In 2023, Los Angeles County was called the “wage theft capital of the nation,” with up to $28 million stolen from workers every week. This form of theft especially places low-income workers at risk; 80% of low-wage Los Angeles County workers reportedly experience wage theft. In spite of this vast problem, however, government agencies tasked with the enforcement of wage theft have been overworked and underfunded. The under-resourcing of government agencies results in short-staffed labor offices, prolonging the time it takes to resolve wage theft claims and increasing the likelihood that victims of wage theft either drop their claim or fail to raise a claim at all.
To address this problem in Los Angeles City, deputization by the Los Angeles Office of Wage Standards could extend authority to worker centers—community-based workers’ rights organizations—to support the enforcement of wage theft. The Los Angeles Municipal Code could grant worker centers the power to advise workers on their rights, inspect employer records for wage violations, and ultimately expand the enforcement of the issue and thereby reduce wage theft. This Note provides the first analysis of deputization within this space and at this depth, introducing new legal analysis and proposing a new enforcement tool with which to address the massive issue of wage theft.
This Note argues that the deputization of worker centers fits within Los Angeles’s existing statutory framework and would be a constitutional delegation of the legislature’s power under the California Constitution. In so doing, this Note makes recommendations to bolster the constitutionality of the deputization of worker centers by the Los Angeles Office of Wage Standards so that more resources can be put in place to reduce the rampant wage theft problem throughout the city.
Introduction
Wage theft is a pervasive problem in the United States, affecting over two million workers1David Cooper & Teresa Kroeger, Econ. Pol’y Inst., Employers Steal Billions from Workers’ Paychecks Each Year 2 (2017), https://files.epi.org/pdf/125116.pdf [https://perma.cc/U2DN-S2U3]. and costing as much as $50 billion in lost wages each year.2Press Release, Econ. Pol’y Inst., Wage Theft Costs American Workers as Much as $50 Billion a Year (Sept. 11, 2014), https://epi.org/press/wage-theft-costs-american-workers-50-billion [https://perma.cc/44TY-Z5CK]. Wage theft is one of the most common crimes committed in the United States,3Nicole Hallett, The Problem of Wage Theft, 37 Yale L. & Pol’y Rev. 93, 97 (2018). with employers stealing more wages from workers each year than is stolen in “bank robberies, convenience store robberies, street and highway robberies, and gas station robberies combined.”4Ross Eisenbrey, Wage Theft Is a Bigger Problem than Other Theft—But Not Enough Is Done to Protect Workers, Econ. Pol’y Inst. (Apr. 2, 2014), http://www.epi.org/publication/wage-theft-bigger-problem-theft-protect [https://perma.cc/GUM7-LE9Q]. A “form of fraud” that “occurs when employers do not pay their workers” what they are legally entitled to, wage theft encompasses a broad range of employers’ activities that deprive workers of earned compensation.5Wage Theft, State of Cal. Dep’t of Indus. Rels. (May 2018), https://www.dir.ca.gov/fraud_prevention/Wage-Theft.htm [https://perma.cc/8AYT-MYU4]. Victims of wage theft include workers who are (1) paid less than the legally mandated minimum wage (affecting almost two million workers in the United States),6Hallett, supra note 3, at 96; Examples of Wage Theft, State of Cal. Dep’t of Indus. Rels. (Feb. 2019), https://www.dir.ca.gov/dlse/Examples_of_Wage_Theft.html [https://perma.cc/5KA7-UX77]. (2) misclassified as “independent contractors” and not provided with the legal rights employees are entitled to,7Joy Jeounghee Kim & Skye Allmang, Wage Theft in the United States: Towards New Research Agendas, 32 Econ. & Lab. Rels. Rev. 534, 537–38 (2021). or (3) not properly paid for overtime or provided with meal breaks.8Id. at 535. See State of Cal. Dep’t of Indus. Rels., supra note 6; Matthew Fritz-Mauer, Lofty Laws, Broken Promises: Wage Theft and the Degradation of Low-Wage Workers, 20 Emp. Rts. & Emp. Pol’y J. 71, 72–73 (2016).
The problem is particularly prevalent in Los Angeles. In 2023, the Los Angeles Worker Center Network called Los Angeles the “wage theft capital of the nation,” with $26 to $28 million stolen from workers every week in Los Angeles County.9L.A. Worker Ctr. Network, Fact Sheet: Wage Theft 1 (2023), https://laworkercenternetwork.org/resources/fact-sheet-wage-theft [https://perma.cc/8TA3-6C6T]. The study also found that workers who stand up for their rights against wage theft place themselves at risk of retaliation, facing consequences such as “reduced hours, increased workload, firing and threats of deportation.”10Id. In addition, a 2024 report found that the Los Angeles metropolitan area lost an average of $1.6 to $2.5 billion a year between 2014 and 2023 through minimum wage violations alone,11Daniel J. Galvin, Jake Barnes, Janice Fine & Jenn Round, Wage Theft in California: Minimum Wage Violations, 2014–2023 1 (2024), https://smlr.rutgers.edu/sites/default/files/Documents/Centers/WJL/California_MinimumWage_Study_May2024.pdf [https://perma.cc/B3KF-N4UY]. and that over 7% of workers were paid below California’s state minimum wage.12Id. at 3.
Recent findings about the prevalence of wage theft in Los Angeles have led lawmakers to introduce new legislation to ameliorate the problem.13See L.A. Councilmembers Introduce New Legislation to Combat Wage Theft; Joined by City Attorney, Advocates, Hydee Feldstein Soto: L.A. City Att’y (Sept. 1, 2023), https://cityattorney.lacity.gov/updates/la-councilmembers-introduce-new-legislation-combat-wage-theft-joined-city-attorney [https://perma.cc/EW3D-WKGQ]. In April 2024, California’s Labor Commissioner’s Office created the Workers’ Rights Enforcement Grant to provide a new funding source targeted at deterring wage theft and other workplace exploitations.14Workers’ Rights Enforcement Grant, State of Cal. Dep’t of Indus. Rels. (Apr. 2024), https://www.dir.ca.gov/DLSE/Grants/Workers-Rights-Enforcement-Grant.html [https://perma.cc/S5M8-9QZQ]. The Workers’ Rights Enforcement Grant awards grants to California public prosecutors to “develop and implement a wage theft enforcement program.”15Id. The grants are to be used to fund staff salaries and benefits; $8,550,000 was awarded during the first grant cycle in 2024–2025 and another $8,550,000 will be awarded between 2025–2026, with a maximum grant of $750,000 per applicant.16Id.
While there have been recent laws targeting wage theft, laws aimed at remedying this issue have been in existence for several years. Various administrative agencies are tasked with the enforcement of employment laws, including determining whether workers are being paid the legally mandated minimum wage, whether employees are properly compensated for overtime worked, and whether employers have violated other employment laws. On the federal level, the Department of Labor’s Wage and Hour Division monitors the enforcement of laws including the federal minimum wage.17Fair Labor Standards Act of 1938, 29 U.S.C. § 204. On the state level, California’s Labor Commissioner’s Office (known formally as the Division of Labor Standards Enforcement) combats wage theft and protects workers from retaliation.18Cal. Lab. Code § 79; Labor Commissioner’s Office, State of Cal. Dep’t of Indus. Rels., https://www.dir.ca.gov/dlse [https://perma.cc/FM4R-5E5D]. On the local level, some cities have established agencies that enforce local laws and ordinances. Within the city of Los Angeles, the Office of Wage Standards “is responsible for implementing and administering the guidelines of the Los Angeles Minimum Wage and Minimum Wage Enforcement Ordinances.”19Jasmine Elbarbary, Raise the Wage LA, Empower LA (June 3, 2016), https://empowerla.org/raise-the-wage-la [https://perma.cc/D9Y4-BF52].
However, agencies tasked with the enforcement of employment and labor laws have been “chronically” underfunded.20Ihna Mangundayao, Celine McNicholas & Margaret Poydock, Worker Protection Agencies Need More Funding to Enforce Labor Laws and Protect Workers, Econ. Pol’y Inst. (July 29, 2021, 12:29 PM), http://epi.org/blog/worker-protection-agencies-need-more-funding-to-enforce-labor-laws-and-protect-workers [https://perma.cc/YB62-RG53]. A 2018 report by Politico found that, in fifteen states, 41% of lost wages were unrecovered.21Marianne Levine, Behind the Minimum Wage Fight, a Sweeping Failure to Enforce the Law, Politico (Feb. 18, 2018, 10:40 AM), http://politico.com/story/2018/02/18/minimum-wage-not-enforced-investigation-409644 [https://web.archive.org/web/20241109013457/https://www.politico.com/story/2018/02/18/minimum-wage-not-enforced-investigation-409644]. This underenforcement comes even as employers’ violations of these laws grow rampant. A 2021 report published by the nonprofit advocacy group National Employment Law Project found that, in 2019 alone, workers earning less than $13 an hour were prevented from recovering over $9.27 billion in stolen wages because of employer-forced arbitration.22Hugh Baran & Elisabeth Campbell, Nat’l Emp. L. Project, Forced Arbitration Helped Employers Who Committed Wage Theft Pocket $9.2 Billion in 2019 from Workers in Low-Paid Jobs 1 (2021), https://s27147.pcdn.co/app/uploads/2021/06/Data-Brief-Forced-Arbitration-Wage-Theft-Losses-June-2021.pdf [https://perma.cc/4EB9-87QF]. In spite of this, the nonpartisan Economic Policy Institute (“EPI”) found that, between 2017 and 2020, only “$3.24 billion in stolen wages was recovered for workers” nationwide.23Ihna Mangundayao, Celine McNicholas, Margaret Poydock & Ali Sait, Econ. Pol’y Inst., More than $3 Billion in Stolen Wages Recovered for Workers Between 2017 and 2020, at 4(2021), https://files.epi.org/uploads/240542.pdf [https://perma.cc/9THV-H9JX]. The underenforcement of minimum wage laws is a problem in California, where workers were owed $280 million in unrecovered claims from unpaid wages in 2017.24Alejandro Lazo, Jeanne Kuang, Lil Kalish & Erica Yee, When Employers Steal Wages from Workers, CalMatters (July 26, 2022), http://www.calmatters.org/explainers/when-employers-steal-wages-from-workers [https://perma.cc/8KB4-7CRJ]. According to California’s Legislative Analyst’s Office report on the 2020–2021 budget, California workers filed $320 million in wage theft claims. Subtracting for the wages recovered through formal proceedings ($15 million) and the wages recovered through settled claims ($25 million), there were $280 million in unrecovered claims from unpaid wages in 2017. The 2020–21 Budget: Improving the State’s Unpaid Wage Claim Process, Legis. Analyst’s Off. (Feb. 19, 2020) [hereinafter The 2020–21 Budget], https://lao.ca.gov/Publications/Report/4165 [https://perma.cc/PC6X-52YE]. And these claims arise only when workers report these wage theft violations; underenforcement of these laws may mean there are a great number of workers who suffer wage theft but either choose not to report a violation or are not sufficiently informed of their rights to be aware that a violation has occurred.25In fact, California’s Legislative Analyst’s Office reported that many affected workers who could file wage claims do not; about 1 in 600 workers statewide file wage claims each year, but “the share of workers owed unpaid wages is likely much greater.”
