As is the trend with her practice increasing in employment work, Katy Young handled her first-ever emergency basis Labor Commissioner hearing for an existing client. The client called at 9:00 PM on a Tuesday night and explained that her ex-business partner/father of her children checked the mail after a long delay and found a notice of a hearing set to happen the next morning at 9:00 AM. With the client frantic as to what to do, and Katy knowing that owners of the business would be personally liable for the employee’s $50,000 claim if they lost before the Labor Commissioner, Katy took immediate action. Our superstar employment law attorney Sean Gentry was not available for the hearing, so he and Katy immediately did a late-night strategy session to prepare. Katy appeared at the hearing on behalf of her client and settled the case that morning for a mere $2,500, broken down into five payments – a fraction of the cost of the original claim. The client was beyond thrilled – and Katy unlocked a new skill in covering emergency basis Labor Commissioner hearings!
Category: Labor/Employment Law
Governor Approves PAGA Reform Proposal
The California Employee Civil Action Law Initiative was removed from the November 2024 ballot after Newsom and the state Congress, including the proponents of the initiative, reached a compromise. Initially, the original initiative dares to repeal the PAGA 2004 and replace it with the new law that would be known as the “Fair Pay and Employer Accountability Act”. However, upon withdrawal of the initiative from the November 2024 Ballot, the Office of the Governor announces the following PAGA reform proposal, agreed upon by the Governor and the proponents/supporters of the aforementioned initiative. Essentially, the PAGA reform proposal includes three key features:
- New system of relief
- Employers who are more proactive in complying with the labor code are treated with more grace (i.e. receives capped or lower penalties) than those who willfully violate Labor Codes.
- Increased penalty allows higher compensation for the damaged/wrong parties; the employees receive 25-35% of the penalty.
- In addition to monetary relief, the court can now grant injunctive relief to compel businesses to address/fix their violations.
- Efficient resolution process
- Wronged employee must now bring in their own claim.
- The scope of Labor Codes was expanded to allow business, especially small employers, to address more issues through LWDA instead of through aggressive litigation.
- To prevent prolonged litigation, the employers can request for early evaluation and stay of the court proceeding, and the court may limit the scope of claims.
- Stronger state enforcement
- DIR can expedite their hiring process so they can address claims more efficiently.
IT Analyst Client Secures Triple Original Severance Offer
Matt Kumin helps a client take home triple the amount of original severance offers. The client, a highly specialized, information security analyst, reached out to Ad Astra after her sudden termination, wondering if she had any potential claims. Her employer had offered her what seems to be a generous severance package—$40,000 plus 6 months of COBRA payments. However, Kumin found the severance package odd since the client made around $80,000 annually and had worked there for only two years. Typically, a severance package in these circumstances falls within a much lower range – less than $10,000 and a month or two of COBRA payments.
After an exhaustive and extensive investigation, Kumin and the client zeroed in on the likely motive for the generous offer. The client had, in the course of her employment, uncovered numerous violations of federal and state laws designed to protect consumer data committed by her employer—all of which she repeatedly reported to her supervisors and co-workers. When she wrote and disseminated a report detailing these violations, her employer terminated her within days, claiming she was not “a good fit” for the organization.
Presented with these details in our demand letter, including excerpts of emails reporting and documenting her discovery of the violations and identifying CA Labor Code section 1102.5’s liberal construction of retaliation as the basis for a lawsuit if the employer refuses to settle, the employer offered the client $120,000, tripling their original severance offer.