The California Department of Health has issued a new All Facilities Letter informing specified healthcare facilities, including nursing homes, of the implementation of SB 588. Effective January 1, 2016, this legislation permits the department to deny a new license or the renewal of an existing license for failure to satisfy final judgments for nonpayment of employee wages. Employers must cease conducting business in California if they have not satisfied such judgments within 30 days of the appeal deadline, unless they have obtained a bond from a surety company and filed it with the Labor Commissioner. The required bond amounts vary depending on the size of the unsatisfied judgment. A change of ownership does not nullify the final judgment or exempt the new owner from these requirements. Facilities are responsible for following all applicable laws and should refer to the full text of the Labor Code for complete information.

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