The Los Angeles County Board of Supervisors is scheduled to consider a motion that could lead to new employer mandates related to the handling of employees' final paychecks.

The proposal would direct County Counsel and the Department of Consumer and Business Affairs (DCBA) to develop a draft "Last Paycheck Ordinance" establishing procedures for situations in which an employee is unable to receive their final paycheck due to circumstances such as hospitalization, detention, arrest, or deportation.

While the stated goal is to help employees access their final wages, the proposal could ultimately create new administrative, recordkeeping, notice, and compliance requirements for restaurant operators and other employers.

According to recommendations developed by County staff, a future ordinance could require employers to:

• Provide employees with additional notices regarding final paycheck rights.
• Collect and maintain forms designating individuals authorized to receive an employee's final paycheck.
• Retain those records after an employee leaves employment.
• Comply with County-issued forms and language-access requirements.
• Follow new procedures for verifying designees and delivering final paychecks.

Why should restaurant operators care?

California already has some of the most stringent final-paycheck requirements in the nation. Restaurants are subject to complex wage-and-hour laws and significant penalties for technical payroll violations. This proposal could add another layer of local regulation without clear evidence that existing laws are insufficient.

Key concerns include:

• Additional paperwork and recordkeeping requirements.
• Increased compliance costs and administrative burdens.
• Potential liability associated with verifying and releasing paychecks to third parties.
• Confusion and conflicts with existing state labor laws.
• New enforcement and penalty exposure for employers acting in good faith.

At a time when restaurant operators continue to face rising labor costs, increasing regulation, and economic uncertainty, Los Angeles County should be focused on supporting local businesses—not creating new mandates that increase compliance burdens and legal risk.

TAKE ACTION

The Board of Supervisors has not yet approved this proposal. This is the time for restaurant operators to make their voices heard.

We urge members to contact their County Supervisor and share how additional payroll and recordkeeping mandates would affect their business operations. Policymakers need to hear directly from employers who are responsible for complying with these requirements every day.

Your engagement can help ensure the County understands the real-world impact this proposal would have on restaurants and other local businesses.

Sincerely,

CRA Government Affairs