Property Owners Will be Denied Due Process
Please Call San Diego State Senator Marty Block Immediately today August 20th
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Office hours are 9AM-5PM
Ask State Senator Block to oppose this bill! If you can't speak with the State Senator, leave a message! This bill was supposed to be voted on Tuesday the 19th. The vote was delayed until Wednesday the 20th.
C.A.R. is OPPOSED to AB 2416 (Stone), a bill that creates a new kind of lien for wage claim disputes.
C.A.R. opposes AB 2416 because it denies due process to the owner of the property, and unnecessarily clouds title. The bill was just passed by the Senate Appropriation Committee and could make it to the Senate floor by Tuesday August 19th.
Under existing law, trades people that have worked to improve a property have the right to record a mechanics lien against the property for non-payment.
AB 2416 seeks to create a new wage lien, without the procedural protections of the mechanics lien. An employee may record a lien against any property owned by the employer, even property that has NO connection to the dispute.
Key Points About AB 2416
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.
Innocent property owners are unfairly burdened. The bill allows a lien against commercial property of a landlord whose tenant has a dispute with one of his or her employees.
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.
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