The California Legislature passed bills on Thursday (June 27) that propose changes to a law that has been in place for 20 years.
New Bill Alters Workers' Rights to Sue Employers for Labor Violations
These changes would affect workers' ability to sue their employers for labor violations and would also require employers found responsible to pay a fine to the state.
The legislation aims to reform a law that was implemented in 2004, known as the Private Attorneys General Act.
The law has faced criticism from business groups who argue that it has been misused. Some individuals argue that pursuing legal action for supposed infractions can be a lengthy and costly process, AP reported.
The bills propose reducing the financial penalty for certain employers and requiring them to rectify any violations.
The agreement was reached through collaboration between Gov. Gavin Newsom, lawmakers, business groups, and labor leaders. As a result, a ballot measure that sought to repeal and replace the law was withdrawn.
Small Businesses Gain Chance to Fix Violations Under New Labor Bills
The proposals were passed by both the state Senate and Assembly, with unanimous support from lawmakers.
According to CBS News, one of the proposed bills aims to provide businesses with fewer than 100 employees the opportunity to rectify any violations they may have committed.
Additionally, larger businesses would be granted the option to request an early evaluation of any alleged violations.
Another bill aims to decrease penalties for minor labor law violations while increasing penalties for more severe ones.
According to the 2004 law, employers who have violated California's labor code are required to pay a fine.
A portion of the funds is allocated to workers, while the remaining amount is directed towards the Labor and Workforce Development Agency to support initiatives related to worker safety, law enforcement and education.
However, with the implementation of the new legislation, a significant portion of the funds would be allocated to workers who have been impacted. Employers are unable to rectify violations in order to evade fines under the current law.
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