The inefficiency of agencies enforcing wage theft has also become apparent in recent years. A report by the California Legislative Analyst’s Office found that, although state law requires wage claims to be adjudicated within 120 days, the average claim took nearly 400 days to be adjudicated in 2018.26The 2020–21 Budget, supra note 24. These long wait times disadvantage victims of wage theft by discouraging affected workers from filing claims, increasing the likelihood that the worker will drop their claim before resolution, and potentially compelling workers “to settle their claims for smaller amounts.”27Id.
Wage theft has far-reaching and pernicious effects. Wage theft can cause economic insecurity by introducing financial uncertainty and causing workers to fear the repercussions of speaking up.28Hallett, supra note 3, at 151. In addition, a 2014 study from a nonprofit public health organization found that wage theft reduces the income that is necessary to provide for an employee’s family, which gives way to downstream effects: employees’ children are “less likely to succeed in school,” and workers’ increased stress causes them to feel more anxious and experience poor mental and socioemotional health.29Fabiola Santiago, Brooke Staton, Natalia Garcia, Jill Marucut, Tia Koonse & Human Impact Partners, Health Impact Assessment of the Proposed Los Angeles Wage Theft Ordinance 7 (2014), https://www.labor.ucla.edu/wp-content/uploads/2018/06/wage_theft_report_082514_KF.pdf [https://perma.cc/RZD6-4ZJX]. Wage theft also has effects on society at large, such as creating unfair competition with businesses that do comply with the law, increasing the need for safety-net and welfare programs, and “reducing needed tax revenues.”30Meredith Minkler, Alicia L. Salvatore, Charlotte Chang, Megan Gaydos, Shaw San Liu, Pam Tau Lee, Alex Tom, Rajiv Bhatia & Niklas Krause, Wage Theft as a Neglected Public Health Problem: An Overview and Case Study from San Francisco’s Chinatown District, 104 Am. J. Pub. Health 1010, 1011 (2014).
Given the seriousness of wage theft and the inadequacy of its current enforcement, deputization offers a solution. Deputization would endow private citizens with the authority extended to governmental wage theft authorities. The rights granted to private citizens could vary widely, ranging from entering work sites and advising workers of their rights to accessing employer records to inspect wage violations. However, more rigorous embracing of deputization would lead to more momentum for addressing the enforcement of wage and hour law and decreasing the instances of wage theft suffered by workers.
I. Deputization
Despite the enormity of the wage theft problem in the U.S., the enforcement and containment of the issue is limited. Victims of wage theft currently have a few potential avenues of recourse: (1) file a complaint with the relevant federal, state, or local labor agency;31Workers may file a federal complaint with the U.S. Department of Labor or a state claim with the Labor Commissioner. The 2020–21 Budget, supra note 24. A worker protected by a relevant Los Angeles statute may also file a claim with the Los Angeles Office of Wage Standards. Raise the Wage LA, City of L.A. Off. of Wage Standards, https://wagesla.lacity.org [https://perma.cc/99KG-TG7R]. (2) file a private lawsuit under the federal Fair Labor Standards Act (“FLSA”); (3) file a private lawsuit under state or local wage and hour standards; or (4) do all three.32Elizabeth J. Kennedy, Deputizing the Frontline: Enforcing Workplace Rights in a Post-Pandemic Economy, 38 Hofstra Lab. & Emp. J. 203, 213–14 (2021); see also The 2020–21 Budget, supra note 24. Filing a private lawsuit is burdensome and sometimes out of the question for low-income and marginalized workers (whom wage theft disproportionately affects and who may face difficulty finding attorneys interested in taking low-dollar cases).33See Fritz-Mauer, supra note 8, at 102–03. An EPI report found that Californian victims of wage theft lost out on about $3,400 a year in 2015. Cooper & Kroeger, supra note 1, at 10 tbl.1.
However, leaving the enforcement of wage theft up to the designated government entities is not a solution either—most state and local governments lack sufficient resources to investigate and enforce workplace standards.34Cooper & Kroeger, supra note 1, at 5–6; Farida Jhabvala Romero, State Wage-Theft Investigators Say Staffing Crisis Is Hurting the Agency, KQED (July 18, 2023), http://kqed.org/news/11955920/california-wage-theft-investigators-staffing-crisis [https://perma.cc/AE95-JVGH] (discussing how vacancies in the California Labor Commissioner’s Office are causing backlogs and slowing of work). In recent years, the California Labor Commissioner’s office has reportedly been “too short-staffed to do its job,” an issue that was exacerbated by the COVID-19 pandemic and resulting labor shortage.35Alejandro Lazo, Jeanne Kuang & Julie Watts, Agency Battling Wage Theft in California Is Too Short-Staffed to Do Its Job, CalMatters (Oct. 17, 2022), https://calmatters.org/california-divide/2022/10/agency-battling-wage-theft [https://perma.cc/JR9V-ATLZ]. In 2023, employees at the California Labor Commissioner’s office cited a 30%–40% vacancy rate in the office and reported that these vacancies caused employee burnout, stress, lowered morale, and sometimes the decision to leave the office altogether.36Letter from Rank-and-File Workers, California Lab. Comm’r’s Off., to David Alvarez, Chair, Catherine Blakespear, Vice Chair, and Members of the Joint Legis. Audit Comm. 3 (July 9, 2023) [hereinafter Letter from Rank-and-File Workers] (on file with author); see also Romero, supra note 34. A high vacancy rate, overworked staff, and the resulting “exodus of talented workers” result in an office that is poorly equipped to handle the sheer volume of wage theft claims.37Letter from Rank-and-File Workers, supra note 36, at 4.
One way to address this problem is to deputize private citizens to provide them with the same authorizations that a governmental entity is granted under relevant statutes. Deputized citizens could help the agency more effectively use its authority to enforce the laws among a greater number of affected employers and employees. In particular, private citizens may be deputized to investigate wage theft such that they could enter worksites, speak with employees, and inspect employer records. Sharing the responsibilities of wage theft enforcement with private citizens would reduce the workload of government employees, allowing them to focus their resources on the other stages of resolving a wage theft claim, such as settlements, hearings, and recommendations.
A. What Is Deputization?
Deputization occurs when a principal party “empowers an agent” (“deputizes” the agent) to perform some agreed-upon function,38Bruce I. Carlin, Tarik Umar & Hanyi Yi, Deputization 1 (Nat’l Bureau of Econ. Rsch., Working Paper No. 27225, 2020). authorizing the agent to act on the principal’s behalf in limited ways.39Myriam E. Gilles, Reinventing Structural Reform Litigation: Deputizing Private Citizens in the Enforcement of Civil Rights, 100 Colum. L. Rev. 1384, 1426 (2000). Throughout history, deputization has taken many forms and currently exists in many different contexts.40See Carlin et al., supra note 38, at 1. The judiciary has engaged in deputization; as early as the 19th century, federal courts deputized employer-hired private security personnel to enforce federal injunctions against striking workers.41Gilles, supra note 39, at 1427. Today, the deputization of private attorneys by local prosecutorial agencies to head criminal prosecutions is still common.42Id. at 1428. The federal government has also deputized state and local officials to enforce laws; for instance, the legislature authorizes state and local law enforcement agencies to perform immigration law enforcement functions through the Immigration and Naturalization Act.43Id. at 1431 n.195; 8 U.S.C. § 1103(c).
In addition to deputization of government officials, existing examples of deputization also involve private individuals. The Private Attorneys General Act (“PAGA”) is a model of deputization which gives authority to private citizens under California law,44Labor Code Private Attorneys General Act of 2004, Cal. Lab. Code § 2698 (West 2004); id. § 2699(a) (stating that “any provision of this code that provides for a civil penalty to be assessed and collected by the Labor and Workforce Development Agency or any of its departments . . . may, as an alternative, be recovered through a civil action brought by an aggrieved employee on behalf of himself or herself and other current or former employees”). meaning that an official government entity is not needed to litigate these violations. This statute “deputizes” private citizens by “authoriz[ing] aggrieved employees to file lawsuits to recover civil penalties on behalf of the State of California for Labor Code violations.”45Private Attorneys General Act (PAGA), Lab. & Workforce Dev. Agency, http://labor.ca.gov/resources/paga [https://perma.cc/VHM6-WWRD]. PAGA was passed in response to deficiencies in the state’s ability to “effectively investigate and prosecute” labor law abuses,46Kennedy, supra note 32, at 245. especially as there was an increasing “disparity between California’s large labor force” and the “finite” resources of California’s enforcement agencies.47Matthew J. Goodman, Comment, The Private Attorney General Act: How to Manage the Unmanageable, 56 Santa Clara L. Rev. 413, 414 (2016). The statute essentially deputizes private citizens to “step into the shoes” of the state and prosecute employers’ statutory labor violations.48Id. at 414–15. In allowing private citizens to act as “attorneys general,” PAGA enables these private citizens to “recover civil penalties for Labor Code violations” committed against them, with the official enforcement agencies retaining “primacy” over the private enforcement efforts.49Iskanian v. CLS Transp. L.A., LLC, 327 P.3d 129, 146–47 (Cal. 2014) (quoting Cal. Lab. Code § 2699 (West 2004)). PAGA has been successful in recovering the stolen wages of employees, collecting “more than $88 million from lawbreaking corporations in 2019.”50Rachel Deutsch, Rey Fuentes & Tia Koonse, California’s Hero Labor Law: The Private Attorneys General Act Fights Wage Theft and Recovers Millions from Lawbreaking Corporations, UCLA Lab. Ctr. (2020), http://labor.ucla.edu/publication/paga [https://perma.cc/E8EY-YL7N].
Despite PAGA’s achievements and enforcement measures against lawbreaking corporations, PAGA has a large shortcoming: it only allows employees who have experienced or are experiencing the alleged Labor Code violation to bring the action. Aggrieved employees must bring actions “on behalf of the employee and other current or former employees.”51Cal. Lab. Code § 2699(a)(8) (West 2004). Although PAGA permits employees to bring suit on behalf of other employees and form a class action–like group of employees as plaintiffs,52Goodman, supra note 47, at 415. many of these cases have been called “unmanageable” by courts when there are “a large number of allegedly aggrieved individuals who would require a multitude of individual assessments to prove liability.”53Id. at 433–34. To proceed on the case following an “unmanageability” ruling by the court, the plaintiff must demonstrate liability of thousands of individually aggrieved employees,54Id. at 433; see Defendants’ Motion to Strike PAGA Representative Actions Allegations at 13, Ortiz v. CVS Caremark Corp., No. C 12-05859, 2014 U.S. Dist. LEXIS 36833 (N.D. Cal. March 19, 2014). which poses an immense obstacle for plaintiffs.
