Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Supervisor Ray Mueller, District 3
Supervisor Jackie Speier, District 1
Subject: Adoption of a Resolution Authorizing and Directing the Office of Labor Standards and Enforcement and the Environmental Health Services Division to Implement a Pilot Program to Enforce Final Judgments for Labor Law Violations Through Food Service Permitting
RECOMMENDATION:
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Adopt a resolution authorizing and directing the Office of Labor Standards and Enforcement (OLSE) and the Environmental Health Services Division (EHS) to implement a pilot program to enforce final judgments for labor law violations through food service permitting.
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BACKGROUND:
San Mateo County has long affirmed the importance of safe, healthy, and fair working conditions as essential to economic security, dignity, and public health. For this reason, the Board of Supervisors voted unanimously to launch an Office of Labor Standards and Enforcement (OLSE) to advance fair labor practices in the County. In addition to enforcing the County’s minimum wage ordinance and conducting outreach to workers and employers, the Board has charged OLSE with exploring innovative enforcement tools to promote labor law compliance.
Drawing on the successful experience of jurisdictions including Santa Clara County, San Diego County, and San Francisco, OLSE has identified an opportunity to leverage the County’s food permitting process to support workers in accessing restitution owed to them for stolen wages. Dozens of San Mateo County employers owe unpaid wages to their workers under final judgments issued by the California Division of Labor Standards Enforcement (DLSE). Many of these judgments have been unpaid for years, undermining workers’ rights and fair competition. Yet several of these employers hold active permits to operate food facilities within the County and continue to openly do business despite having failed to make their workers whole for stolen wages.
Under the California Retail Food Code, the Environmental Health Services Division (EHS) is responsible for issuing, suspending, and revoking food facility permits in the County and may deny or revoke permits where businesses fail to comply with applicable laws-including by failing to comply with DLSE judgments.
DISCUSSION:
The proposed resolution establishes a pilot program empowering OLSE and EHS to collaborate in enforcing payment of final, unpaid judgments for labor law violations through food facility permitting.
This program would apply countywide and include the following key components:
• Notice and Opportunity to Comply: OLSE will notify employers with outstanding judgments who hold active food permits within San Mateo County of the unpaid judgments and consequences of failure to satisfy them and provide an opportunity to comply or contest applicability.
• Compliance Negotiation: OLSE may facilitate compliance agreements for employers demonstrating good faith.
• Permit Enforcement: If noncompliance persists, EHS may issue a Notice of Violation and initiate proceedings to suspend or revoke food facility permits, consistent with state law and County Ordinance Code.
This approach leverages existing authority under the California Health & Safety Code and County Ordinance Code to create a timely and effective deterrent against wage theft. It also aligns with the County’s commitment to equity and fair competition by targeting only employers with outstanding judgments while protecting compliant businesses.
COMMUNITY IMPACT:
The pilot program will advance equitable outcomes by ensuring workers receive wages they are legally owed, reducing economic insecurity, and promoting public health. Strong enforcement mechanisms protect vulnerable populations and foster fair competition among businesses.
FISCAL IMPACT:
No new impacts. Staffing and implementation will be managed within existing OLSE and EHS resources approved during prior budget cycle.