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November 22, 2016

As AB 1513 Deadline Looms, Beware of Back Payment Check Fraud

Western Growers members making back payments of wages pursuant to AB 1513 are advised to confirm that negotiated checks match both the intended recipient and amount. Western Growers has been advised that there have been cases of checks being altered to change the name of the payee and the check amount.

In one case, a check for $1.89 had been issued by the employer, but the check had been altered and subsequently cleared the bank in the amount of $2,500 to a different payee. With checks being sent to last known and best available addresses, but not necessarily reaching the intended recipient, it is likely that many checks will fall into the hands of unscrupulous individuals seeking to take advantage of the situation.

The deadline to send checks to current and former employees, or to the Labor Commissioner’s Unpaid Wage Fund, is December 15th. Litigation is pending seeking to delay the due date; however, it is not recommended for members to take a wait-and-see approach before deciding whether to issue checks by the December 15 deadline.

For questions, contact Jason Resnick at (949) 885-2253.