In addition to the barriers employees face when attempting to file PAGA suits, there may also be employees who are eligible to file a PAGA suit but simply do not do so. To commence an action, an aggrieved employee must give notice of the alleged violation to the California Division of Occupational Safety and Health, stating the provisions that they allege their employer violated and “the facts and theories support[ing] the alleged violation.”55Chris Micheli, Private Attorneys General Act Lawsuits in California: A Review of PAGA and Proposals for Reforming the “Sue Your Boss” Law, 49 U. Pac. L. Rev. 265, 272–73 (2018) (quoting Cal. Lab. Code § 2699.3(a)(1)). This lengthy process may exclude employees who are both unfamiliar with the administrative process and with the law. Furthermore, not all employees who are “aggrieved” may be aware that their employer is violating a law or willing to file a suit through PAGA.
While PAGA has expanded the accessibility of enforcement remedies to aggrieved employees, some localities have also arranged for deputization of community organizations to enter work sites and perform outreach to inform workers of their rights. For example, the Santa Clara County Office of Labor Standards Enforcement (“OLSE”) has partnered with the Fair Workplace Collaborative (“FWC”), a coalition of dedicated community organizations and advocates who directly engage with employees through flyering, training, and legal services.56Fair Workplace Collaborative, Working P’ships USA, http://wpusa.org/work/just-economy/fair-workplace-collaborative [https://perma.cc/F9BF-SEZW]; OLSE Partnerships, Cnty. of Santa Clara, https://desj.santaclaracounty.gov/offices/office-labor-standards-enforcement/partnerships-olse [https://perma.cc/68RE-MU9R]. The FWC is made up of several community-based organizations, including the Pilipino Association of Workers & Immigrants,57The Pilipino Association of Workers & Immigrants fights social and economic injustice faced by Filipino workers and immigrants or migrants of Santa Clara County. About Us, Pilipino Ass’n of Workers & Immigrants, https://pawis-sv.com/about-us [https://perma.cc/69SM-V8MB]. the Vietnamese American Roundtable,58The Vietnamese American Roundtable is a nonprofit organization that develops and promotes projects that benefit the Vietnamese community. Who We Are, Vietnamese Am. Roundtable, https://www.varoundtable.org/who-we-are [https://perma.cc/NW4S-64N2]. and the Day Worker Center of Mountain View,59The Day Worker Center of Mountain View is a nonprofit organization that develops programs and services to advocate for the rights of day workers who work on a contingent, day-to-day basis. Who We Are, Day Worker Ctr. of Mountain View, https://www.dayworkercentermv.org/who-we-are [https://perma.cc/CXN6-5VQN]. among other organizations.60Working P’ships USA, supra note 56; Telephone Interview with Ruth Silver-Taube, Member of Santa Clara Cnty’s Fair Workplace Collaborative & Supervising Att’y of the Santa Clara Cnty’s Off. of Lab. Standards Enf’t Legal Advice Line (Dec. 7, 2023) [hereinafter Ruth Silver-Taube Interview]. According to Ruth Silver-Taube, a member of Santa Clara County’s FWC and Supervising Attorney of Santa Clara County’s OLSE Legal Advice Line, as of December 2023, the FWC is made up of about twenty-five people, three of whom are attorneys; the others work through the organizations that compose the FWC.61Ruth Silver-Taube Interview, supra note 60. Since 2018, the FWC has formed yearly contracts with the Santa Clara County OLSE that authorize FWC members to enter work sites and perform outreach, advising employees of their rights.62Id. Bearing a Santa Clara County badge, the FWC members go into work sites and speak with employees to assess whether they have experienced wage theft.63Id. The contracts also set out deliverables the FWC must achieve, and require the FWC to provide monthly updates and regularly check in with the OLSE regarding its progress on the deliverables.64Id.
The authority that the FWC gains through deputization comes from Santa Clara County’s Food Permit Enforcement Program.65Id. The Program enforces wage theft judgments against employers by suspending food facility permits from businesses who have “outstanding wage theft judgments” from the state.66County of Santa Clara New Enforcement Program to Fight for Owed Wages and Food Workers’ Rights, Cnty. of Santa Clara (Sept. 23, 2019), https://news.santaclaracounty.gov/news-release/county-santa-clara-new-enforcement-program-fight-owed-wages-and-food-workers-rights-0 [https://perma.cc/PQ6M-YNSH]. Each year, the FWC is provided a list of Santa Clara County food vendor employers (employers who require health permits) and the FWC enters those work sites and speaks with its employees.67Ruth Silver-Taube Interview, supra note 60. The FWC speaks with employees to assess whether they may have experienced wage theft or whether they may be facing abuse in the workplace—asking them whether they have received paychecks, whether they have been compensated for overtime, and whether there is violence in their workplace.68Id. But the outreach efforts of the FWC are not limited just to food vendor employers; they can and have entered workplaces and spoken with employees outside of the food industry.69Id.
In addition to checking on worksites and speaking with employees, the contract between FWC and Santa Clara County also requires FWC to perform outreach efforts. As a result, the FWC organizes and presents training programs, during which it educates workers on their rights in the workplace.70Id. Silver-Taube, who leads these trainings, hosts at least one training a month, each tailored to the different organizations making up the FWC.71Id. In total, her training efforts have reached more than one hundred workers in one year, as she has hosted trainings in conjunction with the Pilipino Association of Workers & Immigrants, the Vietnamese American Roundtable, and the Day Worker Center.72Id.
Silver-Taube also supervises the Santa Clara County’s OLSE Legal Advice Line, another outreach effort that has emerged from the partnership between FWC and Santa Clara County OLSE.73Id.; Resources: OLSE Attorney Staffed Advice Line, Cnty. of Santa Clara, https://desj.sccgov.org/resources-olse [https://web.archive.org/web/20231210054411/https://desj.sccgov.org/resources-olse]. Offered in six different languages, the advice line helps workers who have questions about their rights or are seeking legal advice.74Ruth Silver-Taube Interview, supra note 60. Silver-Taube estimates that, in about 90% of the calls, workers identify some actionable violation that their employer committed.75Id. The three FWC lawyers can file claims on behalf of employees who suffer an actionable violation or can, alternatively, refer these employees to other attorneys to pursue their claims.76Id.
Deputization under the Santa Clara OLSE and FWC partnership benefits employees, but the work that the partnership is authorized to perform is limited. The partnership’s members may speak with employees but cannot access employer records or more thoroughly investigate wage theft. In Los Angeles, deputization is even more constrained, as no program similar to the Santa Clara OLSE and FWC partnership currently exists. Initiating deputization in Los Angeles as well as expanding the deputized functions so that private individuals can perform enforcement actions like inspecting employer records could broadly bolster wage theft enforcement.
The enormity of the wage theft problem in Los Angeles City could be addressed by deputizing private citizens to enter work sites and inform workers of their rights as well as inspect employer records to determine whether wage theft has occurred. Deputization is effective and important for several reasons. First, deputization expands the quantity of people authorized to perform an important government function. State enforcers have said that having a “million eyes on the ground” in the form of private citizens has been especially successful in deterring unlawful action.77Myriam Gilles & Gary Friedman, The New Qui Tam: A Model for the Enforcement of Group Rights in a Hostile Era, 98 Tex. L. Rev. 489, 493–94 (2020) (quoting James F. Barger, Jr., Pamela H. Bucy, Melinda M. Eubanks & Marc S. Raspanti, States, Statutes, and Fraud: An Empirical Study of Emerging State False Claims Acts, 80 Tul. L. Rev. 465, 485–86 (2005)). Additionally, deputizing private citizens to enter work sites and investigate wage theft violations would increase the number of people actively working to disincentivize employers’ illegal actions, increasing the likelihood that victims of wage theft could become more knowledgeable of their rights and learn how to seek redress.
B. Who Would Deputize?
1. California Bureau of Field Enforcement
As an investigator of minimum wage and overtime claims and a subsection of California’s Labor Commissioner’s Office, California’s Bureau of Field Enforcement (“BOFE”) could deputize private citizens to perform investigations of wage theft.78Bureau of Field Enforcement (BOFE), State of Cal. Dep’t of Indus. Rels., https://www.dir.ca.gov/dlse/dlse-bofe.html [https://perma.cc/WGQ8-PLGN]. The BOFE investigates and enforces statutes covering minimum wage, overtime, “workers’ compensation insurance, child labor, cash pay, unlicensed contractors, [and] Industrial Welfare Commission orders.”79Id. The BOFE investigates “on behalf of all affected workers,” meaning that when workers file a complaint, the BOFE performs site-wide investigations and accordingly issues citations for violations it discovers.80Tia Koonse, Miranda Dietz & Annette Bernhardt, Enforcing City Minimum Wage Laws in California: Best Practices and City-State Partnerships 19 (2015), https://laborcenter.berkeley.edu/pdf/2015/minimum-wage-enforcement.pdf [https://perma.cc/JAX2-SFCG]. When a violation is discovered, the BOFE collects and distributes unpaid wages to affected workers, but keeps the remaining penalties and fines to account for the costs incurred while performing the investigation.81Id.
Although the BOFE has not deputized people to perform labor investigations, it has formed partnerships with workers’ rights advocacy groups, including worker centers.82Nat’l Emp. L. Project, California Strategic Enforcement Partnership: A Public Agency-Community Partnership 1 (2018), https://s27147.pcdn.co/wp-content/uploads/CA-Enforcement-Document-Letter-11-27-18-1.pdf [https://perma.cc/E2AZ-66ZG]. Formed in 2016, the California Strategic Enforcement Partnership “is a collaboration between the Labor Commissioner’s Office, the National Employment Law Project, and 14 workers’ rights and legal advocacy organizations.”83Id. The partnership was formed to boost California’s efforts against wage theft, and partnering with worker organizations was meant to encourage a culture of compliance with labor law.84Id.
The BOFE “investigates reports of widespread labor law violations by interviewing workers, inspecting workplaces, issuing citations for violations, and collecting unpaid wages for distribution to workers.”85Id. at 3; Koonse et al., supra note 80, at 19. In the 2015–2016 fiscal year, the BOFE conducted 2,424 inspections and assessed over $81 million in wages and penalties. The BOFE engages with worker organizations through the California Strategic Enforcement Partnership by (1) meeting regularly in teams to share knowledge, identify and address wage theft, and discuss emerging complaints, (2) convening annually to build skills and relationships throughout the partnership, and (3) facilitating monthly conference meetings to share strategies and cross-train on tools for labor law enforcement.86Nat’l Emp. L. Project, supra note 82, at 4. Worker centers support workers throughout “every step of the investigation process”87Id. at 3. and can convince “groups of workers to testify in an investigation.”88Alejandro Lazo & Jeanne Kuang, To Fight Wage Theft California Gets Strong Assist from Worker Centers, CalMatters (May 2, 2023), https://calmatters.org/california-divide/2022/11/california-wage-theft-workers [https://perma.cc/H3HD-KEN7].
