GOOD MORNING, EVERYONE. WELCOME
TO THE. THIS OVERSIGHT HEARING
OF THE JOINT LEGISLATIVE AUDIT
COMMITTEE. THE ASSEMBLY LABOR
AND EMPLOYMENT COMMITTEE, AND
THE SENATE LABOR, PUBLIC
EMPLOYMENT AND RETIREMENT
COMMITTEE AT TODAY'S HEARING,
WE'LL DISCUSS THE RESULTS AND
RECOMMENDATIONS FROM A RECENT
STATE AUDIT PRODUCED BY THE
CALIFORNIA STATE AUDITOR AND
REQUESTED BY THE AUDIT
COMMITTEE. THE REPORT IS TITLED
THE CALIFORNIA LABOR
COMMISSIONER'S OFFICE INADEQUATE
STAFFING AND POOR OVERSIGHT HAVE
WEAKENED PROTECTIONS FOR
WORKERS. I WANT TO THANK
ASSEMBLY MEMBER ORTEGA AND
SENATOR SMALLWOOD CUEVAS, AS
WELL AS THE MEMBERS OF THE LABOR
COMMITTEES FOR JOINING US AT
TODAY'S HEARING. I ALSO WANT TO
THANK SENATOR GLAZER AND
ASSEMBLY MEMBER ALVAREZ FOR
REQUESTING THIS AUDIT. THANK YOU
BOTH. AS YOU'LL NOTICE ON THE
AGENDA, WE WILL FIRST HEAR FROM
THE STATE AUDITOR, WHO WILL
PRESENT THE RESULTS OF THE
AUDIT. THE STATE AUDITOR WILL BE
FOLLOWED BY THE DEPARTMENT OF
INDUSTRIAL RELATIONS. THANK YOU
FOR MAKING IT HERE. AND THEN THE
THIRD PANEL WILL CONSIST OF THE
CALIFORNIA LABOR FEDERATION. THE
AUDIT REPORT IDENTIFIED NUMEROUS
ISSUES AT THE COMMISSIONER'S
OFFICE. A BACKLOG OF 47,000
CLAIMS OF WAGE THEFT, 33,000
CLAIMS HAVE BEEN PART OF THE
BACKLOG FOR AT LEAST THREE
YEARS. INADEQUATE STAFFING, SOME
FIELD OFFICES HAVE VACANCY RATES
AS HIGH AS 45% AND INEFFICIENT
WAGE CLAIM PROCESS THAT TAKES
MORE THAN TWO YEARS ON AVERAGE,
TO ISSUE DECISIONS ON WAGE
CLAIMS TWICE AS LONG AS IT TOOK
JUST FIVE YEARS AGO, AND A
COLLECTION RATE OF ONLY 12% BY
THE JUDGMENT ENFORCEMENT UNIT. I
REALLY HOPE THAT TODAY WE CAN
DIVE IN AND GET SOME LEVEL OF
COMFORT THAT FIXES ARE IN THE
WORKS, AND THAT CALIFORNIA IS
SUFFERING FROM WAGE THEFTS, HAVE
GREATER HOPE AT JUSTICE. VICE
CHAIR LEHRER DO YOU HAVE ANY
OPENING COMMENTS THAT YOU'D LIKE
TO MAKE? YES. THANK YOU, MR.
CHAIR. I APPRECIATE THE
OPPORTUNITY AND THANK EVERYBODY
FOR THE HEARING. I THINK BETWEEN
THE TWO LABOR CHAIRS AND THE
JLAC CHAIR AND ME AS VICE CHAIR,
I'M THE ONLY ONE OF THE FOUR
THAT WAS IN THE DEBATE IN
JEALOUSY ABOUT WHETHER OR NOT TO
AUTHORIZE THIS AUDIT. OBVIOUSLY
THE TWO AUTHORS ARE HERE. AND
WHEN I CAME INTO THAT HEARING, I
WAS AMBIVALENT. I ACTUALLY
PUBLICLY SAID I WASN'T SURE THAT
I WAS GOING TO VOTE FOR THE
AUDIT. AND YET THAT HEARING WAS
SO PERSUASIVE THAT AND I WAS NOT
ALONE. THERE WERE 2 OR 3 OTHER
PEOPLE WITH ME, AND WE ALL MOVED
TO AUTHORIZE THIS AUDIT BECAUSE
BECAUSE WE FELT LIKE WAGE CLAIMS
ARE REAL PEOPLE WITH REAL
JUSTICE ISSUES. IT I THOUGHT IF
IT'S JUST A STAFFING PATTERN OR
SOMETHING, MAYBE THAT'S NOT
WORTH AN AUDIT, BUT I THINK THIS
AUDIT HAS REALLY SHOWN THE LIGHT
ON WHAT THE ISSUES ARE AND THAT
THEY'RE ENDEMIC AND SOMETHING
THAT NEEDS TO BE ADDRESSED FOR
THE JUSTICE FOR PEOPLE WITH WAGE
CLAIMS. BUT I THINK THE HEART OF
THE HEARING TODAY WILL BE WHAT
IS REALLY GOING TO BE DONE TO
ADDRESS THIS. AND FOR EXAMPLE,
IF IT'S A COMMITMENT TO MORE
STAFFING, IT'S WHAT ACTUALLY
WILL COME FROM THAT. DO WE KNOW
THAT ACTUALLY WILL RESULT IN
LOWERING THE NUMBER OF DAYS AND
LOWERING THE BACKLOG? AND HOW DO
WE KNOW IT'S NOT AT RISK IN THE
BUDGET? AND HOW DO WE KNOW THE
POSITIONS ARE NOT GOING TO BE
SWEPT IN THE SYSTEM? AND SO I
THINK NOT ONLY WAS THE AUDIT OF
TREMENDOUS VALUE, AND I CAN SEE
IN PARTICULAR SENATOR GLAZER
SMILING OFF TO THE SIDE BECAUSE
I THINK HE WATCHED MY
PROGRESSION IN THAT HEARING FROM
NOT WANTING TO VOTE FOR HIS
AUDIT TO BEING A BELIEVER, AND
WHAT COMMITMENT IS SPECIFIC,
THEN WE CAN GET TO ADDRESS THIS
OUT OF THIS HEARING. SO, I LOOK
FORWARD TO IT. AND THANK YOU FOR
THE OPPORTUNITY TO MAKE SOME
COMMENTS. THANK YOU. VICE CHAIR.
LAIRD. ASSEMBLYMAN ORTEGA, DO
YOU HAVE ANY OPENING COMMENTS
THAT YOU'D LIKE TO MAKE? YES.
THANK YOU. CHAIR, THANK YOU FOR
BEING HERE THIS MORNING. I'M
GLAD TO FINALLY COME TO THIS.
HEARING AND SEEING MY COLLEAGUES
HERE AS I'VE SAT HERE SEVERAL
TIMES FOR THE RETAIL THEFT
HEARINGS AND, YOU KNOW, OFTEN
WONDERED WHAT WE WERE DOING WITH
WAGE THEFT. SO VERY GLAD TO SEE
THAT THIS IS FINALLY GETTING
SOME ATTENTION THAT WE'RE HERE
TO TALK ABOUT, SOLVING THE
PROBLEM, SOLVING THE ISSUES, ONE
OF MY BIGGEST CONCERN IS, IS
THAT EVEN IF WE FAIL ALL THE
CURRENT VACANT POSITIONS, THE
SCALE OF THIS PROBLEM HAS GOTTEN
SO VAST THAT WE REALLY NEED TO
CONSIDER MORE STRUCTURAL CHANGE,
AND MAYBE START THINKING ABOUT
EXPLORING ALTERNATIVES, YOU
KNOW, FROM INCENTIVIZING
EMPLOYEE COMPLIANCE, TO
EMPOWERING, EMPLOYEE ENFORCEMENT
, YOU KNOW, AND I'M PREPARED.
I'VE TALKED TO THE TO THE
COMMISSIONER AND OTHERS ABOUT
BEING A PARTNER IN THIS. I DON'T
WANT THIS TO JUST BE A HEARING.
I WANT THIS TO HAVE ACTION
ITEMS. I KNOW THAT YOU'VE
ALREADY STARTED SOME OF THOSE
ACTION ITEMS, BUT I WANT TO
CONTINUE TO KEEP A LIGHT ON THIS
ISSUE. AND, YOU KNOW, THE $6.7
MILLION THAT ARE STILL OUT THERE
OWED TO WORKERS DESERVE THIS, SO
HAPPY TO BE HERE. AND THANK YOU
FOR MY ALLOWING MY
PARTICIPATION. THANK YOU.
ASSEMBLY MEMBER. ORTEGA. SENATOR
SMALLWOOD CUEVAS, DO YOU HAVE
ANY OPENING REMARKS? THANK YOU,
MR. CHAIR AND VICE CHAIR, AND
I'M HONORED TO BE HERE WITH MY
FELLOW LEADER IN THE ASSEMBLY OF
THE LABOR COMMITTEE, AND GLAD TO
BE HERE WITH ALL OF YOU, COMING
FROM LA COUNTY, WHICH IS THE
WAGE THEFT CAPITAL OF CALIFORNIA
, COMING FROM WORKING WITH VERY
VULNERABLE COMMUNITY REYES OF
UNEMPLOYED AND UNDEREMPLOYED AND
INDIVIDUAL TRAPPED IN
UNREGULATED WORK. I WANT TO SAY
HOW IMPORTANT THIS CONVERSATION
IS, I THINK SOMETIMES WE GET TOO
CAUGHT UP IN THE STATISTICS AND
WE DON'T UNDERSTAND. AND THE
IMPACT OF WHAT THIS MEANS, BUT I
THINK HERE IN THIS BUILDING, WE
KNOW WE TALK ABOUT HOMELESSNESS,
WE TALK ABOUT THE SAFETY NETS,
FOLKS WHO NEED MEDI-CAL, FOLKS
WHO NEED HOUSING, FOOD SUBSIDY.
IT'S NOT BECAUSE THEY'RE NOT
WORKING. IT'S BECAUSE THEY'RE
WORKING IN JOBS THAT ARE NOT
PAYING THEM. THEY'RE WORKING IN
INDUSTRIES WHERE EMPLOYERS ARE
STEALING FROM THEM. AND I THINK
THIS STATE OF CALIFORNIA HAS
MADE THIS A PRIORITY. AND WHAT
THE AUDIT IN THIS CONVERSATION,
I HOPE REVEALS, IS WHAT IS THE
SOLUTION? OAN, AND I THINK A
BIG PART OF THE SOLUTION, THÀNH,
IS, OF COURSE, ARMING OUR LABOR
COMMISSIONER WITH THE TOOLS
NEEDED TO ADDRESS THIS MASSIVE
ISSUE. BUT WE ALSO HAVE TO BE
ABOUT CREATING GOOD JOBS. THERE
ARE TOO MANY WORKERS, TOO MANY
SCHEMES, AND NOT ENOUGH
CAPACITY. I DON'T THINK WE'LL
EVER HAVE ENOUGH CAPACITY TO
POLICE WHAT NEEDS TO BE POLICED
IN THE STATE OF CALIFORNIA. I
WAS TELLING MY GOOD FRIEND,
SENATOR GLAZIER, THAT THIS IS
ALMOST LIKE MISSION IMPOSSIBLE.
SO WE HAVE TO THINK ABOUT WHAT
ARE THE CREATIVE WAYS THAT WE
COME AT THIS. WHAT ARE THE
DIFFERENT DISCIPLINES? WE HAVE
TO COME AT THIS. AND NUMBER ONE
HAS TO BE LET'S DOUBLE DOWN ON
CREATING QUALITY JOBS IN
CALIFORNIA THAT PAY PEOPLE A
LIVING WAGE, THAT ARE REGULATED,
THAT STIPULATE CONDITIONS, THAT
RAISES THE FLOOR FOR ALL
WORKERS. AND THEN WE CAN FIGURE
OUT WHAT WE DO WITH THE
OUTLIERS. SO I'M HOPING THAT
THIS IS REINFORCING OUR VALUES
IN THE STATE OF CALIFORNIA, THAT
THAT IS OUR UTMOST PRIORITY AND
THAT WE WILL HOLD EMPLOYERS
ACCOUNTABLE AND GIVE OUR
ENFORCEMENT AGENCIES THE TOOLS
THAT THEY NEED. FIFTH WORLD'S
FIFTH LARGEST ECONOMY. WE NEED
THE FIFTH LARGEST ENFORCEMENT
ENTITY IN THE WORLD TO DEAL WITH
THIS ECONOMY, WHERE OVER 60% OF
NEW JOBS CREATED IN MY COUNTY
WERE LOW WAGE JOBS LAST YEAR. SO
THIS ISN'T GOING TO GO AWAY
BECAUSE UNFORTUNATELY, WE HAVE
CONDITIONS THAT ARE PERPETUATING
THESE CYCLES OF POVERTY, SO WE
NEED TO INVEST IN ROBUST AND
VIGOROUS AND CREATIVE TOOLS TO
ADDRESS THE ISSUE AND NOT
SCAPEGOAT AND PLACE BLAME. SO
I'M HERE FOR SOLUTIONS. I'M HERE
FOR US TO RECOGNIZE THE
MAGNITUDE OF THE CHALLENGE THAT
WE CAN STEP UP AND MEET IT,
BECAUSE WE ARE WHAT THE MOMENT
REQUIRES AND WE HAVE THE POWER
TO DO SO. THOSE ON THIS DAIS AND
THOSE WHO ARE SITTING BEFORE US.
SO THANK YOU VERY MUCH FOR THIS
OPPORTUNITY. THANK YOU. SENATOR
SMALLWOOD. CUEVAS, SENATOR
GLAZER, WOULD YOU LIKE TO MAKE
SOME OPENING REMARKS? THANK YOU,
THANK YOU. IS THIS WORKING? YES
OKAY. THANK YOU. CHAIR HART,
VICE CHAIR. LAIRD FOR ALLOWING
ME TO BE HERE AND PARTICIPATE.
CHAIR SMALLWOOD, CUEVAS AND
CHAIR ORTEGA, THANK YOU FOR YOUR
LEADERSHIP IN THIS SPACE. WE
NEED IT MORE THAN EVER. YOU
KNOW, THE HOW HURTFUL THIS
PROBLEM IS. AND I KNOW THAT
THROUGH YOUR KNOWLEDGE AND
EXPERIENCE AND BOTH OF YOU HAVE
THAT TO REALLY BRING THAT ENERGY
AND PASSION TO REAL SOLUTIONS.
AND IT'S GREAT TO HEAR YOUR
OPENING COMMENTS TODAY. IT'S
IMPORTANT FOR ME TO CALL OUT MY
PARTNER IN THIS EFFORT, ASSEMBLY
MEMBER ALVAREZ. WHEN WE HELD THE
HEARING A YEAR PLUS AGO, IT
WASN'T EVEN THOUGH WE WERE ALL
THOUGHT WE ALL KNEW THAT WE HAD
A PROBLEM. IT WASN'T SO EASY TO
GET THIS AUDIT TO BE TAKEN TO,
TO GO FORWARD, IT WAS OBVIOUSLY
OPPOSITION FROM THE, THE LABOR
COMMISSIONER THAT WASN'T A
SURPRISE. BUT IT WAS BEWILDERING
TO SEE OPPOSITION FROM THE LABOR
COMMUNITY, WHICH I STILL TO THIS
DAY DON'T REALLY FULLY
UNDERSTAND, BUT HOPEFULLY WE'VE
MADE PROGRESS NOW, A NEW
FOUNDATION OF FACTS HAVE BEEN
ESTABLISHED, FACTS ON WAIT TIME,
FACTS ON BACKLOG. AND REALLY,
THE MOST STUNNING FACT IN THAT
REPORT. AND I'LL CALL IT OUT.
THE CHAIR DIDN'T MENTION IT AT
THE BEGINNING, WAS THAT IN 76%
OF THE CASES, THE LABOR
COMMISSIONER'S OFFICE DID NOT
COLLECT A SINGLE CENT TO RETURN
TO THOSE EMPLOYEES WHO WHO DID
THE DID THE WORK AND WEREN'T
PAID ANYTHING. AND I'LL JUST SAY
THIS IN CLOSING THAT BY FAILING
TO RESOLVE THESE CASES, THE
LABOR COMMISSIONER AND THE STATE
HAVE BECOME ACCESSORIES TO THESE
EMPLOYER CRIMES. WE HAVE BEEN
BECAUSE WE'RE NOT DOING ANYTHING
ABOUT IT. SO WE'RE PART OF THE
PROBLEM. AND WE HAVE TO OVERCOME
THAT AND RISE ABOVE IT. I KNOW
THAT'S THE PURPOSE OF THE
HEARING TODAY. I KNOW WHAT
YOU'RE SAYING IS, IS THAT THAT
AUDIT IS NOT GOING TO BE PUT ON
THE SHELF GATHERING DUST. AND
THAT MAKES ME HAPPY THAT WE'RE
ALL COMING TOGETHER TO DO
SOMETHING CONSTRUCTIVE ABOUT IT.
AND I THANK YOU FOR THAT. THANK
YOU. SENATOR GLAZER, ASSEMBLY
MEMBER ALVAREZ, THANK YOU, CHAIR
HARDT AND VICE CHAIR LAIRD AND
RESPECTIVE CHAIRS OF EACH HOUSE,
FOR YOUR OPENING COMMENTS. AND,
I THINK THE FIRST THING I WANTED
TO REFLECT ON IS HAVING
PREVIOUSLY HAD REALLY TREMENDOUS
HONOR OF CHAIRING THE JHALAK
COMMITTEE, IS THAT I THINK WE
CANNOT FORGET ON THE VALUE OF
WHAT THIS COMMITTEE, MEANS TO
MAKING SURE THAT CALIFORNIA
WORKS, AS BEST AS POSSIBLE FOR
EVERYONE. I THINK THE BIGGEST
TAKEAWAY IS THAT THE FINDINGS OF
THIS, WHICH I'LL EXPRESS SOME
COMMENTS ABOUT AS WELL. BUT THE
FINDINGS OF THIS DEMONSTRATE
THAT EVEN WHEN THERE IS
OPPOSITION, WHICH, SENATOR
GLAZER SAID IS NOT UNSURPRISING
BY, THE ADMINISTRATION AGENCIES,
DEPARTMENTS TO UNDERGO, CRITICAL
ANALYSIS AS AN AUDIT DOES EVERY
SINGLE TIME IT DEMONSTRATES THAT
IT MAKES US BETTER WHEN WE DO AN
AUDIT. AND I I'M REALLY PROUD
THAT CHAIR HART AND VICE CHAIR
LAIRD HAVE LED IN THAT SAME, IN
THAT SAME WAY THROUGHOUT THIS
YEAR'S REQUEST FOR AUDITS,
BECAUSE IT'S ONE OF THE FEW
TOOLS THAT WE HAVE AS A
LEGISLATIVE BODY TO FULLY
UNDERSTAND, VET, GET LITERALLY
UNDER THE HOOD OF WHAT'S
HAPPENING. AND WHAT'S WORKING.
AND ALSO, JUST AS IMPORTANTLY,
WHAT IS NOT WORKING. AND SO I
THINK IT'S IMPORTANT TO
UNDERSCORE THE, THE VALUE OF THE
JOINT LEGISLATIVE AUDIT
COMMITTEE OF CONTINUING TO
REQUEST THAT WORK THAT MEMBERS
OF OUR HOUSES HAVE THROUGH THE
PROCESS AND OF CONTINUING TO
MAKE SURE THAT WE ASK THOSE
TOUGH QUESTIONS EVEN WHEN,
THERE'S OPPOSITION THAT WE MIGHT
NOT COMPREHEND WHY THAT
OPPOSITION EXISTS, AND CERTAINLY
WITH THIS AUDIT, WHICH IS.
SHOCKING IN SOME WAYS, ALTHOUGH
THERE WERE REPORTS ABOUT WHAT
WAS HAPPENING, IS, I THINK, AN
UNDERSTATEMENT, THE QUESTIONS I
NEED TO CONTINUE TO BE ASKED
BEYOND THIS AUDIT TODAY ARE
WHERE ARE WE? AND IT HASN'T
GOTTEN HAS IT BECOME ANY BETTER
BECAUSE IF YOU RECALL, THOSE OF
YOU WHO WERE AT THE HEARING LAST
YEAR, WE WERE PROMISED AND WE
WERE TOLD THAT WITH MORE
POSITIONS, THIS PROBLEM WAS
GOING TO GO AWAY. I THINK THE
QUESTION WE HAVE TO ASK TODAY
IS, IS THAT THE CASE? WHAT DO
THE NUMBERS LOOK LIKE FOR THIS
YEAR? ARE WE ON PACE TO LESS
THAN ALMOST 900 DAYS, WHICH IS
THE MEDIAN OF RESPONDING AND
ADJUDICATING THESE WAGE THEFT
CLAIMS? THAT'S NOT THE CASE.
THERE ARE CONTINUES TO BE
SERIOUS PROBLEMS. AND ADDING
PERSONNEL IS NOT THE ONLY
ANSWER, ESPECIALLY IF YOU LOOK
AT IN THE APPENDIX ON PAGE 57 OF
THE FULL REPORT, WHERE THE
AUDITOR OUTLINES THE STATEWIDE
NUMBERS OF FIELD POSITIONS THAT
ARE AUTHORIZED AND VACANT
THROUGHOUT THE ANALYSIS OF THIS
AUDIT, EVERY SINGLE YEAR THERE
WERE MORE POSITIONS AVAILABLE.
SURE, VACANCIES ALSO INCREASE,
BUT THERE WERE MORE POSITIONS
AVAILABLE AND FILLED. AND YET
THE NUMBERS LANGUAGE. THERE IS
SOMETHING REALLY WRONG HAPPENING
AND I THINK TODAY WE HAVE TO
CONTINUE TO DIG DEEP AND GET
MORE DIRECT ANSWERS AS TO HOW
THIS IS GOING TO BE A VERY
DIFFERENT NEW DAY. AND IF WE
DON'T DO THAT, WE WILL HAVE
WASTED THE TIME OF THE AUDITOR.
WE HAVE WASTED THE TIME OF THE
OF THE COMMISSIONER. WE HAVE
WASTED ALL OF OUR TIME. IF WE
DON'T START TO SEE THIS TURN
AROUND VERY QUICKLY. AND I
COULDN'T AGREE MORE ALSO WITH
WHAT THE CHAIRS OF OUR LABOR
COMMITTEE SAID, WE NEED TO MAKE
SURE THAT ON THE FRONT OF GOOD
JOBS THAT THAT BECOMES A
PRIORITY. THAT IS A PROACTIVE
SOLUTION. THAT SHOULD BE. BUT WE
KNOW THAT THERE WILL ALWAYS BE,
A SECTORS OF OUR ECONOMY WHERE
WORKERS LIKE MY FATHER, WHO WAS
A FARM WORKER, JANITOR, MY
MOTHER WHO WORKED AT A FAST FOOD
RESTAURANT THAT WILL CONTINUE TO
BE AN INDUSTRY, WHICH MEANS THAT
THE THREAT OF WAGE THEFT WILL
CONTINUE TO EXIST. AND IF WE
AREN'T RESPONDING AND HAVING
RESOLUTION AND GIVING JUSTICE TO
THOSE PEOPLE, WE WILL BE FAILING
AND CONTINUE TO FAIL. THAT'S NOT
AN OPTION. SO TODAY, I HOPE TO
BE ABLE TO GET NOT JUST
RESPONSES AND BACK AND FORTH ON
THE AUDIT, BUT THIS NOW IS THE
MOMENT GOING FORWARD TO MAKE
SURE THAT THIS IS NOT
CONTINUING. THANK YOU, MR.
CHAIR. THANK YOU. ASSEMBLYMEMBER
ALVAREZ, IS THERE ANYONE ELSE ON
THE DAIS THAT WOULD LIKE TO MAKE
ANY OPENING COMMENTS? OKAY, THEN
BEFORE PROCEEDING FURTHER, I
HAVE A FEW HOUSEKEEPING ITEMS
THAT I WANT TO ENSURE THAT SO
THAT WE CAN HEAR FROM EVERYONE.
I ASK THAT THE PANELS KEEP THEIR
PRESENTATIONS TO THE TIME
ALLOCATED. FOLLOWING EACH
PANEL'S PRESENTATION, MEMBERS
WILL HAVE TIME TO ASK QUESTIONS.
WE'LL RESERVE TIME FOR PUBLIC
COMMENT AFTER THE LAST PANEL AND
MEMBERS. ARE THERE ANY
QUESTIONS? NOW, BEFORE WE BEGIN
WITH THE FIRST PRESENTATION?
OKAY. AND STATE AUDITOR, STATE
AUDITOR PARKS, THE TIME IS NOW
YOURS AND EVERYONE, MY NAME IS
GRANT PARKS, THE STATE AUDITOR.
THANK YOU. CHAIRS HART, ORTEGA
AND SMALLWOOD. CUEVAS, THE
COMMITTEE HAS ASKED ME HERE
TODAY TO SPEAK BRIEFLY ON AN
AUDIT. WE ISSUED ON THE LABOR
COMMISSIONER'S OFFICE LAST MONTH
, AS HAS BEEN MENTIONED BY WAY
OF BACKGROUND, SENATOR GLAZER
AND ASSEMBLY MEMBER ALVAREZ
REQUESTED THE AUDIT. THE REPORT
GOES INTO A VARIETY OF DIFFERENT
DETAILS, BUT FOR THE PURPOSE OF
BREVITY, I'LL SPEAK TO THREE
MAIN ISSUES DURING MY
PRESENTATION. AND OF COURSE,
WILL BE ABLE TO SPEAK TO ANY
OTHER QUESTIONS YOU MAY HAVE.
BUT THE THREE POINTS I PLAN TO
COVER TODAY FOCUS ON. FIRST,
THERE WAS CLEARLY A QUESTION IN
THE AUDIT REQUEST ABOUT HOW LONG
DOES IT TAKE WORKERS TO EVEN GET
A HEARING TO HAVE THEIR WAGE
CLAIMS ADJUDICATED BY THE LABOR
COMMISSIONER'S OFFICE? SECOND,
I'LL BE SPEAKING ABOUT WHETHER
THE COMMISSIONER'S OFFICE
APPEARS TO HAVE SUFFICIENT STAFF
TO ADDRESS ITS BACKLOG OF WAGE
CLAIMS. AND FINALLY, WE'LL GO
INTO A BRIEF DISCUSSION ON THE
COMMISSIONER STAFF AFTER THEY
FIND THROUGH A HEARING THAT
AMOUNTS ARE OWED TO WORKERS. HOW
LONG DOES IT TAKE FOR THE STATE
TO ACTUALLY HELP THOSE WORKERS
GET PAID, WITH ME TODAY I HAVE
CHRIS PATEL, WHO WAS THE AUDIT
PRINCIPAL IN CHARGE OF THE AUDIT
, WHO MANAGED IT FROM A DAY TO
DAY BASIS. SO HE'S HERE TO HELP
ME ANSWER ANY QUESTIONS THE
COMMITTEE MAY HAVE. SO LET ME
JUST GET INTO THE FIRST ISSUE
THAT I WANT TO TALK A LITTLE BIT
ABOUT. WAGE CLAIM, WORKLOAD AND
BACK LOAD, KIND OF THE SCOPE OF
THE PROBLEM THAT WE IDENTIFIED
DURING THE AUDIT. STATE LAW
GENERALLY PRESCRIBES CERTAIN
TIME FRAMES WITHIN WHICH THE
LABOR COMMISSIONER'S OFFICE MUST
TAKE CERTAIN STEPS. SO FOR
EXAMPLE, WITHIN 30 WORKER'S CLAIM, YOU
HAVE TO DETERMINE IF A HEARING
IS NECESSARY WITHIN 90 DAYS OF
DECIDING THAT A HEARING IS
NECESSARY, YOU HAVE TO HOLD THE
HEARING, AND WITHIN 15 DAYS OF
HOLDING THE HEARING, YOU HAVE TO
RENDER A DECISION ON THE
WORKER'S CLAIM. SO THEREFORE,
UNDER STATE LAW, COMMISSIONER
STAFF MUST HOLD A HEARING TO
ADJUDICATE A WORKER'S CLAIM.
