SACRAMENTO – The California Manufacturing and Technology Association commented on the state Supreme Court’s Sept. 12 decision that workers cannot seek the recovery of wages that they claim were unpaid in civil lawsuits, seeing it as a positive step for the state.
“California’s manufacturing community provides tremendous opportunity and high wages for working families," Lance Hastings, president of CMTA, said. "The recent state Supreme Court decision to disallow class action suits that circumvent arbitration agreements sends a good signal to California employers that good actors will be a little less likely to be crushed with unwarranted financial implications.”
Businesses have argued that California’s Labor Code is strict to the point that many small operators and employers have been caused to suffer from concerns such as threats of lawsuits over seemingly inconsequential issues.
While the state seems to be moving in the right direction, CMTA more reform is needed.
“There is still so much work to be done in this area, and overly stringent private class action wage and hour lawsuits, still allowable under the law, create a challenging environment to grow California’s employment base," Hastings said. "This is especially true for the manufacturing sector."