AB 2946: Division of Labor Standards Enforcement: complaint.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-02-16
(1)Existing law authorizes a person who believes he or she has been discharged or otherwise discriminated against in violation of any law under the jurisdiction of the Labor Commissioner to file a complaint with the Division of Labor Standards Enforcement within 6 months after the occurrence of the violation.
This bill would extend the period to file a complaint to within 3 years after the occurrence of the violation.
(2)Existing law prohibits an employer, as defined, or any person acting on behalf of the employer, as defined, from, among other things, preventing an employee from providing information to, or testifying before, any public body conducting an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that the information discloses a violation of a law, regardless of whether disclosing the information is part of the employees job duties.
This bill would authorize a court to award reasonable attorneys fees to a plaintiff who brings a successful action for a violation of these provisions.
(a)(1)Any person who believes that he or she has been discharged or otherwise discriminated against in violation of any law under the jurisdiction of the Labor Commissioner may file a complaint with the division within six months three years after the occurrence of the violation. The six-month three-year period may be extended for good cause. The complaint shall be investigated by a discrimination complaint investigator in accordance with this section. The Labor Commissioner shall establish procedures for the investigation of discrimination complaints, including, but not limited to, relief pursuant to paragraph (2) of subdivision (b). A summary of the procedures shall be provided to each complainant and respondent at the time of initial contact. The Labor Commissioner shall inform complainants charging a violation of Section 6310 or 6311, at the time of initial contact, of his or her right to file a separate, concurrent complaint with the United States Department of Labor within 30 days after the occurrence of the violation.
(2)The division may, with or without receiving a complaint, commence investigating an employer, in accordance with this section, that it suspects to have discharged or otherwise discriminated against an individual in violation of any law under the jurisdiction of the Labor Commissioner. The division may proceed without a complaint in those instances where suspected retaliation has occurred during the course of adjudicating a wage claim pursuant to Section 98, or during a field inspection pursuant to Section 90.5, in accordance with this section, or in instances of suspected immigration-related threats in violation of Section 244, 1019, or 1019.1.
(b)(1)Each complaint of unlawful discharge or discrimination shall be assigned to a discrimination complaint investigator who shall prepare and submit a report to the Labor Commissioner based on an investigation of the complaint. The Labor Commissioner or his or her designee shall receive and review the reports. The investigation shall include, where appropriate, interviews with the complainant, respondent, and any witnesses who may have information concerning the alleged violation, and a review of any documents that may be relevant to the disposition of the complaint. The identity of a witness shall remain confidential unless the identification of the witness becomes necessary to proceed with the investigation or to prosecute an action to enforce a determination. The investigation report submitted to the Labor Commissioner or designee shall include the statements and documents obtained in the investigation, and the findings of the investigator concerning whether a violation occurred. The Labor Commissioner may hold an investigative hearing whenever the Labor Commissioner determines that a hearing is necessary to fully establish the facts. In the hearing the complainant and respondent shall have the opportunity to present evidence. The Labor Commissioner shall issue, serve, and enforce any necessary subpoenas. If a complainant files an action in court against an employer based on the same or similar facts as a complaint made under this section, the Labor Commissioner may, at his or her discretion, close the investigation. If a complainant has already challenged his or her discipline or discharge through the State Personnel Board, or other internal governmental procedure, or through a collective bargaining agreement grievance procedure that incorporates antiretaliation provisions under this code, the Labor Commissioner may reject the complaint.
(2)(A)The Labor Commissioner, during the course of an investigation pursuant to this section, upon finding reasonable cause to believe that any person has engaged in or is engaging in a violation, may petition the superior court in any county in which the violation in question is alleged to have occurred or in which the person resides or transacts business, for appropriate temporary or preliminary injunctive relief, or both temporary and preliminary injunctive relief.
(B)Upon filing of a petition pursuant to this paragraph, the Labor Commissioner shall cause notice of the petition to be served on the person, and the court shall have jurisdiction to grant temporary injunctive relief as the court determines to be just and proper.
(C)In addition to any harm resulting directly to an individual from a violation of any law under the jurisdiction of the Labor Commissioner, the court shall consider the chilling effect on other employees asserting their rights under those laws in determining if temporary injunctive relief is just and proper.
(D)If an employee has been discharged or faced adverse action for raising a claim of retaliation for asserting rights under any law under the jurisdiction of the Labor Commissioner, a court shall order appropriate injunctive relief on a showing that reasonable cause exists to believe that an employee has been discharged or subjected to adverse action for raising a claim of retaliation or asserting rights under any law under the jurisdiction of the Labor Commissioner.
(E)The temporary injunctive relief shall remain in effect until the Labor Commissioner issues a determination or citations, or until the completion of review pursuant to subdivision (b) of Section 98.74, whichever period is longer, or at a time certain set by the court. Afterwards, the court may issue a preliminary or permanent injunction if it is shown to be just and proper. Any temporary injunctive relief shall not prohibit an employer from disciplining or terminating an employee for conduct that is unrelated to the claim of the retaliation.