WITH ABOUT 120 DAYS FOLLOWING
RECEIPT OF THE CLAIM, AND
COMMISSIONER STAFF MUST ISSUE
THEIR DECISION 15 DAYS LATER, OR
135 DAYS AFTER A WORKER SUBMITS
A CLAIM DURING THE AUDIT, WE
REVIEWED DATA FROM THE
COMMISSIONER'S CASE MANAGEMENT
SYSTEM OVER A SIX YEAR PERIOD
AND FOUND THAT WORKERS HAVE NOT
RECEIVED TIMELY DECISIONS FROM
THE LABOR COMMISSIONER'S OFFICE
FOR EXAMPLE, IN 20 1718, THE
AVERAGE TIME TO ISSUE A DECISION
ON A WAGE CLAIM CASE FOLLOWING
THE SUBMITTAL OF THE CLAIM BY
THE WORKER WAS 420 DAYS. BY
2223. THE LAST YEAR WE REVIEWED
THAT TIME HAD INCREASED TO OVER
EIGHT TO AN AVERAGE OF 890 DAYS,
WHICH IS ABOUT 6.5 TIMES THE 135
DAY PERIOD PRESCRIBED IN LAW AS
WAGE CLAIM PROCESSING TIMES
INCREASED, SO DID THE LABOR
COMMISSIONER'S OPEN WAGE CLAIM
CASES. IN 1718, THE LABOR
COMMISSIONER HAD 22,000 OPEN
CLAIMS. AT THE END OF THE YEAR,
BUT BY 2223 THAT NUMBER HAD
INCREASED TO ABOUT 47,000. OPEN
WAGE CLAIMS. NEARLY 33,000 OF
THOSE HAD BEEN PART OF THE LABOR
COMMISSIONER'S OPEN CASES FOR AT
LEAST THREE YEARS, AND 2800 HAD
BEEN OPEN FOR FIVE YEARS AND
REPRESENTED $63.9 MILLION IN
CLAIMED UNPAID WAGES. DURING THE
AUDIT WE PERIOD, WE REVIEWED
AGAIN FROM 1718 TO 2223. WE
FOUND THAT THE WAGE CLAIM
BACKLOG IS PERVASIVE ACROSS ALL
17 FIELD OFFICES, WHERE THE
LABOR COMMISSIONER STAFF
ADJUDICATE WORKER CLAIMS. EACH
OFFICE HAS SEEN AN INCREASE IN
ITS BACKLOG, WAGE CLAIMS, THAT
ARE AT LEAST 1000 CLAIMS
INCREASE WITHIN EACH OFFICE. AND
WE DEFINE THOSE BACKLOG CLAIMS
AS ANY OF THOSE CASES WHERE IT'S
OVER 120 DAYS. WE NOTED
PARTICULARLY LARGE INCREASES IN
BACKLOG CLAIMS AT SAN
BERNARDINO, WHERE THE BACKLOG
INCREASED BY 515, GOING FROM 869
CASES TO OVER 5000. OAKLAND
INCREASED BY 202% AND LOS
ANGELES INCREASED BY 202. OUR
OUR AUDIT ALSO SOUGHT TO
UNDERSTAND AT WHAT STAGE OF THE
WAGE CLAIM PROCESS WERE DELAYS,
MOST LIKELY TO OCCUR, FOR
EXAMPLE, EVALUATING WHETHER OR
NOT DELAYS WERE OCCURRING DURING
THE INITIAL 30 DAY INTAKE STAGE?
WAS IT HAPPENING DURING THE
FOLLOWING 90 DAY PERIOD TO HOLD
A HEARING, OR WAS IT HAPPENING
DURING THE 15 DAY PERIOD WHEN WE
EXPECTED A DECISION TO BE MADE
ON A WORKER'S CLAIM? BUT THE
TRUTH IS, WE FOUND SIGNIFICANT
DELAYS IN ALL ASPECTS OF THE
WAGE CLAIM PROCESS IN FISCAL
YEAR 2223, FOR EXAMPLE, WE FOUND
STATEWIDE ACROSS ALL 17 FIELD
OFFICES, IT TOOK AN AVERAGE AN
AVERAGE OF 386 DAYS TO DETERMINE
IF A HEARING WAS EVEN NECESSARY.
STATEWIDE. IT TOOK AN AVERAGE OF
636 DAYS TO HOLD A HEARING.
AFTER DECIDING THAT A HEARING
WAS NECESSARY, AND STATEWIDE, IT
TOOK AN AVERAGE OF 111 DAYS TO
ISSUE A DECISION. EVEN AFTER THE
END OF A HEARING, I'LL NOTE, FOR
EXAMPLE, THAT SAN DIEGO AND
THOSE ARE JUST AVERAGES. SAN
DIEGO TOOK 285 DAYS TO ISSUE A
DECISION. IN ONE PARTICULARLY
EGREGIOUS EXAMPLE, WE NOTED
DURING THE AUDIT, WE FOUND A
WORKER WHO HAD FILED A CLAIM IN
2014, AND DUE TO VARIOUS
SCHEDULING ISSUES AT THE LABOR
COMMISSIONER'S OFFICE, THEY
DIDN'T ATTEMPT TO SCHEDULE A
HEARING UNTIL 2019. BUT BECAUSE
THE LABOR COMMISSIONER'S STAFF
DIDN'T PROVIDE PROPER NOTICE TO
THE PARTIES ABOUT THE HEARING,
THE HEARING HAD TO BE
RESCHEDULED AND IT WASN'T
RESCHEDULED UNTIL FOUR YEARS
LATER IN AUGUST 2023. HOWEVER,
THE ASSIGNED HEARING OFFICER
WASN'T AVAILABLE IN AUGUST 2023,
SO THE OFFICE ATTEMPTED ANOTHER
SETTLEMENT CONFERENCE WHERE THE
WORKER WAS WILLING TO ACCEPT
LESS THAN HALF OF THE CLAIMED
AMOUNT. BUT AS OF MARCH 2024,
THIS WORKER HAS YET TO RECEIVE A
HEARING DATE. ROUGHLY TEN YEARS
AFTER FILING A CLAIM, AND HAS
$71,000 IN CLAIMS FOR UNPAID
OVERTIME, MILEAGE REIMBURSEMENT
AND WAGES THAT WERE ALLEGEDLY
PAID AT LESS THAN MINIMUM WAGE.
THE WORKER HAD SERVED AS A
CAREGIVER FOR CLIENTS WHO HAVE
NOW SINCE DECEASED. ULTIMATELY,
I THINK THE AUDIT SHOWS THAT
LENGTHY DELAYS AND BACKLOGGED
WAGE CLAIMS MEAN THAT
CALIFORNIA'S WORKERS CAN WAIT
YEARS TO RECEIVE OWED WAGES, IF
AT ALL. NEXT, I'LL MOVE TO MY
SECOND TOPIC, WHICH GETS AT SOME
OF THE CAUSES THAT WE FOUND
DURING THE AUDIT FOR WHY WE SEE
THESE DELAYS AND THESE BACKLOGS.
I'LL START WITH A DISCUSSION OF
STAFFING VACANCIES, AS I BELIEVE
ASSEMBLY MEMBER ALVAREZ POINTED
OUT, ONE OF THE PRIMARY REASONS
FOR LENGTHY PROCESSING TIME AND
INCREASING BACKLOG HAD TO DO
WITH THE LACK OF ADEQUATE
STAFFING AT THE LABOR
COMMISSIONER'S OFFICE BASED ON
CURRENT PROCESSES. AS OF JUNE
2023, THE LABOR COMMISSIONER'S
OFFICE HAD A VACANCY RATE OF 33%
ACROSS ITS ENTIRE WAGE
ADJUDICATION UNIT. SOME FIELD
OFFICES HAD VACANCY RATES THAT
WERE 40% OR HIGHER. WE ALSO
FOUND THAT THE VACANCY RATE FOR
THE DEPUTY LABOR COMMISSIONER
POSITION WAS 38, AND IT'S AN
IMPORTANT POSITION BECAUSE IT'S
RESPONSIBLE FOR INVESTIGATING
WORKER CLAIMS AND SCHEDULING AND
CONDUCTING SETTLEMENT
CONFERENCES AND DETERMINING
WHETHER A HEARING IS EVEN
NECESSARY. DURING THE AUDIT, WE
SPOKE WITH SEVERAL OF THESE
OFFICES AND THESE LABOR
COMMISSIONERS WHO DESCRIBED THAT
THESE VACANCIES RESULTED IN THEM
HAVING MORE CLAIMS FOR THEM TO
MANAGE THAN THEY CAN REASONABLY
HANDLE. FOR EXAMPLE, ONE DEPUTY
INFORMED US DURING THE AUDIT
THAT THEY HAD MORE THAN 700
CLAIMS ASSIGNED TO THEM AT
DIFFERENT STAGES OF THE
ADJUDICATION PROCESS, AND
ANOTHER INDICATED THAT THEY WERE
MANAGING MORE THAN 300 DIFFERENT
CLAIMS. WHEN WE SPOKE TO A FIELD
SUPERVISOR IN THE SACRAMENTO
OFFICE, FOR EXAMPLE, ABOUT WHY
THEY HADN'T ASSIGNED ONE OF THE
CLAIMS, WE WERE REVIEWING TO A
DEPUTY FOR OVER A YEAR AFTER
RECEIVING IT. THE SUPERVISOR
SIMILARLY CONFIRMED THAT ALL OF
HIS DEPUTIES WERE ALREADY
MANAGING SUBSTANTIAL CASE LOADS
AND THEREFORE THE CASE COULDN'T
BE ASSIGNED TO A WORKER. THE
SECOND OBSERVATION WE HAVE IN
THE AREA OF STAFFING IS THAT WE
BELIEVE LOW SALARIES MAY
CONTRIBUTE TO STAFF RETENTION
AND VACANCY ISSUES IN THE LABOR
COMMISSIONER'S OFFICE, THE LABOR
COMMISSIONER'S ADJUDICATION UNIT
HAS A RETENTION RATE WHERE SINCE
2018, 19% OF NEW EMPLOYEES LEAVE
WITHIN ABOUT A YEAR. DER AIR
BEGAN CONDUCTING EXIT
CONFERENCES OR EXIT INTERVIEWS
WITH FORMER EMPLOYEES. IN AUGUST
2022, AND ABOUT 85% OF THOSE
INDIVIDUALS INDICATED THEY LEFT
TO PURSUE OTHER EMPLOYMENT FOR
BETTER PAY AND FOR BETTER
BENEFITS. WE ALSO COMPARED FOUR
JOB CLASSIFICATIONS IN THE
LABOR'S OFFICE TO COMPARABLE
POSITIONS IN STATE GOVERNMENT
AND ALSO IN COUNTY GOVERNMENTS,
LOCAL GOVERNMENTS. AND, FOR
EXAMPLE, WE FOUND THAT HEARING
OFFICERS WHO OFTEN MAKE RULINGS
ON WAGE CASES OFTEN HOLD LAW
DEGREES AND MAKE 4000 LESS PER
MONTH THAN AN ADMINISTRATIVE LAW
JUDGE. OTHER POSITIONS, SUCH AS
DEPUTY COMMISSIONERS AND
INDUSTRIAL RELATIONS
REPRESENTATIVES, ALTHOUGH THEIR
SALARIES WERE GENERALLY
CONSISTENT WITH OTHER STATE
CLASSIFICATIONS, WE FOUND
INSTANCES WHERE THOSE SALARIES
FELL WELL BELOW THOSE OF SIMILAR
COUNTY JOBS AT THE LOCAL LEVEL,
DER TOLD US DURING THE AUDIT
THAT THEY'RE CONDUCTING A
COMPENSATION ANALYSIS TO
UNDERSTAND BETTER WHETHER OR NOT
THEIR SALARIES ARE APPROPRIATELY
SET FOR THEIR EMPLOYEES, BUT
THEY ACKNOWLEDGE THAT THIS MAY
TAKE SEVERAL YEARS TO IMPLEMENT
BECAUSE THEY'RE CURRENTLY DOING
A WORKER CLASSIFICATION STUDY TO
UNDERSTAND THE JOB SPECS OF
THEIR EMPLOYEES. AND I BELIEVE
THEY PLAN TO HANDLE THE SALARY
QUESTIONS SUBSEQUENT TO THAT.
THE THIRD OBSERVATION IN THE
STAFFING ARENA HAS TO DO WITH
THE LABOR COMMISSIONER'S HIRING
PROCESS. WE FOUND IT TO BE
HIGHLY INEFFICIENT. THE CURRENT
HIRING PROCESS INVOLVES THE
LABOR COMMISSIONER COORDINATING
WITH THE DA'S HR DEPARTMENT,
WHICH EXPECTS THE HIRING PROCESS
TO GENERALLY TAKE THREE MONTHS
TO COMPLETE. HOWEVER, IN OUR
REVIEW, WE FOUND THAT MORE THAN
300 RECRUITMENTS THAT AE
CONDUCTED SINCE APRIL 2021, IT
HAD TO CANCEL 135 OF THOSE 300
RECRUITMENTS, OR ABOUT 45.
GENERALLY BECAUSE THE HIRING
PROCESS TOOK TOO LONG, LONGER
THAN SIX MONTHS TO COMPLETE,
RESULTING IN THE HIRING
ELIGIBILITY LIST OF THOSE
CANDIDATES WHO COULD BE
CONTACTED FOR JOB OFFERS HAD
EXPIRED. IN ONE EXAMPLE, FOR A
DEPUTY COMMISSIONER RECRUITMENT
THAT WE REVIEWED THAT WAS
CANCELED, IT TOOK 97 DAYS TO
START CONDUCTING INTERVIEWS
AFTER POSTING THE JOB BULLETIN
ONLINE, AND IT TOOK ANOTHER 64
DAYS TO CONDUCT INTERVIEWS OF
THE CANDIDATES. ONE REASON FOR
THESE DELAYS, WE FOUND, IS THAT
THE AE HAS A PRACTICE OF HOLDING
INTERVIEWS FOR MULTIPLE JOB
POSITIONS AT THE SAME TIME,
ACROSS MULTIPLE OFFICES, ALL AT
ONCE, WHICH REQUIRES MORE TIME
FOR THE INTERVIEW PANEL TO
INTERVIEW EVERYONE WHO APPLIED
AND THEN DETERMINE WHO WAS THE
TOP SCORING CANDIDATE AT EACH
DIFFERENT FIELD OFFICE.
COMPOUNDING THE PROBLEM OF THE
LENGTHY RECRUITMENT CYCLE IS THE
FACT THAT CANDIDATES WHO ARE
INTERVIEWED AND SELECTED BY THE
LABOR COMMISSIONER FOR JOB
OFFERS DO NOT ALWAYS MEET THE
MINIMUM QUALIFICATIONS OF THE
JOB, AND ARE SUBSEQUENTLY
REJECTED BY DER AT THE END OF
THE RECRUITING CYCLE, LEAVING
LITTLE TIME FOR THE LABOR
COMMISSIONER TO SELECT ANOTHER
CANDIDATE FOR THE POSITION. AND
OUR LAST OBSERVATION IN THE
STAFFING ARENA HAS TO DEAL WITH
OUR BELIEF THAT THE LABOR
COMMISSIONER MAY NEED
SIGNIFICANTLY MORE STAFF IN
TERMS OF FILLED POSITIONS TO
DEAL WITH THE WORKLOAD THAT IT
HAS DURING THE AUDIT, WE ASKED
THE LABOR COMMISSIONER'S OFFICE
FOR ESTIMATES ON HOW MANY HOURS
IT TAKES STAFF TO COMPLETE WORK
ON A GIVEN WAGE CLAIM AT
DIFFERENT STAGES OF THE WAGE
CLAIM ADJUDICATION PROCESS, SUCH
AS, FOR EXAMPLE, HOW MUCH TIME A
GIVEN POSITION SHOULD TAKE
DURING A HEARING VERSUS AFTER A
HEARING, AND WE TOOK THOSE PER
CASE ESTIMATES AND WE MULTIPLIED
THOSE HOURS BY THE NUMBER OF
CLAIMS THAT THE COMMISSIONER'S
OFFICE HAD, AT THE VARIOUS
STAGES OF THE WAGE ADJUDICATION
PROCESS. THAT ESTIMATED RESULT
RESULTED IN AN ESTIMATE OF
ROUGHLY 1.3 MILLION STAFF HOURS
THAT WOULD BE REQUIRED TO HANDLE
THAT WORKLOAD, WHICH WOULD
CREATE WHICH EQUATES TO ROUGHLY
900 TOTAL STAFF. OF COURSE, THAT
NUMBER ASSUMES THAT WE'RE
HANDLING THE ENTIRE BACKLOG AND
ALL CURRENT WORKLOAD ALL AT
ONCE. IF THE LABOR COMMISSIONER
WAS TO HIRE LESS THAN THAT, IT
MAY TAKE MORE TIME TO MAKE MORE
OF A MEANINGFUL DENT INTO THE
BACKLOG THAT CURRENTLY EXISTS.
BUT REGARDLESS, OUR HIGH LEVEL
ESTIMATE IS INTENDED TO
PRIMARILY ILLUSTRATE THE
POTENTIAL MAGNITUDE OF THE
DIFFERENCE BETWEEN THE STAFFING
THAT THE LABOR COMMISSIONER HAS
ASKED FOR AND HAS, VERSUS HOW
MUCH MAY BE ACTUALLY NEEDED TO
START MAKING MEANINGFUL PROGRESS
TOWARDS REDUCING THE BACKLOG
THAT THEY CURRENTLY HAVE. THE
LAST ISSUE, THE THIRD ISSUE THAT
I'LL TALK ABOUT IN MY
PRESENTATION FOCUSES ON WHAT
HAPPENS TO WORKERS AFTER THEY'VE
GONE THROUGH THE LENGTHY PROCESS
OF GETTING A JUDGMENT. AND NOW
IT'S TIME TO ENFORCE COLLECTION
ON THE CLAIM, AT THIS POINT, A
WORKER HAS GONE THROUGH THE
ADJUDICATION PROCESS. THE
EMPLOYER MAY DECIDE THAT THEY
DON'T WANT TO PAY ANY MORE. SO
WHAT HAPPENS NEXT IS THE LABOR
COMMISSIONER STAFF WILL FILE A
CERTIFIED COPY OF THEIR DECISION
WITH THE APPROPRIATE SUPERIOR
COURT, AND OBTAIN A JUDGMENT
AGAINST THE EMPLOYER FOR THE
AMOUNT OWED. AT THIS POINT, THE
WORKER CAN EITHER REQUEST THE
LABOR COMMISSIONER'S ASSISTANCE
TO COLLECT ON THE JUDGMENT OR
SEEK COLLECTION ON THEIR OWN.
BETWEEN JANUARY 2018 AND
NOVEMBER 2023, NEARLY 21,000
WORKERS HAD JUDGMENTS OF JUST
WHICH OF WHICH JUST 24% OR 5000
WORKERS SOUGHT THE HELP OF THE
LABOR COMMISSIONER'S OFFICE IN
COLLECTING THE AMOUNTS OWED. AND
DURING THIS TIME, DURING THE
AUDIT, WE FOUND THE COLLECTION
ACTIVITY WAS AS FOLLOWED AS
FOLLOWS. ROUGHLY 601 CASES WERE
FULLY COLLECTED FOR $5.3 MILLION
IN PAYMENTS TO WORKERS, 548
CASES WERE JUST PARTIALLY
COLLECTED, 3.8 MILLION PAID TO
WORKERS, 6.7 MILLION STILL OWED.
BUT THERE WAS ALSO A
SIGNIFICANTLY LARGE OVER 3700
CASES, OR ABOUT 76, WHERE WE SAW
NO COLLECTION ACTIVITY AT ALL,
OR ABOUT 56 MILLION STILL OWED
TO WORKERS AND A SIGNIFICANT
PORTION OF THOSE CLAIMS HAD YET
TO BE ASSIGNED TO INDIVIDUALS IN
THE LABOR COMMISSIONER'S
ENFORCEMENT UNIT TO BEGIN
COLLECTION ACTIVITIES. SO
OVERALL, DURING THIS TIME
PERIOD, THE AES ENFORCEMENT UNIT
HAD RECOVERED BETWEEN 12 TO 13%
OF THE NEARLY 72 MILLION IN
UNPAID CLAIMS. WHERE THERE IS
BOTH A LEGAL JUDGMENT AGAINST
THE EMPLOYER AND WHERE THE
WORKER HAS ASKED FOR THE LABOR
COMMISSIONER'S ASSISTANCE IN
COLLECTING ON THE AMOUNTS DUE.
IN OUR REVIEW OF THE ENFORCEMENT
UNIT, WE TRIED TO DETERMINE WHAT
SOME OF THE REASONS MIGHT BE FOR
THE LOW COLLECTION NUMBERS, AND
WE MADE THE FOLLOWING
OBSERVATIONS. WHILE THE
ENFORCEMENT UNIT DOES NOT
FREQUENTLY USE ALL THE METHODS
AVAILABLE TO THEM, WE FOUND THAT
THERE ARE INABILITY TO USE ALL
THE TOOLS AT THEIR DISPOSAL CAN
AFFECT THE ULTIMATE COLLECTION
AMOUNT. THE PRIMARY CAUSE FOR
THE INCONSISTENCY IN TERMS OF
WHAT COLLECTION METHODS ARE USED
IS PRIMARILY BECAUSE, IN OUR
VIEW, THE ENFORCEMENT UNIT LACKS
STANDARD PROCEDURES FOR
DETERMINING WHICH ENFORCEMENT
WHICH ENFORCEMENT METHODS ARE
MOST APPROPRIATE, UNDER WHAT
CIRCUMSTANCES. AND WE ALSO NOTED
THAT THE ENFORCEMENT UNIT LACKS
EVEN STANDARDS FOR HOW MANY
CASES SHOULD BE ASSIGNED TO A
DEPUTY AT A GIVEN TIME. THUS,
WHEN WE WERE SPEAKING WITH
ENFORCEMENT STAFF, WE FOUND THAT
MOST OFTEN IT'S THE CASE THAT
ENFORCEMENT STAFF USE THEIR OWN
DISCRETION WHEN DETERMINING THE
APPROPRIATE COLLECTION METHODS
TO ENFORCE ON A JUDGMENT, AND
ALSO WHEN TO STOP PURSUING
PURSUING PAYMENTS ON A CASE. WE
FOUND THAT IT CAN TAKE THE
ENFORCEMENT UNIT A VERY LONG
TIME TO TAKE ACTION ON CASES.
AFTER WORKERS SEEK THE LABOR
COMMISSIONER'S ASSISTANCE, WE
REVIEWED A SELECTION OF 50
CASES, REFERRED TO THE
ENFORCEMENT UNIT, AND IT TOOK,
ON AVERAGE, MORE THAN 1000 DAYS
BEFORE WE SAW COLLECTION
ACTIVITY BEGIN TO TAKE PLACE.
FOR EXAMPLE, IN ONE CASE FROM
2019, WE NOTED THAT THE LABOR
COMMISSIONER'S OFFICE PLACED A
LIEN ON AN EMPLOYER'S ASSETS
BEFORE THE JUDGMENT WAS REFERRED
TO THE ENFORCEMENT UNIT FOR
COLLECTION, BUT THE ENFORCEMENT
UNIT DIDN'T TAKE ANY ADDITIONAL
STEPS UNTIL OCTOBER 2023. MORE
THAN A THOUSAND DAYS AFTER
REFERRAL, WHEN IT SENT A DEMAND
LETTER TO THE EMPLOYER. BUT THE
ENFORCEMENT UNIT HAS NOT TAKEN
ANY FURTHER ACTION THROUGH
NOVEMBER 2023, WHICH WAS THE
PERIOD WE STOPPED DURING OUR
AUDIT. THE ENFORCEMENT UNIT
POINTED TO MULTIPLE DIFFICULTIES
THEY HAVE IN COLLECTING PAYMENTS
FROM EMPLOYERS, INCLUDING THE
LACK OF ASSETS IN THE NAME OF
THE DEFENDANT AND ALSO NOTING
THAT JUDGMENTS ARE FREQUENTLY
AGAINST COMPANIES RATHER THAN
INDIVIDUALS, MAKING IT DIFFICULT
TO COLLECT PAYMENTS FROM
INDIVIDUAL PARTICIPANTS OF WAGE
THEFT TO THEIR CREDIT, WE NOTED
THAT THE LABOR COMMISSIONER'S
LEGAL STAFF ARE CURRENTLY
PROVIDING TRAINING TO THEIR
STAFF TO ADDRESS SOME OF THESE
DIFFICULTIES, PARTICULARLY IN
THE AREA OF MAKING SURE THAT
THEY'RE IDENTIFYING INDIVIDUALS
UP FRONT IN THE WAGE
ADJUDICATION CLAIM PROCESS SO
THAT WHAT SO THAT WHEN IT DOES
GET TO JUDGMENT, THEY CAN
IDENTIFY THOSE INDIVIDUALS AND
START PURSUING COLLECTION OAN.
BUT THEY ALSO BELIEVE THAT
THERE'S POTENTIAL USE OF OTHER
TOOLS THAT ARE AVAILABLE TO THE
LABORERS COMMISSIONERS, SUCH AS
A MECHANIC'S LIEN, WHICH WOULD
ALLOW THE LABOR COMMISSIONER TO
IMPOSE LIENS BEFORE A JUDGMENT
IS ACTUALLY ENTERED, SO THAT
SOME OF THOSE ASSETS CAN BE
RESERVED FOR THE WORKER.
OVERALL, I'D SAY THAT THE LABOR
COMMISSIONER AND DER WAS HELPFUL
IN COOPERATIVE, DURING THE
AUDIT. DURING OUR REVIEW, THEY
INDICATED THAT THEY ACCEPTED ALL
OF OUR RECOMMENDATIONS, AND WE
WILL BE GETTING UPDATES FROM
THEM AT SIX MONTHS, A YEAR. AND
ALSO 60 DAYS AFTER OUR AUDIT
WENT OUT. WE HAVE A VARIETY OF
RECOMMENDATIONS TO THE LABOR
COMMISSIONER'S OFFICE, BUT I'LL
JUST SPEAK TO A FEW OF THEM. THE
FIRST ONE THAT WE THINK THAT THE
LABOR COMMISSIONER REALLY NEEDS
TO ADDRESS IS QUICKLY COMPLETING
AND ACTING ON ITS EMPLOYEE
COMPENSATION SURVEY AND ANALYSIS
TO MAKE SURE THAT ITS
COMPENSATION LEVELS ARE
APPROPRIATE, TO MAKE SURE THAT
IT CAN BOTH ATTRACT AND RETAIN
THE WORKERS THAT IT NEEDS TO
HANDLE ITS WORKLOAD. AND WE ALSO
BELIEVE IT NEEDS TO TAKE STEPS
TO STREAMLINE THE INTERACTION
BETWEEN DER AND THE LABOR
COMMISSIONER'S OFFICE IN THE
HIRING PROCESS. THE FACT THAT IT
TAKES SIX MONTHS TO HIRE
SOMEBODY AND YOU GET TO THE VERY
END AND THERE'S NO TIME LEFT TO
GO TO THE SECOND CANDIDATE JUST
IS STRIKES US AS AN INCREDIBLY
INEFFICIENT PROCESS. AND
FINALLY, WE THINK THERE NEEDS TO
BE AN HONEST CONVERSATION THÀNH
ABOUT WHAT ARE THE STAFFING
REQUIREMENTS NECESSARY TO FULLY
ADDRESS ITS BACKLOGGED WAGE
CLAIMS AND HOW QUICKLY THAT
NUMBER CAN START TO REDUCE. YOU
KNOW, IN THE AUDIT REPORT, WE
CAME UP WITH A RECOMMENDATION OR
AN ESTIMATE RATHER OF ROUGHLY
800 STAFF THAT WOULD BE
REQUIRED. AND SO THAT ASSUMES
YOU PUT EVERYBODY ALL ON IT ALL
AT ONCE. THAT MAY NOT BE
FEASIBLE. IF YOU DO LESS THAN
THAT, YOU MAY BE ABLE TO REDUCE
THE BACKLOG AND OVER A LONGER
DURATION OF TIME. BUT THERE
NEEDS TO BE A MEETING OF THE
MINDS ABOUT HOW MANY FILLED
POSITIONS DO WE NEED, AND ALSO
HOW MANY CASELOADS ARE WE GOING
TO HAVE PER WORKER, AND WHAT'S
THE EXPECTATION IN TERMS OF WHEN
ARE WE GOING TO START SEEING
MOVEMENT ON THOSE NUMBERS,
DURING THE AUDIT, WE DIDN'T SEE
ANY SORT OF WORKLOAD ANALYSIS TO
THAT EFFECT. THAT WOULD GIVE US
AN UNDERSTANDING OF WHAT THE
LABOR COMMISSIONER THOUGHT, WHAT
THE TOTAL AMOUNT OF STAFFING
WOULD BE REQUIRED TO ADDRESS AND
BRING DOWN ITS BACKLOG NUMBERS.
WITH THAT, CHRIS PATEL, OUR
AUDIT PRINCIPAL OR MYSELF WOULD
BE HAPPY TO ANSWER ANY QUESTIONS
YOU MAY HAVE. THANK YOU, AUDITOR
PERKS, FOR A VERY THOROUGH
PRESENTATION ABOUT THE
CHALLENGES THAT WE'RE LOOKING
AT. AND I JUST HAVE A QUESTION
TO KIND OF SET THE TONE TOWARD
WHAT ARE WE GOING TO DO TO FIX
THIS, I UNDERSTAND THAT YOU, AS
THE STATE AUDITOR HAVE A PROCESS
TO FOLLOW UP AND ENCOURAGE
AGENCIES TO COMPLY WITH THE
AUDIT RECOMMENDATIONS AND THE
SUGGESTIONS FOR FIXING THE
PROBLEMS THAT YOU'VE IDENTIFIED.
COULD YOU PLEASE DESCRIBE THE
MECHANISM, PROCESSES AND
MONITORING EFFORTS TO ENSURE
THAT THE ISSUES HIGHLIGHTED IN
THE REPORT ARE ADEQUATELY
ADDRESSED? RIGHT. SO FOLLOWING
PUBLICATION OF AN AUDIT REPORT,
WE FOLLOW UP WITH THE AGENCY AT
60 DAYS, SIX MONTHS AND ONE YEAR
WHERE THEY'RE EXPECTED TO
PROVIDE MORE DETAILED RESPONSES
AND IMPLEMENTATION PLANS TO THE
RECOMMENDATIONS THAT WE OFFER IN
THE AUDIT REPORT. AND THAT
STATUS IS POSTED ON OUR WEBSITE
FOR THE PUBLIC TO SEE. SO AS THE
AUDIT HAS BEEN PUBLISHED AND AS
WE MOVE FORWARD IN TIME,
INTERESTED PARTIES ARE ABLE TO
GO ONTO OUR WEBSITE BY
RECOMMENDATION AND SEE WHAT IS
IT THAT THE STATE AUDITOR'S
OFFICE RECOMMENDED? WHAT DID THE
DEPARTMENT SAY THEY WERE GOING
TO DO ABOUT IT? AND ALSO ON THAT
WEBSITE THAT WE HAVE ON OUR WEB
PAGE, IT WILL GIVE AN EXPECTED
IMPLEMENTATION DATE AND SO WE
FIND THAT THAT INFORMATION COULD
BE HELPFUL TO LAWMAKERS AS THEY
HAVE DISCUSSIONS WITH THE
AGENCY, WHETHER IT'S IN BUDGET
HEARINGS OR IN OTHER VENUES
WHERE THAT INFORMATION IS
READILY AVAILABLE. AND WE CAN
YOU CAN MONITOR THE PROGRESS OR
LACK OF PROGRESS THAT IS BEING
MADE, I WOULD STRESS, THOUGH,
THAT THESE FOLLOW UP
CONVERSATIONS, THEY'RE NOT
AUDITS. WE DON'T HAVE THE TIME
TO AUDIT EVERY AUDIT THAT WE'VE
PREVIOUSLY ISSUED. BUT WHAT
THESE EXERCISES ARE INTENDED TO
DO IS PROVIDE THE PUBLIC WITH
THE MOST UP TO DATE
UNDERSTANDING OF WHERE THE AUDIT
THINKS THEY ARE AND THE
IMPLEMENTATION OF OUR
RECOMMENDATIONS. THANK YOU. AND
I SEE THAT YOU HAVE ONE
RECOMMENDATION. FOR THE LABOR
COMMISSIONER TO PROVIDE ANNUAL
STATUS REPORTS TO THE
LEGISLATURE. WHAT DO YOU THINK
THIS REQUIREMENT WOULD RESULT IN
THAT YOUR STANDARD FOLLOW UP
WOULDN'T BE ABLE TO ACCOMPLISH?