The California Strategic Enforcement Partnership recognizes the importance of worker centers and labor organizations in the fight against wage theft. However, there may be untapped potential behind these worker organizations because they have not been deputized such that they can act with the same authority as the BOFE when it comes to enforcement of wage theft. According to a BOFE 2020–2021 fiscal year report, the department collected around $29 million across wages, penalties, and interest from employers who committed violations.89Lilia García-Brower, Cal. Labor Comm’r’s Off., 2020–2021: The Bureau of Field Enforcement Fiscal Year Report 6, https://www.dir.ca.gov/dlse/BOFE_LegReport2021.pdf [https://perma.cc/5LJQ-PF78]. Although this number indicates that the BOFE has made strong enforcement progress, it still has a long way to go. This number encompasses several violation categories that the BOFE is responsible for (including wage theft categories like overtime and misclassification, but also adding up outside categories like workers’ compensation and child labor).90Id. (noting the BOFE’s penalty collections by several different categories of violations). However, California’s Legislative Analyst’s Office found that, in 2017, workers alleged a total of $320 million in unpaid wages alone, revealing a massive disparity.912017 was the last year with complete data. The 2020–21 Budget, supra note 24. Expanding the BOFE’s partnership with worker centers such that worker centers are deputized with legal authority to investigate wage theft—entering work sites, inspecting employer records, interviewing employees, and ultimately identifying wage theft—could increase the BOFE’s capability to discover and address wage theft violations.
- Los Angeles Office of Wage Standards
The Los Angeles Office of Wage Standards (“OWS”) is also well-positioned to deputize private citizens to combat wage theft within the city of Los Angeles. The OWS is a city government agency within the Bureau of Contract Administration of the Department of Public Works.92L.A., Cal., Mun. Code § 188.00 (Ord. No. 187,710, 2023). The agency “enforces minimum wage, paid sick leave (PSL), and ban-the-box requirements for all employees who perform work in the City of Los Angeles.”93Off. of Wage Standards, Bureau of Cont. Admin., Office of Wage Standards: Milestone Report 1 (2023), https://wagesla.lacity.org/sites/g/files/wph1941/files/2023-09/Milestone%20Report%202023-09-19.pdf [https://perma.cc/W8NC-CYWP]. In the city of Los Angeles, the OWS is authorized to investigate violations of wage and hour laws.94L.A., Cal., Mun. Code § 188.05(C). Pursuant to the Los Angeles Municipal Code (“LAMC”), the OWS is statutorily authorized to enforce and implement several ordinances governing employment law in Los Angeles, including the Minimum Wage Ordinance (“MWO”),95Id.; id. § 187.01 (Ord. No. 184,320, 2016). the Fair Work Week Ordinance,96Id. § 188.05(C); id. § 185.01 (Ord. No. 187,710, 2023). and the Hotel Worker Ordinance97Id. § 188.05(C); id. § 182.01 (Ord. No. 187,565, 2022). (among others).
The OWS exists within the broader context of federal and state law. The federal government established standards for minimum wage, overtime pay, and employment standards for employees in the enactment of the FLSA in 1938.98Fair Labor Standards Act, 29 U.S.C. § 206(a)(1) (establishing a federal minimum wage); id. § 207(a)(1) (establishing requirements for overtime pay). See generally id. § 212 (prohibiting employment of “oppressive child labor”); id. § 211(c) (establishing recordkeeping requirements for employers). The FLSA sets many wage and hour standards for employees, including restricting the employment of minors,99Id. § 212. and establishing recordkeeping mandates that require employers to display an official poster outlining the requirements of the FLSA100 29 C.F.R. § 516.4. and to keep employee time and pay records for at least three years.10129 U.S.C. § 211; 29 C.F.R. § 516.4. In addition, the FLSA offers overtime protection; the statute mandates that covered, nonexempt employees receive overtime pay for hours worked over forty per workweek at a rate of least one and one-half times the regular rate of pay.10229 U.S.C. § 207(a)(2).
The FLSA also governs the federal minimum wage, which promises employees a baseline pay for hours worked.103Fair Labor Standards Act of 1938, Pub. L. No. 718, ch. 676, 52 Stat. 1060 (codified as amended at 29 U.S.C. § 206(a)). However, the federal minimum wage has remained $7.25 since 2007,104See 29 U.S.C. § 206(a). which, as inflation increases, is becoming less of a livable wage for earners. Many states have filled this gap by raising their state minimum wage well above the federal minimum wage. Effective January 1, 2025, California’s minimum wage was set at $16.50 per hour for all employers.105Minimum Wage, State of Cal. Dep’t of Indus. Rels., https://www.dir.ca.gov/dlse/minimum_wage.htm [https://perma.cc/YK9G-TPSN]. In addition, California also established a minimum wage of $20 per hour for all “fast food restaurant employees” (effective April 1, 2024) and a heightened minimum wage for certain health care workers (effective October 16, 2024). Id. Within California, the city of Los Angeles updates its minimum wage annually based on the Consumer Price Index (“CPI”) for Urban Wage Earners and Clerical Workers (“CPI-W”) for the Los Angeles metropolitan area, which is published by the Bureau of Labor Statistics.106L.A., Cal., Mun. Code § 187.02(d) (Ord. No. 184,320, 2016); Memorandum from Karen Bass, Mayor, City of Los Angeles, to All Employers and Employees Subject to the City of Los Angeles Minimum Wage Ordinance, July 1, 2024, Minimum Wage Ordinance Wage Rate Increase (Feb. 1, 2023), https://wagesla.lacity.org/sites/g/files/wph1941/files/2024-02/2024%20MWR%20Increase%20Memo.pdf [https://perma.cc/CSV7-X2HU]. As of July 1, 2024, the minimum wage in the city of Los Angeles for all employers is $17.28 per hour107Announcement: 2024 Minimum Wage Rate Increase, City of L.A. Off. of Wage Standards, http://wagesla.lacity.org [https://perma.cc/3ENH-KWWF]. The Los Angeles Minimum Wage Ordinance, codified in Article 7 of Chapter XVIII of the Los Angeles Municipal Code, establishes that the City will pay higher than the California-mandated minimum wage and provide sick time benefits to employees.108L.A., Cal., Mun. Code § 187.00. The OWS is tasked with bearing administrative responsibilities under the MWO.109Id. § 187.01(B).
As of December 2023, the OWS has one Division Head and thirty employees.110E-mail from Angela de la Rosa, Compliance Program Manager for the Outreach and Info. Section, Off. of Wage Standards (Dec. 7, 2023, 1:26 PM PST) (on file with author). It is comprised of three sections: Outreach and Information (eight employees), Investigation and Compliance (sixteen employees), and Fair Work Week (six employees).111Id. The first two sections (Outreach and Information and Investigation and Compliance) are, collectively, tasked with effectively implementing and enforcing the MWO.112Wage Standards, City of L.A. Dep’t of Pub. Works, Bureau of Cont. Admin., https://bca.lacity.org/wage-standards [https://web.archive.org/web/20241005230631/https://bca.lacity.gov/wage-standards]. The Investigation and Compliance Section “investigates complaints of wage underpayment” and sick time violations to assess where penalties may be applicable.113Id. The Information and Outreach Section informs businesses and employees about legal minimum wage and paid sick leave requirements, while helping with community outreach.114Id. On the outreach side, the OWS has attended outreach events, hosted training sessions for government staff, and made over 241 million media impressions since 2016.115Off. of Wage Standards, supra note 93, at 2.
Within its investigation wing, from July 2016 to September 2023, the OWS received 1,084 complaints and closed 785 of them, collecting $540,600 in total penalties.116Id. at 1. The OWS’s investigation process generally follows five steps: (1) the complaint is vetted to ensure it falls within the OWS’s “jurisdiction and employee requirements are met”; (2) “the case is assigned to an investigator and additional information is obtained”; (3) “the employer is notified of the investigation and relevant records are requested”; (4) “the records are analyzed to determine whether the employer is complying with the MWO requirements”; and (5) “the case is then submitted to management for an evaluation of the investigative findings and recommendations.”117Email from Angela de la Rosa, supra note 110.
In addition to the MWO, the third section of the OWS bears administrative responsibilities for the Fair Work Week Ordinance (“FWWO”), which provides a more predictable work schedule for retail workers.118City of L.A. Dep’t of Pub. Works, Bureau of Cont. Admin., supra note 112; L.A., Cal., Mun. Code §§ 185.00, 185.01(B) (Ord. No. 187,710, 2023). The FWWO requires that employers provide work schedules to employees before they begin employment.119Id. § 185.02(A). The FWWO also establishes “Predictability Pay,” which requires that employers compensate employees “with one additional hour of pay” for each change to a scheduled date, time, or location that either “does not result in loss of time to the” employee or “results in additional work time exceeding fifteen minutes.”120Id. § 185.06(A)(1)(a)–(b). There are some exceptions to this predictability pay requirement, such as if the employee initiates the work schedule change or if the employer’s operations are compromised due to force majeure.121Id. § 185.06(B)(1)–(5). However, in general, the FWWO aims to establish a more predictable work schedule with which retail employees can more accurately predict the sizes of their paychecks.
Furthermore, the LAMC’s Los Angeles Office of Wage Standards Ordinance, which was effective as of April 1, 2023, explicitly sets forth the OWS’s authority to enforce violations of wage theft and sick time benefits under the Los Angeles MWO and to enforce the rights and benefits provided to retail employees by the FWWO.122Id. § 188.00. The Los Angeles Office of Wage Standards Ordinance requires employers to retain employee records for at least four years and allows the OWS to access these records to monitor compliance with the MWO.123Id. § 188.03(B). The Los Angeles Office of Wage Standards Ordinance also gives the OWS authority to investigate employers for possible violations of the Los Angeles MWO, Sick Time Benefits, and FWWO.124Id. § 188.05(C).
Given the vast amount of authority provided to the OWS to enforce wage and hour laws in Los Angeles, deputized private entities through this division could expand the OWS’s ability to investigate and enforce LAMC ordinances. Sharing the OWS’s investigative power with private individuals would enable them to broaden their capabilities, allowing them not only to identify more instances of illegal employer action, but also to seek remedies for employees who have been victims of wage theft.
The OWS serves as a robust starting point to analyze the potential of deputization within the City of Los Angeles. Because it exists within a defined statutory framework, the OWS’s legal structure can be examined to determine the possibility of deputization. Furthermore, because the OWS governs a city, it can pave the way for potential future applications to the BOFE and evaluations of deputization on a broader, statewide level.
C. Who Would Be Deputized?
There have not been any legal restrictions placed on who can be “deputized,” and previous examples of deputization in the law have provided for both private individuals (as in PAGA)125See Labor Code Private Attorneys General Act of 2004, Cal. Lab. Code § 2698 (West 2004); id. § 2699(a). and nonprofit organizations (as in the worker centers in Santa Clara County’s FWC)126See source cited supra note 56. to be deputized. Since one of the benefits of deputization towards wage theft is to expand enforcement and ensure that more workers know about their rights and can seek redress when they have experienced wage theft, deputizing an organization would be more helpful than deputizing an individual. Organizations, which are generally equipped with more resources, can train their members to provide outreach and education to workers and can also gain rapport with workers so that workers have a resource to turn to.
