SACRAMENTO, Calif. — As lobbyists for businesses and labor groups negotiate with Gov. Gavin Newsom’s administration on how to amend a, generates millions each year for a state fund reserved for enforcing state labor laws, including those against wage theft. But despiteThe money comes from the state’s cut of the settlements and fines that businesses pay in response to these lawsuits.
In response to questions from CalMatters, Department of Industrial Relations spokesperson Erika Monterroza wrote in an email that the loans are not unusual during budget deficits and only come from money that’s not being used. She said $7.6 million from the fund is already allocated this year to processing wage claims.found the staff shortages are caused in part by a slow hiring process and salaries that are lower than some comparable state and local government jobs.
If a deal is reached to avert the costly ballot measure, it is likely to address how to spend the enforcement fund. “Obviously we have a crisis and we have been asking and pushing the Legislature and the governor to beef up spending, to hire up,” Gonzalez told CalMatters. “We were having a hard time getting attention. It’s one of many examples that it’s not a priority to process wage theft claims.”California Chamber of Commerce CEO Jennifer Barrera also said she supported using available money to increase staff.