Florida Senate - 2014 SENATOR AMENDMENT Bill No. CS for CS for SB 926 Ì241760ÇÎ241760 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senators Soto and Diaz de la Portilla moved the following: 1 Senate Amendment to Substitute Amendment (275158) (with 2 title amendment) 3 4 Delete lines 6 - 73 5 and insert: 6 Section 1. Section 448.111, Florida Statutes, is created to 7 read: 8 448.111 Local regulation of wage theft.— 9 (1) DEFINITIONS.—As used in this section, the term: 10 (a) “Legal services organization” means an organization 11 that provides free or low-cost legal services to qualified 12 persons and meets the minimum standards established by The 13 Florida Bar for providing such services, including a legal 14 practice clinic operated by an accredited Florida law school. 15 (b) “Wage theft” means an illegal or improper underpayment 16 or nonpayment of an individual employee’s wage, salary, 17 commission, or other similar form of compensation within a 18 reasonable time after the date on which the employee performed 19 the work to be compensated. A wage theft occurs when an employer 20 fails to pay a portion of the wages, salary, commissions, or 21 other similar forms of compensation due to an employee within a 22 reasonable time after the date on which the employee performed 23 the work, according to the current applicable rate and the pay 24 schedule of the employer established by policy or practice. 25 (2) LOCAL ORDINANCES.—Upon the determination by a county 26 that a local solution to wage theft is necessary, the county 27 shall adopt a local ordinance that includes one of the following 28 processes: 29 (a) Legal services organization process.—The county may 30 partner with a local legal services organization for the purpose 31 of establishing a local process through which claims of wage 32 theft shall be addressed by the legal services organization. The 33 county may partner with a legal services organization located in 34 that county or in an adjoining county. 35 1. An individual who has experienced wage theft may contact 36 the legal services organization for assistance in recovering 37 wages. The legal services organization shall determine whether 38 the individual has a bona fide claim for unpaid wages. 39 2. The legal services organization shall notify the 40 employer and provide the employer with an opportunity to resolve 41 the matter of unpaid wages in the manner deemed most appropriate 42 to each claim. The notification may occur by telephone, written 43 correspondence, or any other means deemed appropriate by the 44 legal services organization. 45 3. The legal services organization shall work with the 46 employee and employer to resolve the issue informally but 47 expeditiously. The informal resolution may include obtaining 48 attorney fees and costs from the employer. 49 4. The legal services organization shall file court actions 50 as appropriate and refer unresolved claims to local pro bono or 51 other counsel for resolution. 52 5. The county shall establish a reporting mechanism through 53 which the county receives regular reports regarding the legal 54 services organization’s work on cases of wage theft. The county 55 may require periodic reports. 56 (b) Administrative process.—The county may establish an 57 administrative process that gives the parties involved the 58 opportunity to negotiate a resolution with regard to the wages 59 in question. 60 1. The county shall establish a system that provides for: 61 a. A complaint process by which a complaint, which must 62 allege a wage theft violation, may be submitted to the county by 63 or on behalf of an aggrieved employee; and 64 b. Service of the complaint and written notice on the 65 respondent employer alleged to have committed a wage theft 66 violation, which sets forth the allegations made in the 67 complaint and the rights and obligations of the parties. Such 68 rights and obligations shall include the right of the respondent 69 to file an answer to the complaint and the rights of both 70 parties to a conciliation process and to a hearing on the matter 71 before a county hearing officer. The hearing officer must have 72 either a legal background or specialized training in the subject 73 matter. The final determination of a hearing officer is subject 74 to appeal to a court of competent jurisdiction. 75 2. The system established must encourage the parties to 76 conciliate the charges and resolve the matter. A hearing officer 77 may not be appointed unless the matter is not resolved using the 78 process established in this paragraph. 79 3. If a preponderance of the evidence demonstrates a wage 80 theft violation, the hearing officer shall order the employer to 81 pay wage theft restitution to the affected employee along with 82 liquidated damages and any administrative costs. 83 4. The regulation of wage theft through local ordinance 84 shall be limited to requiring that employers pay their employees 85 for work performed at the agreed upon rate of pay plus any 86 penalties as set forth herein and establishing a fair procedure 87 and program to review and enforce wage agreements. 88 5. Any wage recovery system established pursuant to this 89 paragraph must provide that an employee who is not timely paid 90 wages, final compensation, or wage supplements by his or her 91 employer as required is entitled to recover through a claim 92 filed in a process or program established under this paragraph 93 in the employee’s county of employment or in a civil action, but 94 not both. 95 6. The county shall establish a reporting mechanism through 96 which the county receives regular reports regarding cases of 97 wage theft. The county may require periodic reports. 98 7.a. Upon a finding of wage theft, the employer shall be 99 liable for the actual back wages due and owing and may be liable 100 for administrative costs in an amount not to exceed $1,500. If 101 the employer is found to have acted in good faith or if the 102 hearing officer has reason to believe that the act or omission 103 was not intentional or was not wage theft, the administrative 104 costs against the employer may be waived. In addition, 105 liquidated damages shall be awarded to the employee but are 106 limited to twice the amount a respondent employer is found to 107 have unlawfully failed to pay the complainant employee. 108 b. In addition to the actual back wages due and liquidated 109 damages, an employer found to have committed a second violation 110 shall be fined $1,000 and an employer found to have committed a 111 third and subsequent violation shall be fined $2,000. An 112 employer who commits a second or subsequent violation may be 113 liable for administrative costs in an amount not to exceed 114 $2,500. 115 8. Any claim brought under this paragraph is subject to a 116 statute of limitations of 1 year from the last date upon which 117 wages were due to the employee for the wage theft incident that 118 is the subject of the wage theft claim. 119 (3) FUNDING.—The county may dedicate county funds to assist 120 the legal services organization process or the administrative 121 process under subsection (2) in addressing claims of wage theft. 122 (4) CURRENT ORDINANCES.—A local ordinance governing wage 123 theft which was enacted on or before January 1, 2014, is not 124 preempted by this section. 125 126 ================= T I T L E A M E N D M E N T ================ 127 And the title is amended as follows: 128 Delete lines 81 - 89 129 and insert: 130 An act relating to local regulation of wage theft; 131 creating s. 448.111, F.S.; defining terms; requiring a 132 county that decides to create a local solution to wage 133 theft to adopt one of two processes and specifying the 134 requirements of those processes; providing an 135 exception for an ordinance enacted by a specified 136 date;