and vehicle registrations of employers who refuse to pay outstanding wage theft judgments.

Supporters argue that SB 355 provides a much-needed tool to combat wage theft, which remains a significant issue in California. According to the California State Auditor, only 12% of cases referred to the state for enforcement between 2018 and 2023 resulted in payment to workers. Additionally, wage theft claims currently take an average of 850 days to process—well beyond the statutory limit of 135 days—leaving many workers waiting years for compensation, if they receive it at all.

Holding Employers Accountable

Senator Pérez described wage theft as a widespread problem that often goes unpunished, particularly when employers delay or evade payments even after legal judgments are issued against them.

“Wage theft is a massive problem in California. In Los Angeles alone, an estimated $26 million in wages is stolen from workers each week,” said Senator Pérez. “Even when a worker secures a judgment for back pay, bad actors often refuse to pay. This legislation would finally hold those employers accountable—by revoking their driver’s licenses until they pay back the wages they have stolen.”

The enforcement mechanism proposed in SB 355 mirrors existing policies for unpaid child support and state taxes, which allow authorities to suspend licenses as a means of compelling payment.

Support from Labor Organizations

SB 355 is sponsored by the California Labor Federation and Sheet Metal Workers’ Local Union 105, both of which argue that stronger enforcement tools are necessary to deter employers from withholding wages.

“Wage theft takes billions of dollars out of workers’ paychecks every year in California,” said Lorena Gonzalez, President of the California Federation of Labor Unions, AFL-CIO. “Even when workers win their claims, employers can delay and avoid paying. This bill gives the Labor Commissioner a powerful tool to compel the worst offenders to make workers whole.”

Representatives from the construction and manufacturing industries have also voiced support, emphasizing that wage theft harms not only workers but also businesses that comply with labor laws.

“For too long, wage theft has been a low-risk, high-reward crime for unscrupulous employers,” said Steve Hinson, President of Sheet Metal, Air, Rail, and Transportation Workers Local Union 105. “No employer should be allowed to ignore wage theft judgments and continue doing business as usual.”

Next Steps for SB 355

The bill will move through the legislative process, where it will be debated in committee hearings before potentially advancing to a full vote in the Senate. If passed, SB 355 could provide the Labor Commissioner with a new tool to improve wage recovery efforts and hold noncompliant employers accountable.

For California workers, the outcome of this legislation could determine whether long-standing wage theft enforcement challenges are addressed through more immediate consequences for employers who fail to pay.