Effective January 1, 2022, limited liability companies (LLCs) and corporations will be required to make the following disclosure in their Statements of Information: whether any of their managers or members (in the case of an LLC), or any officer or any director (in the case of a corporation) has an outstanding final judgment issued by the Division of Labor Standards Enforcement or a court of law, for which no appeal is pending, for the violation of any wage order or provision of the Labor Code.
This new disclosure is required by the new law AB 3075, which expands successor liability for labor code judgments and requires the Statement of Information of LLCs and corporations to contain the above information.
The California Secretary of State has recently updated the Statement of Information forms for LLCs (Form LLC-12) and corporations (Form SI-550) on its website to reflect this change in law. LLCs and corporations that file their Statements of Information after December 31, 2021 must use the new forms.
If any of your LLC managers or members, or any of your corporate officers, have a final judgment against them for Labor Code violations, consult your legal counsel to determine your reporting responsibilities and practical ways to avoid such reporting if it applies to your company.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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