Acciones relacionadas con el Programa de Subvención para la Ejecución de Derechos de los Trabajadores: 1. *** RESOLUCIÓN - Adopción de la 19ª Enmienda a la Resolución de Asignación Presupuestaria Anual (AAR) No. 2026-159 para asignar $186,200 en financiamiento del Programa de Subvención para la Ejecución de Derechos de los Trabajadores (Requiere Cinco Votos Afirmativos) (Sujeto al Veto del Alcalde)

REPORT TO THE CITY COUNCIL October 22, 2026 FROM: ANDREW JANZ, City Attorney City Attorney’s Office BY: BRITTANIE FECHNER, Law Office Manager City Attorney’s Office SUBJECT ..Title Actions pertaining to the Workers’ Rights Enforcement Grant Program: 1. *** RESOLUTION – Adopting the 19th Amendment to the Annual Appropriation Resolution (AAR) No. 2026-159 to appropriate $186,200 in Workers’ Rights Enforcement Grant Program funding (Requires Five Affirmative Votes) (Subject to Mayor’s Veto) ..Body RECOMMENDATION Staff recommends Council adopt the resolution amending AAR No 2026-159 to appropriate $186,200 in Workers’ Rights Enforcement Grant Program carryover funds into the FY 2027 budget for the City Attorney’s Office. EXECUTIVE SUMMARY Workers’ Rights Enforcement Grant Program Year Two funding was made available through the State of California, Department of Industrial Relations (DIR) for local enforcement efforts to address local impacts associated with employer wage theft and other exploitative practices in the workplace. The initial Year Two grant period was effective August 1, 2025, through July 31, 2026, with funds in the amount of $750,000. The City Attorney’s Office requested and has been awarded an extension of the initial grant period to expend carryover funds in the amount of $353,000 by December 31, 2026. The City Attorney’s Office anticipated $166,800 in carryover funds for the FY 2027 budget. The actualized carryover funds are $353,000, an increase of $186,200. BACKGROUND In July 2023, per AB102, the State of California appropriated $18 million over two years to the Department of Industrial Relation (DIR) to establish a Worker’s Rights Enforcement Grant Program. This program supports local public prosecutors, including district attorneys, city attorneys, and county counsels, in efforts to combat wage theft and address exploitative labor practices statewide. Wage theft occurs when employers fail to pay workers all compensation legally owed. It is the largest form of theft in California and across the nation, totaling an estimated $15 billion annually—surpassing losses from robbery, fraud, and embezzlement—and disproportionately affecting low‑wage workers. Effective enforcement is a critical component of the state’s strategy to address wage theft. During the first two years of the Workers’ Rights Enforcement Grant Program, local prosecutors have conducted investigations, issued indictments, filed civil actions, enforced judgments, secured settlements, and obtained convictions. These efforts aim to recover tens of millions of dollars for affected workers, assess penalties owed to workers and the State, and impose injunctive relief to prevent future violations. In Year One of the program, a total of $8,550,000 was awarded statewide, with the City of Fresno receiving $720,000 for the period of August 1, 2024, through July 31, 2025. In August 2025, the City of Fresno received a Year Two award of $750,000 for the period of August 1, 2025, through July 31, 2026. Using these grant funds, the City Attorney’s Office launched the Wage Protection Program in August 2024. The program includes attorneys, investigators, and support staff dedicated to assisting workers whose earned wages have been unlawfully withheld or underpaid. It is the first municipal wage‑theft enforcement program in the Central Valley and remains the only such program in the region. Since its inception, the Wage Protection Program has secured six private settlements recovering $42,000 for workers, and currently oversees 32 active investigations involving an estimated $814,000 in unpaid wages, along with five ongoing wage‑theft prosecutions in Fresno County Superior Court. These cases span industries such as construction, hospitality, transportation, healthcare, and technology, and include violations ranging from unpaid wages and overtime to missed breaks, unreimbursed expenses, on‑call time disputes, and split‑shift premium issues. Since filing its first case in May 2025, the City continues to receive new complaints weekly, and in several instances, simple employer notification has prompted immediate improvements in compliance and working conditions for employees. The City Attorney’s Office has also developed partnerships with community‑based non‑profits and educational institutions to expand outreach to affected workers. Additionally, collaboration with agencies such as the California Department of Insurance has strengthened cross‑referral efforts, ensuring employers comply not only with the California Labor Code but with all applicable laws and regulatory requirements. ENVIRONMENTAL FINDINGS This item is not a project as defined by California Environmental Quality Act Guidelines Section 15378. LOCAL PREFERENCE Local preference is not applicable because these resolutions do not include a bid or award of a construction or services contract. FISCAL IMPACT Workers’ Rights Enforcement Grant Program funds will be used to continue enforcement activities without negatively impacting the General Fund or City Attorney’s Office budget. Attachments: Grant Agreement Resolution 2024-025 Resolution 2024-057 Bill No. B-60 19th Annual Appropriation Resolution No. 2026-159