Labor Code section 238.05
(a)
If a final judgment arising from nonpayment of wages for work performed in this state remains unsatisfied after a period of 180 days after the time to appeal therefrom has expired and no appeal therefrom is pending, the judgment debtor shall be subject to a civil penalty not to exceed three times the outstanding judgment amount, including postjudgment interest then due, provided that a judgment debtor shall not be subject to a penalty under this subdivision if the judgment debtor reaches an accord described in subdivision (b) of Section 238 before the 180th day and then remains in full compliance with the accord until its full satisfaction. The court may assess this penalty in any action brought to enforce the judgment or to otherwise induce compliance by or impose lawful consequences on a judgment debtor.(b)
In any action brought to enforce the judgment or to otherwise induce compliance by or impose lawful consequences on a judgment debtor, the court shall assess against the judgment debtor the entire amount of the requested penalty except to the extent that the court finds that the judgment debtor has demonstrated by clear and convincing evidence good cause to reduce the amount of the penalty.(c)
Penalties assessed by a court pursuant to this section shall be distributed as follows:(1)
Fifty percent to the employee or employees in whose favor the judgment was rendered, shared proportionally according to the amount due to each employee in the judgment entered in superior court.(2)
Fifty percent to the Division of Labor Standards Enforcement for enforcement of labor laws, including the administration of this part, and for education of employers and employees about their rights and responsibilities under this code, upon appropriation, to supplement and not supplant the funding to the division for those purposes.(d)
A successor to a judgment debtor, as defined in subdivision (a) of Section 200.3 or by any other law, shall be jointly and severally liable for penalties assessed pursuant to this section.(e)
Penalties assessed pursuant to this section shall be in addition to any other penalties or fines permitted by law.
Source:
Section 238.05, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB§ionNum=238.05. (updated Jan. 1, 2026; accessed Dec. 15, 2025).