WE THOUGHT IT WAS A HELPFUL
RECOMMENDATION JUST TO ENSURE
THAT THERE'S HEIGHTENED
VISIBILITY OF THIS ISSUE, GIVEN
HOW IMPORTANT IT IS FOR WORKERS
TO OBTAIN THEIR THEIR WAGE
CLAIMS AND GET THEM PAID IN A
TIMELY MANNER. SO WE JUST WANTED
TO MAKE SURE THAT THE
LEGISLATURE WAS AS WELL
POSITIONED AS POSSIBLE TO
UNDERSTAND WHAT IT IS THE LABOR
COMMISSIONER IS DOING IN TERMS
OF BOTH. HOW IS IT ADDRESSING
ITS BACKLOG OF CLAIMS AND WHAT
PROGRESS IT IS MAKING IN FILLING
ITS VACANT POSITIONS? I THINK
THOSE ARE THE TWO KEY AREAS THAT
WE THOUGHT THERE MIGHT BE VALUE
FOR THE LEGISLATURE TO, TO GET
THAT INFORMATION ON A RECURRING
BASIS AS WELL. THIS IS CLEARLY A
VERY IMPORTANT ISSUE, NOT ONLY
TO THE CALIFORNIANS WHOSE WAGES
HAVE BEEN STOLEN, BUT TO US,
THEIR REPRESENTATIVES AS WELL.
AND HOLDING THIS HEARING TODAY
CONFIRMS THIS, IF ADDITIONAL
RESOURCES ARE NEEDED, WE'RE
GOING TO HAVE TO FIND A WAY TO
ALLOCATE THEM. AND IF, ANNUAL
REPORTS TO THE LEGISLATURE WILL
HELP, I'M SURE THAT SOMEONE HERE
ON THE DAIS WILL PICK UP THAT
BILL IDEA AND BRING THAT FORWARD
AT THE EARLIEST POSSIBLE DATE,
I'LL OPEN UP THE, THE STATE
AUDITOR FOR ADDITIONAL QUESTIONS
FROM MEMBERS OF THE COMMITTEE.
SENATOR CORTESE. JUST A QUESTION
ON, YOU KNOW, THE
RECOMMENDATIONS THAT YOU'RE
MAKING ON ON HIRING. I THINK WE
ALL HEARD LOUD AND CLEAR, WHAT
YOU DESCRIBED AS AN INCREDIBLY
INEFFICIENT, SITUATION, UP TO
THE MOMENT, HOW MUCH IS, IS ARE
AIR, REQUIREMENTS, YOU KNOW,
INTEGRATED INTO THE PROBLEM, IF
AT ALL? I DON'T RECALL, WHETHER
OR NOT WE HAVE SEPARATE AIR, YOU
KNOW, FUNCTIONS LIKE WE DO WITH,
WITH OTHER AGENCIES OR WHETHER
THAT'S NOW, THERE'S SOMETHING IN
THE BACK OF MY MIND, MAYBE
DATING BACK TO MY, MY TIME. IN
INFORMATIONAL HEARINGS OR
POSSIBLY BACK WHEN I WAS
CHAIRING, THE LABOR COMMITTEE
THAT WANTS TO TELL ME THAT THAT
AIR WAS INTEGRATED IN, IN
EFFECT, TO THE DEPARTMENT. BUT
BUT I'M TRYING TO FIGURE OUT,
YOU KNOW, HOW MUCH IS AIR OR AIR
HIRING REQUIREMENTS THAT TEND TO
SLOW THINGS DOWN, AND I ASK THAT
ONLY BECAUSE I'VE SEEN SO MUCH
OF THAT, NOT JUST IN STATE
HIRING PROCESSES IN GENERAL, BUT
BUT ALSO IN MY EXPERIENCE AS A
LOCAL GOVERNMENT OFFICIAL WHERE
OFTENTIMES WE'D BE TRYING TO
HIRE FOLKS IN A HOT HIRING,
TOUGH HIRING ENVIRONMENT.
COMPETITIVE ENVIRONMENT FOR OUR
LEGAL DEPARTMENT, FOR EXAMPLE,
AND NOT BE ABLE TO GET THROUGH
THE, THE HR HOOPS, THE ACTUAL
HUMAN RESOURCES PIECE OF IT AND
GET THOSE THOSE RECOMMENDATIONS
AND THAT PROCESS COMPLETED. YOU
KNOW, WITHIN SIMILAR TIMELINES
THAT YOU'RE DESCRIBING 5 OR 6
MONTHS AND PEOPLE WOULD BE GONE,
OBVIOUSLY, TAKING JOBS
ELSEWHERE. I'M JUST TRYING TO
GET A LITTLE MORE ARTICULATION.
I'M SURE IT'S ALL IN THE REPORT,
BUT IF YOU COULD MAYBE JUST GIVE
ME THE ONE MINUTE VERSION RIGHT
NOW, THAT WOULD BE HELPFUL. ONE
OF THE GRAPHICS THAT WE HAVE IN
THE REPORT, SHOWED AN EXAMPLE.
DEPUTY COMMISSIONER HIRING
PROCESS, WHERE WE NOTED
SIGNIFICANT DELAYS JUST IN THE
BACK AND FORTH BETWEEN LABOR
COMMISSIONER STAFF AND DER HUMAN
RESOURCES STAFF, WHERE THEY WERE
JUST TRYING TO GET THE JOB
ANNOUNCEMENT POSTED VERSUS OKAY,
NOW WE HAVE SUBMITTED THE
INTERVIEW QUESTIONS TO DER, HR,
AND YOU GOT TO GET APPROVAL FROM
HR AND WHAT THE INTERVIEW
QUESTIONS ARE. AND SO ALL THOSE
DIFFERENT STEPS OF THE PROCESS
ADD TIME. BUT I THINK ONE OF THE
MAJOR REASONS THAT WE FOUND, FOR
THE LENGTHY PROCESS OF TAKING
SIX MONTHS IN THIS PARTICULAR
CASE IS AND CHRIS, YOU MAY BE
ABLE TO SPEAK MORE ARTICULATELY
THAN I CAN, IS THAT THERE'S BEEN
THIS PRACTICE TO HAVE THESE VERY
LARGE RECRUITMENT EFFORTS WHERE
YOU'RE HIRING FOR A SINGLE TYPE
OF POSITION ACROSS MULTIPLE
OFFICES. AND SO IN THAT KIND OF
SETUP, YOU GENERALLY WANT TO
HAVE THE SAME INTERVIEW PANEL
ASKING THE SAME QUESTIONS, GOING
THROUGH A NUMBER OF DIFFERENT
CANDIDATES WHO MAY HAVE APPLIED
MULTIPLE TIMES TO DIFFERENT
OFFICES. SO THAT'S AN INCREDIBLY
LONG PROCESS TO GET THROUGH. AND
WHEN YOU GET TO THE END OF IT
AND THEY'VE SCORED AND THEY'VE
RANKED WHO WHO'S THE HIGHEST
SCORING CANDIDATE AT WHAT
OFFICE, THE AE MAKES A
RECOMMENDATION TO DER SAYING,
HERE'S WHO I WANT TO HIRE. AND
WE FOUND IN SOME INSTANCES WHERE
DER SAID, WELL, THAT'S NICE, BUT
THEY'RE NOT QUALIFIED. THEY
DON'T MEET THE MINIMUM
QUALIFICATIONS. SO THAT SEEMED A
LITTLE BIT BACKWARDS TO US. SO,
CHRIS, DO YOU WANT TO TALK A
LITTLE BIT MORE ABOUT WHAT WE
FOUND IN THE HIRING PROCESS? CAN
I JUST INTERJECT A QUESTION? IS
THAT HAPPENING BOTH WAYS?
BECAUSE I'VE SEEN AGAIN IN MY
OWN EXPERIENCE AS A PUBLIC
OFFICIAL, I'VE SEEN TENSION
WHERE, YOU KNOW, HR WILL COME IN
AND SAY THE CANDIDATE THAT YOU
PREFER HER OR THAT YOU THINK IS
QUALIFIED ISN'T AFTER, YOU KNOW,
MUCH EXCITEMENT ABOUT GETTING
SOMEBODY HIRED, I'M JUST
WONDERING IF I HEARD WHAT YOU
JUST SAID WHERE THE DER IS
SAYING, HEY, WE DON'T THINK THE
PERSON IS QUALIFIED. I'M JUST
WONDERING IF IT HAPPENS THE
OTHER WAY AROUND AS WELL.
FREQUENTLY WHEN I TALK TO THAT.
YEAH, SURE, GOOD MORNING. FOR
THE RECORD, MY NAME IS CHRIS
PATEL. I'M A PRINCIPAL AUDITOR
WITH THE STATE AUDITOR'S OFFICE,
YEAH. WHAT WE SAW WAS THAT, THE
PROCESSES, ACCORDING TO DERS
PROCESS, IT'S SUPPOSED TO TAKE
ROUGHLY 12 WEEKS FROM BEGINNING
TO THE END. BUT IN REALITY, WHAT
WE'RE SEEING IS YOU HAVE THE HR
DEPARTMENT WITHIN THE
DEPARTMENT, AND THEN YOU HAVE
THE AE STAFF WHO ACTUALLY
CONDUCT THE INTERVIEWS AND
SELECT THE CANDIDATES. SO THERE
ARE MINIMUM QUALIFICATIONS THAT
EVERY, EVERY CANDIDATE MUST MEET
THE AE STAFF WHO CONDUCT THE
INTERVIEWS. ACTUALLY SOMETIMES
TRY TO DETERMINE WHETHER THEY
MEET THE MINIMUM QUALIFICATIONS,
BUT THEY'RE NOT THEY'RE NOT
REALLY LOOKING FOR THAT SAME IN
THE SAME WAY THAT THE HR STAFF
WOULD BE LOOKING AT. AND SO
OFTEN WHAT WE FOUND IS THAT THEY
WOULD GO THROUGH THE INTERVIEW
PROCESS, THEY WOULD IDENTIFY
SOMEBODY AND THEN THEY WOULD
FORWARD ALL THAT INFORMATION TO
THE DERS HR OFFICE, WHO WOULD
THEN CONDUCT ALL THE MINIMUM
QUALIFICATION REVIEWS ONLY TO
FIND THAT, WELL, THIS PERSON
DOESN'T QUITE MEET THE MINIMUM
REQUIREMENTS. AND BY THEN SO
MUCH TIME HAS PASSED THAT THEY
JUST DON'T HAVE ADDITIONAL TIME
TO GO TO THE NEXT CANDIDATE AND
TRY TO FIGURE OUT IF THEY MEET
THE MINIMUM QUALIFICATIONS. SO
IT'S OFTEN, THE AE STAFF WHO ARE
CONDUCTING THE INTERVIEWS ARE
NOT TRULY DOING THE MINIMUM
QUALIFICATIONS REVIEW. THAT'S
NOT THEIR FUNCTION, IT GOES TO
THE HR OFFICE LATER. WHO THEN
DETERMINES THAT, NO, THEY DON'T
MEET THE MINIMUM QUALIFICATIONS.
RIGHT. THANK YOU. LET ME LET ME
JUST MAKE A COMMENT AND ASK A
QUESTION. THEN I'LL BE DONE, MR.
CHAIR, BUT MY FIRST YEAR HERE,
FOR MY FIRST FULL YEAR HERE,
2021, I WAS A MEMBER OF SENATE
BUDGET SUBCOMMITTEE FIVE. AND, I
CAME IN IN KIND OF HOT, AS THEY
SAY, WANTING TO SEE IF WE COULD
SOLVE THIS ON THE ON THE
BUDGETARY SIDE IN WHAT I FELT
LIKE I LEARNED FROM THAT AND
ALSO FROM THIS AUDIT IS THAT'S
NOT NECESSARILY THE ISSUE THAT
THERE WERE PLENTY OF VACANT OPEN
POSITIONS THAT FUNDED VACANT
OPEN POSITIONS THAT REMAIN
UNFILLED AT THAT TIME, I SEE
YOU'RE NODDING YOUR HEAD, SO I
JUST WANTED TO MAKE SURE WHAT I
THOUGHT I LEARNED IN SENATE
SUBCOMMITTEE FIVE STILL STANDS
OR IS AFFIRMED BY THIS AUDIT.
YES. THANK YOU. THERE ARE PLENTY
OF VACANT POSITIONS RIGHT NOW
THAT HAVE TO BE FILLED BEFORE.
BEFORE THE, THE, THE. AND THAT
IS WHAT WE RECOMMEND IS THAT
FILL THOSE POSITIONS AND THEN
REQUEST ADDITIONAL POSITIONS AND
LASTLY, DO YOU FEEL THAT YOUR
RECOMMENDATIONS AT THIS POINT I
MEAN, RECOMMENDATIONS THAT
YOU'VE MADE TO DATE IN THIS
AUDIT REPORT WILL SOLVE THOSE
PROBLEMS? MEANING FILLING VACANT
FUNDED POSITIONS AND THEN MAKING
THE ACTUAL HIRING PROCESS. AND
WHATEVER THE TENSION IS BETWEEN
HR AND THE DEPARTMENT RESOLVED.
I MEAN, HOW CONFIDENT ARE YOU
THAT THESE THIS SET OF
RECOMMENDATIONS WILL DO THAT?
AND THAT'S NOT A JUDGMENT. I'M
JUST WONDERING IF YOU FEEL THIS
IS STEP ONE OF WHAT NEEDS TO BE
DONE OR IS THIS I THINK THIS IS
STEP ONE OF WHAT NEEDS TO BE
DONE, WHEN WE HAVE SOME GRAPHICS
IN THE REPORT WHERE WE TALK
ABOUT, YOU KNOW, WHAT'S THE
INFLOW OF CASES, REGARDLESS OF
BACKLOG, WHAT'S THE OUTFLOW OF
CASES? AND WE LOOKED AT THAT
OVER A SIX YEAR PERIOD. I THINK
IN FIVE OF THOSE SIX YEARS, THE
INFLOW OF CASES JUST ALONE WAS
BIGGER THAN THE AMOUNT THAT WAS
BEING CLOSED. SO THE BACKLOG,
EVEN THOUGH YOU PUT IT TO THE
SIDE, IT'S JUST ADDING TO THE
BACKLOG YEAR AFTER YEAR. SO THAT
ALREADY TELLS ME THAT THE NUMBER
OF POSITIONS THAT THEY HAVE
ISN'T SUFFICIENT TO JUST EVEN
TREAD WATER. SO TO SPEAK. AND
THE BACKLOG AT THIS POINT IS
ROUGHLY DOUBLE. I BELIEVE WHAT
THEY CLOSE IN A GIVEN YEAR. AND
SO THAT'S WHY WE WENT THROUGH
THE WHOLE ESTIMATION PROCESS OF
JUST TAKE THEIR ASSUMPTIONS
ABOUT HOW LONG IT TAKES TO
PROCESS A CASE AT A GIVEN STAGE
OF THE WAGE CLAIM PROCESS. WHAT
DOES THAT MEAN IN TERMS OF MAN
HOURS? YEAH, YOU MIGHT BE ABLE
TO SPREAD IT OVER MULTIPLE
YEARS, BUT WHAT'S THE MAGNITUDE
OF THE BODIES THAT WE NEED? AND
IT'S WELL, MORE THAN THE
AUTHORIZED POSITIONS THAT THE
AGENCY CURRENTLY HAS. AND SO I
THINK THE ANSWER TO YOUR
QUESTION IS THAT LABOR
COMMISSIONER CLEARLY NEEDS TO
START FILLING THE VACANT
POSITIONS THAT IT HAS. I'M LESS
CONFIDENT THAT IF IT DOES SO
THAT THAT ALONE IS GOING TO BE
ABLE TO ADDRESS THE BACKLOG THAT
CURRENTLY EXISTS. I THANK YOU,
AND I WOULD AGREE WITH THAT
BASED ON WHAT I'VE SEEN. I MEAN,
OBVIOUSLY THIS HAS BEEN GOING ON
FAR TOO LONG. OBVIOUSLY, ASIDE
FROM BEING JUDGMENTAL ABOUT
FAULT OR WHERE IT'S BEEN COMING
FROM, YOU KNOW, DESPITE MY
QUESTIONS ABOUT TENSION THERE,
THE MOST IMPORTANT THING ON
OBVIOUSLY, ON BEHALF OF
CALIFORNIA'S WORKFORCE IS THAT
WE RESOLVE THIS YESTERDAY, BUT,
I, I WILL SAY THAT IN ADDITION
TO WHAT WE'VE HEARD TODAY, I
BELIEVE ESPECIALLY WHEN YOU GET
INTO IMMIGRANT COMMUNITIES AND,
YOU KNOW, SOME OF THEM BEING
UNDOCUMENTED COMMUNITIES OUT
THERE, BASED ON ON HEARINGS THAT
I'VE CONDUCTED MYSELF WITH, WITH
COLLEAGUES, THAT THERE'S A
RETALIATION ELEMENT OUT THERE
THAT'S IN EFFECT, CUTTING DOWN
THE NUMBER OF, OF CLAIMS THAT
WOULD BE FOLLOWED UP ON. SO TO
ME, THE BACKLOG WOULD ACTUALLY
BE EVEN GREATER. AND I THINK
THIS IS IN SOME SENSE AGREEING
WITH WHAT YOU JUST SAID. MR.
AUDITOR, BUT THE BACKLOG WOULD
BE EVEN GREATER IF THERE WERE
ENOUGH PERSONNEL, TO GO OUT AND
EITHER REVIVE OR KEEP ALIVE, YOU
KNOW, CLAIMS THAT ARE IN EFFECT,
BEING SHUT DOWN BY SHADY
EMPLOYERS WHO, YOU KNOW, ARE
THREATENING PEOPLE WITH ANY
NUMBER OF THINGS, INCLUDING
DEPORTATION TO MAKE THOSE GO
AWAY. THOSE ARE THINGS THAT WE
SHOULD BE RIGHT ON TOP OF. BUT
IF WE ARE RIGHT ON TOP OF THEM,
I GUESS I'M AGREEING WITH YOU
THAT THAT'S GOING TO INCREASE,
THE VOLUME OF CLAIMS EVEN MORE.
BUT THANK YOU VERY MUCH FOR YOUR
WORK. THANK YOU, MR. CHAIR.
THANK YOU. SENATOR CORTESE, ARE
THERE ANY OTHER QUESTIONS FOR
AUDITOR PERKS? SENATOR SMALLWOOD
RIVAS. THANK YOU, MR. CHAIR, AND
THANK YOU FOR THAT. THAT
THOROUGH, OVERVIEW. I WAS JUST
REFLECTING ON ONE THING THAT
JUST STRUCK ME WAS JUST THE
INCREASE IN CLAIMS THAT ARE
COMING IN. THAT'S GOOD NEWS FOR
THE STATE OF CALIFORNIA. NHÀ.
AND I JUST WANT TO SAY IN SOME
WAYS, WE'RE A VICTIM OF OUR OWN
SUCCESS HERE, RIGHT, AND, YOU
KNOW, FOR ME, WHAT I'M NOT
HEARING IS WHAT WERE SOME OF THE
KEY RECOMMENDATIONS THAT HAVE
COME OUT OF THE AUDIT THAT CAN
HELP REALLY DEVELOP WHAT IS THE
FORMULA? SO IF YOU'RE GOING FROM
800 TO 47,000 CASES, I CAN'T
REMEMBER ONE OF THE STATISTICS.
IT WAS SO DRAMATIC. WHAT IS THE
FORMULA. BECAUSE CLEARLY THERE
HAS TO BE SOME SCALE ON THE
INFRASTRUCTURE SIDE. YOU KNOW,
IT'S ALMOST LIKE SETTING A
MINIMUM WAGE, BUT NOT TYING IT
TO INFLATION. RIGHT. IT DOESN'T
HELP YOU. RIGHT? YOU GOT TO GROW
WITH WITH WITH THE WITH THE
OPPORTUNITY THAT, THAT FOLKS
NEED TO FILL THE GAP. SO I'M
CURIOUS IN YOUR AND I'M THIS IS
MY FIRST TIME SORT OF HEARING
THE DETAILS OF YOUR WORK, THANK
YOU FOR INVITING ME TO THE JOINT
AUDIT COMMITTEE, BUT ARE THERE
RECOMMENDATIONS? AND I'M
THINKING THAT ARE REALLY ABOUT
AND I'M UNDERSTANDING SORT OF
THE, THE QUALITATIVE PIECE OF
THIS, BUT QUANTITATIVELY HOW HOW
WOULD YOU RECOMMEND AND A
FORMULA CREATED BE CREATED FOR
THE STATE TO THINK ABOUT AS WE
GROW AND WE SHOULD BE GROWING
MORE? WE HOPE THAT THESE WILL BE
EVEN HIGHER NEXT YEAR IN TERMS
OF THE NUMBER OF CASES THAT ARE
COMING IN, PARTICULARLY IN
PLACES LIKE SAN BERNARDINO. I
MEAN, THAT IS REMARKABLE. SO I'M
JUST CURIOUS, WHAT FORMULAS DO
YOU HAVE FOR US AS POLICY MAKERS
TO THINK ABOUT? WELL, IF WE'RE
INCREASING 200, 400% IN THE
NUMBER OF CLAIMS, THEN WHAT DOES
THAT LOOK LIKE ON THE OTHER
SIDE, I JUST THINK ABOUT GROWTH
AND PROJECTION AND FORECASTS AND
HOW POLICYMAKERS WE NEED TO BE
THINKING ABOUT THIS. THAT'S JUST
ONE OVERALL SORT OF QUESTION,
THAT THAT CAME TO MY MIND, AND I
ALSO WANTED TO FOLLOW UP ON, THE
STAFFING, I WANT TO KNOW MORE
ABOUT YOUR RECOMMENDATIONS AND
MAYBE HOW YOU'RE SORT OF
TRACKING, NOT CONTINUING TO
AUDIT, BUT TRACKING THIS. BUT IS
THERE A WAY IN WHICH THERE'S A
TRACKING OF THE COLLABORATION?
AND I UNDERSTAND THERE'S A DEAR
HR DEPARTMENT, BUT I'M ASSUMING
IT'S CONNECTED TO CAL HR IN SOME
WAY. AND IN CORRECT ME IF I'M IF
I'M MISTAKEN ABOUT THAT. BUT
WHAT IS THE COLLABORATION THAT'S
HAPPENING TO REALLY, DIVERSIFY,
THE WAYS IN WHICH FOLKS ARE
COMING TO THE JOB. YOU'RE
BECAUSE YOU MENTIONED, CRITERIA,
QUALIFICATIONS. AND, YOU KNOW, I
REMEMBER BEING IN DOING
COMMUNITY BASED WORKFORCE
DEVELOPMENT, AND THEY WOULD HAVE
A TERM LIKE A CLERK TYPIST, LIKE
WHAT IS THAT? AND WHO IS
ACTUALLY BEING TRAINED FOR
SOMETHING LIKE THAT IN TODAY'S,
YOU KNOW, LABOR MARKET. RIGHT.
SO THERE'S SOMETHING ABOUT
QUALIFICATIONS AND, AND TITLES
AND IN ADDITION TO JUST WHAT WE
PAY THEM SO THAT THEY'RE
COMPETITIVE. BUT I GUESS MY
QUESTION IS WHAT LEVEL OF DEEP
COLLABORATION IS HAPPENING,
BECAUSE IT'S NOT JUST MY SENSE
IS PROBABLY IT'S NOT JUST THAT
PEOPLE AREN'T MEETING THE BASIC
QUALIFICATIONS. THE
QUALIFICATIONS ARE SORT OF OUT
OF STEP WITH ONE THE NEEDS AND
TWO WHERE THE WHERE THE MARKET
IS IN TERMS OF PEOPLE'S SKILL
SETS AND, AND WHAT JOBS, EVEN IN
THE WAY THAT WE DESCRIBE THEM,
PEOPLE MAY FEEL THAT THEY ARE
QUALIFIED FOR OR NOT QUALIFIED
FOR. SO, WHAT ARE THE
RECOMMENDATIONS THAT HAVE BEEN
LAID OUT AROUND THIS
COLLABORATION? WHAT ROLE DOES
CAL HR PLAY IN THIS VERSUS DER
PLAY IN THIS? AND AGAIN, HOW HOW
DO YOUR SKILL SETS HELP US TO
THINK ABOUT WAYS TO FORMULATE A
FORECAST FOR ENSURING THAT WE'RE
KEEPING UP WITH THE GROWTH AND
SCALE, OF THE WAGE THEFT. AND
THEN I'LL COME TO MY NEXT
QUESTIONS. SO I THINK YOUR YOUR
QUESTION RAISES A NUMBER OF
THINGS THAT COME TO MIND. AND I
THINK IT MIGHT GET TOUCHED ON BY
THE LABOR COMMISSIONER DURING
THEIR PRESENTATION, OUR
UNDERSTANDING DURING THE AUDIT
IS THEY'RE CURRENTLY GOING
THROUGH A PROCESS WHERE THEY'RE
LOOKING AT THE CLASSIFICATION
AND THE JOB SPECS FOR EACH OF
THEIR POSITIONS TO MAKE SURE
THAT THEY ARE APPROPRIATELY
DEFINING WHAT THEIR WORKERS ARE
SUPPOSED TO BE DOING, WHAT LEVEL
OF KNOWLEDGE, SKILLS AND
ABILITIES ARE REQUIRED TO DO
THAT JOB. SO I THINK I THINK
THERE'S A RECOGNITION BY THE
LABOR COMMISSIONER THAT THEY
NEED TO TAKE A SECOND LOOK AT
THAT. IT'S IMPORTANT BECAUSE
THAT FEEDS DIRECTLY INTO WHAT I
TALKED ABOUT. JUST RECENTLY.
IT'S THOSE MINIMUM
QUALIFICATIONS THAT DRIVE
WHETHER OR NOT YOU CAN FILL A
POSITION IN STATE GOVERNMENT.
AND WE'VE SEEN WHERE DER HAS
TOLD THE LABOR COMMISSIONER
STAFF WHERE, HEY, I KNOW YOU
WANT TO HIRE THIS PERSON AND YOU
THINK THEY'RE GREAT, BUT THEY'RE
NOT MEETING THE MINIMUM
QUALIFICATIONS. AND IT RAISES A
QUESTION, WELL, ARE OUR MINIMUM
QUALIFICATIONS SET AT THE RIGHT
SPOT? SO TO THE LABOR
COMMISSIONER'S CREDIT, THEY'RE
GOING THROUGH A PROCESS. NOW,
OUR UNDERSTANDING TO EXAMINE
WHAT SHOULD THOSE LABOR JOB
CLASSIFICATIONS WHAT SHOULD THEY
ENTAIL AND WHAT SHOULD THOSE
MINIMUM REQUIREMENTS BE? TO GET
TO YOUR QUESTION, THOUGH, ABOUT
HOW DO WE HANDLE THE INCREASE OF
400 CLAIMS OR 400 DAYS TO 800
DAYS, THAT REALLY SPEAKS TO
WORKLOAD METRICS. AND I THINK
AGENCIES ARE RESPONSIBLE FOR
MANAGING THEIR STAFF AND SETTING
EXPECTATIONS FOR HOW MUCH WORK
SHOULD YOU BE EXPECTED TO HAVE
YOUR STAFF COMPLETE? TO BE ABLE
TO MEET THE DEMAND THAT'S ON
YOUR OFFICE, I BELIEVE DURING
THE AUDIT, CHRIS, YOU MAY BE
ABLE TO SPEAK MORE TO THIS, WE
SAW THAT THERE WERE EXPECTATIONS
FOR LABOR COMMISSIONER STAFF
WHERE THEY WERE SUPPOSED TO HAVE
WHETHER IT WAS 40 TO 50 HEARINGS
IN A MONTH OR 40 TO 50
SETTLEMENT CONFERENCES IN A
MONTH. THAT NEEDS TO BE PART OF
THE FORECASTING AND THE ANALYSIS
THAT THE LABOR COMMISSIONER'S
OFFICE GOES TO, BECAUSE WHAT
THIS FUNDAMENTALLY ALL GETS TO
IS THE LABOR COMMISSIONER NEEDS
TO UNDERSTAND HOW MANY PEOPLE DO
WE REALLY NEED TO SOLVE THE
PROBLEM. AND IMPLICIT IN THAT IS
UNDERSTANDING WHAT ARE OUR
EXPECTATIONS FOR HOW MUCH WORK A
GIVEN EMPLOYEE SHOULD DO? WHAT
ARE THE QUALIFICATIONS THAT
EMPLOYEE NEEDS TO HAVE, AND WHAT
SALARIES DO WE NEED TO BE
SETTING TO MAKE SURE THAT WE'RE
HAVING THOSE PEOPLE? WE CAN NOT
ONLY ATTRACT THEM, THAT WE CAN
RETAIN THEM IN THE JOBS THAT
WE'RE HIRING FOR. SO I THINK
THOSE ARE THE THREE MAIN ISSUES
THAT WE TALK BROADLY IN OUR
RECOMMENDATIONS, BUT IT'S
PRIMARILY A STAFFING QUESTION
AND IT'S PRIMARILY A MANAGEMENT
QUESTION. AND IT'S REALLY
SPECIFIC TO THE LABOR
COMMISSIONER AND THE ROLE. AND I
GUESS I'M THINKING PRIMARILY YOU
HAVE A VIEW THAT'S DIFFERENT.
