California lawmakers pass bill expanding rights for workers to sue employers for labor violations
The California Legislature, on Thursday, approved bills that seek to amend a 20-year-old law, allowing workers to take legal action against their employers for labor violations, with a requirement for liable employers to pay a fine to the state. The legislation focuses on reforming the Private Attorneys General Act, which was enacted in 2004 and has faced criticism from business groups claiming misuse. Critics argue that litigating alleged violations under the law is often time-consuming and costly.
These bills emerged from a consensus reached between Governor Gavin Newsom, lawmakers, business groups, and labor leaders to avert a ballot measure aiming to repeal and replace the existing law. Governor Newsom, a Democrat, highlighted the achievement in his recent State of the State address, describing the process of reforming the law as a complex and challenging endeavor that had defied resolution for decades.
The proposed bills, once signed by Governor Newsom, will take immediate effect. They passed through both the state Senate and Assembly without any opposition, with one bill granting smaller businesses the opportunity to rectify violations and larger businesses the option to request an early evaluation of alleged violations. The other bill aims to reduce penalties for minor labor law violations and escalate penalties for more serious infractions.
Under the current 2004 law, employers found in violation of California’s labor code are subject to fines, with a portion allocated to affected workers and the remainder to the Labor and Workforce Development Agency for worker safety enforcement and education. However, the new legislation proposes to allocate 35% of the fines to affected workers and allows employers to rectify violations to avoid penalties, a departure from the original law.
The debate surrounding the 2004 law has brought to light concerns regarding the allocation of fines and settlements received by the state from businesses. A recent report by CalMatters revealed that in the 2022-2023 fiscal year, the state left $197 million of such funds unutilized. Democratic Assemblymember Ash Kalra, a bill author, commended the collaborative effort to address longstanding divisions on the issue, emphasizing the significance of unity in resolving complex matters.
Ashley Hoffman, a policy advocate with the California Chamber of Commerce, expressed support for the proposed reforms, acknowledging the original law’s noble intentions but asserting that it had been exploited to the detriment of workers, businesses, and nonprofit organizations serving vulnerable populations. Hoffman hailed the bills as historic reforms aimed at addressing these concerns and enhancing labor law enforcement in California.
