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The California Industrial Welfare Commission (IWC) was defunded and dismantled in mid-2004. But its 17 wage orders (plus minimum wage order) have remained in effect and are currently being enforced by the California Department of Labor Standards Enforcement (DLSE), also known as the Labor Commissioner.  

Prior to its dismantlement, the IWC was the administrative agency that established and enforced various wage orders, regulating wages, hours, and working conditions in California. These regulations continue to govern the employment relationship between employers and workers in California, along with the California Labor Code and various other labor and employment laws and regulations. 

On July 10, 2023, Governor Newsom signed Assembly Bill 102, reviving the IWC under an amendment to the Budget Act of 2023. The bill appropriates $3 million to revive the IWC “to 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.” AB 102 instructs the newly revitalized IWC to prioritize industries in which more than 10% of workers are at or below the federal poverty level.  

Although the bill is effective immediately, the IWC has until January 1, 2024, to convene with its final recommendations for wages, hours, and working conditions in new wage orders. Any new recommendations would be adopted by October 31, 2024. 

While California employers should not anticipate immediately seeing any changes to the existing wage orders, it is worth noting that changes are likely coming in 2024, especially since the wage orders have not been updated since 2001. Employers with questions about the current wage orders can contact Employers Council’s California Legal Services department at CAinfo@employerscouncil.org.