YOU'RE AS AN AUDITOR. MY SENSE
IS THAT YOU ARE AGGREGATING AND
YOU'RE LOOKING AT THIS AT A
DIFFERENT LEVEL. SO I GUESS I'M
GOING TO PUT IT BACK TO YOU
AGAIN. MY QUESTION, IS WHAT IS
THE RECOMMENDATION FROM YOUR
AUDIT TO HELP US AS POLICYMAKERS
THINK ABOUT WHAT THE FORECAST
LOOKS LIKE, DEPENDING ON THE
QUANTITATIVE DATA THAT YOU HAVE.
SO THAT'S AND I UNDERSTAND THE
LABOR COMMISSIONERS. BUT BUT YOU
YOU'RE THE MATHEMATICIAN HERE.
AND I'M HOPING THAT THIS IS WHAT
I'M ASKING IS HOW DO WE THINK
ABOUT HOW WE FORMULATE BUDGETING
WHEN WE HAVE AN OFFICE THAT IS
GROWING? AND I WASN'T TALKING
ABOUT THE NUMBER OF DAYS I WAS
REFERRING TO, GOING FROM 869
CLAIMS TO 5000 IN SAN BERNARDINO
COUNTY. I WAS REFERRING TO GOING
FROM 22,000 TO 47,000. THESE ARE
TREMENDOUS. SO THERE'S
TREMENDOUS IN WHATEVER IS
HAPPENING BECAUSE WE HAVE FEWER
CLAIMS. WE'VE INVESTED IN REALLY
ENGAGING AND EDUCATING AND
TRAINING, AND CLEARLY WE NEED TO
DO MORE OF THAT. BUT WHATEVER WE
HAVE BEEN DOING IS WORKING. AND
MY QUESTION IS IF THERE'S A
FORMULA FOR HOW WE'RE GROWING,
WHAT DOES THAT LOOK LIKE MOVING
FORWARD AS WE CONTINUE AND
HOPEFULLY WE WILL BRING THAT
STAFF THAT WILL HELP US DO MORE
THAN TREAD WATER. HOW DO WE
THINK ABOUT FORMULATING A BUDGET
THAT ADDRESSED THE GROWTH AND
THE SUCCESS OF THE WORK THAT IS
MOVING? SO THAT THAT WAS REALLY
WHAT MY QUESTION WAS AS AN
AUDITOR, DO YOU HAVE
RECOMMENDATIONS ON THAT DURING
THE AUDIT, WE DID NOT DO TIME
STUDIES. FOR EXAMPLE, OF LABOR
COMMISSIONER STAFF ABOUT HOW
MUCH TIME DID IT ACTUALLY TAKE
TO COMPLETE A CLAIM, IN YOUR SAN
BERNARDINO EXAMPLE, AGAIN,
FUNDAMENTALLY, AS MORE AND MORE
CLAIMS COME IN, AS MORE AND MORE
WORK COMES IN BY DEFINITION,
IT'S GOING TO REQUIRE MORE
PEOPLE TO ADJUDICATE THOSE
CLAIMS, HOW MANY PEOPLE THAT'S
GOING TO REQUIRE WE DID NOT COME
UP WITH A SPECIFIC FORMULA TO
IDENTIFY WHAT THOSE NUMBERS ARE,
WHAT WE DID RECOMMEND TO THE
LABOR COMMISSIONER IS THAT THEY
NEED TO COME UP WITH THAT NUMBER
THEMSELVES, AS THEY'RE MANAGING
THE, THE, THE PROGRAM, AND A BIG
PART OF THAT INPUT IS
UNDERSTANDING AND SETTING
EXPECTATIONS FOR AS YOU'RE
TALKING TO YOUR STAFF AND YOU'RE
DEALING WITH INDIVIDUALS THAT
ARE DEALING WITH 700 CLAIMS THAT
THEY'RE MANAGING AT A TIME, OR
300 CLAIMS THAT THEY'RE MANAGING
AT A TIME. WHAT IS A REASONABLE
EXPECTATION THAT THE LABOR
COMMISSIONER WANTS TO PUT ON HER
STAFF FOR WHAT IS A REASONABLE
WORKLOAD? YOU CAN'T STRETCH YOUR
WORKERS TOO THIN. AND SO OUR
RECOMMENDATION TO THE LABOR
COMMISSIONER IS TO EXPLORE THOSE
ISSUES AND DETERMINE WHAT IS THE
REASONABLE AMOUNT OF WORKLOAD
THAT THEY SHOULD BE EMPLOYED
PUTTING ON THEIR STAFF, BECAUSE
THE MORE WORKLOAD YOU PUT ON
YOUR STAFF, THE MORE AT RISK YOU
ARE THAT YOU'RE GOING TO HAVE
PEOPLE THAT LEAVE THE
ORGANIZATION, AND IT'S GOING TO
CONTINUE TO BE DIFFICULT TO BOTH
HIRE AND RETAIN INDIVIDUALS AND
I'M APPRECIATING THAT. AND, YOU
KNOW, AS I SAY, THIS IS MY FIRST
TIME IN THE JOINT AUDIT. AND MY
EXPECTATION WAS THAT THERE WOULD
BE MORE SOLUTIONS. ÓRDENES, WE
CLEARLY UNDERSTAND THE PROBLEM,
BUT WHAT I'M NOT SEEING ARE
THOROUGH, QUALITATIVE AND
QUANTITATIVE SOLUTIONS THAT CAN
HELP ME AS A POLICY MAKER
UNDERSTAND THIS AT A, AT A
BUDGETING AND A MACRO LEVEL,
WHICH CLEARLY YOU'RE POINTING
TO, THIS IS THE NEED. HOW DO WE
GET TO WAS IT SOME, YOU KNOW,
JUST THE 900 STAFF. IF WE WERE
TO DO THIS, THE RIGHT WAY, TO BE
ABLE TO HOLD THE LINE ON WHERE
WE ARE AND NOT ACTUALLY GROW. SO
I, I'M, I'M APPRECIATING THE
DATA. WHAT I'M NOT APPRECIATING
IS THAT I DON'T HEAR ANY, REAL
ANALYSIS AND SOLUTIONS ROOTED IN
THE NUMBERS TO HELP US FIGURE
OUT THIS PROBLEM. AND I'M
CERTAINLY SURE THAT WE WILL WORK
AND CLOSELY WITH THE LABOR
COMMISSIONER, BUT IT WOULD BE
HELPFUL FROM AN AUDITING
STANDPOINT TO HAVE A LITTLE BIT
MORE DIRECTION FOR THE
LEGISLATORS IN TERMS OF HOW DO
WE ACTUALLY ADDRESS THIS PROBLEM
AND PREPARE FOR THE CONTINUED
GROWTH IN THIS SPACE, WHICH IS
ADDING TO THE BACKLOG, MY OTHER
QUESTION AND I WILL, AND I'M
SURE WE'LL GET, I'M SURE, TO THE
HR CONVERSATION, BECAUSE I STILL
AM UNCLEAR HOW AND FOLLOWING UP
ON SENATOR CORTEZ'S POINT, I'M
UNCLEAR ABOUT HOW CAL HR AND DIR
HR. WORK TOGETHER. I'M ASSUMING
THIS IS A SHARED RESPONSIBILITY
IN WORKING WITH THE LABOR
COMMISSIONER'S OFFICE, ON THESE,
THESE POSITIONS. BUT I'M CURIOUS
, WHEN YOU. WHAT STEPS, HAVE
HAVE YOU LAID OUT THAT YOU THINK
IS SHOULD BE PRIORITIZED,
PARTICULARLY FOR LEGISLATORS
WHEN WE THINK ABOUT THE
ENFORCEMENT UNIT, AND THERE ARE
WAYS TO IMPROVE THE COLLECTION
RATE, I'M STILL UNCLEAR WHAT
WERE THE THINGS THAT YOU
IDENTIFIED? I UNDERSTAND THE
DELAY AND THE NUMBER OF STAFF,
MY COLLEAGUE FROM SAN JOSE
TALKED ABOUT RETALIATION. I
DIDN'T HEAR FROM YOU IN TERMS
OF, YOU KNOW, WHAT WAYS IN WHICH
, THE LABOR COMMISSIONER'S
EFFORTS ARE, DELAYED,
INTERRUPTED, INTERFERED WITH
WITH ISSUES LIKE RETALIATION,
WITH ISSUES LIKE NOT GETTING
ADEQUATE DOCUMENTS ON TIME FROM
EMPLOYERS, ISSUES LIKE, FEAR AND
HAVING TO WORK THROUGH THAT WITH
INDIVIDUAL WORKERS WHO YOU KNOW,
MAYBE HAVE FACED RETALIATION ARE
NOW, YOU KNOW, MAYBE WALKING
BACK FROM A CLAIM AND THEN
TRYING TO BRING THEM BACK TO THE
TABLE. I'M CURIOUS WHAT IN YOUR
AUDIT, IN YOUR CONVERSATIONS IS,
CAN POINT TO AGAIN, WHAT ARE THE
POLICY CHANGES THAT WE CAN MAKE
AS LEGISLATORS TO HELP ADDRESS,
THESE DELAYS BEYOND JUST THE
LABOR COMMISSIONER SORT OF DOING
A DEEP, STAFFING ASSESSMENT,
WHICH IS NECESSARY AND
IMPORTANT. I'M NOT SAYING THAT
IT'S NOT, BUT I AM ALSO TRYING
TO UNDERSTAND WHAT ARE THE OTHER
SUBSTANTIVE WAYS THAT WE CAN
BRING ABOUT SOLUTIONS. AND I
DIDN'T HEAR THAT IN YOUR, REVIEW
. YOU ONE OF THE THINGS WE
RECOMMEND IN THE AUDIT REPORT IS
POTENTIALLY EXPANDING TOOLS
AVAILABLE TO THE LABOR
COMMISSIONER, WHERE PERHAPS
THEY'D BE ABLE TO IMPOSE LIENS
ON, ON EMPLOYERS BEFORE A
JUDGMENT IS ACTUALLY IMPOSED ON
THE EMPLOYER, SIMILAR TO WHAT WE
SEE WITH MECHANIC LIENS. WHEN WE
WERE DOING OUR SAMPLE OF 50,
CLAIMS THAT WERE REFERRED TO THE
ADJUDICATION UNIT, I BELIEVE A
SUBPART OF THAT SAMPLE SIX OR SO
INVOLVED MECHANIC'S LIENS AND
THE RECOVERY RATE FOR THOSE
MECHANIC LIENS WERE MARKEDLY
HIGHER, WHERE I BELIEVE FOUR OUT
OF THE SIX, OR MAYBE IT WAS FIVE
OUT OF THE SIX. I FORGET THE
NUMBER PRECISELY WHERE IT WAS
PRETTY CLOSE TO 100% COLLECTION
ON THOSE CASES. AND THAT'S
BECAUSE THE LIEN WAS ABLE TO BE
ESTABLISHED UP FRONT DURING
DURING THE CLAIM CYCLE, ANOTHER
POLICY AREA THAT I KNOW IS
PROBABLY GOING TO BE VERY
IMPORTANT MOVING FORWARD IS
MAKING SURE THAT WHEN YOU DO GET
TO THE JUDGMENT PHASE, IT'S NOT
JUST THE NAME OF THE COMPANY
THAT WE'RE DEALING WITH. YOU
NEED TO KNOW THE PEOPLE BEHIND
THE COMPANY. YOU NEED TO KNOW
WHO YOU'RE GOING AFTER FOR THOSE
ASSETS. AND SO WE TALKED TO
VARIOUS INDIVIDUALS IN THE IN
THE ENFORCEMENT UNIT, AND THEY
INDICATED IT WAS PROBLEMATIC TO
OBTAIN ASSETS ON BEHALF OF
WORKERS BECAUSE THEY DIDN'T
ALWAYS KNOW WHO TO GO AFTER. WHO
WERE THOSE INDIVIDUALS BEHIND
THOSE COMPANIES. SO DURING THE
CLAIM PROCESS AND THE
ADJUDICATION PROCESS UP FRONT,
MAKING MORE OF AN EFFORT TO
IDENTIFY WHO ARE THOSE ACTUAL
INDIVIDUALS BEHIND THOSE
COMPANIES SO THAT YOU KNOW,
WHO'S ASSETS TO TARGET WHEN YOU
ACTUALLY DO GET TO THE TO THE
COLLECTION PHASE. CHRIS, I DON'T
KNOW IF YOU HAD MORE THAT YOU
WANTED TO COMMENT ON, YEAH. NO,
I AGREE WITH EVERYTHING THAT THE
STATE AUDITOR SAID, BUT IN TERMS
OF YOUR QUESTION REGARDING
WHETHER WE SAW ANYTHING DURING
THE ADJUDICATION PROCESS,
WHETHER EMPLOYERS WERE GETTING
IN THE WAY OF PROVIDING
DOCUMENTS OR ANYTHING LIKE THAT,
WE CERTAINLY ANECDOTALLY HEARD
THAT THAT THAT CAN TAKE SOME
TIME. HOWEVER, IN OUR REVIEW OF
50 CLAIMS, THAT IS NOT WHAT
STOOD OUT. WHAT STOOD OUT WAS
JUST THE DELAYS IN IN ASSIGNING
THE CASES TO THE RIGHT PEOPLE
OR, ASSIGNING A CASE TO A DEPUTY
COMMISSIONER WHO, BEFORE THEY
EVEN GOT TO DOING ANYTHING ON
IT, LEFT THE JOB. AND THEN IT
SAT THERE UNTIL IT GOT
REASSIGNED TO SOMEBODY ELSE.
THAT WAS WHAT WAS CAUSING
MAJORITY OF THE DELAYS. SO WE
DIDN'T COME ACROSS ANYTHING THAT
YOU WERE POINTING OUT, WHICH IS,
YOU KNOW, ANY INTIMIDATION OR
ANYTHING LIKE THAT. WELL, HAVING
DEFENDED WORKERS ON WAGE CLAIMS,
I WANT TO TELL YOU THAT IS A
MAJOR PROBLEM. SO I'M SHOCKED,
QUITE HONESTLY, TO HEAR THAT IT
MAKES ME REALLY QUESTION, YOU
KNOW, IT'S ALWAYS LIKE POLLING.
WHO ARE THEY POLLING? I OFTEN
WONDER, BUT I APPRECIATE THAT,
ASSESSMENT AND, YOU KNOW, I, AND
I APPRECIATE SOME OF THE, THOSE
FINDINGS AND I DON'T KNOW IF
THAT CAN BE AGGREGATED IN SOME
SORT OF REPORT BECAUSE I WAS
JUST THUMBING THROUGH YOUR
REPORT AND I DIDN'T SEE SOME OF
THOSE, OTHER BARRIERS THAT FEED
INTO DELAY. I THINK, YOU KNOW,
IT'S NOT JUST ONE THING OR
ANOTHER. IT'S A CUMULATIVE RIGHT
OF ALL OF THESE THINGS THAT HELP
TO DELAY THE CASES. AND, YOU
KNOW, I WANT TO CONCLUDE BECAUSE
I KNOW I'M TAKING A LOT OF TIME
HERE, BUT I, I WANT TO JUST MAKE
A POINT ABOUT, THE BUDGETING AND
FORECAST. AND I DON'T KNOW IF
THAT'S SOMETHING THAT YOU DO
WHEN YOU'RE AUDITING IN TERMS OF
HELPING, LAWMAKERS THINK ABOUT
WAYS TO THINK ABOUT HOW DO WE
SCALE FOR, ADDRESSING GROWTH AND
NEED IN PARTICULAR AREAS, BUT I
WAS JUST LOOKING AT WHAT WE
SPENT ON LAW ENFORCEMENT, AND,
YOU KNOW, WE SPENT ABOUT $14
BILLION ON OUR CDCR AND WE SPENT
ANOTHER $20 BILLION ON FUNDING
POLICE. THAT'S LAW ENFORCEMENT.
AND I WANT TO SAY WHAT WE SPEND
ON LAW ENFORCEMENT TO POLICE OUR
WORKSITES TO BRING DOLLARS BACK
INTO OUR ECONOMY IS A FRACTION
OF THAT. SO WE NEED TO
UNDERSTAND. AND IN THE FIFTH
LARGEST ECONOMY, WHAT IS THE
FIFTH LARGEST ENFORCEMENT AGENCY
IN THE WORLD THAT CAN HELP TO
POLICE THESE JOB SITES AND, AND
YOUR ANALYSIS AND, AND HELP IN
TRYING TO QUANTIFY THAT WOULD BE
TREMENDOUSLY HELPFUL. THANK YOU.
THANK YOU. SENATOR SMALLWOOD.
ARE THERE ANY OTHER QUESTIONS
FOR AUDITOR PARKS? I THINK WE'LL
MOVE ON TO THE NEXT PANEL. THEN
WE HAVE REPRESENTATIVES FROM THE
DEPARTMENT OF INDUSTRIAL
RELATIONS, DIRECTOR HAGAN AND
LABOR COMMISSIONER GARCIA BRAUER
. THANK YOU. GOOD MORNING,
COMMITTEE CHAIRS AND MEMBERS FOR
INVITING US TODAY TO DISCUSS HOW
THE DEPARTMENT OF INDUSTRIAL
RELATIONS AND THE LABOR
COMMISSIONER'S OFFICE ARE
WORKING TO IMPROVE THE WAGE
CLAIM ADJUDICATION PROCESS TO
HELP PROVIDE SOME CONTEXT, THE
LABOR COMMISSIONER'S OFFICE,
ALSO KNOWN AS AE, IS A DIVISION
OF THE DEPARTMENT OF INDUSTRIAL
RELATIONS. WE ARE ALSO THE
DEPARTMENT HOME OF CAL OSHA, THE
DIVISION OF WORKERS COMPENSATION
AND DIVISION OF APPRENTICESHIP
STANDARDS. DUR IS A PARTNER TO
AE SUPPORTING THEM SO THEY CAN
CARRY OUT THEIR VITAL OUTREACH
AND ENFORCEMENT WORK FROM
HELPING SCALE RECRUITMENT AND
HIRING EFFORTS, EVALUATING
AUTOMATION AND BUSINESS PROCESS
NEEDS, FINDING ADDITIONAL OFFICE
SPACE AND RURAL AREAS TO BETTER
SERVE VULNERABLE WORKERS. TO
PARTNERING ON STRATEGIES TO HIRE
MORE BILINGUAL TEAM MEMBERS AND
BOLSTERING TRAINING
OPPORTUNITIES FOR AE STAFF.
DURING MY TENURE AT DUR, WHICH
BEGAN THE DAY OF THE STAY AT
HOME ORDER IN MARCH 2020, IT HAS
BEEN MY PRIORITY TO LAY OUT
NEEDED ADMINISTRATIVE POLICY AND
AUTOMATION INFRASTRUCTURE THAT
THIS DEPARTMENT LACKED. YOU MAY
RECALL DUR LOST ITS HIRING
DELEGATION IN 2019, IN PART DUE
TO INSUFFICIENT POLICIES AND
FAILING TO ALIGN WITH MERIT
BASED HIRING REQUIREMENTS. THIS
VITAL INFRASTRUCTURE SUPPORTS
THE DEPARTMENT'S CORE MISSION TO
PROTECT THE HEALTH, SAFETY AND
ECONOMIC WELL-BEING OF OUR
WORKERS THROUGHOUT CALIFORNIA'S
ROBUST LABOR LAWS. I'M GLAD TO
SAY THAT SINCE THOSE EARLY DAYS
OF THE PANDEMIC, OUR FOCUS ON
BUILDING CAPACITY HAS PUT US IN
A BETTER POSITION TO ADDRESS THE
CHALLENGES MENTIONED IN THE
AUDITOR'S REPORT, AS WELL AS
OTHER OPERATIONAL NEEDS AE HAS
IDENTIFIED TO BETTER SERVE
WORKERS. TO START, THE
DEPARTMENT HAS NOT ONLY
DEDICATED A UNIT TO SUPPORT THE
LABOR COMMISSIONER'S HIRING
EFFORTS, AE HAS ESTABLISHED ITS
OWN ADMINISTRATIVE TEAM. BOTH
HAVE DOUBLED IN SIZE OVER THE
LAST YEAR. THESE RESOURCES
MANAGE THE LARGE VOLUME OF
RECRUITMENTS REQUIRED TO REDUCE
THE VACANCY RATE IN BOTH HR AND
AE. I'M HAPPY TO REPORT TO YOU
ALL THAT IN THIS IS RESULTING IN
MORE HIRES AE HAS REDUCED THE
WAGE UNIT'S VACANCY RATE BY 10%
OVER THE LAST SEVERAL MONTHS,
MEANING TODAY THERE ARE 30 MORE
TEAM MEMBERS HELPING PROCESS,
HEAR AND SETTLE CLAIMS. WE ARE
REEVALUATING THE MINIMUM
QUALIFICATIONS FOR OUR. THE
LABOR COMMISSIONER'S OFFICE.
INDUSTRIAL RELATIONS REPRESENTS
LIVE AND THE DEPUTY LABOR
COMMISSIONER CLASSIFICATION
ZONES TO HELP EXPAND THE
CANDIDATE POOL AND PROVIDE
PATHWAYS THAT ARE MORE INCLUSIVE
TO A MORE DIVERSE RANGE OF
EDUCATION AND WORK EXPERIENCE.
WE'VE LAUNCHED A NATIONWIDE
RECRUITMENT CAMPAIGN,
SPECIFICALLY FOCUSED ON
ENFORCEMENT ROLES, UTILIZING
DIGITAL AND OUT OF HOME ADS, AS
WELL AS COMMUNITY OUTREACH TO
AMPLIFY OPEN CAREER
OPPORTUNITIES. THIS HAS RESULTED
RESULTED IN A SIGNIFICANT
INCREASE IN APPLICANTS SO FAR.
PRIOR TO THE CAMPAIGN IN LAUNCH,
AE RECEIVED AROUND 50
APPLICATIONS FOR DEPUTY LABOR
COMMISSIONER, ONE IN APRIL AND
MAY. THE DIVISION AVERAGED 270
APPLICATIONS EACH MONTH. THESE
INITIATIVES ARE ONLY A SNAPSHOT
OF THE EFFORTS UNDERWAY TO
IMPROVE THIS PROCESS AND
HOPEFULLY ILLUSTRATE THE
MULTIFACETED APPROACH THAT WE
HAVE UNDERWAY TO BETTER SERVE
CALIFORNIA WORKERS. I WOULD ALSO
LIKE TO TAKE A MOMENT TO THANK
THE DEDICATED AE TEAM FOR THEIR
HARD WORK AND PROFESSIONALISM.
THESE TEAM MEMBERS HELP
CALIFORNIA WORKERS EVERY DAY AND
I APPRECIATE THEM AND I AM PROUD
OF THEM. WITH THAT, I'D LIKE TO
PASS IT TO LABOR COMMISSIONER
LILIA GARCIA. GOOD AFTERNOON.
THANK YOU, MR. CHAIR. MEMBERS OF
THE COMMITTEE, THANK YOU FOR
HAVING ME HERE TODAY TO PROVIDE
AN UPDATE OF THE WORK WE HAVE
CONTINUED TO DO SINCE THE MARCH
HEARING TO ADDRESS THE BACKLOG
IN OUR WAGE CLAIMS, MUCH OF
WHICH ALIGNS WITH THE AUDITOR'S
RECOMMENDATIONS. I WANT TO THANK
THE ASSEMBLY MEMBERS AND
SENATORS WHO TOOK THE TIME TO
MEET WITH ME INDIVIDUALLY TO
DISCUSS THESE COMPLICATED ISSUES
IN DEPTH. THE CSA'S AUDIT
IDENTIFIED 22 RECOMMENDATIONS,
AND THOSE WE HAVE 19 CURRENT. WE
HAVE STRATEGIES IN PLACE
ADDRESSING 19 OF THOSE 32
RECOMMENDATIONS, AND WE WILL
CONTINUE TO IMPLEMENT THE CSA
RECOMMENDATIONS PRIOR TO
BECOMING LABOR COMMISSIONER, I
SPENT 20 YEARS FIGHTING WAGE
THEFT AND FRAUD IN THE
JANITORIAL INDUSTRY, AND I WAS
ALSO EXPOSED TO COMBATING
ILLEGAL OPERATOR AND CAR WASH,
FAST FOOD, DOMESTIC WORK,
HOSPITALITY AND CONSTRUCTION
INDUSTRIES. I AM BOTH FAMILIAR
AND HAVE EXPERIENCE WITH DEALING
WITH BAD FAITH EMPLOYERS,
PREDATORY EMPLOYERS WHOSE
BUSINESS PLAN IS TO EVADE THE
LAW. THE CSA'S AUDIT FINDINGS
REITERATE FRUSTRATIONS FOR
WORKERS AND ADVOCATES HAVE
CONFRONTED FOR DECADES, AS
DOCUMENTED IN THE. THERE WAS A
22,000 BACKLOG IN 2017 THAT WAS
FURTHER EXACERBATED BY THE
PANDEMIC AND POST-PANDEMIC
EFFECTS IN ADDITION TO THE
VACANCIES RESULTING IN THE
CURRENT BACKLOG OF 47,000 CASES
FOR SEVERAL YEARS, WE HAVE BEEN
IMPLEMENTING STRATEGIES THAT ARE
EFFECTIVE. HOWEVER, THEY HAVE
BEEN STUNTED DUE TO THE INCREASE
OF VACANCIES. I WILL SHARE
SPECIFIC EXAMPLES OF STRATEGIES
THAT HAVE BEEN SUCCESSFUL IN
RESOLVING CASES, AND SOME WITH
GREATER OUTCOMES FOR WORKERS.
EVENTUALLY, THESE REFORMS WERE
THESE REFORMS ARE ADDRESSING
SYSTEM INEFFICIENCIES AND THE
END RESULT WILL BE A BETTER
FUNCTIONING PROCESS FOR WORKERS
WITH OUTCOMES. I WILL FOCUS
BRIEFLY ON EXPLAINING REFORMS.
WE HAVE IMPLEMENTED AND
ANSWERING THREE MAIN QUESTIONS.
WHAT WE'RE DOING, HOW THE
STRATEGY ADDRESSES BACKLOG, AND
HOW THESE REFORMS CONTRIBUTE TO
THE OVERALL IMPROVED PROCESS FOR
BOTH WAGE CLAIM AND JUDGMENT
ENFORCEMENT. WE'RE CONTINUOUSLY
WORKING WITH OUR TEAM TO DEVELOP
SOLUTIONS. WE'VE EXPANDED
CONCENTRATE, ADDED CONFERENCES
AS THE AUDITOR HAS NAMED. WE
HAVE EXPANDED RESOURCES ON
NAMING ALL PETITIONER POTENTIAL
PARTIES. WE ARE REDIRECTING
RESOURCES AND RECOVERY
STRATEGIES SO FAR, WE HAVE FOUND
SUCCESS. WE ARE ACTUALLY NOW IN
THE LAST TWO MONTHS, WE ARE
RESOLVING MORE CASES THAN CLAIMS
THAT ARE COMING IN. WE LAUNCHED
A CONCENTRATED CONFERENCE
PROGRAM IN AUGUST OF 2022 TO
ADDRESS THE BACKLOG IN THE SAN
BERNARDINO OFFICE, AS WAS NOTED
IN THE AUDITOR'S REPORT, THIS
INCLUDED COMBINING THE SAN
BERNARDINO OFFICE AND THE SAN
DIEGO OFFICE TO FOCUS ON CON ON
THE SAN BERNARDINO BACKLOG.
THESE CONFERENCES COMBINED STAFF
RESOURCES TO TACKLE THE BACKLOG
BY SCHEDULING A NUMBER OF
SETTLEMENT CONFERENCES. WITHIN A
MONTH. THIS APPROACH HAS BEEN
PRODUCTIVE AND WE REDUCE THE SAN
BERNARDINO BACKLOG BY 60. GIVEN
THIS SUCCESS, WE PLAN TO
IMPLEMENT THIS STRATEGY
STATEWIDE. WE'VE IMPLEMENTED
OTHER EFFORTS TO RESTRUCTURE THE
OPERATIONS AND STAFFING OF THE
WAGE CLAIM ADJUDICATION UNIT AND
PROMOTE GREATER EFFICIENCY TO
INCREASE SUPPORT FOR THE
CLAIMANTS, AS THIS IS NOT A
TRANSACTIONAL PROCESS, THIS IS A
DIFFICULT PROCESS FOR THESE
INDIVIDUALS WHO ARE CONFRONTING
THEIR EMPLOYER AND TO IMPROVE
THE TRAINING AND OF OUR TEAM TO
BE ABLE TO DO SO. I'LL BE HAPPY
TO GO INTO DETAILS, BUT FOR IN
THE INTEREST OF TIME, I'M GOING
TO BE BRIEF. THANK YOU TO THE
LEGISLATURE FOR YOUR SUPPORT AS
WE RECEIVE 32 POSITIONS IN LAST
YEAR'S CYCLE WHERE WE CREATED
INTAKE INVESTIGATORS TO CONTACT
CLAIMANTS TO BE ABLE TO ENSURE
THAT WE HAVE ALL THE ESSENTIAL
INFORMATION TO PROCEED FORWARD.
