California Governor Gavin Newsom has started 2023 with a new budget plan that will allocate millions of dollars to the Department of Industrial Relations to improve the efficiency of wage claims processing, among other things.
In his Budget Summary for 2023-24, Newsom is allocating $11.7 million in special funds and adding 42 positions in 2023 and 2024. The governor is also allocating $6.5 million in special funds ongoing for the Department of Industrial Relations to help address wage claim processing times by improving the efficiency of the claims intake and processing as well as to automate portions of the claims processing activities within the Wage Claim Adjudication unit.
The additional allocation of funds will aim to reduce California’s backlog of wage claim investigations. As one of the nation’s toughest states for wage violation penalties, employers should ensure they have the appropriate legal support to audit their pay practices for compliance under California’s unique wage laws.
Employers with questions about their wage and hour practices in California can contact our California Legal Services team at CAinfo@employerscouncil.org.
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