Business owner can't escape bond requirement by claiming indigence

When an employer doesn't pay wages as required by law, an employee may file a civil action in court or a wage claim with the California Labor Commissioner. Either party may appeal a decision or award by the labor commissioner to a superior court, which will consider the matter with no deference to the labor commissioner's findings. To file an appeal, however, an employer must post an "undertaking"either a bond or a cash depositin the amount of the labor commissioner's award. The issue in the following case was whether the employer and its owner could prove they were entitled to an exception to that requirement because they lacked sufficient funds to provide an undertaking in the amount of the $2.5 million award.

Employees obtain award of more than $2 million

Seven employees who worked as either live-in caregivers or relief caregivers filed claims with the labor commissioner against Cardinal Care Management, LLC, and Welcome Home Senior Residence LLC, seeking unpaid overtime wages and waiting time penalties. A hearing was held on their claims, and the hearing officer found Cardinal Care and Welcome Home failed to pay the employees for all of their work time. They were awarded overtime wages, interest, and waiting time penalties of more than $2.5 million.