Calif. Bill Allows Workers to Directly Sue Employers

Before Gov. Gray Davis was recalled in Calif., he signed Senate Bill 796, giving workers rights to directly sue their employers for such violations of the state labor code as the minimum wage and overtime. Workers can receive a quarter of the civil damage award if they win in court.

According to the California Labor Federation, the law was necessary because state regulators cannot handle all the labor complaints filed by employees.

Business owners in California are worried that the legislation will further exacerbate an already over-litigious climate, making employers even more circumspect when contemplating layoffs or firing employees.

SB 796 awards attorneys' fees and costs to employees who prevail in court, but will not reimburse fees and costs for employers when they prevail. Some see companies settling claims just to avoid the high cost of litigation.

SB 796 was authored by Assembly Member Joseph Dunn (D-Santa Ana).