Unions are organizations that have traditionally been thought of as advocates for workers’ rights, but they have seen “a significant decline in membership” in recent years.127Stefan J. Marculewicz & Jennifer Thomas, Labor Organizations by Another Name: The Worker Center Movement and Its Evolution into Coverage Under the NLRA and LMRDA, 13 Federalist Soc’y Rev. 79, 79 (2012), https://fedsoc.org/fedsoc-review/labor-organizations-by-another-name-the-worker-center-movement-and-its-evolution-into-coverage-under-the-nlra-and-lmrda [https://web.archive.org/web/20231224172912/https://fedsoc.org/fedsoc-review/labor-organizations-by-another-name-the-worker-center-movement-and-its-evolution-into-coverage-under-the-nlra-and-lmrda]. The union membership rate was 10.0% in 2023.128News Release, Bureau of Lab. Stats., U.S. Dep’t of Lab., Union Members – 2023 (Jan. 23, 2024), https://www.bls.gov/news.release/pdf/union2.pdf [https://web.archive.org/web/20241119053452/https://www.bls.gov/news.release/pdf/union2.pdf]. The 2023 rate was very similar to the 10.1% rate in 2022, which was “down from 10.3% in 2021” and was the lowest union membership rate since 1983, the earliest year with comparable data on record.129Union Membership Rate Fell by 0.2 Percentage Point to 10.1 Percent in 2022, U.S. Bureau of Lab. Stats. (Jan. 23, 2024), https://www.bls.gov/opub/ted/2023/union-membership-rate-fell-by-0-2-percentage-point-to-10-1-percent-in-2022.htm [https://perma.cc/ES4G-EPAJ]. Since the low union membership rate indicates that fewer workers can seek workplace protection through a union, a different source of workplace protection is needed. To meet this growing need, worker centers have become one of the most important means through which change is sought within the workplace.130See Marculewicz & Thomas, supra note 127, at 79–80.
Worker centers are nonprofit, community-led organizations aimed especially at supporting low-wage and immigrant workers.131Kevin L. Lee, Magaly Lopez, Ana Luz Gonzalez-Vasquez & UCLA Lab. Ctr., New Directions in Racial and Economic Justice: How California’s Worker Centers Are Bringing Worker Power into Workforce Development 2 (2022), http://labor.ucla.edu/wp-content/uploads/2022/01/Worker-Centers-and-Workforce-Development_v5.pdf [https://perma.cc/PS9J-TK5S]. There are hundreds of worker centers throughout the United States, and California has forty-seven worker centers—more than any other state.132Thomas A. Kochan, Janice R. Fine, Kate Bronfenbrenner, Suresh Naidu, Jacob Barnes, Yaminette Diaz-Linhart, Johnnie Kallas, Jeonghun Kim, Arrow Minster, Di Tong, Phela Townsend, Danielle Twiss, The Worker Empowerment Rsch. Network, U.S. Workers’ Organizing Efforts and Collective Actions: A Review of the Current Landscape 32 (2022), https://mitsloan.mit.edu/sites/default/files/2022-06/Report%20on%20Worker%20Organizing%20Landscape%20in%20US%20by%20Kochan%20Fine%20Bronfenbrenner%20Naidu%20et%20al%20June%202022.pdf [https://perma.cc/5XMJ-RFX8]. Worker centers’ advocacy work ranges from lobbying and community organizing to direct engagement and research.133Marculewicz & Thomas, supra note 127, at 79. Some key characteristics define worker centers: (1) they mainly focus on low-income immigrant workers from a particular occupation or industry or from a particular ethnic group; (2) they place special focus on “organizing and leadership development” among their members; (3) they “provide a case management system for their members that focuses on labor violations,” including wage and hour claims; and (4) they lead “workshops on health and safety issues.”134Victor Narro, Impacting Next Wave Organizing: Creative Campaign Strategies of the Los Angeles Worker Centers, 50 N.Y.L. Sch. L. Rev. 465, 467–68 (2006).
The deputization of worker centers also carries many benefits because worker centers have distinct characteristics that enable them to serve the community. Worker centers have existed since the 1920s but grew enormously in the early 2000s.135Lee et al., supra note 131, at 2. Although worker centers have changed in scope and objectives throughout their history, they still maintain a focus on being community-led.136Janice Fine, Worker Centers: Organizing Communities at the Edge of the Dream, 50 N.Y.L. Sch. L. Rev. 417, 420–21 (2006). The members of worker centers are workers themselves—employees who are also seeking an improved workplace.137Id. at 419–20; Lee et al., supra note 131, at 2–3. Furthermore, the cornerstone of worker centers is that they are made up of a “strong base of workers at the local level” who frequently play key roles in the “organizational decision-making” of their employers.138Janice Fine, Victor Narro & Jacob Barnes, Understanding Worker Center Trajectories, in 7 No One Size Fits All: Worker Organization, Policy, and Movement in a New Economic Age 7, 10 (Janice Fine et al. eds., 2018).
Worker centers use a combination of approaches, including: (1) “[s]ervice delivery, including legal representation to recover unpaid wages, English classes, worker rights education, and access to health clinics”; (2) advocacy, including researching employment conditions in low-wage industries and improving monitoring and grievance processes; and (3) organizing, including engaging in “leadership development.”139Fine, supra note 136, at 420. Because worker centers offer services, advocacy, and organizing, they provide unique services to help “low-wage immigrants navigate the world of work in the United States.”140Id. Unlike labor unions, worker centers do not typically operate a dues-paying system;141Id. at 444. instead, they usually require people to become involved in the work or take courses on workers’ rights in order to join.142Janice Fine, Worker Centers, 14 Race, Poverty & Env’t, Spring 2006, at 54, 55. Worker centers also engage in direct community outreach and educational workshops that can benefit people who are not members of the worker centers, making their services accessible to many.143Nadia Marin Molina, The Workplace Project, 14 Race, Poverty & Env’t, Spring 2006, at 56, 56.
Since worker centers provide a broad range of services and are accessible to workers, they are well-positioned to handle the authority that would come with deputization by a government agent. The efforts that worker centers engage in are wide-ranging; thus, they could absorb the responsibilities of being deputized by a government agent to enforce wage theft. Moreover, the deputization of Santa Clara County’s FWC is an example of successful deputization of worker centers. Most of the organizations that make up the FWC are worker centers that consist of members of the community and whose purpose is to serve a specific subset of marginalized workers.144For instance, the Pilipino Association of Workers & Immigrants, one subset of Santa Clara County’s FWC, is aimed specifically at educating and advocating for Pilipino workers, and the organization is made up of Filipino workers and immigrants. Our Mission and Vision, Pilipino Ass’n of Workers & Immigrants, https://pawis-sv.com/our-mission-and-vision [https://perma.cc/SV6F-MTSR]. The deputization of worker centers has seen success in Santa Clara County, and worker centers’ deputization to educate workers and investigate wage theft would also be impactful within the city of Los Angeles.
II. Deputization to Perform Outreach
Deputization of private citizens to assist in reducing the wage theft problem in Los Angeles can come in many forms, but two specific areas could benefit from deputization: outreach and investigation. Outreach is already contemplated through the LAMC. Under the LAMC, the OWS is given express statutory authority to develop an outreach program and inform employers and employees of minimum wage laws.145L.A., Cal., Mun. Code § 188.12 (Ord. No. 187,710, 2023). Section 188.12 of the LAMC states:
The Division shall establish a community-based outreach program to conduct education and outreach to Employers and Employees. In partnership with organizations involved in the community-based outreach program, the Division shall create outreach materials that are designed for Employers and Employees in particular industries.146 Id.
Although the outreach program that the OWS has been charged with creating and implementing is not detailed in the statute, the OWS has taken several actions as part of its outreach efforts. As noted in its September 2023 Milestone Report, the OWS’s outreach included: (1) notifying businesses registered with the Office of Finance through mailed business tax statements, online renewals, and direct emails to business owners; (2) providing content for chambers of commerce & business associations, business improvement districts, and the Department of Neighborhood Empowerment to include in member newsletters; (3) holding training sessions and delivering information materials to staff from the “Mayor’s Office, [c]ouncil [d]istricts, [p]ublic [l]ibraries, [a]nimal [s]helters, BusinessSource Centers, and WorkSource Centers”; (4) attending outreach events; (5) establishing a toll-free hotline, email, and website to field inquiries and provide information; and (6) issuing requests for quotes and establishing an on-call list of contractors who will “provide community outreach and other support services.”147Off. of Wage Standards, Bureau of Cont. Admin., supra note 93, at 2.
Its mention of “partnership with organizations” and “community-based outreach” indicates that the authority extended to the OWS includes partnership with organizations like worker centers. Thus, express deputization of worker centers to perform outreach could be framed within LAMC section 188.12, allowing private parties to communicate directly with workers to educate them about their rights under the law.
III. Deputization to Investigate
In addition to outreach, the LAMC also gives the OWS authority to investigate violations of Los Angeles ordinances relating to wages:
The [OWS] shall be responsible for investigating possible violations of the Los Angeles Minimum Wage, Sick Time Benefits, Fair Work Week Ordinance, and this article by an Employer or other person. The Employer shall cooperate fully in any investigation by the Division. The Division shall have access to all business sites and places of labor subject to the Minimum Wage and Fair Work Week Ordinances during business hours to inspect and request copies of books and records, interview employees and any other relevant witnesses, investigate such matters necessary or appropriate and request the Board of Public Works to issue a subpoena for books, papers, records, or other items relevant to the enforcement of this article. The Employer is required to provide to the Division its legal name, address, and telephone number in writing.148L.A., Cal., Mun. Code § 188.05(C).
