Category: Labor/Employment Law

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!

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:

1. 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.
2. 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.
3. Stronger state enforcement
   • DIR can expedite their hiring process so they can address claims more efficiently.