Overview

Scope and Purpose

SB27 (Government Code section 10510.50, et seq.) is a California Senate Bill introduced by Senators Durazo and Caballero in December 2022 and signed into law on October 8, 2023. It is set to take effect on January 1, 2024.

The bill applies to suppliers providing covered services to the University of California.

"Covered services" is defined as follows:

“Services” means work that is subject to university policy. “Services” includes services that have been customarily performed by bargaining unit employees of the university, including, but not limited to, the following services: cleaning, custodial, janitorial, or housekeeping services; food services; laundry services; grounds keeping; nonskilled crafts building maintenance; transportation and parking services; security services; billing and coding services; sterile processing; hospital and nursing assistant services; respiratory therapy; and medical imaging services. “Services” does not include financial investment or retirement planning advice, retirement plan recordkeeping, or asset management.

"Covered services" is also referenced in University Policy 5402 and Article 5 of the AFSCME contract.

This website is to provide UC suppliers with information and resources to manage supplier obligations around SB27.

Summary of Bill:

The proposed bill, known as the Recovery of Earned but Unpaid Wages Act, aims to establish regulations for vendors providing services to the University of California. It would make it illegal for vendors to accept payment from the university if they pay their employees less than the total compensation rate specified in their contract with the university or required by university policy. The bill outlines specific requirements for vendors, including providing employees with written notices of compensation rates, submitting basic payroll information to the university and joint labor-management committees twice a year, and allowing employees to inspect their payroll information.

Additionally, the bill grants the right to aggrieved employees to bring civil actions against vendors for unpaid wages. Before filing a lawsuit, an employee must provide the vendor with written notice of the alleged violation, allowing the vendor an opportunity to correct the issue. If the vendor fails to provide documentation of corrective action within 60 days, the employee can proceed with legal action. Remedies for prevailing claimants include civil penalties, restitution, and reimbursement of attorney's fees and costs. The bill also specifies that these remedies are in addition to other existing legal remedies and that the provisions are severable, meaning the invalidity of one part does not affect the rest of the bill.

This is NOT intended to be legal advice and is informational only. Please consult with an attorney on how SB27 may affect your business.

The Recovery of Earned but Unpaid Wages Act (Government Code 10510.50 et al.) refers to “vendors” under the statute. For purposes of this website, vendors are referred to as vendors or suppliers.