Employees can submit complaints regarding violations of the MWO directly to the OWS.149Submit a Complaint, City of L.A.: Off. of Wage Standards, https://wagesla.lacity.org/complaint [https://perma.cc/F3WS-Y64X]. Employees also have the option of filing separate or additional complaints through the State Labor Commissioner’s office.150Report a Labor Law Violation, State of Cal. Dep’t of Indus. Rels., https://www.dir.ca.gov/dlse/howtoreportviolationtobofe.htm [https://perma.cc/3HYT-ET8F]; Fact Sheet: Wage Theft, L.A. Worker Ctr. Network, https://laworkercenternetwork.org/wage-theft [https://perma.cc/5XUX-G6DK]. According to its September 2023 milestone report, the OWS received 1,084 complaints and closed 785 of them (202 with violations) since July 2016, thus handling complaints at a rate of 72%.151Office of Wage Standards, Bureau of Cont. Admin, supra note 93, at 1. But even as the OWS addresses complaints submitted to it, data indicates that the complaints received encompass only a small proportion of Angelenos who have experienced wage theft. For example, Los Angeles Worker Center Network’s 2023 concept paper called Los Angeles the “wage theft capital of the nation”152L.A. Worker Ctr. Network, Labor Standards Enforcement Paves the Way for a New LA 2 (2023), https://laworkercenternetwork.org/resources/lawcn-concept-paper-labor-standards-enforcement-paves-the-way-for-a-new-la [https://perma.cc/FM4N-KLFT]. after a UCLA survey revealed that 88.5% of low-wage Los Angeles County workers in the sample experienced at least one type of pay-related workplace violation in the week of work before the survey.153Ruth Milkman, Ana Luz Gonzalez, Victor Narro, Inst. for Rsch. on Lab. & Emp., Wage Theft and Workplace Violations in Los Angeles 30 (2010), https://www.irle.ucla.edu/old/publications/documents/LAwagetheft-Milkman-Narro-110.pdf [https://perma.cc/22QA-LCXJ]. The term “low-wage workers” was defined in the study as workers of certain low-wage industries, including bank tellers, car repair workers, child care workers, gardeners, grocery store workers, janitors, retail workers, security guards, and warehouse workers, among others. Id. at 12. According to 2023 Census Bureau data, 66.5% of Los Angeles City’s population of 3,820,914 were in the civilian labor force from 2019–2023.154QuickFacts: Los Angeles City, California, U.S. Census Bureau, https://www.census.gov/quickfacts/fact/table/losangelescitycalifornia,losangelescountycalifornia/PST045223 (last visited Feb. 28, 2025). These numbers indicate that over two and a half million working Angelenos are at risk of wage violations per year. Thus, even though the city provides a method for reporting complaints relating to wage violations through the OWS, many violations appear to be slipping through the cracks.155Several news sources have reported on the wage theft crisis in the United States. See Michael Sainato, ‘I Have Not Seen One Cent’: Billions Stolen in Wage Theft from US Workers, The Guardian (June 15, 2023, 6:00 AM), http://www.theguardian.com/us-news/2023/jun/15/wage-theft-us-workers-employees [https://perma.cc/94ZS-NFPA]; Chris Hacker, Ash-har Quraishi, Amy Corral & Ryan Beard, Wage Theft Often Goes Unpunished Despite State Systems Meant to Combat It, CBS News (June 30, 2023, 8:00 AM), http://www.cbsnews.com/news/owed-employers-face-little-accountability-for-wage-theft [https://perma.cc/8GAE-9UQV]. The first criminal prosecution of garment factory business owners in California for felony wage theft was brought in October 2023, accruing more than $160,000 in citations. News Release, State of California Dep’t of Indus. Rels., California Lab. Comm’r Partners with L.A. District Attorney’s Office on First Crim. Prosecution of Garment Mfg. Bus. Owner for Felony Wage Theft (Oct. 12, 2023), https://www.dir.ca.gov/DIRNews/2023/2023-75.html [https://perma.cc/PK8Y-CT4M].
Given the magnitude of the wage theft problem in Los Angeles, deputizing private citizens through the OWS could identify more employees who are experiencing wage theft and, in doing so, disincentivize employers from stealing wages. Deputization to investigate would enable worker centers to access employer records to identify wage theft victims, speak directly with employees, and encourage them to file complaints to seek redress.
Currently, the enforcement power given to the OWS is explicitly limited to only designated OWS officials. The Los Angeles Office of Wage Standards Ordinance provides the OWS with the following investigative authority:
The head of the [OWS] or their designee shall have access to all business sites and places of labor subject to the Minimum Wage Ordinance, the Fair Work Week Ordinance, and [the Los Angeles Office of Wage Standards Ordinance] during business hours to inspect books and records, interview employees and any other relevant witnesses, and investigate such matters necessary or appropriate to determine whether an Employer has violated any provisions of the Minimum Wage Ordinance, the Fair Work Week Ordinance, or [the Los Angeles Office of Wage Standards Ordinance].156L.A., Cal., Mun. Code § 188.03(C).
The OWS Ordinance grants broad discretion to the OWS and allows it to perform an extensive range of investigative functions, subject to several separate ordinances. Rules and regulations implementing the FWWO even extend this authority, allowing the OWS to “conduct inquiries and investigations into areas outside of the FWWO to determine compliance with the FWWO.”157City of L.A. Dep’t of Pub. Works, Bureau of Cont. Admin., Rules and Regulations Implementing the Fair Work Week Ordinance 3 (2023), https://wagesla.lacity.org/sites/g/files/wph1941/files/2023-09/FWWO-RulesandRegulations-2023-09.pdf [https://perma.cc/BFJ6-V9EY].
Although the OWS’s powers are wide-ranging, the determination of who can exercise these powers has not been clearly defined. The OWS Ordinance expressly grants access and authority to the OWS’s head and the head’s designee. The “head” of the OWS can likely be straightforwardly pinpointed to the OWS’s “Division Manager,” who leads the Office.158L.A., Cal., Mun. Code § 185.00 (Ord. No. 187,710, 2023); City of L.A. Dep’t of Pub. Works, Bureau of Cont. Admin., supra note 112. However, the determination of who can be categorized a “designee” is not so clear. Although there are defined terms under both the FWWO section authorizing the OWS159L.A., Cal., Mun. Code § 185.01. and under the FWWO’s rules and regulations,160City of L.A. Dep’t of Pub. Works, Bureau of Cont. Admin., supra note 157, at 4. neither provide a definition for whom exactly a “designee” may be. This lack of clarity leaves open the possibility that the designee may not necessarily be a government entity employed with the OWS and may instead be a third party. Thus, private citizens could be deputized to investigate with authorization as a “designee” by the head of the OWS. However, whether the Division head of the OWS may grant such authority to the private citizens of a worker center is circumscribed by the California Constitution and relevant case law.
A. The Municipal Nondelegation Doctrine
The California Constitution restricts private persons from performing certain governmental functions. Los Angeles is a charter city, meaning the basic law of the city’s government is found in the City Charter, rather than in general law.161See generally L.A., Cal., City Charter (2024); Meet Your Government: City Charter, Rules, and Codes, LACITY.GOV, https://www.lacity.gov/government/city-charter-rules-and-codes [https://perma.cc/A83D-A5T8]. While a general law city organizes itself with “local government provisions in the state constitution and state statutes,” a charter city like Los Angeles can design its own government, developing some “political and governmental autonomy.”162Raphael J. Sonenshein, Los Angeles: Structure of a City Government 20 (Evan Gotlieb & Sandy Wolber eds., 2006). The Los Angeles City Charter is the fundamental document of the city,163Id. giving the city control over its own “municipal affairs.”164L.A., Cal., City Charter & Admin. Code § 6.781. The California Constitution authorizes charter cities the ability to exercise plenary authority over municipal affairs, subject only to constitutional limitations.165Cal. Const. art. XI, § 5(a). The city charter “identifies the main governing bodies of the city, along with their powers and duties.”166Sonenshein, supra note 162, at 20–21; L.A., Cal., City Charter & Admin. Code § 200 (identifying the officers of the Los Angeles City as a Mayor, the Members of the Council, a City Attorney, a City Clerk, a Controller, a Treasurer, the members of the boards or commissions of the departments and the chief administrative officer of each department and office, an Executive Director of the Board of Police Commissioners, and other officers as prescribed by ordinance). No changes to the charter can be made “without a vote of the people.”167Sonenshein, supra note 162, at 21.
Still, all cities must comply with the state constitution; the California Constitution governs both county and city government within California.168Id. at 20. Of particular relevance, the California Constitution includes a nondelegation doctrine in article XI, section 11: “The Legislature may not delegate to a private person or body power to make, control, appropriate, supervise, or interfere with county or municipal corporation improvements, money, or property, or to levy taxes or assessments, or perform municipal functions.”169Cal. Const. art. XI, § 11(a).
This prohibition against legislative delegations of power to private entities was initially enacted as article XI, section 13 of the California Constitution on May 7, 1879.170Editor’s and Revisor’s Notes, Cal. Const. Art. XI § 11 (West 2013); Howard Jarvis Taxpayers’ Assn. v. Fresno Metro. Projects Auth., 48 Cal. Rptr. 2d 269, 276 (Ct. App. 1995). On June 1970, California voters passed Proposition 2, a ballot measure aimed at revising the substance and language of the California Constitution.171Howard Jarvis Taxpayers’ Assn., 48 Cal. Rptr. 2d at 276 (citing Bruce W. Sumner, Constitution Revision by Commission in California, 1 W. St. Univ. L. Rev. 48, 51 (1972)); George H. Murphy, Statutes of California and Digests of Measures A-43 (1970), https://clerk.assembly.ca.gov/sites/clerk.assembly.ca.gov/files/archive/Statutes/1970/70vol1_Constitution.pdf [https://perma.cc/NA88-Q2VS]. As part of this revision, Section 13 was redesignated as Section 11, and the section was amended to its current language.172Howard Jarvis Taxpayers’ Assn., 48 Cal. Rptr. 2d at 276. The provision went into effect on November 23, 1970.173Murphy, supra note 171, at A-3, A-43.
Although the restriction against delegating municipal functions is a narrower subsection of the nondelegation doctrine, laws against delegating governmental power exist on a broader level. The nondelegation doctrine has been examined both within federal law174The existence of a federal nondelegation doctrine is a highly politicized debate and a complex topic. See generally A.J. Kritikos, Resuscitating the Non-Delegation Doctrine: A Compromise and an Experiment, 82 Mo. L. Rev. 441 (2017); Keith E. Whittington & Jason Iuliano, The Myth of the Nondelegation Doctrine, 165 U. Penn. L. Rev. 379 (2017); Julian Davis Mortenson & Nicholas Bagley, There’s No Historical Justification for One of the Most Dangerous Ideas in American Law, The Atlantic (May 26, 2020), https://www.theatlantic.com/ideas/archive/2020/05/nondelegation-doctrine-orliginalism/612013 [https://perma.cc/422M-BJHQ]. and state law. Under state law, the doctrine is applied in many different circumstances, spanning a wide range of applications such as “delegations to private parties, other state governments, and nearly all types of interbranch delegations.”175Benjamin Silver, Nondelegation in the States, 75 Vand. L. Rev. 1211, 1214–15 (2022). Yet, although state courts apply the nondelegation doctrine in more contexts than federal courts, scholarship on state nondelegation doctrine is scarce; only two to three studies about the state nondelegation doctrines have been published throughout the past few decades.176Joseph Postell & Randolph J. May, The Myth of the State Nondelegation Doctrines, 74 Admin. L. Rev. 263, 267 (2022). Furthermore, states frequently apply the nondelegation doctrine in many different contexts, resulting in little coherence.177Id.