AND THIS INCLUDES CONDUCTING
RESEARCH TO IDENTIFY ALL THE
POTENTIAL PARTIES OF THESE 32
POSITIONS, WE HAVE FILLED 22 OF
THEM, AND THEY ARE HAVING AN
IMPACT IN ESPECIALLY IN THEIR
WORK OF SUPPORTING CLAIMANTS IN
NAMING AND EVEN IN NAMING ALL
PARTIES. THIS IS A POWERFUL
INTERVENTION, AS OUR DATA SHOWS
THAT WE ARE MORE LIKELY TO
RECOVER. WE'VE ALSO CREATED MORE
SUPERVISORS AND MANAGERS TO
PROMOTE MORE SUSTAINABLE
OVERSIGHT. AS ALSO CITED IN THE
AUDITOR'S REPORT, OUR
ENFORCEMENT TEAM SPENDS A
SIGNIFICANT AMOUNT OF TIME
SUPPORTING OUR STATUTORY DUTY TO
PROVIDE PUBLIC INFORMATION THÀNH
SUPPORT TO THOUSANDS WHO CALL
OUR OUR INFORMATION LINE EVERY
DAY TO ALLOW ENFORCEMENT STAFF
TO FOCUS ON ENFORCEMENT DUTIES.
I'VE REDIRECTED 32 POSITIONS TO
CREATE AN INTAKE OF PUBLIC
INFORMATION INVESTIGATOR THAT
WILL STAFF OUR PUBLIC COUNTERS
IN EACH OF OUR DISTRICT OFFICES.
THIS WILL ALLOW THAT OUR
ENFORCEMENT PERSONNEL BE ABLE TO
FOCUS MORE ON MOVING THEIR CASES
. WE'RE ALSO RESOLVING MORE
CASES EARLIER IN THE PROCESS AND
HOLDING MORE HEARINGS. WE
RESOLVED MORE CLAIMS IN THE
QUARTER. ONE OF THIS YEAR
COMPARED TO THE LAST QUARTER.
THAT'S A 20% INCREASE. AND WE
HELD 400 MORE HEARINGS THIS
QUARTER THAN IN THE PREVIOUS.
THAT'S A 54% INCREASE. I'M
HOPEFUL THAT AS WE CONTINUE TO
FILL VACANCIES, THESE NUMBERS
WILL CONTINUE TO INCREASE WAGE
CLAIM PROCESSING AND JUDGMENT
ENFORCEMENT IS NOT PUSHING
PAPER. THESE ARE ENFORCEMENT
PROCESSES THAT CONFRONT SYSTEMIC
RACISM, EXPLOITATIVE BUSINESS
PRACTICES AND CHRONIC POVERTY.
JUDGMENTS ARE UNIQUE. EACH
EMPLOYER IS UNIQUE AND REQUIRES
DIFFERENT TOOLS. THE AUDIT DID
NOT LOOK AT AS THE SENATOR
SMALLWOOD CUEVAS IDENTIFIED THE
AUDIT DID NOT LOOK AT THE
CHARACTERISTICS OF THESE CLAIMS,
THE CHARACTERISTICS OF THE
EMPLOYERS AND THE CLAIMANTS, NOR
DID THEY LOOK AT, ALTHOUGH THEY
DID IDENTIFY THE GAPS IN OUR
DATA WHICH PRESENT CHALLENGES
FOR US TO BE STRATEGIC IN
FOCUSING ON CERTAIN CLAIMS. ALL
OF THESE ISSUES IMPACT HOW AND
WHAT WE ARE ABLE TO RECOVER
EARLY ENGAGEMENT, ENGAGING THAT
EMPLOYER, IDENTIFYING THEM
BEFORE THEY'RE ABLE TO GO
UNDERGROUND, BEFORE THEY ABLE TO
MOVE ASSETS IS CRITICAL. THE
REALITY THAT MANY OF THESE
VULNERABLE WORKERS DO NOT
UNDERSTAND THEIR RIGHTS. THIS
MEANS THAT IT TAKES MORE TIME AS
OUR TEAM SHOULD INVEST DEEPLY IN
ENSURING THAT WE'VE IDENTIFIED
EVERYTHING THAT'S OWED TO THESE
INDIVIDUALS AND THAT WE'VE NAMED
ALL PARTIES. ALL OF THIS
INCREASES OUR CHANCES OF BEING
ABLE TO RECOVER, AND THAT'S WHY
OUR PROGRAM LEADERS HAVE
IMPLEMENTED AN INNOVATIVE
PROGRAM WHERE WE'VE REDIRECTED
18 PROFESSIONALS FROM OUR BUREAU
OF FIELD ENFORCEMENT. SO THAT'S
ANOTHER DEPARTMENT NOT IN THE
WAGE CLAIM ADJUDICATION PROGRAM.
THEY HAVE BEEN TRAINED AND THEY
HAVE BEEN ABLE IN THE COURSE OF
A YEAR, THEY'VE BEEN ABLE TO
FOCUS ON 2500 CASES. RESULT IN
THE RECOVERY OF ABOUT $800,000.
THIS IS IMPORTANT BECAUSE THE
LEGISLATIVE TOOLS GIVEN TO US,
THEY NEED TIME. WE NEED TIME TO
BE ABLE TO RESEARCH THEM AND
ENSURE THAT WE ARE PURSUING ALL
POSSIBLE EMPLOYERS AND NOT
ALLOWING EMPLOYERS TO BECOME
JUDGMENT PROOF. I WANT TO
CLARIFY SOMETHING THAT THE
AUDITOR COMMENTED. TO JUST BE
CLEAR, THE COMMENT WAS THAT,
THAT IT IS PROBLEMATIC TO APPLY
LIENS AND LEVIES, AND I WOULD
RATHER DESCRIBE THAT AS IT'S
CHALLENGING WORK. I WANT US TO
USE THE TOOLS AVAILABLE. THE
ISSUE IS THE WORKERS DON'T
NECESSARILY KNOW HOW TO USE
THOSE TOOLS, AND SO THAT
REQUIRES MORE FROM OUR TEAM. AND
THAT MEANS WE HAVE TO IDENTIFY
ASSETS. WE HAVE TO KNOW ALL THE
ENTITIES ASSOCIATED WITH THE
EMPLOYER. AND THAT'S INFORMATION
THAT THE EMPLOYER THAT THE
WORKERS DON'T HAVE. SO WE ARE
INVESTING DEEPLY IN SUPPORTING
WORKERS, AND WE ARE COMMITTED TO
CONTINUE TO USE, ALL THE
POSSIBLE RESOURCES. I'D LIKE TO
THANK DIRECTOR HAGAN AND HER
TEAM FOR SUPPORTING US
THROUGHOUT THE PROCESS. AND I'D
LIKE TO THANK OUR STATE AUDITOR
AND MR. PATEL SPECIFICALLY FOR
THEIR THOUGHTFUL WORK. THANK
YOU. THANK YOU, COMMISSIONER
GARCIA. AND THANK YOU, DIRECTOR
HAGAN. Tð, I HAVE A QUESTION. I
THINK THAT GETS TO SENATOR
SMALLWOOD. CUEVAS INTEREST IN
WHAT IS THE OVERALL STRATEGIC
PLAN THAT YOU HAVE TO ADDRESS
THESE, YOU KNOW, VOLUMINOUS,
FINDINGS IN THE AUDIT. AND YOU
KNOW, HOW ARE YOU GOING TO
PRIORITIZE THOSE? YOU MENTIONED
THAT YOU HAD 19 INITIATIVES OF
THE 22 RECOMMENDATIONS. AND HOW
DID YOU DECIDE WHICH OF THOSE
ARE GOING TO BE PRIORITIZED? AND
IS THERE A DOCUMENT THAT THAT WE
CAN SEE THAT SHARES YOUR
STRATEGIC PLAN TO ADDRESS THESE
AUDIT FINDINGS IN A SYSTEMIC
WAY? AND IS THERE ANY
FORECASTING THAT'S BEING DONE?
YOU'VE GOT THOSE ENCOURAGING
STATISTICS MOST RECENTLY A
NUMBER OF CASES THAT, YOU'VE
RESOLVED AND THE NUMBER OF
HEARINGS THAT YOU'VE INCREASED.
ARE THOSE SUSTAINABLE EFFORTS OR
ARE THOSE, YOU KNOW, JUST A
TRIAGE OR DIGGING IN. AND WE'RE
GOING TO WE NEED TO CHANGE THESE
NUMBERS IN THE SHORT TERM. IS
THAT SOMETHING? AND WHAT WILL
YOU NEED TO CONTINUE THAT
PROGRESS, YOU KNOW, TO GET TO
WHERE WE WOULD ALL BE
COMFORTABLE WITH WHAT'S GOING
ON? THANK YOU SENATOR, WE DO
HAVE OUR PLANS TO MOVE FORWARD.
WE NEED TO CONTINUE TO DO WHAT
WE'RE DOING. WE NEED TO CONTINUE
TO HIRE THESE NUMBERS WILL
CONTINUE TO INCREASE, AND WE'LL
BE ABLE TO TOUCH MORE CASES WITH
THE MORE PEOPLE THAT WE HAVE IN
PLACE, THE AUDITOR HAS ALSO
IDENTIFIED UNRELIABILITY IN OUR
DATA AND DATA GAPS. AND SO
UNFORTUNATELY, IN MY PREVIOUS
LIFE, I WOULD BE ABLE TO CAPTURE
CERTAIN INFORMATION TO LOCATE
FLIGHT RISK EMPLOYERS, TO
IDENTIFY UP THE CHAIN ISSUES
THAT WE'D BE ABLE TO DOCUMENT
AND TO LEVERAGE THE LEGAL SYSTEM
TO BE ABLE TO RECOVER IN OUR
OFFICE. WE UNFORTUNATELY, ARE DO
HAVE AUTOMATION THÀNH PROGRAMS
THAT ARE IN DEVELOPMENT. BUT OUR
CURRENT DATA IS UNRELIABLE. SO
I'M UNABLE TO APPLY THAT SAME
STRATEGY TO THESE BACKLOGGED
CASES. WE DO HAVE IN THE PROCESS
OF OUR CONCENTRATED CONFERENCES,
I COULD TELL YOU WE HAVE ABOUT
4000 CLAIMS THAT PREDATE 2022.
AND SO WE ARE PREPARING TO APPLY
A CONCENTRATED CONFERENCE
PROGRAM TO BE ABLE TO ADDRESS
THOSE CLAIMS. SO WE'RE TRYING TO
GET TO THE OLDEST ONES FIRST,
AND THEN WE MOVE FORWARD WITH
OUR INTAKE INVESTIGATORS. THEY
ARE ABLE TO GET ON THE PHONE AND
ENGAGE WITH EMPLOYERS. SO THOSE
CLAIMS WHERE WE HAVE AN EMPLOYER
THAT WE CAN LOCATE, THEN WE ARE
USING THAT STRATEGY TO TRY AND
RESOLVE THEM. BUT UNFORTUNATELY,
A LOT OF OUR BACKLOG, WE'RE
UNSURE WHAT CLAIMS ARE INVOLVED
THERE. IF THIS EMPLOYER IS STILL
IN OPERATION, WHERE THE CLAIMANT
IS. THIS IS PART OF THE POST
PANDEMIC EFFECTS. SO OUR INTAKE
INVESTIGATORS, THEIR ROLE WITH
THE BACKLOG IS TO CONTACT THE
CLAIMANTS AND TO MAKE SURE THAT
THEIR CLAIM IS PERFECTED. YOU
MAY HAVE READ IN THE AUDITOR'S
REPORT, WE LAUNCHED AN ONLINE
WAGE CLAIM IN NOVEMBER OF 2021,
IN RESPONSE TO THE PANDEMIC, TO
BE MORE ACCESSIBLE AS WE SHOULD
BE TO THE PUBLIC, AND THIS
ONLINE WAGE CLAIM RESULTED IN
TWO THINGS A SIGNIFICANT
INCREASE IN OUR WAGE CLAIMS TO
40,000 A YEAR. THE SECOND THING,
UNFORTUNATELY, IS THE PUBLIC
FILED CLAIMS WITH NOT ENOUGH
INFORMATION TO ALLOW US TO
ADVANCE. SO WE HAD A SIGNIFICANT
BACKLOG THAT WE HAD IDENTIFIED
IN 2022. SINCE THAT LAUNCH HAD
HAPPENED, 70% OF OUR CLAIMS ARE
FILED ONLINE. SO THE INTAKE
INVESTIGATORS, WE REQUESTED THAT
FUNDING FROM THE LEGISLATURE TO
BE ABLE TO GO BACK AND PERFECT
THOSE CLAIMS. SO AS YOU CAN SEE
THAT WE DO HAVE STRATEGIES THAT
ARE GOING TO ALLOW US TO RESOLVE
CLAIMS AND COMMUNICATE WITH
CLAIMANTS AND ENGAGE EMPLOYERS
MORE QUICKLY. UNFORTUNATELY I
DON'T HAVE A DEADLINE THAT I CAN
GIVE YOU A TARGET DATE, ALTHOUGH
WE ABSOLUTELY WANT TO RESOLVE
THESE CASES AS MUCH AS POSSIBLE,
WE KNOW THE LONGER IT STAYS IN
THE SYSTEM, THE HARDER IT IS FOR
US TO REACH THOSE RESOURCES.
YEAH, I THINK THE MOST IMPORTANT
THING IS FOR THE DEPARTMENT AND
THE COMMISSIONER TO BE
TRANSPARENT ABOUT THIS. YOU
KNOW, THIS THIS HAS GOTTEN TO A
POINT WHERE IT IS A BIT
OVERWHELMING AND I APPRECIATE
THAT YOU'RE, BEING STRATEGIC AND
TRYING TO TACKLE THESE THINGS IN
THE WAY THAT YOU CAN LEVERAGE
YOUR RESOURCES THE BEST WAY
POSSIBLE. BUT THERE'S A
CONFIDENCE GAP. I THINK THAT IS
REALLY IMPORTANT TO ADDRESS, AND
THAT I THINK YOU WILL NEED TO
DEDICATE RESOURCES TO HAVING A
TRANSPARENT STRATEGIC PLAN THAT
GIVES CONFIDENCE TO ALL THE
STAKEHOLDERS THAT ARE INVOLVED
IN THIS PROCESS, THAT YOU'RE
GOING TO MAKE PROGRESS. IT'S
UNDERSTANDABLE YOU KNOW HOW HOW
LONG IT'S GOING TO TAKE AND
RESOURCES ARE LIMITED AND, YOU
KNOW, DON'T HAVE UNREALISTIC
EXPECTATIONS ABOUT THIS. BUT YOU
KNOW, EVEN THE DECISION ABOUT
GOING AFTER THE OLDEST CASES
FIRST, I UNDERSTAND WHY YOU
WOULD DO THAT. ON THE OTHER
HAND, IS THAT THE MOST EFFICIENT
WAY, YOU KNOW, TO GET JUSTICE
FOR THE MOST NUMBER OF PEOPLE IN
THE SHORTEST NUMBER OF TIME? I
DON'T KNOW WHAT THE ANSWER TO
THAT QUESTION IS, BUT I DO KNOW
THAT IF THOSE THINGS ARE
SURFACED AND TRANSPARENT, THERE
WILL BE MANY PEOPLE THAT WANT TO
COMMENT ON THAT. AND I THINK
THAT MORE ENGAGEMENT FROM ALL
THE STAKEHOLDERS CAN ONLY HELP
YOUR WORK AND BUILD A CASE TO
GET YOU THE RESOURCES THAT YOU
NEED TO DO A BETTER JOB. THAT'S
I THINK THAT THAT'S TO ME IS THE
MOST IMPORTANT THING. ARE THERE
OTHER QUESTIONS FOR THE
COMMISSIONER OR THE DIRECTOR? SO
THANK YOU, MR. CHAIR. AND THANK
YOU FOR THAT. THAT OVERVIEW. AND
I THERE WAS SOMETHING YOU SAID
THAT STRUCK ME WHERE YOU SAID
WE'RE RESOLVING MORE CASES THAN
THE CLAIMS COMING IN. I, I'M
CURIOUS, IS THAT BECAUSE YOU ARE
SHIFTING WHERE YOUR SORT OF
MANPOWER IS AND, AND IS THAT
ALSO IS THAT THE BEST SOLUTION?
HOW DO WE DO BOTH. AND I'M, I'M
CONCERNED THAT WE ARE FINDING
WAYS TO REACH WORKERS TO FILE.
SO WE'RE INCREASING. BUT I'M
ALSO CONCERNED THAT WE'RE
STARTING TO SEE THIS BALANCE
OUT. SO I'M JUST WONDERING IF
YOU COULD TALK SPEAK MORE TO
THAT. AND ADD, IS THAT A SHORT
TERM GOAL? WILL THE NEW
POSITIONS HELP DRIVE CLAIMS AND
PROCESS NEW CLAIMS AS WELL AS,
RESOLVE MORE CASES? I THAT THAT
STATEMENT, JUST STRUCK ME, AND I
DON'T KNOW IF THAT'S THE BEST
WAY FOR US TO MOVE FORWARD,
BECAUSE WE WANT TO MAKE SURE
THAT THOSE BUSINESSES THAT ARE
PLAYING BY THE RULES HAVE A
LEVEL PLAYING FIELD, AND THAT
MEANS HOLDING THE ONES WHO DON'T
DO IT ACCOUNTABLE. THE OTHER
THING I HEARD IN THERE IS, IS
THAT WORKERS THERE'S A THERE'S A
NEED FOR EDUCATION. SO THEY'RE
COMING IN. BUT IF IT TAKES THE
STAFF AS MUCH TIME TO ACTUALLY
FIX THE CLAIM AS IF THEY HAD
TAKEN IT THEMSELVES, THEN IT'S
YOU KNOW, SO WHAT CAN BE DONE
AROUND OR WHAT IS BEING DONE TO
EDUCATE WORKERS? AND I
APPRECIATE THE PROBLEM OF
REGIONALISM. RIGHT EVERY REGION
IS DIFFERENT. EVERY TYPE OF
EMPLOYER IS DIFFERENT. EVERY
SECTOR IS DIFFERENT. SO I'M JUST
CURIOUS, HOW DO YOU HOW ARE YOU
THINKING ABOUT THAT? I KNOW
THERE WAS SOME PILOTING AROUND,
HAVING SORT OF SATELLITE OR
REGIONAL CENTERS, AND
PARTNERSHIPS. SO I'M CURIOUS,
HOW IS THAT, ALSO HELPING US
ADDRESS THIS SO THAT THE CLAIMS
CAN MOVE FASTER BECAUSE YOU
DON'T HAVE TO SPEND SO MUCH TIME
FIXING THEM. AND THEN THE THIRD
THING IS, I HEARD YOU LAY OUT,
YOU KNOW, THE TYPES OF EMPLOYERS
. AND WHEN YOU SAID FLIGHT RISK
AND WHEN YOU SAID, I MEAN, IT
JUST JUST SPEAKS TO THE SCALE,
ALL OF WHAT IT TAKES TO BRING
THESE CASES TO RESOLUTION, HOW
ARE WE EDUCATING EMPLOYERS OF
RECORD, WHAT ARE WE HOW ARE WE
ARTICULATING THE LIABILITY? HOW
IS IT REAL, JUST CURIOUS WHAT
ARE SOME OF THE WAYS THAT, AND
I'M AND I'M ASSUMING I KNOW IN,
IN CONSTRUCTION, FOR EXAMPLE,
THERE'S A LOT OF CONSULTATION,
THERE'S TECHNICAL ASSISTANCE,
THERE'S ALL OF THAT TO HELP A
CONTRACTOR APPLY FOR OR OR BE
PROTECTED. YOU KNOW, THROUGH THE
PROCUREMENT PROCESS AND, AND
THE, YOU KNOW, THE WINNING OF
CONTRACTS. I'M WONDERING IF
THERE'S SOMETHING WITH EMPLOYERS
OF RECORD AROUND, YOU KNOW, WHAT
ARE THE LIABILITIES AND HOW DO
YOU PROTECT YOURSELF AND HOW DO
YOU, MAKE SURE THAT THAT YOU ARE
ON THE RIGHT SIDE OF THE LAW,
WHAT DOES SOME OF THAT LOOK
LIKE? I MEAN, IF IT FEELS LIKE
THERE'S HAS TO BE A BALANCE
BETWEEN PROACTIVE AND REACTIVE,
ENFORCING IT. AND IF WE'RE JUST
TALKING ABOUT 32 POSITIONS, I
YOU KNOW, THAT WILL REQUIRE SO
MUCH MORE. AND AGAIN, HOW ARE
YOU THINKING ABOUT THAT
STRATEGIC PLAN AND WHAT THE WHAT
YOU NEED FROM THE LEGISLATURE TO
BE ABLE, TO MEET ALL OF THESE
SORT OF CONVERGING NEEDS?
ABSOLUTELY. THANK YOU. SENATOR,
YOU SAID THREE. I HAVE A LIST OF
ABOUT TEN, BUT I'M GOING TO TAKE
THEM ONE AT A TIME THERE. SO YOU
, OBSERVED CORRECTLY THAT THESE
32 POSITIONS ÓRDENES, THAT WAS
IT'S A PILOT, RIGHT? WE TESTED
IT. WE'VE NEVER HAD FULL TIME
PROFESSIONAL WHO FOCUSES ON
PERFECTING CLAIMS. RIGHT. SO
SPECIFICALLY ADDRESS THAT
BACKLOG FROM ONLINE ONLINE WAGE
CLAIM. SO THEY ARE THE
FACILITATING THIS SHIFT THAT
WE'RE SEEING THAT WE'RE ACTUALLY
RESOLVING CASES BY GETTING TO
WORKERS AND TO EMPLOYERS EARLY
AND RECOVER, SO PART OF THAT HAS
INTRODUCED US LOOKING AT OTHER
NON ENFORCEMENT TASKS THAT THE
WAGE CLAIM ADJUDICATION TEAM
DOES, AND WE HAVE A PUBLIC
INFORMATION LINE WHERE WE HAVE
3300 OF OUR PROFESSIONALS ON
THAT LINE A YEAR. SO THIS IS
ALSO SOMETHING THAT I'M LOOKING
AT OF OUR NEED TO RETURN THOSE
300 PROFESSIONALS SO THAT THEY
CAN FOCUS ON THE CASES THAT ALSO
CONTRIBUTES TO OUR BACKLOG. SO
WE'RE LOOKING AT COULD WE CREATE
A CALL CENTER TO CREATE NEW
JOBS, NEW POSITIONS TO BE ABLE
TO RESPOND TO THE PUBLIC'S NEED
AND TO HELP THEM BUILD PERFECTED
CLAIMS THAT CAN MOVE THROUGH THE
SYSTEM, MORE SWIFTLY. THEN YOU
ASKED ABOUT DRIVING CLAIMS. AND
SO THAT'S A SEPARATE ISSUE THAN
AN ENFORCEMENT ISSUE, RIGHT? I
THINK I SHARE YOUR VISION AND
EXPECTATION THAT WE SHOULD BE IN
A STATE OF THIS SIZE. IT'S
INTERESTING WE ONLY HAVE THESE
NUMBER OF CLAIMS, RIGHT? AND
WORKERS CANNOT EXERCISE WHAT
THEY DO NOT KNOW. SO PART OF
THAT TO DRIVE CLAIMS RIGHT. OR
TO REALLY GIVE THE POWER TO THE
WORKERS TO FOR THEM TO
UNDERSTAND THEIR RIGHTS AND HOW
TO DEFEND THEMSELVES AT WORK,
WHICH WE HAVE A DUTY TO DO. WE
HAVE OUR REACHING EVERY
CALIFORNIAN OUTREACH CAMPAIGN
WHERE WE HAVE ABOUT EVERY YEAR,
ABOUT 70 ENFORCEMENT
PROFESSIONALS WHO VOLUNTEER TO
DO WEEK NIGHT WORKSHOPS, WEEKEND
WORKSHOPS. I'M SURE YOU'VE HEARD
OF OUR LABOR CARAVANS, THAT NOW
IT'S AN EFFORT WITH ALL THE
LABOR AGENCY, AGENCIES
PARTICIPATE ON IT. WE ALSO HAVE
COMMUNITY CLINICS BECAUSE WE
HAVE GAPS OF WHERE OUR OFFICES
ARE. SO MY SERVICE GAP AREAS IS
THE INLAND EMPIRE, THE LARGER
INLAND EMPIRE AND THE CENTRAL
VALLEY AND THE CENTRAL COAST. SO
WE HAVE BEEN DOING COMMUNITY
WORKSHOPS THERE IN THE LAST
YEAR, AND WE'RE ACTUALLY GOING
TO BE OPENING FIVE SATELLITE
OFFICES. WE'RE GOING TO OPEN IN
INDIO IN COALINGA, IN SANTA
MARIA, IN MADERA, AND IN TULARE.
WE'RE FOCUSING IN THOSE REAL
RURAL AREAS TO MAKE OURSELVES
AVAILABLE IN THAT IN THOSE
COMMUNITIES AND AT THESE
CLINICS. CAL OSHA IS AT THESE
CLINICS. DEPARTMENT OF WORKERS
COMP. WE'RE BRINGING THE WHOLE
ALPHABET SOUP WITH TIME TO THESE
CLINICS BECAUSE WORKERS HAVE
QUESTIONS ABOUT INJURIES. THEY
HAVE QUESTIONS ABOUT HEALTH AND
SAFETY AND THESE OTHER ISSUES.
SO WE WANT TO COLLABORATE
INTERNALLY TO MAKE OURSELVES AS
AVAILABLE AS POSSIBLE. THEN YOU
ASKED ABOUT WORKERS EDUCATE
THEMSELVES THROUGH THIS PROCESS.
LAST YEAR, THE LEGISLATURE
GRANTED US FUNDING TO CREATE A
COMMUNITY NAVIGATOR PROGRAM. I
MODELED THAT PROGRAM BASED OFF
OF A PROGRAM THAT EXISTS
CURRENTLY IN SUPERIOR COURT TO
ASSIST NON ENGLISH LITIGANTS AND
INDIVIDUALS WHO ARE REPRESENTING
THEMSELVES. AND SO WE ACTUALLY
HAVE THAT CONTRACT IN MOTION. WE
HOPE TO HAVE SOMEBODY SELECTED
BY THE END OF YEAR. AND WE WOULD
REFER CASES TO THEM OF
VULNERABLE WORKERS CASES THAT
NEED MORE ATTENTION, THAT THEY
WOULD EDUCATE THEM AND HELP THEM
PREPARE TO NEGOTIATE THEIR CLAIM
TO REPRESENT THEMSELVES IN THE
CONFERENCE. IN THE HEARING AND
IN RECOVERY. AND THE SECOND PART
OF THAT PROJECT IS WE'RE GOING
TO HAVE THEM DEVELOP WEBINARS
THAT WILL BE AVAILABLE IN OUR ON
OUR WEBSITE TO EDUCATE WORKERS
HOW TO PREPARE FOR A CONFERENCE,
HOW TO CALCULATE YOUR HOURLY
WAGE, HOW TO NEGOTIATE A
SETTLEMENT, HOW TO PURSUE
JUDGMENT RECOVERY. BECAUSE A LOT
OF WHAT'S IN THIS BACKLOG IS
INDIVIDUALS WHO WERE NOT
PREPARED FOR THE SIGNIFICANT
CHALLENGE OF HOLDING EMPLOYERS
ACCOUNTABLE. THEN THE LAST PIECE
YOU ASKED US ABOUT HOW WE'RE
EDUCATING EMPLOYERS AND TO
SEPARATE THE REACTIVE VERSUS THE
PROACTIVE. SO ONE COMPONENT OF
OUR REACHING EVERY CALIFORNIA
CAMPAIGN IS A BUSINESS
ENGAGEMENT PROGRAM. I'M VERY
FAMILIAR WORKING WITH EMPLOYERS,
AND EMPLOYERS NEED TO BE AT THE
TABLE. THEY NEED TO BE A PART OF
THE SOLUTION. SO WE ARE
PRIORITIZING GETTING TO SMALL
BUSINESSES. WE HAVE SIGNIFICANT
NUMBERS THAT UNFORTUNATELY I
DON'T HAVE WITH ME TODAY, BUT I
CAN SHARE WITH YOU. IT'S IN THE
HUNDREDS OF THOUSANDS OF
EMPLOYERS THAT WE'RE REACHING
AND CREATING A SAFE SPACE FOR
THEM TO UNDERSTAND THEIR
OBLIGATIONS AND ASK THEIR
QUESTIONS. BUT ON THE REACTIVE
SIDE, ON OUR INVESTIGATION SIDE,
WE'VE ALSO ACTUALLY ADOPT. AND
GIVEN THE BACKLOGS, WE'VE ALSO
ADOPTED APPROACHES TO INFORM THE
EMPLOYER ABOUT OUR PROCESSES. SO
WE'RE DOING MORE EDUCATIONAL
VISITS IN THE GENERAL INDUSTRIES
THAT WE HIT. WE JUST RECENTLY
ANNOUNCED AN OPERATION IN THE
WAREHOUSE INDUSTRY WHERE WE DID
OVER 600 INSPECTIONS TO EDUCATE
THE EMPLOYER ABOUT THEIR
OBLIGATION. THOSE WHO WERE NOT
FAMILIAR WITH THE NEW WAREHOUSE
WORKER LAW. WE ALSO SENT OUT
OVER 1000 COMPLIANCE LETTERS TO
THESE EMPLOYERS TO LET THEM KNOW
THIS LAW AS IT IS IN PLACE, AND
THEN WHEN WE DO HAVE AN
INVESTIGATION AGAINST THEM, WE
SET UP A CONFERENCE SO THAT WE
CAN MAKE SURE THEY UNDERSTAND
WE'RE NOT TRYING TO PLAY GOTCHA
WITH THESE EMPLOYERS. WE DON'T
WANT TO CONTRIBUTE TO THE DELAYS
. SO WE WANT THEM TO UNDERSTAND
AND HAVE EVERY POSSIBLE
OPPORTUNITY TO ENGAGE IN THE
PROCESS AND SHOW US WHAT
RECORDS, WHAT EVIDENCE THEY
HAVE. SO WE HAVE BEEN MAKING
SIGNIFICANT EFFORTS ON BOTH
SIDES WHERE IT COMES TO WORKERS
AND EMPLOYERS. THANK YOU VERY
MUCH FOR THAT. THAT
COMPREHENSIVE, OVERVIEW AND
APPROACH OF HOW WE DO BOTH, OF
PROTECTING WORKERS. BUT ALSO
PREVENTING VIOLATIONS IN THE
FIRST PLACE, I WANT TO ECHO,
ASSEMBLY MEMBER HART'S POINTS
ABOUT, YOU KNOW, WAYS FOR US TO
BE ABLE TO DOCUMENT AND TRACK
THESE INNOVATIONS, AND TO,
ENSURE THAT, THERE IS ENOUGH
CAPACITY AND RESOURCES TO SEE
THESE APPROACHES THAT ARE
SHOWING DYNAMIC IMPROVEMENT TO
SCALE THEM, I WOULD, WOULD WANT
TO WORK, ON AND WITH THE
DEPARTMENT ON THAT AND, AND THE
AND THE LAST THING I WILL SAY IS
, THIS IS SO IMPORTANT TO
WORKERS. THIS IS SO IMPORTANT TO
OUR MOST VULNERABLE COMMUNITIES,
WE HAVE OVER 5 MILLION WORKERS
THAT WE KNOW OF WHO FALL INTO
LOW WAGE, UNREGULATED WORK, 30,
OF OUR WORKING ADULTS ARE IN
THIS VICIOUS CYCLE, AND YOUR
AGENCY IS THE ONLY AGENCY
STANDING IN THE GAP TO ENSURE
WHETHER THEY REALLY HAVE A
CALIFORNIA FUTURE OR NOT. AND SO
I WANT TO, APPLAUD YOUR YOUR,
HEARING AND IMPLEMENTING AND
MAKING ACTIONABLE EVEN IN THE
SHORT PERIOD OF TIME, THE AUDIT
RESULTS AND PUTTING THEM INTO A
TO PRACTICE. AND I THINK, YOU
KNOW, SO, IT IS OUR
RESPONSIBILITY, TO MAKE SURE
THAT THE IMPROVEMENTS HAPPEN,
AND THAT YOU HAVE THE RESOURCES
NECESSARY TO MAKE THEM HAPPEN.
