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(a) If an employer fails to pay wages, interest on wages, fringe benefits, or violates Section 351 or 353 of the Labor Code and an employee is damaged thereby, the Labor Commissioner or the employee, who is damaged because of the employer's failure to pay wages, interest on wages, gratuities or fringe benefits, may proceed against the employer's surety bond by taking whatever action he or she deems appropriate to obtain the unpaid wages, interest on wages, fringe benefits, or gratuities from the bond.
(b) If the Labor Commissioner or an employee who is damaged because of the employer's failure to pay wages, interest on wages, gratuities, or fringe benefits proceeds against the surety bond and payment is made therefrom to the Labor Commissioner or the employee, the employer shall take all steps and actions necessary to ensure that a surety bond which meets all of the requirements set forth in paragraphs (1) and (2) of subdivision (b) of Section 13682) of this subchapter 11, including the required principal sum, is continuously in place so that there is not a break at anytime in the continuity of the protection afforded by the bond. If the employer at any time fails to provide a surety bond that meets all of the requirements of paragraphs (1) and (2) of subdivision (b) of Section 13682 of this subchapter 11, the Labor Commissioner may suspend or revoke the employer's registration, or deny his, her or its application for a registration.
(c) If the surety bond required by Labor Code Section 2055 is cancelled or terminated, the employer may not conduct any business until he, she, or it obtains a new surety bond that meets all of the requirements of paragraphs (1) and (2) of subdivision (b) of Section 13682 of this subchapter 11, and files a copy with the Labor Commissioner.
Note: Authority cited: Sections 55, 59, 95 and 98.8, Labor Code; and Section 11415.50(a), Government Code. Reference: Section 2055, Labor Code.
1. New section filed 11-22-2005; operative 12-22-2005 (Register 2005, No. 47).
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