The two most recently published treatments of state nondelegation doctrines both categorize California as a state with a more lenient nondelegation doctrine.178Id. at 272. The first study is Gary Greco’s article, published in 1994, which grouped states into three categories. Eighteen states were categorized as “strict” nondelegation states, meaning these states require the legislature to “provide definite and clear standards with the delegation” of power in a statute.179Id. at 269–70 (quoting Gary J. Greco, Note, Standards or Safeguards: A Survey of the Delegation Doctrine in the States, 8 Admin. L.J. Am. U. 567, 580 (1994)). Twenty-four states were categorized as a “loose standards” state, meaning that standards or safeguards must be provided by either the legislature or administrative agency, and the administrative agency is required to adopt “procedural safeguards” to follow when making a decision.180Id. at 270 (quoting Gary J. Greco, Note, Standards or Safeguards: A Survey of the Delegation Doctrine in the States, 8 Admin. L.J. 567, 580 (1994)). Greco’s final category, containing six states, was “procedural safeguards” states, which do not require even minimal statutory standards to uphold a delegation, leaving legislatures with less effect on policy.181Id. Greco categorized California as a procedural safeguards state.182Id.
The second, more recent study is Jim Rossi’s, published in 1999, which also places states into three separate categories to “update and refine” Greco’s summary of the state doctrines.183Id. at 271 (quoting Jim Rossi, Institutional Design and the Lingering Legacy of Antifederalist Separation of Powers Ideals in the States, 52 Vand. L. Rev. 1167, 1191 n.108 (1999)). Rossi grouped twenty states into the “strong” nondelegation category, meaning these states have statutes which are “periodically struck on non-delegation grounds.”184Jim Rossi, Institutional Design and the Lingering Legacy of Antifederalist Separation of Powers Ideals in the States, 52 Vand. L. Rev. 1167, 1197 (1999). Twenty-three states were categorized in Rossi’s “moderate” category, which “do not always require specific standards,” but can vary the standards necessary depending on the statute.185Id. at 1198. Rossi categorized seven states in the “weak” category; these states uphold delegations as long as the agency has “adequate procedural safeguards.”186Id. at 1191. California was grouped into Rossi’s “weak” category.187Id. at 1192–93. Although these studies and groupings are imperfect,188Postell & May, supra note 176, at 274–76. they provide a general framework to understand how California’s nondelegation doctrine compares to other states: California’s nondelegation doctrine is more lenient than several other states’ nondelegation doctrines.
California is not alone in restricting delegation of legislative power to municipal functions; more than a dozen states forbid their legislatures from delegating powers, including their municipal powers.189Whittington & Iuliano, supra note 174, at 416. Colorado and Wyoming each forbid their state legislatures from delegating “any municipal function whatever” to private parties.190Id.; Colo. Const. art. V, § 35 (“The general assembly shall not delegate to any special commission, private corporation or association, any power to make, supervise or interfere with any municipal improvement, money, property or effects, whether held in trust or otherwise, or to levy taxes or perform any municipal function whatever.”); Wyo. Const. art. III, § 37 (“The legislature shall not delegate to any special commissioner, private corporation or association, any power to make, supervise or interfere with any municipal improvements, moneys, property or effects, whether held in trust or otherwise, to levy taxes, or to perform any municipal functions whatever.”). Similarly, Utah prohibits legislative delegations from “perform[ing] any municipal functions.”191Whittington & Iuliano, supra note 174, at 416 n.242; Utah Const. art. VI, § 28 (“The Legislature shall not delegate to any special commission, private corporation or association, any power to make, supervise or interfere with any municipal improvement, money, property or effects, whether held in trust or otherwise, to levy taxes, to select a capitol site, or to perform any municipal functions.”).
Importantly, this provision of the California Constitution does not preclude all delegation of the legislature’s power. Instead, the prohibition on delegation is cabined such that the legislature may not delegate the power to “perform municipal functions.” As a result, case law regarding the municipal nondelegation doctrine involves determining what constitutes a nondelegable activity, who the delegated party can be, and whether the delegation was proper.
- Legislative Actions
Since California “prohibit[s] delegation of legislative power,”192Kugler v. Yocum, 445 P.2d 303, 305–06 (Cal. 1968). case law interpreting the nondelegation doctrine addresses the preliminary question of whether a legislative action was taken. In Kugler v. Yocum, Alhambra city residents contested a proposed ordinance by their city council which would set Los Angeles wage rates as the minimum for Alhambra firefighters’ salaries.193Id. at 304. The court found that this proposed ordinance was a legislative action by the city council because wage rates were expressly provided for as a council power in the city charter; the city council was therefore acting in its “legislative” capacity.194Id. at 305. Alhambra City Charter § 81 provides: “The council . . . shall have power to . . . establish . . . the amount of [the fire division’s] salaries.” Alhambra, Cal., City Charter § 81 (2024). Decisions about wage rates are an explicit authority of the council in Alhambra, making it a legislative action.195Kugler, 445 P.2d at 305.
Like the wage rates of firefighters in Kugler, the investigative powers for wage theft are expressly left to the OWS under the Los Angeles City Charter. The Los Angeles City Charter states that all legislative power of the City is “vested in the Council and shall be exercised by ordinance.”196L.A., Cal., City Charter & Admin. Code § 240. The LAMC is the ordinance granting authority to the OWS;197L.A., Cal., Mun. Code (Ord. No. 77,000, 1936) (noting that the Los Angeles Municipal Code was enacted by adoption of Ordinance No. 77,000). under the LAMC, the OWS is given specific duties under the MWO198Id. § 187 (Ord. No. 184,320, 2016) (noting that the Los Angeles Minimum Wage Ordinance was amended in entirety by Ordinance No. 184,320). and FWWO.199L.A., Cal., Mun. Code ch. XVIII, art. 5 § 185 (Ord. No. 187, 710, 2023) (noting that the Fair Work Week Ordinance was added by Ordinance No. 187,710). Thus, the passage of this local legislation is likely a legislative function. As a result, any delegations of these powers would likely be a legislative action subject to the nondelegation doctrine of the California Constitution.
- Municipal Actions
In addition, California’s municipal nondelegation doctrine prohibits delegation of municipal functions. The determination of what constitutes a “municipal function” such that it cannot be delegated to private persons within the constraints of the California Constitution is a fact-specific inquiry. Courts must “decide, under the facts of each case, whether the subject matter under discussion is . . . municipal.”200Cnty. of Riverside v. Superior Ct., 66 P.3d 718, 728 (Cal. 2003) (quoting Pro. Fire Fighters, Inc. v. City of L.A., 384 P.2d 158, 169 (Cal. 1963)). Article XI of the California Constitution, which sets forth the nondelegation doctrine, does not define “municipal functions.” To define this term, courts have looked to other provisions of the California Constitution to determine the responsibilities that the governing body is assigned.201See Cnty. of Riverside, 66 P.3d at 728 (“[California Constitution] Section 1, subdivision (b), states that the county shall provide for employee compensation. Viewing, as we must, sections 1, subdivision (b), and 11, subdivision (a), together and not in isolation, they clearly provide that compensating county employees is a municipal function.”).
The question of what constitutes a “municipal affair” has been addressed by courts when it comes to several different provisions of the California Constitution.202See Pac. Tel. & Tel. Co. v. City & Cnty. of San Francisco, 336 P.2d 514, 516 (Cal. 1959) (reading article XI, sections 6 and 8 of the California Constitution). Within these contexts, courts generally view municipal functions as “problems which exhibit exclusively local characteristics at certain times in the life of a community.”203People ex rel. Younger v. Cnty. of El Dorado, 487 P.2d 1193, 1204 (Cal. 1971). Acknowledging that this view encompasses ever-changing characteristics, the California Supreme Court has said, “It is . . . settled that the constitutional concept of municipal affairs is not a fixed or static quantity. It changes with the changing conditions upon which it is to operate.”204Pac. Tel., 336 P.2d at 517. The subject matter of cases addressing the municipal nondelegation doctrine are diverse, but courts generally hold that municipal matters relate to “local function”—functions so limited in scope to a particular region that they can be “adequately handled by the municipal authorities of a single town.”205Younger, 487 P.2d at 1206.
In People ex rel. Younger v. County of El Dorado, the Tahoe Regional Planning Compact was created to plan for the future and preservation of Lake Tahoe.206Id. at 1195–96. The Compact created an internal agency that made “plans for land use, transportation, conservation, recreation, and public services and facilities” throughout the entire Lake Tahoe region, which spanned California and Nevada.207Id. The Compact’s authority was challenged as an unconstitutional delegation of municipal power.208See id. at 1199–200. The California Supreme Court held the Compact was constitutional because the delegation of power was not for municipal functions; the Compact was enacted to serve regional purposes, not just local purposes.209Id. at 1206. The Compact did not have the authority to perform municipal functions such as building “local parks”; instead, it operated on a larger regional basis.210Id. Because it served a regional and not a municipal function, the Compact did not violate the California Constitution.211Id.
Applying that reasoning here, the deputization of worker centers by the OWS is likely a municipal function because it is limited in scope and region—affecting only workers in the city of Los Angeles. Since this deputization would likely be seen as both a legislative action and a municipal action, it would likely trigger application of the municipal nondelegation doctrine.
- Private Parties
Legislatures may be prohibited from delegating municipal matters when such delegation lands in the hands of private parties. In Howard Jarvis Taxpayers’ Assn. v. Fresno Metropolitan Projects Authority, the Fresno legislature created the Fresno Metropolitan Projects Authority and gave it the ability to tax. The California Court of Appeal found that levying taxes was a legislative function because the California Constitution has explicitly identified the imposition of taxes as a function of local government.212See Howard Jarvis Taxpayers’ Assn. v. Fresno Metro. Projects Auth., 48 Cal. Rptr. 2d 269, 272 (Ct. App. 1995) (prohibiting the legislature’s delegation of power of levying taxes to private entities). The quoted portion of the California Constitution states: “The Legislature may not impose taxes for local purposes but may authorize local governments to impose them.” Id. at 284; Cal. Const. art. XIII, § 24(a). In addition, eleven of the Authority’s thirteen board members were individuals from private organizations with no “governmental subservience”; thus, they were private parties.213Howard Jarvis Taxpayers’ Assn., 48 Cal. Rptr. 2d at 285. The court therefore found that the Authority was a private body to whom the legislature could not delegate its taxing power, a legislative function.
Simi Valley Recreation & Park, in which the legislature passed a statute that delegated decisions regarding undeveloped land to a local agency formation commission, serves as a contrast.214Simi Valley Recreation & Park Dist. v. Loc. Agency Formation Comm’n of Ventura Cnty., 124 Cal. Rptr. 635, 638 (Ct. App. 1975). In this case, the California Court of Appeal found this delegation did not violate article XI, section 11 of the California Constitution because local agency formation commissions are government agencies, not “a private person or body” under the language of the constitution.215Id. at 653 (quoting Cal. Const. art. XI, § 11). The court also noted that, prior to its amendment and while it was categorized as section 13, California’s nondelegation doctrine expressly precluded delegation to a “special commission.”216Id.; see also Howard Jarvis Taxpayers’ Assn., 48 Cal. Rptr. 2d at 277–78. Art. XI § 13 initially stated: “The Legislature shall not delegate to any special commission, private corporation, company, association or individual any power to make, control, appropriate, supervise or in any way interfere with any county, city, town or municipal improvement, money, property, or effects, whether held in trust or otherwise, or to levy taxes or assessments or perform any municipal function whatever . . . .” People ex rel. Younger v. County of El Dorado, 487 P.2d 1193, 1205 (Cal. 1971) (quoting Cal. Const. art. XI, § 13 (1879)). However, this language was repealed in the section 11 amendment in 1970.217Simi Valley Recreation, 124 Cal. Rptr. at 653. See supra notes 172–73. Courts no longer apply the former section 13 language, and special commissions are no longer an indication of an unconstitutional delegation.218Simi Valley Recreation, 124 Cal. Rptr. at 653.
