Print Page   |   Contact Us   |   Sign In   |   Register
News & Press: C.A.R.

C.A.R. RED ALERT

Tuesday, August 26, 2014   (0 Comments)
Posted by: Megan Van Hook
Share |

CAR Continues to Oppose Bill That Creates Liens and Clouds Title

Your senator needs to hear from you TODAY!

C.A.R. is OPPOSING AB 2416 (Stone), a bill that creates a new kind of lien for wage claim disputes. C.A.R. opposes AB 2416 because it denies due process to the owner of the property, and unnecessarily clouds title.  The bill was just amended to remove a provision allowing an employee of a tenant to record a lien against a property. C.A.R. continues to oppose the bill.  It does not give adequate protections to property owners and allows unscrupulous creditors to abuse the process. Your senator needs you to call today to let them know you still oppose the bill.

Action Item

Please Call Senator Monning TODAY!
(800) 969-3310
Office hours are 9AM-5PM
Enter PIN#200005264 to be connected

If you wish, you can bypass the first part of the message by entering your PIN, followed by the # sign, at any time. You may also bypass the 2nd part of the message by hitting the “1” key to be directly connected to your legislator’s office.

Let your senator know that you remain opposed to the bill and ask that they vote NO on AB 2416

Background

Under existing law, trades people and others who have conducted work to improve a property have the right to record a mechanics lien against the property for payment for that work. This bill is not like a mechanics' lien. Additionally, if an employee has a wage dispute with their employer there are multiple legal remedies available to them to seek fair compensation. This is a new and different remedy.

AB 2416 seeks to create a new wage lien, without the procedural protections of the mechanics lien so that an employee may record a lien against any property owned by the employer, even property that has NO connection to the dispute. The new rule purports to exempt principal residences, but the bill invites "shotgun" recordings that will hit all properties.

Talking Points

Property owners are denied due process. AB 2416 allows an employee to record a lien against an employer’s property without adequate notice or opportunity to contest the claim before the lien attaches.
The bill encourages unscrupulous creditors of an employee to abuse the lien process. Allowing unscrupulous creditors to take over the employee's wage claim, without even the need for a garnishment order, invites employees (and property owners) to be victimized twice.
AB 2416 allows an employee’s wage dispute to cloud title on ALL property owned by an employer even though the dispute does not involve the property, and even though there has been no hearing on the issue.
There are already existing legal remedies for wage disputes. Between arbitration, grievance processes, and lawsuits, employees already have sufficient legal options at their disposal to address wage disputes without chilling the availability of mortgage finance and unnecessarily clouding title.
For More Information

Please contact DeAnn Kerr at deannk@car.org or Rian Barrett at rianb@car.org


© 2014 Scenic Coast Association of REALTORS® All Rights Reserved

ContactUs@ScenicCoast.org

Phone: 805-772-4405 or 805-927-1717

Association Management Software Powered by YourMembership  ::  Legal