AND I WANT TO ADD ONE FINAL
THING IS THAT WE KNOW THERE'S A
LOT OF CHANGES THAT ARE COMING
DOWN AS THE STATE IS LOOKING AT
PAGA AND LOOKING AT WHAT ARE THE
WAYS THAT SYSTEM WILL BE
IMPROVED. AND THERE MAY BE MORE
NEED FOR YOUR AGENCY TO STEP UP
AND STEP IN. AND SO WE WANT TO
MAKE SURE YOU ARE ABLE TO MANAGE
ALL OF THE PIECES THAT ARE
NECESSARY. AND SO AGAIN, IN A
STRATEGIC PLAN THAT REALLY DOES
LAY OUT THAT, THE CAPACITY NEEDS
, THE INNOVATIONS THAT ARE
SHOWING PROMISE. SOME SENSE OF
FORECAST THAT CAN HELP US ENSURE
THAT WE KEEP OUR EYE ON THE
PRIZE OF MAKING SURE THAT EVERY
FAMILY, NO MATTER WHETHER
THEY'RE IN A LOW WAGE WORKING
SITUATION OR AN UNREGULATED
WORK, HAS A CALIFORNIA FUTURE.
SO I JUST WANT TO SAY THANK YOU
FOR THAT REPORT. AND, LOOKING
FORWARD TO THE STRATEGIC PLANS
AND NEXT STEPS. THANK YOU.
SENATOR, ARE THERE OTHER
QUESTIONS FROM MEMBERS, ASSEMBLY
MEMBER ALVAREZ, THANK YOU VERY
MUCH. THANK YOU. THAT'S NOT THE
BEST MICROPHONE TO USE, THANK
YOU ALL AGAIN FOR YOUR, YOUR
TESTIMONY TODAY. I LIKE TO ASK
SOME QUESTIONS ABOUT THE STATUS
OF WHERE WE ARE TODAY, PRIMARILY
TO THE COMMISSIONER, THE
COMMISSIONER'S OFFICE, WHAT
WHAT, WHAT SOFTWARE IS USED TO
TRACK THE STATUS OF CASES? AND I
MIGHT NEED THE DIRECTOR'S
ASSISTANCE, BUT WE ARE ON THE
SALESFORCE PLATFORM, AND WE ALSO
HAVE AN ANTIQUATED FILE MAKER
SYSTEM THAT HAS, INFORMATION, DO
DO YOU KNOW IF I IF IT'S
ANTIQUATED, THE ANSWER IS
PROBABLY NOT. IS IT POSSIBLE TO,
PUBLISH, WITHOUT IDENTIFIABLE
INFORMATION? THE STATUS OF YOUR
CASES, IS THAT SOMETHING THAT
YOU TRACK? AND THAT'S THAT COULD
BE MADE PUBLICLY AVAILABLE? WE
DO HAVE A WAGE CLAIM SEARCH
FUNCTION AND A JUDGMENT SEARCH
FUNCTION THAT THE LEGISLATURE
MANDATED OVER THE LAST BOY. I
THINK IT'S BEEN OVER THE FIVE
YEARS. IS THIS FOR INDIVIDUAL
CASES, OR IS THIS IN THE
AGGREGATE? IT'S FOR THE
INDIVIDUAL WAGE CLAIMS. BUT IF
THERE'S THROUGH OUR BUREAU OR
THROUGH OUR LICENSING, IF
THERE'S ANY JUDGMENT, IT'S A
SEARCHABLE FUNCTION. OKAY. BUT
THERE IS NO. AND MAYBE THE FOLKS
WHO WERE DOING THE ANALYSIS AND
REVIEWING THE DATA, IS THERE A
IS THERE A SYSTEM WITH PUBLICLY
AVAILABLE DATA SO WE CAN
UNDERSTAND AND TRACK, WHERE
CASES ARE, AS A, AS AN AGGREGATE
IN TERMS OF WHEN IT WAS
SUBMITTED, WHAT STATUS IT'S IN,
IS THAT INFORMATION READILY
AVAILABLE TO THE PUBLIC. WE DO
HAVE IN THE SALESFORCE SYSTEM,
WE HAVE ALL THESE FIELDS IN IT.
THE ISSUE IS THAT WE'RE NOT
CONSISTENT IN COMPLETING THAT
DATA. OKAY. THE INTER PATEL CAN
ELABORATE. THANK YOU. YEAH. SO
THE SALESFORCE DATABASES IS AN
ONLINE SYSTEM. IT SORRY. CAN YOU
HEAR ME, IT'S A IT'S A SYSTEM
THAT IS AVAILABLE, TO ALL THE
STAFF. AND I THINK IT'S YOU CAN
EXPORT CERTAIN DATA OUT OF IT IN
AN EXCEL FORMAT AND THEN
MANIPULATE IT TO TAKE OUT
CERTAIN INFORMATION AND PROVIDE
CERTAIN KEY DATA THAT YOU'RE
ASKING FOR. SO BUT IN ORDER FOR
US TO UNDERSTAND FROM A EVEN THE
LEGISLATIVE PERSPECTIVE OR THE
PUBLIC, THE ONLY WAY TO GET THAT
DATA AND TO BE INFORMED ON HOW
THE, YOU KNOW, FUTURE PROGRESS
IS GOING IS TO REQUEST IT FROM,
THE DEPARTMENT. THERE'S NO OTHER
WAY FOR US TO KNOW THAT IS
CORRECT. OKAY. WHAT IS YOUR
RECOMMENDATION ABOUT THAT AND
KEEPING THAT INFORMATION UP TO
SPEED FOR US, AGAIN, IT'S A
SYSTEM THAT CONTAINS A LOT OF
CONFIDENTIAL INFORMATION AS WELL
AS WELL AS ALL THE DOCUMENTATION
RESIDES WITHIN THAT SYSTEM. SO
THE ONLY WAY TO GET IT IS TO DO
AN EXTRACT FROM IT. AND THEN
CLEAN IT UP AND THEN PROVIDE IT
SO YOU'D HAVE TO MAKE A REQUEST
TO THE C . OKAY. CAN I
INTERJECT? YES, PLEASE. I THINK
THERE'S A FEW OPPORTUNITIES, TO
GET UPDATES ON HOW WE PROGRESS.
WE WILL COMPLY WITH THE STATE
AUDITOR'S PERIODIC INQUIRIES FOR
INFORMATION AS WE WORK ON OUR
CORRECTIVE ACTION PLAN FOR THE
AUDIT, AND THEN WE ALREADY HAVE
A LEGISLATIVE MANDATE TO REPORT
ON THE STATUS OF WAGE CLAIMS ON
AN ANNUAL BASIS. SO WE COULD
LOOK AT, IF WE WANT MORE DETAIL
IN THAT. FOR EXAMPLE, WE COULD
LOOK AT MODIFYING THAT, SO WE'RE
OPEN TO, YOU KNOW, PROVIDING THE
LEGISLATURE WITH WHATEVER DATA
YOU WOULD LIKE TO SEE. I THINK
MORE THAN ONCE A YEAR IS
DEFINITELY THE APPROPRIATE AT
LEAST. I MEAN, PROBABLY, FOR AN
UNDEFINED PERIOD OF FUTURE GOING
FORWARD. BUT CERTAINLY IN THE
NEXT 1 TO 2 YEARS, WHEN WAS THE
LAST TIME YOU'VE BEEN ABLE TO
PULL THE DATA ON THE STATUS ON
THE AVERAGE, LENGTH OF A CLAIM
YESTERDAY? OKAY. AND, YOU MIGHT
HAVE SAID THAT WHILE I WAS
UNFORTUNATELY NOT HERE. WHAT
WHAT IS THE CURRENT STATUS WE'VE
HAD? WE'VE REDUCED IT BY 200
DAYS. SO LAST YEAR WE WERE AT
1000 DAYS. AND WE'RE NOW DOWN TO
800, WHICH IS STILL NOT
COMPLIANT WITH OUR OBLIGATIONS.
SO THE 895 AVERAGE THAT IS
OUTLINED IN THE AUDITOR'S
REPORT, THAT WAS FOR WHAT?
COMPARISON OF 23. OKAY. THE
AUDITOR WENT UP UNTIL NOVEMBER
OF 23, I BELIEVE. AND SO YOU'RE
NOW, GIVING SHARING INFORMATION
WITH US POST NOVEMBER. THIS IS
YOUR CURRENT. YES. I ASKED FOR,
THE STATEWIDE AVERAGE UP UNTIL
MAY OF 24, FROM THE LAST AUDIT.
SO WE'RE AT 800 DAYS AND GIVEN
THE, SORT OF HEAVY WEIGHT WE'VE
GIVEN TO HAVING THE PERSONNEL, I
WANT TO ASK, LAST YEAR, I KNOW
IT WAS THE FIRST YEAR YOU WENT
FROM HAVING ONLY 21. FOR
EXAMPLE, INDUSTRIAL RELATIONS
REPRESENTATIVES GREW TO 56
AUTHORIZED. SO YOU HAD 41
VACANCIES. BUT THAT WAS THE
FIRST YEAR. SO I'M, YOU KNOW, IT
TAKES TIME TO HIRE PEOPLE, WHERE
DO YOU STAND TODAY, AS IT
RELATES TO VACANCIES FOR THE
DEPUTIES. FOR THE DEPUTIES, WE
HAVE ABOUT 70 AUTHORIZED DEPUTY
POSITIONS, AND I THINK WE HAVE
ABOUT THAT ONE DOESN'T HAVE THE,
JUST, JUST JUST TO NOTE TO YOU,
IT'S ON PAGE 57 OF THE FULL
REPORT, AT LEAST WHAT WE HAVE,
WE HAVE 81 AUTHORIZED POSITIONS
AND DEPUTIES. DID THAT NUMBER
DECREASE? I'M LOOKING AT A
REPORT FROM THE BUDGETS OFFICE
THAT I JUST RECEIVED THIS WEEK,
AND WE HAVE 77, DEPUTY LABOR
COMMISSIONER ONES. AND THEN WE
HAVE 70 DLC TWOS, WHICH IS THE
HEARING OFFICER, AND THEN WE
HAVE 28 DLC THREES, WHICH IS THE
FIELD, THE SUPERVISOR. AND THEN
WE HAVE 58 INDUSTRIAL RELATIONS
REPRESENTATIVES. OKAY. SO THE
ONLY ONE THAT'S JUST THEY'RE NOT
VERY OFF FROM WHAT IS IN THE
AUDIT IN TERMS OF AUTHORIZED. SO
WHAT IS THE THOSE ARE THE NUMBER
OF POSITIONS YOU HAVE
AUTHORIZED. WHAT IS YOUR VACANCY
RATE FOR EACH ONE OF THOSE. SO
FOR THE DEPUTY LABOR
COMMISSIONER, ONE WE HAVE ABOUT
49, I'M SORRY, 51 INDIVIDUALS
VACANCIES. NO IN PLACE. OH OKAY.
SO WE HAVE ABOUT 28 VACANCIES
THERE. AND THEN FOR THE TWO WE
HAVE ABOUT 30 VACANCIES. AND FOR
THE THREE WE HAVE ONE VACANCY.
AND FOR THE INDUSTRIAL RELATIONS
REPRESENTATIVE, WE'RE AT 28. SO
EACH OF THOSE ARE A LITTLE OVER
50% OR SO. BUT OVERALL FOR OUR
WAGE CLAIM ADJUDICATION TEAM, OF
THE 320 AUTHORIZED POSITIONS, WE
HAVE ABOUT 215 FILLED. SO WE'RE
ACTUALLY AT THE LOWEST RATE
WE'VE BEEN IN A WHILE. WE'RE AT
ABOUT 38. OKAY. LAST YEAR WHEN
WE WERE DISCUSSING THE AUDIT,
ONE OF THE THINGS THAT WAS
DISCUSSED WAS THE NEED FOR
INDIVIDUALS TO DO THE WORK, BUT
ONE OF THE THINGS THAT WE ALSO
DISCUSSED WAS WHAT IS GOING TO
BE THE MEASUREMENT BY WHICH WE
DETERMINE THAT THE, THE CASELOAD
IS APPROPRIATE. AND ACTUALLY, I
THINK YOU AND I ALSO HAD A
CONVERSATION IN PERSON ABOUT
THIS. WHAT, WHAT HAS BEEN
IMPLEMENTED SINCE THE LAST YEAR
TO TRY AND GET, PERFORMANCE
MEASURES IN PLACE THAT WE
UNDERSTAND WHAT THE EXPECTATIONS
ARE FOR EACH OF THESE POSITIONS.
SO WE HAVE ISSUED EXPECTATIONS
MEMOS AND WE ARE IDENTIFYING WE
LOOKED AT HISTORICAL DATA AND
THEN WE SURVEYED TEAM MEMBERS TO
UNDERSTAND WHAT IS THEIR,
CAPACITY TO MOVE CONFERENCES AND
HEARINGS. SO WE IDENTIFIED A
MINIMUM REQUIREMENT OF 30
CONFERENCES TO BE HELD A MONTH.
THAT'S ABOUT 300. I'M SORRY.
THAT'S ABOUT 480. THAT WAS 40
CONFERENCES A MONTH, ABOUT 480 A
YEAR. AND CAN YOU TELL ME WHAT
WAS THE PRIOR? EXPECTATION?
WELL, WE DIDN'T HAVE A STANDARD
WHEN I CAME IN AND THEN THE
PANDEMIC HIT AND STUFF JUST GOT
CRAZY. SO WE'RE LOOKING AT THE
HISTORIC DATA, AND THEN WE
CONDUCTED A SURVEY TO SEE WHAT
FOLKS WERE DOING, BECAUSE WE'RE
TRYING TO ESTABLISH A UNIFIED
STANDARD FOR ALL 17 OFFICES. AND
THAT'S WHERE WE IDENTIFIED THE
30, HEARINGS A MONTH AND THE 40
CONFERENCES. AND ARE YOU
CURRENTLY MEETING ALL OF THOSE,
METRICS? NO, WE ARE NOT. AND
WHAT WAS THE MAIN REASON WHY YOU
ARE NOT WELL, THROUGH THE
COMMUNICATIONS WITH THE AUDITORS
TEAM ACTUALLY WAS QUITE HELPFUL
AS THEY, DRILLED DOWN ON CERTAIN
ISSUES LIKE THE OVERALLOCATION
OF OUR SUPERVISORS. SO WE DON'T
HAVE ENOUGH. WE HAVE SOME
SUPERVISORS THAT HAVE 20
DEPUTIES IN THEIR OFFICE, SO
IT'S JUST UNMANAGEABLE ALL. AND
THIS IS SOMETHING THAT OUR
AGENCY HAS NEVER LOOKED AT
BEFORE. RIGHT. SO WE'VE ALSO
SEEN WE NEED TO INCREASE
SUPERVISORS. RIGHT. AND WE HAVE
DONE THAT. WE'VE INCREASED WAGE
SUPERVISORS BY NINE. IT'S ABOUT
A 50% INCREASE S. AND WE'VE
INCREASED REGIONAL MANAGERS BY
TWO. THAT'S ABOUT A 66%
INCREASE. AND IN CONVERSATIONS
WITH THE AUDITOR'S TEAM THERE'S
RECOMMENDATIONS FOR MORE
SUPPORT, THAT WE NEED TO
PROVIDE. ASIDE FROM THE
CONFERENCES AND HEARINGS TO THE
AUDITOR'S TEAM, I KNOW THE AUDIT
TAKES PLACE OVER THE COURSE OF
MONTHS, AND THERE WAS INPUT THAT
WAS WELL RECEIVED BY THE
COMMISSIONER AND IS BEING
IMPLEMENTED ON THIS ISSUE OF THE
WHAT I CALL PERFORMANCE METRICS,
THE 40 PER MONTH FOR
CONFERENCES, THE 30 PER MONTH
FOR HEARINGS, HEARINGS. THANK
YOU, IS THAT A IS THAT A
CONSISTENT METRIC WITH,
COMPARABLE AGENCIES THAT DO THIS
WORK? DO YOU HAVE ANYTHING TO
SHARE? IS THIS A NUMBER THAT
YOU'VE, BELIEVE IS ADEQUATE AND
APPROPRIATE, OR IS THE NUMBER
OFF WITH MORE, MORE NEED OR LESS
NEED, WE DID NOT IDENTIFY A
COMPARABLE AGENCY WITH SIMILAR
WORKLOADS, SO. SO WE WEREN'T
ABLE TO DO THAT COMPARISON.
HOWEVER, WE DID TALK TO SOME OF
THE STAFF ABOUT THE EXPECTATION.
AND ONE OF THE THINGS THAT
ANECDOTALLY WE HEARD IS THAT IN
SOME CASES, THEY FELT THAT THIS
WAS A LITTLE TOO MUCH ON THEIR
PLATE TRYING TO GET THIS DONE,
ALONG WITH EVERYTHING ELSE
THAT'S ON THEIR PLATE, SO IN IN
MANY CASES FOR EXAMPLE, HEARING
OFFICERS WERE NOTING THAT THEY
DIDN'T HAVE TIME TO WRITE THE
DECISIONS BECAUSE THEY WERE THEY
WERE TRYING TO MEET THE 40 OR 30
TO 40 HEARINGS THAT THEY HAD TO
HOLD. SO THE 30 AND 40 PER MONTH
, METRIC THAT THE COMMISSIONER,
HAS OUTLINED AS APPROPRIATE, YOU
HEARD FEEDBACK FROM STAFF THAT
THAT IS NOT ACHIEVABLE. CORRECT.
SO YOU SO THEN YOU WEREN'T ABLE
REALLY TO WEIGH IN ON WHETHER
WHAT THE RIGHT NUMBER SHOULD BE?
THAT IS CORRECT. WE KNOW THAT
THEY ALREADY HAVE A LOT ON THEIR
PLATE RIGHT NOW. EVERY EVERY
HEARING OFFICER, EVERY DEPUTY.
BUT WHAT IS THE RIGHT NUMBER
THAT THEY CAN HANDLE. SO TO THE
COMMISSIONER I YOU KNOW, I THINK
YOU SETTING HIGH EXPECTATIONS IS
ABSOLUTELY THE RIGHT THING TO
DO, AND SUPPORT YOU IN THAT. HOW
WILL YOU ENSURE THAT THOSE
EXPECTATIONS ARE ACTUALLY MET? I
MEAN, WE'RE ALREADY HEARING THAT
SOME OF YOUR STAFF IS SAYING
THAT'S NOT SOMETHING WE CAN
ACCOMPLISH. HOW ARE WE GOING? I
DON'T I WOULD HATE TO HAVE YOU
BACK HERE, AND SAYING, YEAH,
THAT WAS TOO MUCH. AND THAT'S
WHY WE'RE STILL A THOUSAND DAYS
OR 800 TO 1000 DAYS BEHIND THAT.
WE DO NOT WANT TO BE IN THAT
SITUATION. I KNOW YOU DON'T WANT
TO BE IN THAT SITUATION. SO HOW
DO WE HOW DO HOW ARE YOU GOING
TO SUCCESSFULLY IMPLEMENT THESE
EXPECTATIONS? I APPRECIATE THAT
INQUIRY, I THINK THE OTHER ISSUE
THAT THIS IMPACTS IS MORALE AND
RETENTION. SO THAT'S ALSO
SOMETHING THAT WE HAVE TO LOOK
AT. WE'VE HAD MORE TEAM MEMBERS
LEAVE OUR WAGE UNIT SINCE WE
ISSUED THIS EXPECTATION MEMO IN
2021. RIGHT. SO THAT'S A BALANCE
. BUT PART OF THE SOLUTION IS WE
NEED MORE SUPERVISORS AND
MANAGERS, AND WE ALSO NEED THE
IT TOOLS. RIGHT. AVAILABLE THAT
HELPS THEM. RIGHT. THAT THEY SEE
THAT RIGHT NOW THEY SEE THE
SALESFORCE SYSTEM AS CREATES
MORE WORK FOR THEM. AND SO WE
ARE GOING THROUGH A BUSINESS
PROCESS REVIEW THAT WE INITIATED
LAST YEAR. CORRECT, AND WE ARE
LOOKING AT MODERN IZATION FOR
THIS SYSTEM SO THAT WE CAN
LEVERAGE IT TO HELP US DO OUR
JOB. SO AT THE END OF THE DAY,
THIS WILL BE MY FINAL, SET OF
QUESTIONS. THE END OF THE DAY, I
THINK YOU SOUNDS LIKE YOU'VE GOT
EXPECTATIONS, WHICH MEANS THOSE
EXPECTATIONS SHOULD, PAY
DIVIDENDS OF, OF THESE CLAIMS
AND PEOPLE RECEIVING THEIR THEIR
PAY. THAT'S WHAT YOU'RE. THIS IS
WHAT YOU YOUR, YOUR TASKED WITH
AND THAT I THINK YOU YOU ARE,
PERSONALLY, YOU KNOW, COMMITTED
TO. AND SO AS WE RECEIVE
INFORMATION ON THE STATUS OF, OF
THESE CASES AND CLAIMS, WHICH I
HOPE IF WE HAVE TO DO SOMETHING
LEGISLATIVELY, WE SHOULD PURSUE
THAT, IF NOT JUST GETTING THAT
INFORMATION DIRECTLY FROM FROM
YOU ALL WOULD BE HELPFUL, AND ON
INFORMATION ON A REGULAR BASIS,
ON THE STATUS OF YOUR 3040
EXPECTATIONS, WHICH I THINK
YOU'RE PROBABLY INTERNALLY
MONITORING, I ASSUME, AS WE
RECEIVE THOSE AND WE, WE, WE
HOPEFULLY START TO SEE THAT
REALLY PAY DIVIDENDS, WHERE
SHOULD WE EXPECT TO BE A YEAR
FROM NOW IN TERMS OF THE AVERAGE
TIME? WHAT IS YOUR EXPECTATION
WITH, THOSE METRICS THAT YOU'VE
NOW IMPLEMENTED? I WANT TO GET
TO THE 135 DAYS. IS IT REALISTIC
? I DON'T WANT TO MAKE A PROMISE
AND OVER DELIVER AND OR UNDER
DELIVER. EXCUSE ME, YOU KNOW,
I'M NOT SURE WHEN THIS AGENCY
HAS EVER MET THOSE 135 DAYS AS
THE AUDITOR FOUND RIGHT? RIGHT.
THIS BACKLOG EXISTED PRIOR TO MY
APPOINTMENT. CORRECT, HOWEVER,
WE ARE IMPROVING THE WAY WE
HANDLE CLAIMS, AND WE WANT TO
REMOVE TASKS. AS YOU MAY HAVE
HEARD, THERE ARE OTHER TASKS ON
TOP OF OUR ENFORCEMENT PERSONNEL
THAT PREVENT THEM, THAT DISTRACT
THEM FROM PRIORITIZING CASES. SO
IF WE, IN FACT, ARE ABLE TO FILL
THESE POSITIONS, IF WE ARE ABLE
TO GAIN THE SYSTEM, MODERNIZE
ATION, IF WE'RE ABLE TO BRING
NEW POSITIONS TO HANDLE OUR
PUBLIC INFORMATION DUTY, THEN I
THINK WE'RE GOING TO BE AT AN
ENVIRONMENT WHERE THE 20
INDIVIDUALS THE AUDITOR SPOKE
TO, WHO COMMUNICATED CONCERN
ABOUT THIS, THEY DON'T HAVE ALL
OF THESE TOOLS RIGHT NOW. RIGHT.
SO THEY'RE IN THE THICK OF IT
DOING THE REALLY HEAVY LIFTING.
SO I THINK THAT, YOU KNOW, WE
ACTUALLY WILL BE ABLE TO TELL
YOU ASIDE FROM ADDRESSING THE
BACKLOG AND PROCESSING CLAIMS
MORE TIMELY, WE'LL BE ABLE TO
GIVE YOU A MORE INFORMED
EVALUATION OF WHAT'S POSSIBLE,
BECAUSE WHAT'S POSSIBLE FOR A
SIMPLE CLAIM THAT'S FULLY
DOCUMENTED, THAT THE EMPLOYER
SHOWING UP, THAT CAN POSSIBLY
WORK, RIGHT. BUT THERE ARE SO
MANY CLAIMS THAT ITS CASH
ECONOMY, THE EMPLOYER IS NOT
SHOWING UP. WORKERS ARE NOT
RESPONSIVE. AND I DON'T BELIEVE
WE'RE SERVING THE PUBLIC BY
CLOSING THOSE CLAIMS SIMPLY
BECAUSE WE'RE WE'RE PAST THE
STATUTORY REQUIREMENT. SO TO
HOLD EACH OTHER ACCOUNTABLE,
BOTH YOU AND OURSELVES AND FOR
THE PUBLIC, BECAUSE AT THE END
OF THE DAY, WE'RE PUBLIC
SERVANTS, IF I LIKE TO HEAR TWO
ANSWERS FROM YOU, IF YOU HAD ALL
THOSE TOOLS, YOU THINK A YEAR
FROM NOW YOU'D BE AT 135 DAYS,
IN TERMS OF ADJUDICATING CLAIMS,
IF YOU DON'T HAVE THE STATUS QUO
IS WHAT IT IS TODAY, AND YOU'RE
NOT ABLE TO GET ANY ADDITIONAL
TOOLS. BUT YOU HAVE, SEVERAL
VACANCIES TO FILL AND YOU I
THINK AT LEAST ON THAT FRONT,
YOU'RE ABLE TO FILL THE
VACANCIES. SECOND ANSWER IS,
WHAT WILL BE IF IT'S A STATUS
QUO, WHAT SHOULD WE EXPECT TO
SEE NEXT YEAR IN TERMS OF THE
TIME IT TAKES FOR THE CLAIMS? I
THINK WE NEED A YES ON EVERY
STRATEGY TO GET TO THE 135 DAYS.
CORRECT, INCLUDING THE
RECOMMENDATIONS AND THE
EVALUATION BY THE AUDITOR, IF WE
DON'T BUT IF WE DON'T GIVE YOU
THOSE TOOLS, WHATEVER PART OF
THAT THAT IS OUR RESPONSIBILITY,
THEN AT LEAST THE ACCOUNTABILITY
EXISTS THAT WE DIDN'T GIVE YOU
THE TOOLS. THEREFORE YOU'RE NOT
ABLE. AND THEN WE CAN HAVE THAT
CONVERSATION. WE'RE STILL
DELAYED. AND THEN WE'LL ALL BE
RESPONSIBLE. BUT I'M SAYING IF
YOU IF YOU DON'T RECEIVE THOSE
TOOLS, WHAT SHOULD WE
REALISTICALLY EXPECT? YOU DID
ALREADY SHAVE IT DOWN A COUPLE
HUNDRED DAYS RIGHT. SO
SOMETHING'S WORKING. WHAT DO YOU
THINK A REALISTIC EXPECTATION
FOR US IS A YEAR FROM NOW ON
WHERE THIS STANDS. AND JUST TO
CLARIFY, THE REASON WE ARE ABLE
TO REDUCE THE 200 DAYS IS
BECAUSE WE GOT ADDITIONAL
POSITIONS. RIGHT, I THINK IF
WE'RE NOT ABLE TO GET THE TOOLS
AND THE POSITIONS THAT WE NEED,
THEN WE'RE LIKELY GOING TO BE
LOOKING AT A TWO YEAR PROCESS.