Worker centers are not government-affiliated and are thus private parties. Since this deputization structure would be a delegation of legislative power to a private party, it must meet the standards courts require for a proper delegation to avoid being banned under the municipal nondelegation doctrine. But this private aspect of worker centers is, in this context, actually a virtue. After all, one of the values of deputization is its separateness from resource-strapped government entities.
- Standard for Delegation
Even when a legislature allows a private party to commit an action which is found to be legislative and municipal, such delegation may still be acceptable if a sufficient standard for delegation exists. In Kugler v. Yocum, the California Supreme Court set out the standard for determining whether legislative power is validly delegated.219Kugler v. Yocum, 445 P.2d 303, 305–06 (Cal. 1968); see also Simi Valley Recreation, 124 Cal. Rptr. at 649 (laying out the standards drawn by the court in Kugler). The court stated that legislative power can be delegated if it is “channeled by a sufficient standard”; after the Legislature creates a policy and sets the standards for it, it may leave the “power to fill up the details” to executive or administrative officers by giving these officers the ability to prescribe rules and regulations that will effectuate the law.220Kugler, 445 P.2d at 306 (quoting First Indus. Loan Co. v. Daugherty, 159 P.2d 921, 923 (Cal. 1945)). In addition, “[w]hile the legislative body cannot delegate its power to make a law, it can make a law to delegate a power to determine some fact or state of things upon which the law makes or intends to make its own action depend.”221Id. (quoting Wheeler v. Gregg, 203 P.2d 37, 47 (Cal. Ct. App. 1949)).
In Kugler, the court rejected the residents’ argument that a new ordinance tying Alhambra city firemen’s salaries to the Los Angeles salaries would be an unlawful delegation of legislative power to those parties who establish salaries for Los Angeles firemen.222Id. at 304. Instead, the court concluded that the legislature’s decision to adopt the ordinance itself would “constitute the legislative body’s resolution of the ‘fundamental issue,’ ” and any subsequent steps taken to fill in the application and execution of policy is not legislative delegation.223Id. at 306–07.
More recently, California courts have determined whether a sufficient standard for delegation exists by looking at whether the legislature is stripped of its ability to make final decisions.224Cnty. of Riverside v. Pub. Emp. Rels. Bd., 200 Cal. Rptr. 3d 573, 576 (Ct. App. 2016). The California Court of Appeal stated: “The constitutionality of [a statute’s] factfinding provisions turns on whether the provisions divest the County of its final decision-making authority.”225Id. at 579. The California Supreme Court has not addressed whether final decision-making authority meets a sufficient standard for delegation. However, lower courts have relied on this principle, finding that a municipal function has not been improperly delegated when the Legislature leaves the task of achieving their goals to some other body—whether public or private—so long as it is the Legislature who makes the “fundamental policy decisions.”226People ex rel. Younger v. Cnty. of El Dorado, 487 P.2d 1193, 1210 (Cal. 1971); Kugler v. Yocum, 445 P.2d 303, 305–07 (Cal. 1968). In general, California courts have been relatively generous in finding that an agency did not improperly delegate power so long as a county or city has not been divested of its authority to make final decisions.227See Cnty. of Riverside, 200 Cal. Rptr. at 576. Courts are also deferential to the legislature, noting, “If there is any doubt as to the Legislature’s power to act in any given case, the doubt should be resolved in favor of the Legislature’s action.”228Id. at 579 (quoting Methodist Hosp. of Sacramento v. Saylor, 488 P.2d 161, 165 (Cal. 1971)). The court in County of Riverside additionally noted that “[w]e do not look to the Constitution to determine whether the legislature is authorized to do an act, but only to see if it is prohibited.” Cnty. of Riverside, 200 Cal. Rptr. at 579 (quoting Methodist Hosp. of Sacramento, 488 P.2d at 165).
The municipal nondelegation doctrine was not violated in California Renters Legal Advocacy & Education Fund v. City of San Mateo. In that case, the legislature added a provision to its Housing Accountability Act (“HAA”) allowing a reasonable person standard to determine compliance with a housing project.229Cal. Renters Legal Advoc. & Educ. Fund v. City of San Mateo, 283 Cal. Rptr. 3d 877, 887 (Ct. App. 2021). The relevant provision of the HAA stated, “For purposes of this section, a housing development project . . . shall be deemed consistent, compliant, and in conformity with an applicable plan, program, policy, ordinance, standard, requirement, or other similar provision if there is substantial evidence that would allow a reasonable person to conclude that the housing development project . . . is consistent, compliant, or in conformity.” Id. at 887; Cal. Gov’t Code § 65589.5(f)(4) (West 2024). When a renters group’s residential project was denied by the City of San Mateo, it argued that this denial violated the HAA.230Id. at 833. The City of San Mateo challenged the HAA provision as unconstitutional, arguing it would allow a private person to place evidence into the record that a project is compliant with objective standards.231Id. at 899 (arguing that the provision would “place into the record evidence indicating a project is consistent with objective standards and thereby force a local agency to approve the project . . . [which] would divest local authorities of final decisionmaking control in violation of the prohibition on delegation of municipal functions”). The City argued this was a violation of the nondelegation doctrine because a private person could force a local agency to approve the project, stripping the legislature of its decision-making function.232Id. However, the court of appeal found this provision did not violate the municipal nondelegation doctrine. The court of appeal stated:
[The] city’s governing body retains broad authority, subject to judicial review, to exercise decisionmaking authority: to determine whether there is substantial evidence from which a reasonable person could conclude the project is consistent with the city’s applicable objective requirements; to deny or reduce the density of a project that does not meet such standards or that causes an unavoidable adverse impact on public health or safety; and to impose conditions of approval that do not reduce the project’s density where applicable objective standards are met.”233Id. at 900.
In contrast, the municipal nondelegation doctrine was violated in County of Riverside v. Superior Court when a sheriff’s association ordered the county to binding arbitration to resolve economic issues arising from negotiations with unions representing firefighters or law enforcement officers.234Cnty. of Riverside v. Superior Ct., 66 P.3d 718, 721 (2003). Analysis of nondelegation was triggered: the compensation of these individuals was a municipal function expressly provided to the legislature in the California Constitution,235Id. at 728 (citing Cal. Const. art. XI, § 1, subdiv. (b)) (providing that counties have the authority to provide for the compensation of its employees). and the arbitrators of the issues were private entities, not public officials.236Id. at 729. The court ultimately held the statute unconstitutional because the arbitration it required, from which the results would be binding on the public agency,237Id. at 725. deprived the public agency of the ultimate power to make its own decisions.238Id. at 725–26.
In sum, although deputization by the OWS to worker centers is a delegation of a municipal function by a legislative body to a private party, the municipal nondelegation doctrine is still likely not violated. As long as the OWS retains final decision-making authority, extending the authority granted to the Los Angeles OWS to private citizens within worker centers is likely permissible and not in violation of the municipal nondelegation doctrine. Entering worksites to perform investigations on employer wage practices and inspecting employer records does not bind the public agency of the OWS to any final decision. On the other hand, a worker center’s ability to take actions such as filing wage claims or arbitrating with employers would likely be characterized as final decisions. As to these binding choices, a worker center’s authority should be thoroughly constrained; the decision of whether or not to take these steps must belong to the OWS. However, when it comes to non-binding decisions, the deputization of worker centers under the LAMC is likely permissible under the California Constitution.
To further strengthen the constitutionality of this deputization, the reservation of this final decision-making authority should be made explicit in contracts between deputized entities and the OWS. In particular, all contracts between the OWS and the worker centers should precisely note that the deputized entities may not file suit, begin employment action, or make any final decisions without prior written approval of the OWS. Contracts should state expressly that the work product of deputized worker centers are subject to the approval of and final decisions are to be made by the OWS. This clarity and explicitness would bolster the legitimacy of the deputization relationship between the OWS and private citizens, preventing the relationship from being barred by the California Constitution’s municipal nondelegation doctrine.
Conclusion
The enormity of the wage theft problem affecting millions of American employees requires a solution beyond the underenforced laws currently in place. Located in the “wage theft capital of the nation,”239L.A. Worker Ctr. Network, supra note 9, at 1. the city of Los Angeles is particularly affected by this issue.
The deputization of private citizens by Los Angeles’s Office of Wage Standards offers a path through which the city government can more effectively enforce wage laws and hold employers accountable. Deputization could not only endow workers with knowledge about their rights through outreach, but would also enable private citizens to inspect employer records to identify victims of wage theft. Deputizing private citizens would broaden the enforcement powers available to the OWS and encourage workers to file complaints while discouraging employers from violating the law. Although deputization through the OWS would still result in some limitations on Los Angeles City’s enforcement abilities, its successes and drawbacks should be
studied to assess the potential of statewide deputization through a larger entity such as the BOFE.
Deputization of worker centers to perform worker outreach and investigate wage theft within work sites could provide greater enforcement of wage laws. However, such deputization is vulnerable to attack under the California Constitution’s municipal nondelegation doctrine. Deputization of worker centers would be a delegation of municipal action by the Los Angeles legislature to worker centers, a private party. Although these factors make the municipal nondelegation doctrine applicable, a clear standard for delegation would likely allow deputization to survive. In particular, unambiguous language that the OWS would retain ultimate control over any decision-making would help strengthen the legality of this deputization and prevent it from violating the California Constitution’s municipal nondelegation doctrine. This explicit language could be found in formal documentation of a deputization relationship, or in rules and regulations from the LAMC regarding the OWS.
Overall, with the proper boundaries and constraints, the deputization of worker centers by the OWS to perform outreach to employees and to investigate wage theft is likely permissible and constitutional. Taking advantage of the community ties and expertise of worker centers could enable the OWS to better serve the workers of Los Angeles while discouraging wage theft by employers. Deputization of worker centers offers a powerful avenue to combat Los Angeles’s enormous and persistent wage theft problem.
98 S. Cal. L. Rev. 725
* Executive Senior Editor, Southern California Law Review, Volume 98; J.D. Candidate 2025, University of Southern California Gould School of Law; B.A. English & Psychology 2021, University of California, Los Angeles. My sincere gratitude to Professor Clare Pastore, Yvonne Medrano, Victor Narro, and Ruth Silver-Taube for providing their valuable insight. Thank you also to the editors of the Southern California Law Review for their work, and to my family for their support.