A new bill proposes doubling the amount of time discharged employees have to bring complaints under jurisdiction of the state’s Division of Labor Standards Enforcement (DLSE), and includes a clause for awarding attorney’s fees.
The California Labor Code currently allows claims to be brought within six months of discharge; the proposed legislation, AB 1947, would increase it to one year.
A provision also would be added to Section 1102.5 of the Labor Code, stating, “The court is authorized to award reasonable attorney’s fees to a plaintiff who brings a successful action for a violation of these provisions,” increasing the potential for civil litigation instead of filing through the DLSE.
AB 1947, which was introduced Jan. 17, passed out of committee on a 5-2 vote along partisan lines on May 20.
The timing couldn’t be worse for businesses struggling to recover from the COVID-19 economic downturn, Julie Griffiths, regional director of Citizens Against Lawsuit Abuse (CALA), said in an email response to the Northern California Record.
“AB 1947 is very concerning,” Griffiths said. “While I don’t believe it will affect the reopening process, it is likely to affect whether business remains open in what could be a very difficult economy for the next couple of years in California.”
Moreover, many companies are wary of an onslaught of frivolous litigation related to the coronavirus.
“Plaintiff’s attorneys are actively marketing for employees to sue for a quick buck. With a downturn in the economy this could become a tempting proposition,” Griffiths said.
“Businesses that will be hurt are more likely to be the small and medium sized business already struggling after over two months with little or no income,” she said. “The cost will directly impact jobs, no question.”
The state’s already restrictive regulatory environment does not need another setback measure for employers, Griffiths said.
“What we need right now is an executive order from the Governor as well as legislation passed to protect businesses from COVID liability lawsuits,” Griffiths added. “Any increase in lawsuits costs valuable jobs, and this is the time when employers and people seeking employment can least afford it.”