California · Labor Code

LAB §1495: (a) In serving as a conduit for the retention payments under this part, covered entities, covered services employers, and physician entities are carrying out a state program.

Civil

What this law says, in plain English

This statute establishes that entities administering state retention payment programs cannot be sued privately for program administration and clarifies that retention payments are not wages. It also limits liability for certain damages in civil litigation related to these payments.

Read the full statutory text
(a) In serving as a conduit for the retention payments under this part, covered entities, covered services employers, and physician entities are carrying out a state program. This part does not create a private right of action in any civil litigation against covered entities, covered services employers, and physician entities regarding the administration of the retention payment program and in the receipt and transmittal of retention payment program funds. (b) Notwithstanding any other law, retention payments described in this part are not wages as defined in Section 200. (c) Except as provided in Sections 1493 and 1494, and notwithstanding any other law, covered entities, covered services employers, physician entities, and the department shall not be liable for damages awarded under Section 3294 of the Civil Code, Sections 2698 to 2699.5, or other damages imposed primarily for the sake of example and by way of punishing the defendant, in any civil litigation related to the retention payments described in this part.

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