Calif.: here comes labor-law bounty hunting

Outgoing Calif. Gov. Gray Davis has quietly signed S. 796, a first-of-its-kind bill that authorizes lawyers to file private damage suits over labor code violations. Business leaders “argue it could have far-reaching financial consequences to employers across the state and be more costly than the landmark employee health bill, SB 2, signed by the governor […]

Outgoing Calif. Gov. Gray Davis has quietly signed S. 796, a first-of-its-kind bill that authorizes lawyers to file private damage suits over labor code violations. Business leaders “argue it could have far-reaching financial consequences to employers across the state and be more costly than the landmark employee health bill, SB 2, signed by the governor earlier this month. … The legislation would allow a worker to sue on behalf of other employees for wage and labor code violations. Moreover, it permits a judge to force employers to pay attorney’s fees and penalties.” (Gilbert Chan, “Sue-your-boss bill becomes law”, Sacramento Bee, Oct. 20). “This is probably the worst bill I’ve seen in my three years in the State Legislature. Senate Bill 796 is the ‘Son of 17200’ ? California?s much-maligned and highly abused Unfair Competition Law,” said Assemblymember Tom Harman, R-Huntington Beach. “Large employers in California will now be a cash cow for trial lawyers thanks to SB 796,” said Harman. “A minor one-year Labor Code violation at the business employing 3,000 workers will generate civil penalties totaling more than $31 million”. (California Assembly Republicans press release, Sept. 11) (& welcome Employer’s Lawyer readers)

2 Comments

  • Sue-Your-Boss Bill Becomes Law

    In the frenzy of last-minute bill signing this month, Gov. Gray Davis quietly added his signature to SB 796 with little fanfare. There was no signing ceremony, not even a signing message accompanying the enactment of the employment legislation….

  • Sue-Your-Boss Bill Becomes Law

    In the frenzy of last-minute bill signing this month, Gov. Gray Davis quietly added his signature to SB 796 with little fanfare. There was no signing ceremony, not even a signing message accompanying the enactment of the employment legislation….