On July 10, 2023, Governor Newsom signed Assembly Bill (AB) 102 which will amend the Budget Act of 2023. The bill will take effect immediately as a Budget Bill.

While appropriations bills such as AB 102 are generally not of much interest to private employers, AB 102 is noteworthy because it includes a $3,000,000 appropriation to the Industrial Welfare Commission (IWC).   

The IWC is the administrative entity that was established to regulate wages, hours, and working conditions in California. The IWC developed the wage orders, which set forth many requirements that employers must comply with in addition to the California Labor Code.  The IWC was previously defunded by the California Legislature effective July 1, 2004, but its 18 wage orders remain in effect.  As a result of the defunding of the IWC, the wage orders have not been updated since 2001.

Under the appropriations outlined in AB 102, the IWC will convene industry-specific wage boards and adopt orders specific to wages, hours, and working conditions in such industries, provided that any such orders shall not include any standards that are less protective than existing state law.

The IWC will be mandated to prioritize for consideration industries in which more than 10 percent of workers are at or below the federal poverty level.

Under AB 102, the IWC shall convene by January 1, 2024, with any final recommendations for wages, hours, and working conditions in new wage orders adopted by October 31, 2024.

The renewed funding of the IWC is seen by industry groups as the state’s attempt to push through similar efforts to increase regulations for industries such as the fast-food industry.  Last year, the state passed the FAST Recovery Act, which was intended to form a council that would develop regulations for fast food workers’ working conditions. However, the law was blocked pending a voter referendum on the statute.  

If you have questions about the refunding of the IWC or related issues, contact a Jackson Lewis attorney to discuss.

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Photo of Laura A. Pierson-Scheinberg Laura A. Pierson-Scheinberg

Laura A. Pierson-Scheinberg is a principal in the San Francisco, California, and Baltimore, Maryland, offices of Jackson Lewis P.C and is the leader of the Retail industry group.

Laura represents employers in labor and employment matters, with a particular focus on traditional labor…

Laura A. Pierson-Scheinberg is a principal in the San Francisco, California, and Baltimore, Maryland, offices of Jackson Lewis P.C and is the leader of the Retail industry group.

Laura represents employers in labor and employment matters, with a particular focus on traditional labor issues, union elections and unfair labor practice charges. She has extensive experience in collective bargaining, from serving as chief spokesperson to developing strategy behind the scenes. Laura’s background includes bargaining for both large and small clients from a local to a national level in a wide range of industries, including, but not limited to, manufacturing, retail and healthcare. When recessive bargaining and labor-management disputes become strikes, she has worked with her clients to develop contingency plans and strike preparedness. She also has experience with government contractors subject to the Service Contract Act.

Photo of Gina M. Roccanova Gina M. Roccanova

Gina M. Roccanova is a principal in the San Francisco, California, office of Jackson Lewis P.C. She has more than 20 years of experience in both the public and private sectors and brings a practical, problem-solving orientation to her work in negotiations, counseling, investigations, litigation, arbitration, and training.

Photo of Kaitlyn L. Lavaroni Kaitlyn L. Lavaroni

Kaitlyn L. Lavaroni is a principal in the Sacramento, California, office of Jackson Lewis P.C. Her practice focuses on representing employers in workplace law matters, including preventive advice and counsel. She practices before the National Labor Relations Board, and state and federal agencies…

Kaitlyn L. Lavaroni is a principal in the Sacramento, California, office of Jackson Lewis P.C. Her practice focuses on representing employers in workplace law matters, including preventive advice and counsel. She practices before the National Labor Relations Board, and state and federal agencies and courts.

Kaitlyn has defended companies against unfair labor practice charges and litigation brought by labor unions before the National Labor Relations Board (NLRB) and in labor arbitrations. She has provided advice to employers faced with union organizing efforts. Kaitlyn also counsels employers on the interpretation and administration of collective bargaining agreements.

Photo of Kymiya St. Pierre Kymiya St. Pierre

Kymiya St. Pierre is a principal in the Orange County, California, office of Jackson Lewis P.C. Her practice focuses on representing employers in workplace law matters, including preventive advice and counsel. She practices before the National Labor Relations Board, and state and federal…

Kymiya St. Pierre is a principal in the Orange County, California, office of Jackson Lewis P.C. Her practice focuses on representing employers in workplace law matters, including preventive advice and counsel. She practices before the National Labor Relations Board, and state and federal agencies and courts.

Kymiya has represented management in union organizing drives and elections. She has defended employers in unfair labor practice and compliance proceedings. Kymiya also provides advice and counsel regarding labor and employment law with respect to various issues, including providing workplace training and preventive advice and counsel. She has defended employers regarding different varieties of wrongful termination and discrimination claims.