YES. OKAY. THANK YOU. I
APPRECIATE THAT VERY HONEST
RESPONSE. THANK YOU VERY MUCH.
THANK YOU. SENATOR. MEMBER
ALVAREZ, ASSEMBLY MEMBER ORTEGA,
THANK YOU. I APOLOGIZE FOR
LEAVING EARLIER. A COUPLE OF US
HAVE TO BE IN THREE PLACES AT
ONCE, AROUND HERE. SO SO, BUT I
DID HAVE A QUESTION GOING BACK
TO MY OPENING STATEMENT, AND I
APOLOGIZE IF THIS HAS BEEN
COVERED ALREADY, I, I STILL HAVE
A CONCERN. LEARN THAT EVEN IF
ALL THE VACANT POSITIONS ARE
FILLED, THAT THE PROBLEM IS SO
VAST FOR SO MANY YEARS THAT IT'S
NOT GOING TO BE ENOUGH TO GET TO
WHERE WE WANT TO SEE OURSELVES
IN A YEAR. SO HAVE YOUR OFFICE
THOUGHT ABOUT ALTERNATIVES,
WHETHER IT'S INCENTIVES FOR
EMPLOYERS WHO ARE DOING THE
RIGHT THING OR EMPOWERING
EMPLOYEES TO DO SOME OF THIS
ENFORCEMENT THEMSELVES, WHAT ARE
SOME ALTERNATIVES, IF ANY, THAT
YOU'VE CONSIDERED OR THOUGHT OF?
THANK YOU SO MUCH. MEMBER ORTEGA
, WE'RE MY DUTY IS TO ENFORCE
THE LAW AND TO EXERCISE THE
TOOLS PROVIDED TO ME BY THE
LEGISLATURE. I'M NOT ALLOWED TO
GO OUTSIDE OF THOSE TOOLS, BUT I
WILL SHARE WITH YOU, SOME
STRATEGIES THAT WE HAVE BEEN
IMPLEMENTING TO GET AT EXACTLY
WHAT YOU SAID. AND WE DID HAVE
THIS CONVERSATION EARLIER WITH
SENATOR, SMALLWOOD. CUEVAS, THAT
THAT WE HAVE A DUTY TO EDUCATE
WORKERS AND TO IF THEY DO NOT
UNDERSTAND THEIR RIGHTS, THEY
CANNOT EXERCISE THEM. AND IF
THEY DON'T KNOW HOW TO, THEY
ALSO AREN'T GOING TO BE
EFFECTIVE. WHAT THEY DO AT WORK
AND SO WE HAVE BEEN IMPLEMENTING
AN AGGRESSIVE OUTREACH CAMPAIGN,
AS I BELIEVE YOU ARE AWARE,
WE'VE BEEN CONDUCTING COMMUNITY
CLINICS IN OUR SERVICE GAP AREAS
IN THE INLAND EMPIRE, IN THE
CENTRAL VALLEY AND THE CENTRAL
COAST. WE'VE ALSO BEEN WORKING
WITH COMMUNITY LEADERS WHO ARE A
BRIDGE. THEY ARE TRUSTED IN
THEIR COMMUNITIES. THEY HAVE
EXPERTISE AROUND THE INDUSTRIES,
AND WHAT'S MOST VALUABLE IS THEY
HAVE RELATIONSHIPS WITH THE
WORKERS. THEY WILL LIKELY NOT
COME TO US, BUT THEY WILL GO TO
THE COMMUNITY. SO WE'VE EXPANDED
THOSE PARTNERSHIPS. WE HAVE A
STRATEGIC ENFORCEMENT PROGRAM
THAT WE DO ON THE BUREAU SIDE,
WHERE WE ALSO WORK WITH ABOUT 11
ORGANIZATIONS IN STRATEGIC
INDUSTRIES TO BUILD CASES. SO
EVERYWHERE WE CAN, WE NEED
COMMUNITY PARTNERS. THE JOB IS
TOO GREAT, RIGHT, TO GET THAT.
AND WE'VE ALSO BEEN AMPLIFYING
ALL OF OUR OUTCOMES. WE'VE BEEN
DOING PUBLIC DISTRIBUTIONS,
WHICH THIS AGENCY DID NOT DO,
BUT GIVEN THE IMPACTS OF THE
PANDEMIC, WE WERE DOING PUBLIC
DISTRIBUTIONS SO THAT PEOPLE CAN
SEE PEOPLE LIKE THEM ACTUALLY
GET TO NGUYEN AND ARE MOVING
FORWARD. THEIR CASES. ARE THERE
ARE THERE QUESTIONS FROM MEMBERS
? WELL, THANK YOU BOTH.
APPRECIATE THE INFORMATION.
WE'RE GOING TO MOVE TO OUR LAST
PANEL, WHICH IS, CAITLYN VEGA
FOR THE GENERAL COUNSEL FOR THE
CALIFORNIA LABOR FEDERATION.
THANK YOU FOR YOUR PATIENCE.
THANK YOU, MR. CHAIR. MR. FORMER
CHAIR, FORMER AND CURRENT LABOR
CHAIRS. REALLY APPRECIATE THIS
OPPORTUNITY TO BE HERE WITH YOU
ALL AND TALK ABOUT WHAT IS SUCH
A CRITICALLY IMPORTANT ISSUE TO
THE WORKING PEOPLE OF
CALIFORNIA, MY NAME IS CAITLIN
VEGA. I'M THE GENERAL COUNSEL AT
THE CALIFORNIA LABOR FEDERATION.
I'VE BEEN HERE FOR 20 YEARS
WORKING ON THE ISSUE OF LABOR
LAW ENFORCEMENT, AND THERE WERE
REFERENCES EARLIER TO THE FACT
THAT WE DID NOT SUPPORT AN
AUDIT. AND I WANT TO EXPLAIN
THAT LAST MARCH, WHEN JLAC FIRST
CONSIDERED THIS AUDIT, WE SAID
THERE IS A CRITICAL PROBLEM OF
VACANCIES. THEY HAVE VACANCIES
BETWEEN 35 AND 44% IN EACH OF
THESE KEY DIVISIONS. WE WOULD
LIKE TO SEE THE LEGISLATURE PUSH
FORWARD EMERGENCY HIRING WITH AN
EXPEDITED HIRING PROCESS. WE
WERE CONCERNED SIMPLY THAT AN
AUDIT WOULD DELAY TAKING WHAT WE
VIEWED AS REALLY URGENT ACTION
TO FILL THOSE VACANCIES.
UNFORTUNATELY THAT ACTION WAS
NOT TAKEN UNTIL VERY RECENTLY.
WE WERE TOLD THIS WEEK THAT
THERE HAS BEEN AN AGREEMENT, WE
WERE WE WERE PARTY TO AN
AGREEMENT THAT THE
ADMINISTRATION IS GOING TO MOVE
TOWARD, PROVIDING EMERGENCY
HIRING AUTHORITY TO THE LABOR
AGENCY, WHICH IS SOMETHING THAT
WE HAVE BEEN ADVOCATING FOR, FOR
A COUPLE OF YEARS NOW. AND
TOWARD DEVELOPING A HIRING
PROCESS THAT GETS TO SO MANY OF
THE ISSUES THAT SENATOR
SMALLWOOD CUEVAS RAISED, WHICH
ARE ABOUT WHAT ARE THE RIGHT
MINIMUM QUALIFICATIONS, WHY ARE
WE DISQUALIFYING PEOPLE? SO ALL
THAT SAID, WE DID NOT SUPPORT
THE AUDIT. I THOUGHT THERE WERE
SOME REALLY HELPFUL FINDINGS IN
IT. I WISH WE HAD MOVED, YOU
KNOW, A YEAR AND A HALF AGO, BUT
I'M REALLY HAPPY TO BE WHERE WE
ARE NOW TO BE MOVING FORWARD
WITH THE EMERGENCY HIRING, AND
TO HAVE SOME OF THE REALLY
IMPORTANT INFORMATION THAT CAME
OUT IN THE AUDIT, THEY ACTUALLY
LOOKED AT SITUATIONS WHERE
CANDIDATES WERE BEING REJECTED
BASED ON MINIMAL QUALIFICATIONS
AND FOUND THAT IN A LOT OF
CASES, THAT DIDN'T MAKE SENSE.
WE SHOULD BE THINKING ABOUT THE
CRITICAL MISSION OF THIS AGENCY
AND WHO ARE THE RIGHT KINDS OF
PEOPLE TO BE OUT THERE, TRYING
TO ENSURE THAT WORKERS ARE PAID
FOR THE WORK THAT THEY DO,
TRYING TO EDUCATE EMPLOYERS,
TRYING TO BE ACCESSIBLE TO
PEOPLE WHO HAVE LANGUAGE
BARRIERS AND OTHER KINDS OF
BARRIERS. SO WE ARE PLEASED TO
BE IN THAT POSITION, BUT ALSO
VERY GRATEFUL THAT THIS
COMMITTEE IS GIVING THIS THE
SERIOUS ATTENTION THAT IT NEEDS,
A RECENT REPORT CAME OUT ABOUT A
WEEK AGO, MAYBE, SORRY, MAYBE
TWO WEEKS AGO, IT WAS FROM
HARVARD UNIVERSITY AND UCSF ON
THIS ISSUE OF LABOR LAW
ENFORCEMENT. THEY SURVEYED
SERVICE SECTOR WORKERS IN
CALIFORNIA AND FOUND THAT 46% OF
THEM HAD EXPERIENCED LABOR LAW
VIOLATIONS. INS, OUT OF THAT
GROUP THAT HAD EXPERIENCED LABOR
LAW VIOLATIONS, ONLY ONE QUARTER
OF THEM REPORTED IT TO ANYONE.
AND IN ALMOST EVERY CASE, THEY
ONLY REPORTED TO A SUPERVISOR OR
A MANAGER. ONLY 1% REPORTED TO A
STATE AGENCY. AND I THINK THAT'S
CRITICAL TO UNDERSTAND THAT THIS
BACKLOAD WERE THIS BACKLOG THAT
WE'RE FOCUSED ON, IS A TINY DROP
IN THE BUCKET COMPARED TO WHAT
WORKERS ARE EXPERIENCING EVERY
DAY, AND THAT THE REALITIES OF,
RETALIATION, OF THREATS OF
DEPORTATION, THÀNH OF EMPLOYERS,
YOU KNOW, SENDING A SIGNAL TO
WORKERS THAT THEY DON'T HAVE THE
ABILITY TO SPEAK OUT, THAT THERE
WILL BE CONSEQUENCES IF THEY DO
MAKE IT INCREDIBLY HARD FOR
WORKERS TO COME FORWARD WITH
THESE CLAIMS. THAT'S WHY IT'S SO
URGENT THAT WHEN THEY DO, IT IS
A PROCESS WHERE THEY FIND
JUSTICE, WHERE THEY GET A TIMELY
RESOLUTION, AND SO THAT'S WHY WE
HAVE FOCUSED SO MUCH ON THE
URGENCY Kò TO FILL THESE
VACANCIES AND TO FIND PEOPLE WHO
WILL, WILL BE COMMITTED TO THE
MISSION OF THE AGENCY. IN
ADDITION, THERE WAS A LOT OF
TALK ABOUT VOLUME OF CASES, 80%
OF NONUNION WORKERS HAVE TO SIGN
FORCED ARBITRATION AGREEMENTS TO
GET THEIR JOB. THAT MEANS THEY
HAVE NO ABILITY TO BRING, YOU
KNOW, WHAT USED TO BE THE TOOL
OF THE LOW WAGE WORKER? THE
CLASS ACTION LAWSUIT, THE REASON
FOR THAT IS THAT WORKERS COULD
AGGREGATE WHAT ARE SMALL
INDIVIDUAL CLAIMS BECAUSE THEY
ARE LOW WAGE INTO ONE, CASE THAT
WOULD BE POWERFUL ENOUGH TO GO
UP AGAINST A BIG CORPORATION.
WORKERS NOW HAVE TO WAIVE THAT
EVEN TO APPLY FOR A JOB AT A
FAST FOOD COMPANY. YOU HAVE TO
CHECK A BOX SAYING, I WAIVE MY
RIGHT TO TAKE MY EMPLOYER TO
COURT. THAT IS A BIG REASON THAT
WE SEE THIS KIND OF VOLUME, AND
THAT WE ARE NOW EXPECTING THE
LABOR AGENCY TO TAKE ON A ROLE
THAT WAS NOT PREVIOUSLY
CONTEMPLATED. ALL OF THAT, OF
COURSE, MEANS THE LABOR AGENCY,
THE LABOR COMMISSIONER'S OFFICE,
IS ESSENTIAL. AND I'M SO
APPRECIATIVE OF THE TIME THAT
ALL OF YOU ARE TAKING TO HELP US
THINK ABOUT HOW WE STRENGTHEN
AND REBUILD THIS AGENCY WHEN IT
COMES TO HIRING. I MENTIONED
SOME OF THE ISSUES AROUND
MINIMUM QUALIFICATIONS. I THINK
THERE ARE A NUMBER OF THINGS
THAT COULD BE STREAMLINED,
DUPLICATIVE TESTING. UNNECESSARY
TESTING. IF SOMEONE'S A LAWYER,
THEY'RE A LAWYER. WHY DO THEY
NEED TO TAKE ANOTHER LAWYER
TEST? IF SOMEONE'S BILINGUAL,
WHY IS IT ESSENTIAL THAT THEY
SPEAK A CERTAIN KIND OF FORMAL
LANGUAGE THAT MAY NOT BE SPOKEN
BY ANYONE, THAT THEY'RE GOING TO
BE WORKING WITH IN THE LABOR
COMMISSIONER'S OFFICE? THE, THE
STAFF OF THE LABOR
COMMISSIONER'S OFFICE SHOULD NOT
HAVE TO DEMONSTRATE EVERY SINGLE
POSITION THAT NEEDS TO BE
BILINGUAL. WE SHOULD JUST
ACCEPT, OF COURSE, WE NEED
BILINGUAL STAFF, AND WE SHOULD
CUT OUT THOSE KIND OF, DELAYS IN
THE PROCESS SO THAT WE'RE ABLE
TO GET PEOPLE OFF BEFORE THEY
FIND OTHER JOBS. OF COURSE,
HIRING IS ONLY ONE HALF OF THE
PROBLEM. WE HAVE A HUGE
RETENTION PROBLEM, AS SOON AS
THEY HIRE AND FILL THESE
POSITIONS, NO SOONER THAN THEY
HIRE AND FILL. WE HAVE STAFF
LEAVING. THAT'S BECAUSE NOT ONLY
DO THEY MAKE LESS THAN IN THE
PRIVATE SECTOR, THEY MAKE A LOT
LESS THAN WORKERS DO AT OTHER
AGENCIES. THEY ALSO HAVE LESS
PROMOTIONAL OPPORTUNITIES. I
HAVE TALKED TO COUNTLESS STAFF
WITHIN THE LABOR COMMISSIONER'S
OFFICE WHO TALK ABOUT HOW HARD
IT IS TO BE STUCK AT A PLACE
WHERE THEY ARE NOT ABLE TO
PROMOTE. IF THEY DO IT CAUSES
ANOTHER VACANCY, AND SO THEY'RE
LEAVING TO OTHER AGENCIES, EVEN
WHEN WORKING AT THE LABOR
COMMISSIONER'S OFFICE IS WHAT
THEY LOVE. AND WHERE THEY WANT
TO STAY. SO WE HAVE TO THINK
ABOUT RECRUITMENT. WE HAVE TO
RAISE THOSE SALARIES. WE HAVE TO
FIND WAYS TO KEEP THE GREAT
STAFF WE HAVE AS WE ARE
RECRUITING. AND THEN WE ALSO
NEED TO THINK ABOUT, YOU KNOW,
THERE WAS SOME DISCUSSION IN THE
AUDIT ABOUT THE IMPACT OF NEW
LAWS. I HAVE WORKED A LOT OF
THESE YEARS AS A LOBBYIST IN
THIS BUILDING. YOU MAY ALL HAVE
HEARD THE ARGUMENTS. WE SHOULD
NEVER HAVE A PRIVATE RIGHT OF
ACTION. NO ONE SHOULD EVER BE
ABLE TO SUE THEMSELVES.
EVERYTHING SHOULD JUST GO TO THE
LABOR COMMISSIONER. THAT'S A
COMMON REFRAIN WE HEAR FROM FROM
THE BUSINESS LOBBYISTS WHO
OPPOSE A LOT OF THE LABOR LAWS
THAT GETS PASSED, THAT GET
PASSED HERE. BUT WE HAVE TO BE
CONSCIOUS THAT THERE'S A TOLL
WHEN WE MAKE LAWS ENFORCEABLE BY
THE LABOR COMMISSIONER, ONLY
AGAIN, WE'RE ADDING TO THAT
VOLUME WITHOUT THINKING ABOUT
HOW WE'RE BUILDING THE
INFRASTRUCTURE AND WHETHER THERE
IS ANY PLAUSIBLE WAY FOR THEM TO
MEET THAT NEED. WE SHOULD BE
WORKING WITH THE AGENCY TO MAKE
SURE THEY HAVE ALL OF THOSE
TOOLS TO BOTH ENFORCE AND
COLLECT, AND WAYS TO SIMPLIFY
THE PROCESS, WE SHOULD CONTINUE
TO THINK ABOUT WHEN WE DO LABOR
LAWS THAT THEY INCLUDE REQUIRE
CGRTS THAT ALLOW US TO IDENTIFY
THE RESPONSIBLE PARTIES. WE'VE
SEEN A HUGE GROWTH IN CONTINGENT
WORK IN THE STATE. THE USE OF
LABOR CONTRACTORS, AND, AND IN
ALL OF THOSE SETTINGS, IT
BECOMES MUCH HARDER TO HOLD THE
RIGHT PERSON ACCOUNTABLE, AND
THEN LASTLY, I JUST WANT TO SAY
I AM VERY GRATEFUL TO THE
AUDITOR FOR DOING SOMETHING WE
DON'T GET TO DO VERY OFTEN,
WHICH IS STEP BACK AND TAKE A
LOOK AT THIS AGENCY AND SAY, WHY
ARE WE TALKING ABOUT 30
POSITIONS HERE? WE SHOULD BE
TALKING ABOUT 892. THAT'S RIGHT.
AND WE HAVE FOUGHT EVERY YEAR
FOR SMALL ADDITIONS TO THE
BUDGET. AND, AND LET'S GET 15
MORE PEOPLE IN RETALIATION. AND
LET'S GET, YOU KNOW, 30 THAT CAN
HELP ON INTAKE. THE REALITY IS
WE ARE A HUGE STATE. WE HAVE A
LARGE, IMMIGRANT WORKER
POPULATION IN THIS STATE THAT
ARE OFTEN IN LOW WAGE JOBS WITH
A HIGH RATE OF LABOR LAW
VIOLATIONS, AND WE HAVE ALL OF
THE LEVELS OF CONTRACTING, AND
SO WE SHOULD BE INVESTING IN AN
AGENCY THAT IS ABLE TO THAT HAS
THE CAPACITY TO PROTECT THE
WORKERS OF THIS STATE. AND AS
YOU MENTIONED EARLIER, SENATOR
SWALWELL CUEVAS, WE OWE IT TO
ALL THE EMPLOYERS THAT FOLLOW
THE LAW TO SHOW THAT THERE ARE
CONSEQUENCES WHEN EMPLOYERS
BREAK THE LAW. AND THAT'S WHY WE
HAVE TO SUPPORT THE WORK THAT
THIS LABOR COMMISSIONER IS DOING
TO EXPAND OUTREACH AND
ENFORCEMENT. AND WE NEED TO
CONTINUE TO STRENGTHEN AND
INVEST IN THIS AGENCY. THANK YOU
. THANK YOU VERY MUCH, MISS
VEGA. THAT WAS VERY HELPFUL. ARE
THERE QUESTIONS FOR SENATOR
SMALLWOOD? CUEVAS, CAN SOMEONE
WHAT IS THE CURRENT BUDGET OF
THE LABOR COMMISSIONER'S OFFICE
IN THIS CYCLE? IS YOUR CURRENT
TOTAL BUDGET? I THINK IT'S ABOUT
129,000,129. OKAY BUT I COULD
CONFIRM THAT FOR YOU. OKAY. I
JUST WANT TO SAY THE CITY OF LA
SPENDS 338 MILLION ON PARKS. AND
SO TO MY COLLEAGUE, LABOR CHAIR
ON THE ASSEMBLY SIDE, WHEN WE
TALK ABOUT SCALE TO PROVIDE LAW
ENFORCEMENT FOR THE WORK SITES
IN THAT HAVE SUCH A DIRE DYNAMIC
ENFORCEMENT SCHEME IN ORDER TO
REALLY REGULATE, I DON'T WE CAN
TALK ABOUT THE 58 POSITIONS, YOU
KNOW, ASSEMBLY MEMBER ALVARADO.
ALVARADO'S POINT ABOUT HOW WE
DON'T WANT TO BE HERE NEXT YEAR.
BUT IF WE ARE SPENDING 124
MILLION TO ENFORCE OUR LABOR
LAWS, AND AS YOU SAY, MORE AND
MORE ARE BEING PLACED WITHIN
THIS DEPARTMENT, HOW IN THE
WORLD WILL WE DO IT WHEN WE ARE
BEING OUTSPENT OUT BY A CITY? ON
PARKS AND RECREATIONS? SO I
DON'T KNOW. I FEEL LIKE I
UNDERSTAND WHAT WE'RE DOING
HERE, BUT I DON'T UNDERSTAND
WHAT WE'RE DOING HERE. AND IT
SPEAKS TO OUR LACK OF INVESTMENT
IN ENFORCEMENT IN THIS STATE
WHERE WE ARE SPENDING THE
PEOPLE'S MONEY, BUT WE'RE NOT
SPENDING IT IN A WAY THAT IS
HELPING US DEAL WITH AND SOLVE
THE PROBLEMS THAT THAT OUR
CONSTITUENTS ARE, ARE LOOKING TO
US. YOU KNOW, I'M CURIOUS OF ALL
OF THE RESOURCES THAT ARE BEING
LOST TO WAGE THEFT. WHAT DOES
THAT MEAN IN TERMS OF INCOME TAX
THAT WE NEED TO RUN THE STATE?
WE'RE IN A DEFICIT AND I'M GOING
IN. I HAVE TEN YEARS LEFT AND
I'M GOING TO BE DEALING WITH
THIS DEFICIT FROM THIS YEAR OVER
THE NEXT FIVE YEARS. YOU AND I,
MANY OF US WILL BE WE NEED
PEOPLE TO EARN A LIVING AND TO
PAY IN TO THE SYSTEM. AND IN
ORDER FOR US TO MAKE THAT MONEY,
WE'VE GOT TO SPEND THE MONEY
THAT'S NECESSARY TO ENSURE THAT
WE ARE PROTECTING AS MANY
CALIFORNIANS AS POSSIBLE. BUT WE
HAVE A RUBRIC FOR ENFORCEMENT
THAT ACTUALLY WORKS TO RAISE THE
FLOOR FOR SO MANY FAMILIES. SO I
, I APPRECIATED THE, ANALYSIS
AND THE APPRECIATION FOR THE
AUDIT, BUT I THINK THERE'S A
MUCH BIGGER QUESTION THAT WE
HAVE HERE IS LAW ENFORCEMENT IS,
AS IMPORTANT AS PARKS AND
RECREATION. DOES THE STATE OF
CALIFORNIA PUT OUR MONEY WHERE
OUR LAWS AND OUR RHETORIC IS,
AND WE NEED MORE RECEIPTS CGRTS
THAT WE ARE MAKING THE RIGHT
INVESTMENTS IN MAKING A RETURN?
THIS IS WHERE WE NEED TO MAKE
THE RETURN. SO THIS IS WHERE WE
NEED TO BE INVESTING. SO I THINK
WE HAVE A LOT TO THINK ABOUT IN
TERMS HOW WE'RE BUDGETING AND
WHAT ENFORCEMENT MEANS TO US.
MR. CHAIR, IF I MAY, I DO HAVE
AN UPDATED NUMBER. I WAS OFF
THAT WE ARE AT 239 MILLION,
STILL SIGNIFICANTLY LESS. RIGHT.
AND THE PERSONNEL IS 112, 112
FTES. NÓ MILLION. MILLION.
THAT'S THE NUMBER OF, I THINK
112 MILLION. THANK YOU. THANK
YOU, THANK YOU, SENATOR,
ASSEMBLY MEMBER ORTEGA THANK
YOU, SENATOR, AND THANK YOU,
MISS VEGA, FOR YOUR TESTIMONY
AND RECOGNITION OF YOUR MANY
YEARS OF WORKING ON THESE ISSUES
AND REALLY PRIORITIZING WORKERS
AND ESPECIALLY THOSE WHO ARE,
YOU KNOW, LOW WAGE, WORKER WHO
ARE OFTEN IN THE DARK, WHO ARE
THE ONES WHO ARE WHOSE WAGES ARE
BEING STOLEN AND WHO DON'T HAVE,
JUST THIS. AND I THINK WHAT
WE'RE DOING HERE TODAY IS
ACTUALLY PRIORITIZING THIS
ISSUE, THAT'S WHAT I'M GETTING
OUT OF THIS AUDIT IS FINALLY, WE
ARE ACTUALLY, PRIORITIZING
SOMETHING THAT SHOULD HAVE BEEN
PRIORITIZED A LONG TIME AGO,
HOPING THAT THIS IS NOT THE LAST
OF HEARINGS, JUST LIKE WE DID
WITH THE RETAIL THEFT, THAT WE
ACTUALLY HAVE SEVERAL HEARINGS
TO REALLY DIG IN DEEP AND MAKE
SURE THAT WE ARE PROVIDING
JUSTICE FOR ALL CALIFORNIANS,
WHETHER IT'S THE EMPLOYERS OR
THE WORKERS, AND MAKING SURE
THAT WE'RE RECOVERING THE
MILLIONS OF DOLLARS THAT ARE
STILL OUT THERE, I THINK, YOU
KNOW, IN MY, WHEN I HAD MY OTHER
HEARING, I KEPT HEARING THE
ISSUE OF THE VACANCIES, AND I'M
GLAD TO HEAR THAT FINALLY, AFTER
THIS AUDIT CAME OUT, AFTER I
REQUESTED ANOTHER AUDIT, AFTER
THAT HEARING WE HAD THERE WERE
ACTUALLY SEEN MOVEMENT BECAUSE
IT IS A QUESTION ABOUT PRIORITY.
DO WE WANT TO PRIORITIZE THIS OR
NOT. AND I THINK WE'RE WE'RE
PUSHING AND WE'RE GOING TO
CONTINUE TO PUSH, TO MAKE SURE
THAT THIS ISSUE CONTINUES TO BE
PART OF THE CONVERSATION
PRIORITY WISE, AND THAT WE
DELIVER BECAUSE IT'S NOT OKAY TO
BE THE FIFTH LARGEST ECONOMY IN
THE WORLD. AND HAVE THE ISSUES
THAT WE'VE BEEN TALKING ABOUT
FOR MANY, MANY YEARS. THIS
VACANCY RATES HAS NOT BEEN NEW.
THEY HAVE HAPPENED OVER AND OVER
AGAIN, THE AMOUNT OF MONEY THAT
THE DEPARTMENT GETS IS NOT NEW.
AND SO WHAT IS IT THAT WE'RE
GOING TO DO THAT IS NEW? WHAT IS
IT THAT IS. AND THAT WAS KIND OF
THE QUESTIONING THAT I HAD. WHAT
IS IT THAT WE'RE GOING TO DO
THAT IS DIFFERENT, THAT IS NEW,
THAT IS GOING TO, LEAD TO
RESULTS AND DELIVERABLES FOR ALL
WORKERS IN THE STATE OF
CALIFORNIA. THANK YOU. ARE THERE
ANY OTHER QUESTIONS OR, CHAIR,
ORTEGA OR CHAIR? SMALLWOOD.
CUEVAS, WOULD YOU LIKE TO MAKE
ANY CLOSING COMMENTS? I THOUGHT
THAT WAS AND IT WAS VERY
EFFECTIVE TOO. AND THAT WAS MY
CLOSING. OKAY. GREAT ASSEMBLY
MEMBER ORTEGA, DO YOU OR EXCUSE
ME? ALVAREZ, DO YOU HAVE ANY
CLOSING COMMENTS? NO. JUST
AGAIN, WANT TO THANK YOU FOR
CONTINUING THE WORK ON THIS
FRONT AND FOR HAVING THIS
HEARING FOR THE TWO CHAIRS, FOR
YOUR COMMITMENT AND PASSION TO
THIS AND TO GET TO THE END
RESULT, WHICH IS LET'S DO
JUSTICE FOR PEOPLE. AND THESE
ARE THE MOST VULNERABLE PEOPLE
IN CALIFORNIA. AND THE QUICKER
WE DO IT, THE BETTER THEIR LIVES
WILL BE AND THE BETTER
CALIFORNIA WILL BE. AND SO I
LOOK FORWARD TO THE UPDATES, THE
REGULAR UPDATES ON ON THE
PROGRESS. I THINK WE NEED TO
HOLD OURSELVES ACCOUNTABLE. AND
I THINK WE KNOW WHAT THE TASK IS
AHEAD. AND YOU HAVE A COMMITMENT
FROM ME TO SUPPORT THAT WORK.
