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HomeLabor CodeDiv. 1Ch. 4§ 106 Citation Authority Underground Economy

§ 106 Citation Authority Underground Economy

Labor Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 106 Citation Authority Underground Economy

This law lets certain workers give fines to bosses who break work rules, like not paying workers fairly or keeping bad records. But these workers must be trained and picked by the Labor Commissioner first.

Key Takeaways

  • •Only special workers can give out fines for work rule breaks.
  • •These workers must be trained and chosen by the Labor Commissioner.
  • •Bosses can fight the fines if they don't agree with them.

Example

A restaurant doesn't pay its waiters the right wages and hides it by not keeping good records.

A trained worker can give the restaurant owner a fine for breaking the rules, and the owner can fight the fine if they think it's wrong.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 106 Citation Authority Underground Economy

(a) The Labor Commissioner may authorize an employee of any of the agencies that participate in the Joint Enforcement Strike Force on the Underground Economy, as defined in Section 329 of the Unemployment Insurance Code, to issue citations pursuant to Sections 226.4 and 1022 and issue and serve a penalty assessment order pursuant to subdivision (a) of Section 3722. (b) No employees shall issue citations or penalty assessment orders pursuant to this section unless they have been specifically designated, authorized, and trained by the Labor Commissioner for this purpose. Appeals of all citations or penalty assessment orders shall follow the procedures prescribed in Section 226.5, 1023, or 3725, whichever is applicable. (Amended by Stats. 2004, Ch. 685, Sec. 1. Effective January 1, 2005.)

Last verified: January 9, 2026

Key Terms

Labor CommissionerJoint Enforcement Strike Force on the Underground Economycitationspenalty assessment ordersSections 226.4, 1022, 3722, 226.5, 1023, 3725

Related Statutes

  • § 101 Division Court Cost Exemption
  • § 101.5 Labor Commissioner Fee Waiver
  • § 102 Labor Commissioner Cost Recovery
  • § 103 Wage Claim Collection Reciprocity
  • § 104 Interstate Wage Claim Enforcement

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Labor Code. Section 106.
View Official Source