Filing a notice of appeal doesn’t stop a former employee from collecting a money judgment in California. To pause enforcement while the appeal is pending, the employer generally has to post an undertaking, usually a surety bond for one and one-half times the judgment, or make an equivalent deposit. Without one, the employee can levy bank accounts and record liens while the appeal goes forward. Interest also keeps running, so the bond decision should be made alongside the decision to appeal.
Does an appeal automatically stop collection?
Not for a money judgment. Code of Civil Procedure section 917.1(a) says: “Unless an undertaking is given, the perfecting of an appeal shall not stay enforcement of the judgment or order in the trial court if the judgment or order is for any of the following: (1) Money or the payment of money.”
Most employment verdicts are money judgments: lost wages, emotional distress damages, penalties, and often punitive damages. So unless the employer posts security, the employee can begin enforcement as soon as the judgment allows, even while the appeal is being briefed. Certain cost awards are also covered, and under subdivision (d), costs awarded under the fee-shifting chapter are counted in the judgment amount.
How large does the bond have to be?
Larger than the judgment. Section 917.1(b) provides that the undertaking “shall be for double the amount of the judgment or order unless given by an admitted surety insurer in which event it shall be for one and one-half times the amount of the judgment or order.”
Nearly every employer uses an admitted surety, so the practical number is 150 percent. On a $2 million judgment, that’s a $3 million bond. Sureties typically charge an annual premium and often require collateral, such as a letter of credit or a cash deposit, especially for privately held companies. Lining that up can take weeks, which is why the conversation with a surety broker should start when the verdict comes in, not when the notice of appeal is filed.
The extra margin exists for a reason. The undertaking covers the judgment, “any interest which may have accrued pending the appeal,” and “costs which may be awarded against the appellant on appeal,” according to the same subdivision.
Can the employer deposit money instead of a bond?
Yes. Section 995.710(a) lets the principal, “without prior court approval, instead of giving a bond,” deposit money, a cashier’s check, certain government bonds or notes, or insured deposit accounts. Under subdivision (b), the deposit must equal “the amount that would be required to be secured by the bond if the bond were given by an admitted surety insurer,” which means one and one-half times the judgment.
A deposit avoids the surety premium but ties up the cash. A company with strong liquidity may prefer it. A company that needs its working capital usually prefers a bond, even with the premium and collateral.
| Option | Amount | Practical point |
|---|---|---|
| Personal sureties | Double the judgment | Rarely used by companies |
| Admitted surety insurer | 1.5 times the judgment | Premium plus collateral; the usual route |
| Deposit in lieu of bond | Equal to the admitted-surety amount | No premium, but cash is tied up |
| No security | None | Employee may enforce while the appeal proceeds |
Does interest keep running during the appeal?
Yes, and that’s often the deciding factor. Section 685.010(a)(1) says “interest accrues at the rate of 10 percent per annum on the principal amount of a money judgment remaining unsatisfied.” The statute’s lower 5 percent rate is for certain medical and personal debts, and it expressly excludes “judgments for unpaid wages, damages, or penalties owed to an employee.”
An appeal often takes well over a year. On a large judgment, interest at 10 percent adds up quickly, and it’s owed if the judgment is affirmed. That cost belongs in the analysis of whether to appeal, whether to settle on appeal, and whether to pay part of the judgment that the employer doesn’t intend to challenge.
What happens to the bond when the appeal ends?
It depends on the result. If the judgment is reversed, the bond is released. If it’s affirmed, section 917.1(b) provides that liability on the undertaking “may be enforced if the party ordered to pay does not make the payment within 30 days after the filing of the remittitur.” A surety that pays steps into the employee’s shoes and pursues the employer, under subdivision (c).
Timing matters on both ends. The deadline to file the notice of appeal is short and generally can’t be extended, and post-trial motions affect when it runs. Post-trial options are covered in the firm’s post on JNOV after an employment verdict.
What should an employer do after an adverse judgment?
The bond and the appeal should be planned together, right after the verdict.
- Keep the trial record, exhibits, and all post-trial filings under the litigation hold, and order the reporter’s transcript.
- Calendar the post-trial motion and appeal deadlines, and notify the EPLI carrier of the judgment, since the policy may affect who funds a bond.
- Identify the company’s bank accounts and assets that could be levied, and who at the company would receive a levy or a judgment-debtor notice.
- Pull the financial information a surety will want, such as recent financial statements, and contact a surety broker about premium and collateral.
- Talk to appellate counsel about the merits of an appeal, the cost of the bond and interest, and whether settlement on appeal makes sense.
Post-judgment planning is part of the firm’s employment defense practice for California employers.
Appeal bond questions employers ask
Can the court reduce the bond amount?
The multiplier is set by section 917.1, so the practical levers are the amount being secured and the form of security. Some judgments include non-money parts, such as an injunction or reinstatement, which follow different stay rules. If the employer is appealing only part of a money judgment, it may be able to pay the undisputed portion and bond the rest, which reduces the bond. Counsel should look at the judgment’s structure before assuming the full amount must be secured.
Does the bond cover the attorney’s fee award?
Usually, yes, once fees are part of the judgment. Section 917.1(d) says costs awarded under the fee-shifting chapter are included in the judgment amount for bonding purposes. In FEHA cases, a fee award to a prevailing employee can be very large, sometimes larger than the damages. A fee order entered after the main judgment may need its own appeal and its own undertaking.
What if the company can’t afford a bond?
Then the employee may enforce the judgment while the appeal continues, and the company’s options narrow. Some employers negotiate with the employee’s counsel for a stay on agreed terms, such as partial payment or a lien on specific property. Others seek to settle on appeal, sometimes through an appellate mediation program where the district offers one. These conversations go better before a levy hits the company’s operating account.
If your company has lost an employment verdict
If a jury or judge has entered a money judgment against your company in an employment case, the bond, interest, and appeal decisions usually have to be made within weeks. Rosenberger + Kawabata represents employers defending employment lawsuits and claims through its business litigation practice, including claims involving post-judgment enforcement and appeals. Contact Rosenberger + Kawabata online for a confidential consultation, or call (310) 894-6921.
Sources
The statutes are Code of Civil Procedure sections 917.1, 685.010, and 995.710.
This post is general information about California and federal employment law as of November 7, 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Employment statutes, regulations, and court decisions change often, and the outcome of any claim depends on its facts. Past results do not guarantee future outcomes.