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)

Filed under: governors, workplace