THANK YOU, MR. CHAIR. THANK YOU.
AND I WANT TO MAKE SURE WE HAVE
TIME FOR PUBLIC COMMENT. SO IF
ANYONE WOULD LIKE TO COME UP TO
THE MICROPHONE, PLEASE SHARE
YOUR INSIGHT. CHAIRS, COMMITTEE
MEMBERS AND STAFF. MY NAME IS
DEAN GRAFILO WITH CAPITAL
ADVOCACY. HERE ON BEHALF OF
CASE, THE UNION THAT REPRESENTS
THE THOUSANDS OF ATTORNEYS,
ADMINISTRATIVE LAW JUDGES AND
HEARING OFFICERS IN STATE
GOVERNMENT. FIRST OF ALL, MUCH
PRAISE AND THANK YOU TO THE
CALIFORNIA STATE AUDITOR AND
TEAM ON THIS REPORT AND JLAC
SENATE AND ASSEMBLY LABOR
COMMITTEES FOR THIS OVERSIGHT
HEARING. THE BREADTH AND FOCUS
OF TODAY'S HEARING ARE MATTERS
THAT CASE KNOWS ALL TOO WELL AND
WELCOMES PARTNERING WITH ALL
STAKEHOLDERS IN ORDER TO
IDENTIFY A PATH OF CREATIVE
PROBLEM SOLVING FOR THE AE AND
BEYOND. AS THE SAYING GOES,
JUSTICE DELAYED IS JUSTICE
DENIED AND AS THE RANK AND FILE
MEMBERS DIRECTLY INVOLVED IN
CARRYING OUT JUSTICE FOR
THOUSANDS OF CALIFORNIANS AND
ANNUALLY AT AE AND THE ENTIRE
STATE GOVERNMENT CASE MEMBERSHIP
IS MORE THAN CONCERNED WITH THE
AE'S ABILITY TO ACHIEVE ITS
MISSION IN THE MOST FRANK TERMS,
THE BACKLOG IMPACTING REAL
CALIFORNIANS IS UNACCEPTABLE.
CASE HAS KNOWN LONG BEFORE THIS
REPORT AND APPRECIATE
CORROBORATION BY THE STATE
AUDITOR THAT INADEQUATE STAFFING
IS THE PRIMARY REASON FOR DELAYS
AT AE, AND IS EQUALLY IMPORTANT.
THIS IS DIRECTLY TIED TO POOR
COMPENSATION FOR CASE MEMBERSHIP
AND INEFFICIENT HIRING PRACTICES
AT AE. I'LL UNDERSCORE I'LL
UNDERSCORE AT ITS CORE, A PATH
OF CREATIVE PROBLEM SOLVING MUST
INCLUDE INCREASED STAFFING,
INCREASED COMPENSATION, AND
IMPROVED HIRING PRACTICES.
WHETHER THIS MEANS GEOGRAPHIC OR
RETENTION PAY STRATEGIES,
IMPROVING SAFETY IN THE FIELD OR
CASELOAD CAPS CASE MEMBERS STAND
READY TO PARTNER WITH THE
LEGISLATURE. KAMLAGER CAL, HR
AND THE GOVERNOR GOVERNOR'S
OFFICE TO GET ON SUCH A PATH
THAT WILL BEST SERVE EACH AND
EVERY CALIFORNIAN. THANK YOU.
THANK YOU VERY MUCH. GOOD
AFTERNOON, RACHEL DEUTSCH WITH
THE CALIFORNIA COALITION FOR
WORKER POWER, WE, MANY OF THE
ORGANIZATIONS IN OUR COALITION
REFER CASES ALL THE TIME TO THE
LABOR COMMISSIONER'S OFFICE AND
WORK COLLABORATIVELY TO BRING
STRATEGIC CASES. JUST THIS WEEK,
THERE WAS A $6 MILLION CITATION
OF AMAZON FOR VIOLATIONS OF THE
WAREHOUSE WORKER PROTECTION ACT,
THAT WAS REFERRED BY THE
WAREHOUSE WORKER RESOURCE
CENTER. SO WE CONTINUE TO VIEW
THE LABOR COMMISSION
COMMISSIONER, AND HER OFFICE AS
A NATIONAL LEADER IN STRATEGIC
ENFORCEMENT WHEN GIVEN THE
APPROPRIATE TOOLS AND STAFFING
TO PURSUE THESE STRATEGIES. WE
WANT TO SPEAK IN SUPPORT OF MANY
OF THE SOLUTIONS THAT HAVE
ALREADY BEEN MENTIONED,
INCLUDING, A EFFORTS TO ADDRESS
THE SALARIES THAT LAG OTHER
PUBLIC SECTOR, EMPLOYEES BY
NEARLY 30, INCLUDING RETENTION
PAY AND GEOGRAPHIC PAY, AND ARE
ALSO VERY EXCITED ABOUT THE
OPPORTUNITY TO EXPEDITE HIRING.
WE ALSO WANT TO TAKE A CLOSE
LOOK AT THESE MINIMUM
QUALIFICATIONS, AND REALLY WORK
TOWARDS A DAY WHEN PEOPLE WHO
HAVE DIRECT LIVED EXPERIENCE IN
HIGH VIOLATION INDUSTRIES ARE
ALSO ABLE TO CONTRIBUTE TO THE
ENFORCEMENT LANDSCAPE AND TO
FIND JOBS WITHIN THE
COMMISSIONER'S OFFICE, WE ALSO
WANT TO SPEAK TO JUDGMENT
ENFORCEMENT TOOLS, THE USE OF
PREJUDGMENT WAGE LIENS IS
SOMETHING THAT MEMBERS OF OUR
COALITION HAVE ADVOCATED BEFORE,
AND THAT THIS LEGISLATURE HAS
REJECTED. WE NOW SEE STATES LIKE
WASHINGTON AND MARYLAND THAT
HAVE TAKEN LEADERSHIP AHEAD OF
THE STATE OF CALIFORNIA IN TERMS
OF EXPANDING USE OF PREJUDGMENT
WAGE LIENS. AND THAT IS A VERY
EFFECTIVE AND TARGETED SOLUTION.
IT IS NOT ACCEPTABLE FOR WORKERS
TO COME FORWARD, PARTICIPATE IN
AN ENFORCEMENT PROCESS, AND NOT
DELIVER THAT MONEY. AT THE END
OF THE DAY, IT IS NOT
APPROPRIATE TO WASTE RESOURCES
IN IN AN ADJUDICATION PROCESS
WHEN WE CAN'T RECOVER THAT MONEY
FOR WORKERS. SO THAT'S A VERY
IMPORTANT TOOL, AND THEN WITH
RESPECT TO DETERRENCE, WE ARE
GOING TO LET WORKERS DOWN IF WE
CONTINUE TO LOOK AT ENFORCING IT
AS CHASING AFTER BAD EMPLOYERS,
WE NEED TO CREATE A CULTURE OF
COMPLIANCE WHERE EVERY EMPLOYER
IS INCENTIVIZED TO INVEST
PROACTIVELY IN UNDERSTANDING
THEIR OBLIGATIONS AND
MAINTAINING THEIR OBLIGATIONS TO
WORKERS. AND THE ONLY WAY THAT
WE DO THAT IS IF WE
SUBSTANTIALLY PUNISH, VIOLATORS
AND WE SEND A MESSAGE THAT
EVERYONE UNDERSTANDS THAT IT IS
A BETTER BUSINESS STRATEGY TO
INVEST IN COMPLIANCE THAN TO
TAKE SHORTCUTS OR TO STEAL FROM
WORKERS. WE ARE LOOKING AT
REFORMS TO THE PRIVATE ATTORNEY
GENERAL ACT. YOU KNOW, ASSEMBLY
MEMBER ORTEGA ASKED, YOU KNOW,
WHAT ARE THE SOLUTIONS? SINCE
THE LABOR COMMISSIONER CANNOT DO
IT THEMSELVES? AND PAGA HAS BEEN
THE SOLUTION, RIGHT? ESPECIALLY
IN TERMS OF THE RISE IN FORCED
ARBITRATION, THAT WE HEARD ABOUT
FROM THE LABOR FEDERATION. SO
WHEN WE HAVE TO CLOSELY MONITOR
WHETHER PAGA CONTINUES TO BE AS
EFFECTIVE A DETERRENCE TOOL, AND
WE HAVE TO LOOK AT ADDITIONAL
STRATEGIES TO SUPPLEMENT PAGA
GOING FORWARD. THAT MEANS WE
NEED HIGHER CITATION AMOUNTS,
AND WE NEED TO REALLY LOOK AT
WHETHER WE CAN ALLOW EMPLOYERS
THAT REPEATEDLY IGNORE WORKERS
RIGHTS TO CONTINUE OPERATING IN
BUSINESS, LASTLY, WE WANT TO
CONTINUE TO MENTION THAT THE
STRATEGIES THAT WERE DISCUSSED
AROUND COMMUNITY PARTNERSHIP, WE
SEE INNOVATIONS LIKE THE
CALIFORNIA WORKPLACE OUTREACH
PROGRAM, WHICH IS SOMETHING THAT
THE DEPARTMENT OF INDUSTRIAL
RELATIONS HAS INNOVATED, THAT
HAS HELPED US TO LOOK AT
COMPLIANCE MORE HOLISTICALLY. WE
SHOULD NOT BE ONLY MEASURING IT
IN TERMS OF HOW MANY CLAIMS ARE
FILED, WHEN WE CAN INVEST IN
WORKERS ABILITY AND
ORGANIZATIONS ABILITY TO HELP
ACHIEVE INFORMAL RESOLUTION BY
EDUCATING WORKERS AND BY
EDUCATING EMPLOYERS AND BRINGING
EMPLOYERS INTO COMPLIANCE
PROACTIVELY, WE ARE GOING TO WIN
FOR WORKERS. SO LET'S CONTINUE
TO INVEST IN PROGRAMS LIKE SWAP
THE DOMESTIC WORKERS EMPLOYEE
OUTREACH PROGRAM TO, AGAIN
ACHIEVE THIS GOAL OF COMPLIANCE.
THAT GOES BEYOND THE NUMBER OF
CLAIMS THAT ARE FILED. THANKS.
THANK YOU VERY MUCH. GOOD
AFTERNOON. COMMITTEE MEMBERS AND
CHAIRS. MY NAME IS ELLEN LOVE.
I'M WITH THE WORKPLACE JUSTICE
LAB AT RUTGERS UNIVERSITY. OUR
TEAM RESEARCHES LOCAL, STATE AND
FEDERAL LABOR LAW ENFORCEMENT
BEST PRACTICES AND CONSULTS WITH
LABOR AGENCIES ACROSS THE
COUNTRY ON HOW TO EFFECTIVELY
IMPLEMENT STRONG AND MEANINGFUL
LABOR STANDARDS. I WANTED TO
START BY NOTING THAT THE WAGE
CLAIM BACKLOG DISCUSSED TODAY IS
A CRITICAL ISSUE FOR CALIFORNIA
WORKERS, BUT I ALSO WANTED TO
PROVIDE THE PERSPECTIVE THAT
IT'S SOMETHING THAT LABOR
AGENCIES ACROSS THE COUNTRY ARE
STRUGGLING WITH, IT'S AN ISSUE
THAT PLAGUES VIRTUALLY EVERY
COMPLAINT BASED LABOR STANDARDS
ENFORCEMENT AGENCY THAT WE WORK
WITH AT THE STATE LEVEL. AND
WE'VE SEEN HUGE SURGES IN
COMPLAINTS AND CLAIMS IN STATES
THAT HAVE SET UP ONLINE NGUYEN
COMPLAINT FILING SYSTEMS,
SIMILAR TO THE ONE DISCUSSED
TODAY. SO THE REASONS FOR THE
THESE BACKLOGS IN STATES ACROSS
THE COUNTRY ARE COMPLEX. BUT AS
THE AUDITOR NOTED, THE AT THE
CALIFORNIA LABOR COMMISSIONER'S
OFFICE, THE PRIMARY ISSUE IS
UNDERSTAFFING. SO WE WANTED TO
APPLAUD THE NEW SOLUTION THAT
WILL ALLOW THE AE TO DO
EXPEDITED HIRING. THIS IS A
HUGELY IMPORTANT FIRST STEP. WE
ALSO WANTED TO ADDRESS THE
PROBLEM OF LOW SALARIES THAT
FAIL TO ATTRACT QUALIFIED
CANDIDATES AND UNDERMINE
RETENTION, THERE'S REASON TO
BELIEVE THAT OTHERWISE QUALIFIED
CANDIDATES ARE TAKING JOBS IN
CALIFORNIA WITH OTHER
ENFORCEMENT AGENCIES. SO TO ADD
TO THE AUDITOR'S REPORT, OUR
RESEARCH SHOWS THAT THE SALARIES
FOR COMPARABLE POSITIONS AND
OTHER LABOR ENFORCEMENT AGENCIES
IN CALIFORNIA ARE BETWEEN NINE
AND 55% HIGHER THAN SIMILAR
POSITIONS AT THE LABOR
COMMISSIONER'S OFFICE. SO WE
WOULD URGE THE LEGISLATURE TO
PROVIDE THE SUPPORT NEEDED TO
STREAMLINE THE STUDY AND
REVISION OF CLASSIFICATIONS AND
SALARIES, AND WE'VE PROVIDED OUR
RESEARCH ON COMPARABLE SALARIES
IN A WRITTEN COMMENT THAT WE
SUBMITTED TODAY. FINALLY, WE
WANTED TO ADDRESS THE TIME
FRAMES FOR THE WAGE CLAIM
ADJUDICATION PROCESS, WE KNOW OF
NO OTHER EXAMPLES WHERE A
LEGISLATURE HAS REQUIRED
ADJUDICATION OR INVESTIGATION ON
SUCH SHORT SPECIFIED TIMELINES.
WITH SO LITTLE FLEXIBILITY, SUCH
RESTRICTIVE TIMELINES CAN
ACTUALLY UNDERMINE ENFORCEMENT
EFFORTS, ESPECIALLY IN CASES
INVOLVING LOW WAGE WORKERS IN
EXPLOITATIVE INDUSTRIES WHERE
EFFECTIVE ENFORCEMENT IS MOST
NEEDED. WE WOULD, IN PARTICULAR,
URGE THE LEGISLATURE TO LOOK AT
THE AT THE INTAKE PROCESS WHERE
THE LABOR COMMISSIONER HAS MADE,
BIG STRIDES IN CREATING NEW
INTAKE POSITIONS. WE THINK THAT
THAT, YOU KNOW, OUR VIEW ON
BEING ABLE TO EFFECTIVELY
ADDRESS A HUGE INFLUX OF CASES
IS THAT THE INTAKE PROCESS IS
CRITICAL, AND THAT THE LABOR
COMMISSIONER'S OFFICE NEEDS
SUFFICIENT TIME TO REVIEW
PROCESS, MAKE SURE ALL OF THOSE
CLAIMS HAVE THE ALL OF THE
INFORMATION THAT THEY NEED TO
MAKE IT THROUGH THE PROCESS,
I'LL LEAVE IT THERE. THANK YOU
FOR YOUR TIME. THANK YOU FOR
YOUR COMMENTS. GOOD AFTERNOON
AND THANK YOU. I'M MATTHEW
MILLER, I'M THE SENIOR FIELD
REPRESENTATIVE FOR LABOR
COMPLIANCE WITH THE NORCAL
CARPENTERS UNION AND WE ARE AN
ORGANIZATION WE ADVOCATE AND
FILE CASES ON BEHALF OF WORKERS
WITH THE LABOR COMMISSIONER'S
OFFICE AND I WANT TO THANK THE
LEGISLATURE AND THE AUDITORS FOR
HELPING BRING LIGHT TO THE
SERIOUS ISSUES OF WAGE THEFT AND
ITS ENFORCEMENT IN CALIFORNIA.
WE AT THE NORCAL CARPENTERS
UNION ARE JUST SAID THAT. SORRY.
WE AND WE WHILE WE, YOU KNOW, WE
REALLY APPRECIATE THIS AUDIT, WE
UNDERSTAND THAT ITS SERIOUSNESS
AND THE FACT THAT IT TAKES A
LONG TIME TO YOU KNOW, COME TO A
CONCLUSION IN A WAGE CLAIM. WE
DO THINK THESE PROBLEMS EXISTED
LONG BEFORE THE CURRENT LABOR
COMMISSIONER AND DIRECTOR TOOK
THEIR RESPECTIVE POSITIONS. AND
WE'VE SEEN A STRONG EFFORT FROM
THE LABOR COMMISSIONER AND
DIRECTOR TO BOTH COLLABORATE
WITH US AND TO ADDRESS SOME OF
THESE PROBLEMS. EXAMPLES OF THIS
ARE THE WORKERS RIGHTS
ENFORCEMENT GRANT AND AB 494,
WHICH GIVES PROSECUTING
ATTORNEYS AUTHORITY TO ENFORCE
LABOR CODE, THE LABOR CODE,
BECAUSE WAGE THEFT IS A SERIOUS
CRIME THAT HURTS BOTH WORKERS
AND FAIR EMPLOYERS. WE AT THE
NCC RECOMMEND THAT THE
LEGISLATURE AND BUDGET REFLECT
THESE ISSUES AND SUPPORT. GIVEN
THE LABORS LABOR COMMISSIONER'S
OFFICE, THE RESOURCES IT NEEDS
TO HELP STOP THESE CRIMES. AND
ONE EXAMPLE WOULD BE ADDING
CRIMINAL INVESTIGATORS TO THE
LABOR COMMISSIONER'S OFFICE TO
APPROPRIATE FIGHT WAGE THEFT FOR
THE CRIME THAT IT IS, AND AS A
FELONY. THANK YOU. THANK YOU,
MR. MILLER. HI, I'M DANIELA
URBAN. I'M FROM THE CENTER FOR
WORKERS RIGHTS BASED HERE IN
SACRAMENTO. I'M ALSO SPEAKING ON
BEHALF OF THE SANTA CLARA COUNTY
WAGE THEFT COALITION. I'M HERE
TODAY AS AN ATTORNEY AND AN
ADVOCATE WHO HAS HANDLED
HUNDREDS OF CASES AT THE
CALIFORNIA LABOR COMMISSIONER'S
OFFICE TO FIGHT WAGE THEFT. AND
I URGE YOU TO CONTINUE TO
SUPPORT THE LABOR COMMISSIONER
AND THE WAGE ADJUDICATION UNIT,
SPECIFICALLY IN REACHING THE
NECESSARY STAFFING LEVELS TO
COMBAT PERVASIVE ISSUES OF WAGE
THEFT IN CALIFORNIA. THE AES
PROCESS IN THE WAGE ADJUDICATION
UNIT IS UNIQUE IN THAT IT ALLOWS
THE WORKERS THEMSELVES TO COME
FORWARD AND SHARE THEIR
EXPERIENCES ABOUT THEIR HOURS
WORKED AND PAY RECEIVED WITHOUT
THE NEED FOR AN ATTORNEY OR
EXTENSIVE KNOWLEDGE ABOUT THEIR
RIGHTS. THIS ACCESSIBILITY IS
CRUCIAL FOR VULNERABLE WORKERS
WHO OTHERWISE WOULD REMAIN
SILENT AND WOULD HAVE NO ACCESS
TO JUSTICE. I ENCOURAGE YOU TO
NOT LOOK TOO CLOSELY AT THE
NUMBERS AND METRICS, AND BE ONLY
LOOKING AT THE NUMBERS OF
BACKLOGS GOING DOWN, OR THE
NUMBER OF STAFF GOING FORWARD.
THESE METRICS ARE IMPORTANT, BUT
WE ALSO NEED TO BE LOOKING AT
WHAT JUSTICE IS COMING OUT OF
THE DEPARTMENT AND NOT JUST AT
THE NUMBERS. THESE ARE WORKERS
WITH STORIES AND EXPERIENCES,
AND WE NEED TO BE THINKING ABOUT
THE IMPACT IT HAS ON THEIR LIVES
AND THE AMOUNT OF TIME NEEDED TO
INVEST IN THOSE CLAIMS.
EVALUATING A WAGE THEFT CASE IS
A TIME CONSUMING PROCESS. IN MY
OFFICE, WE SPEND AN AVERAGE OF
15 HOURS DOING A TASK THAT A
DEPUTY ONE WOULD BE EXPECTED TO
DO IN THE SETTLEMENT CONFERENCE,
WHERE IN THE AUDIT REPORT,
THEY'RE GIVEN JUST BETWEEN 3 AND
4 HOURS TO COMPLETE. SO ALTHOUGH
WE SUPPORT THE LABOR
COMMISSIONER IN SETTING THE
THESE METRICS, WE HOPE THAT THEY
EXPAND THE AMOUNT OF TIME
ALLOWED TO INVESTIGATE THESE
CLAIMS. JUST TO USE AN EXAMPLE
OF HOW THESE CLAIMS PROCEED IN
THE CONFERENCE. WE HAD FIVE
WORKERS LAST SATURDAY AT OUR
WAGE CLAIM CLINIC. ONE CAME WITH
JUST A BOUNCE CHECK ISSUE. ONE
CHECK. THAT WAS IT. THEY LEFT
WITH OVER 16 DIFFERENT
VIOLATIONS OF THE LABOR CODE.
AND THAT'S WHAT HAPPENS WHEN YOU
START TO TALK TO A WORKER ABOUT
THEIR EXPERIENCE. SO TO EXPECT A
DEPUTY TO COMPLETE THAT IN 3 TO
4 HOURS, FOR A WORKER THAT
WORKED FOR THREE YEARS FOR AN
EMPLOYER WHO WAS VIOLATING SUCH
CONSISTENT APPLICATIONS OF THE
LABOR CODE, IS UNREALISTIC. SO
WE NEED TO MAKE SURE THAT WE ARE
NOT JUST FOCUSING ON THE
DECREASE IN THE BACKLOG, BUT HOW
MANY WORKERS ARE RECEIVING
JUSTICE. AND IN IN ORDER TO DO
THAT, WE NEED TO HOLD EMPLOYERS
ACCOUNTABLE. MANY FOLKS HAVE
TALKED ABOUT THE PREJUDGMENT
LIENS THAT WOULD BE NECESSARY TO
HOLD EMPLOYERS ACCOUNTABLE, BUT
THERE ARE LOTS OF OTHER TOOLS
THAT ADVOCATES AND THE LABOR
COMMISSIONER HAVE THOUGHT OF IN
ORDER TO MAKE SURE THE EMPLOYERS
ENGAGE EARLY IN THE PROCESS.
THEY'RE NOT CURRENTLY REQUIRED
TO ATTEND THE SETTLEMENT
CONFERENCE. IN MY EXPERIENCE,
MOST DO NOT, WHICH MEANS IT HAS
TO PROCEED TO HEARING IN ORDER
FOR THE CLAIMS TO CONTINUE AND
FOR JUSTICE TO BE SERVED. THEY
EMPLOYERS, BEFORE THEY HIRE FOR
MOST INDUSTRIES, DO NOT HAVE TO
SHOW ANY ABILITY TO PAY THOSE
WORKERS. SO EMPLOYERS WILL HIRE
KNOWING THAT THEY'RE UNABLE TO
PAY. AND ALL OF THESE ARE TOOLS
THAT THE LEGISLATURE HAS TO
COMBAT WAGE THEFT ON A BROADER
LEVEL, DECREASE THE CLAIMS THAT
COME INTO THE LABOR
COMMISSIONER'S OFFICE AND GIVE
THE OFFICE MORE TOOLS TO HANDLE
THESE CASES MORE QUICKLY. I WANT
TO ECHO THE SENTIMENTS FROM FROM
EVERYONE ABOUT THE HIRING AND
THE NEED TO EXPEDITE THE HIRING
PROCESS. YES, WE ACTIVELY HELP
RECRUIT FOLKS TO WORK AT THE
LABOR COMMISSIONER'S OFFICE AND
HAVE SEEN FIRSTHAND HOW LONG IT
TAKES. WE ALSO BELIEVE THAT IN
ANY HIRING PROCESS, AS WE DO IN
OUR OFFICE, IF YOU'RE NOT
GETTING ENOUGH CANDIDATES, YOU
NEED TO PAY THEM MORE. SO
INCREASE THOSE. THE AMOUNT THAT
THE LABOR COMMISSIONER STAFF IS
RECEIVING, AND THAT WILL HELP
FILL THE VACANCIES AND CERTAINLY
HELP WITH RETENTION. I AM GLAD
THAT THE LEGISLATURE IS PAYING
ATTENTION TO THIS CRUCIAL ISSUE,
AND I, AS AN ADVOCATE, AM OPEN
AND WILLING TO DISCUSS ANY OF
THESE POTENTIAL SOLUTIONS IN
MORE DETAIL SO THAT WE CAN HAVE
AN ACTIVE PROGRAM IN COMBATING
WAGE THEFT IN THE NEXT YEAR.
THANK YOU. THANK YOU, MISS
ERVIN. I THINK THAT CONCLUDES
OUR PUBLIC COMMENT, AND I WANT
TO THANK EVERYONE FOR A VERY
INFORMATIVE AND I BELIEVE,
PRODUCTIVE DISCUSSION TODAY, THE
SIZE OF THE PROBLEM DESCRIBED
TODAY IS INTIMIDATING, TO MANY
CALIFORNIANS, VICTIMS OF WAGE
THEFT ARE COUNTING ON US.
COUNTING ON YOU, THE LABOR
COMMISSIONER, TO GET THIS RIGHT.
WAGE THEFT IS A CRIME, AND
VICTIMS OF WAGE THEFT DESERVE
JUSTICE. IT'S SOME OF THE THINGS
THAT I NOTED WHEN WE FIRST BEGAN
THE HEARING, WHEN FOLKS WERE
MAKING THEIR OPENING COMMENT. I
THINK ARE PARTICULARLY, TIMELY
TO REMIND US ABOUT. NOW, AT THE
END, SENATOR LAIRD, ASKED WHAT
SPECIFICALLY WILL BE DONE TO FIX
THIS? WE'VE HEARD THINGS, TODAY
THAT WILL I THINK, ENCOURAGE US.
ASSEMBLY MEMBER ORTEGA SAID THIS
SESSION OF THE LEGISLATURE, WE
FOCUSED A LOT ON RETAIL THEFT.
WHY HAVEN'T WE FOCUSED MORE ON
WAGE THEFT? AND I THINK TODAY
WE'RE STARTING TO DO THAT,
HOPEFULLY THAT IS SUSTAINED,
SENATOR SMALLWOOD CUEVAS SAID WE
NEED TO LOOK BEYOND THE
STATISTICS TO THE IMPACT WAGE
THEFT HAS ON WORKERS WHOSE WAGES
ARE BEING STOLEN. AND ONE OF THE
PUBLIC COMMENTERS SAID THAT VERY
ELOQUENTLY TO SENATOR GLAZER,
ASKED OR INSISTED THAT THIS
AUDIT CAN'T JUST SIT ON A SHELF.
WE HAVE TO TAKE THESE
RECOMMENDATIONS AND TURN THEM
INTO ACTION. I APPRECIATE THE
AUDITOR FOR BRINGING THOSE
RECOMMENDATIONS FORWARD, AND
ASSEMBLYMAN ALVAREZ, I THINK,
GOT TO THE WHOLE POINT OF WHAT
THE JOINT LEGISLATIVE AUDIT
COMMITTEE IS ABOUT WHEN HE SAID
THAT AUDITS MAKE US BETTER. IT'S
ONE OF THE FEW TOOLS THAT THE
LEGISLATURE HAS, TO GET UNDER
THE HOOD AND UNDERSTAND WHAT
ISN'T WORKING. AND HE ASKED, HAS
ANYTHING CHANGED THIS YEAR? AND
IT SOUNDS LIKE IN THE VERY NEAR
TERM, THINGS HAVE IMPROVED. AND
THEN WHERE SHOULD WE BE A YEAR
FROM NOW? AND THAT REALLY IS THE
QUESTION FOR ALL OF US. WE WANT
TO BE IN A MUCH BETTER PLACE A
YEAR FROM NOW. I KNOW THAT
ASSEMBLY MEMBER ORTEGA, IN HER
ROLE AS CHAIR OF THE ASSEMBLY
LABOR COMMITTEE, AND SENATOR
SMALLWOOD CUEVAS AS CHAIR OF THE
SENATE COMMITTEE, WILL CONTINUE
TO FOCUS ON THIS ISSUE AND BE
DILIGENT AND ATTENTIVE AND
AGGRESSIVE ABOUT SEEKING
CHANGES, THE AUDIT COMMITTEE
WILL ALSO BE MONITORING EFFORTS
TO FIX THESE ISSUES. AND WE ALL
STAND READY TO HELP THE
DEPARTMENT TO MAKE THE
IMPROVEMENTS AND GET THE
RESOURCES THAT THEY NEED TO DO
THE RIGHT JOB FOR CALIFORNIANS.
I WANT TO THANK THE STATE
AUDITOR AND HIS STAFF FOR THEIR
CONTRIBUTION TODAY, AS WELL AS
THEIR VERY HARD WORK IN
COMPLETING THIS AUDIT. I ALSO
WANT TO THANK THE DEPARTMENT OF
INDUSTRIAL RELATIONS
REPRESENTATIVE. DIRECTOR HAGAN
AND COMMISSIONER GARCIA HERE FOR
BEING HERE TODAY. AND I ALSO
WANT TO THANK THE REPRESENTATIVE
FROM THE CALIFORNIA LABOR
FEDERATION FOR BEING HERE. YOU
ALL ADDED A LOT TO THE
DISCUSSION, THANK YOU ALL FOR
YOUR ATTENDANCE AND YOUR
TESTIMONY. AND WITH THAT, THE
HEARING IS ADJOURNED.