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Wage theft is the denial of wages or employee benefits that are rightfully owed to an employee. Wage theft can be failure to pay overtime, minimum wage violations, employee misclassification, illegal deductions in pay, working off the clock, or not being paid at all. Workers, communities, responsible businesses and taxpayers are all negatively affected by wage theft.
The ordinance gives the City authority to revoke or suspend the business license of any employer who refuses to pay their final court order or administrative action when found by a Local, State or Federal agency in violation of wage or hour laws. Without a business license, an employer would effectively be unable to operate in the City of Milpitas.
A final court order or administrative action means a government agency has determined the business violated federal, state and/or local wage and hour laws, there is no pending appeal to this decision and the time for filing an appeal has passed and no appeal was filed.
All businesses in the City of Milpitas which are required to have a business license are subject to the new wage theft ordinance.
We encourage employees who are having difficulty enforcing a final court order or administrative action to contact the City of Milpitas. Staff will work with the employee and business owners to try and satisfy the judgment.
No, the goal of the City is not to revoke business licenses but to help employees get paid. The City will make every effort to ensure wage theft compliance before moving forward with business license revocation, including setting up a payment plan to satisfy the judgment.
For more information contact the City of Milpitas at 408-586-3058 or email the Economic Development Division with any questions.