Informing & Monitoring
» Capitol Updates
» Leg. Watch
» Press Releases
» Leg Vote Record
» CA Cost Index
» Features
» Audio & Reports
» Job Data
» Calendar
» Coalitions
» Fed Update
» Policy Objectives
» Policy Principles
Membership
»Invest in CMTA
»About Us
»Yellow Pages
»Questions?
Conferences
Oct. 21 California's Regulatory Landscape -- GETTING IT RIGHT
Directories
»CMTA Staff
»Send us e-mail
»Directions to CMTA
»Rent Conference Room
Services & Discounts
»Group WC Program
»Discount Programs
»ETP
Grassroots Activism
Sign up to receive action alerts
Get action alerts and send targeted e-mails to legislators | |
Encourage your employees to register to vote |  |
CMTA legislative database
Employment Lawsuits
Latest CMTA position: OPPOSE
Increases and expands frivolous lawsuits against employers
CMTA staff information CMTA lobbyist: Willie Washington Latest CMTA position paper: Sept. 23 To: Gov. Davis, VETO SB 796 The California Manufacturers and Technology Association (CMTA) are opposed to SB 796 (Dunn) and request that you veto the bill. SB 796 would authorize private attorneys to act as a private attorney general for aggrieved employees and sue on their behalf for alleged Labor Code violations to recover specified penalties, attorney fees and costs. Ironically, California already has the best administrative procedure in the nation to handle these types of claims under the Labor Code that is both economical and efficient. Currently, an aggrieved employee files a claim with the Labor Commissioner for investigation and resolution and the employer may defend or pay the claim without the use of an attorney. In the event the employee prevails and the employer appeals the decision to the court, the employee is represented in court by the commissioner at no cost. SB 796 would by-pass this system and permits these cases to be filed directly in a civil court to the detriment of employers. For example, in many instances the amount in dispute is so small that it would not make economical good sense to hire an attorney to defend the claim because the legal cost may easily exceed the value of the claim. However, this bill would permit a private attorney to pursue small claims with the full knowledge that employers will not litigate the claim due to cost so that they can force settlements. Moreover, while the prevailing commissioner or private attorney general representing the aggrieved employee is entitled to attorney fees and costs, the bill is silent on the ability of a prevailing employer to recover attorney fees and cost. Under this bill, the employer would still lose even though the claim was successfully defeated. CMTA believes that SB 796 creates the perfect stage for private attorneys to solicit and file merit-less lawsuits against employers for alleged Labor Code violations. Since there is no requirement for the employee to exhaust the administrative procedure or even file the claim with the Labor Commissioner before filing with the civil court, the bill provides an open invitation for bounty hunting attorneys to aggressively solicit and pursue these cases. Further, the bill creates the perfect marketing tool for private plaintiff attorneys because it offers monetary rewards to everyone except the targeted employer that effectively circumvent the use of the administrative procedure. Under the bill an aggrieved employee would receive 25 percent of any penalties awarded by the court risk free as an incentive to pursue a law suit. The Labor and Workforce Development Agency responsible for enforcing the Labor Code would be rewarded with 25 percent of any penalties awarded for not taking any action on the claim, and the state would received a whopping 50 percent of any penalties awarded just for providing the forum. The bill is strongly supported by plaintiff attorneys because it specifically authorizes the payment of attorney fees and costs. However, as a matter of public policy, CMTA strongly objects to the state being rewarded for failing to do its job. CMTA believes SB 796 would further clog the civil courts and increase employer litigation costs because there is no disincentive for the employee to file merit-less claims. The Labor Code contains over 565 civil fines with many of them applicable to minor and inadvertent violations such as posting that could result in minor to large cumulative fines. SB 796 would have the effect of very minor infractions being filed in civil court where the recovery for the aggrieved party would be minimal and secondary to employers’ litigation costs, penalties, attorney fees and etc. CMTA is opposed to the bill for the above reasons and we urge you to VETO the bill. |
 |
The University of California paid out at least $12 million over three years on employment lawsuits ... Tanya Schevitz in the San Francisco Chron.13048 » 'Sue-your-boss' reform had leader - April 12 In the final days of last summer's legislative session in California, as the recall of Gov. Gray ... Daniel Weintraub in the Inside Bay Area9038 » Suing your boss, before and after the recall - Aug. 10 In the final days of last summer's legislative session, as the recall of Gov. Gray Davis was ... Daniel Weintraub in the Sacramento Bee6965 Sept. 12 Senate Floor Aanestad NO Ashburn NO Cedillo YES Denham NO Ducheny YES Florez YES Hollingsworth NO Romero YES Torlakson YES Sept. 11 Assembly Floor Benoit NO Calderon Abstained Cogdill NO Hancock YES Harman NO Leno YES Liu YES Oropeza YES Pavley YES Ridley-Thomas YES Wolk Abstained Wyland NO Yee YES |