(F)Notwithstanding Section 916 of the Code of Civil Procedure, injunctive relief granted pursuant to this section shall not be stayed pending appeal.
(c)(1)If the Labor Commissioner determines a violation has occurred, the Labor Commissioner may issue a determination in accordance with this section or issue a citation in accordance with Section 98.74. If the Labor Commissioner issues a determination, he or she shall notify the complainant and respondent and direct the respondent to cease and desist from any violation and take any action deemed necessary to remedy the violation, including, where appropriate, rehiring or reinstatement, reimbursement of lost wages and interest thereon, payment of penalties, payment of reasonable attorneys fees associated with any hearing held by the Labor Commissioner in investigating the complaint, and the posting of notices to employees. If the respondent does not comply with the order within 30 days following notification of the Labor Commissioners determination, the Labor Commissioner shall bring an action promptly in an appropriate court against the respondent. An action by the Labor Commissioner seeking injunctive relief, reimbursement of lost wages and interest thereon, payment of penalties, and any other appropriate relief, shall not accrue until a respondent fails to comply with the order for more than 30 days following notification of the commissioners determination. The Labor Commissioner shall commence an action within three years of its accrual, regardless of whether the commissioner seeks penalties in the action. If the Labor Commissioner fails to bring an action in court promptly, the complainant may bring an action against the Labor Commissioner in any appropriate court for a writ of mandate to compel the Labor Commissioner to bring an action in court against the respondent. If the complainant prevails in his or her action for a writ, the court shall award the complainant court costs and reasonable attorneys fees, notwithstanding any other law. Regardless of any delay in bringing an action in court, the Labor Commissioner shall not be divested of jurisdiction. In any action, the court may permit the claimant to intervene as a party plaintiff to the action and shall have jurisdiction, for cause shown, to restrain the violation and to order all appropriate relief. Appropriate relief includes, but is not limited to, rehiring or reinstatement of the complainant, reimbursement of lost wages and interest thereon, and any other compensation or equitable relief as is appropriate under the circumstances of the case. The Labor Commissioner shall petition the court for appropriate temporary relief or restraining order unless he or she determines good cause exists for not doing so.
(2)If the Labor Commissioner is a prevailing party in an enforcement action pursuant to this section, the court shall determine the reasonable attorneys fees incurred by the Labor Commissioner in prosecuting the enforcement action and assess that amount as a cost upon the employer.
(3)An employer who willfully refuses to comply with an order of a court pursuant to this section to hire, promote, or otherwise restore an employee or former employee who has been determined to be eligible for such relief, or who refuses to comply with an order to post a notice to employees or otherwise cease and desist from the violation shall, in addition to any other penalties available, be subject to a penalty of one hundred dollars ($100) per day for each day the employer continues to be in noncompliance with the court order, up to a maximum of twenty thousand dollars ($20,000). Any penalty pursuant to this section shall be paid to the affected employee.
(d)(1)If the Labor Commissioner determines no violation has occurred, he or she shall notify the complainant and respondent and shall dismiss the complaint. The Labor Commissioner may direct the complainant to pay reasonable attorneys fees associated with any hearing held by the Labor Commissioner if the Labor Commissioner finds the complaint was frivolous, unreasonable, groundless, and was brought in bad faith. The complainant may, after notification of the Labor Commissioners determination to dismiss a complaint, bring an action in an appropriate court, which shall have jurisdiction to determine whether a violation occurred, and if so, to restrain the violation and order all appropriate relief to remedy the violation. Appropriate relief includes, but is not limited to, rehiring or reinstatement of the complainant, reimbursement of lost wages and interest thereon, and other compensation or equitable relief as is appropriate under the circumstances of the case. When dismissing a complaint, the Labor Commissioner shall advise the complainant of his or her right to bring an action in an appropriate court if he or she disagrees with the determination of the Labor Commissioner, and in the case of an alleged violation of Section 6310 or 6311, to file a complaint against the state program with the United States Department of Labor. Any time limitation for a complainant to bring an action in court shall be tolled from the time of filing the complaint with the division until the issuance of the Labor Commissioners determination.
(2)The filing of a timely complaint against the state program with the United States Department of Labor shall stay the Labor Commissioners dismissal of the division complaint until the United States Secretary of Labor makes a determination regarding the alleged violation. Within 15 days of receipt of that determination, the Labor Commissioner shall notify the parties whether he or she will reopen the complaint filed with the division or whether he or she will reaffirm the dismissal.
(e)The Labor Commissioner shall notify the complainant and respondent of his or her determination under subdivision (c) or paragraph (1) of subdivision (d), not later than one year after the filing of the complaint. Determinations by the Labor Commissioner under subdivision (c) or (d) shall be final and not subject to administrative appeal except for cases arising under Sections 6310 and 6311, which may be appealed by the complainant to the Director of Industrial Relations pursuant to an appeal process, including time limitations, that is consistent with the mandates of the United States Department of Labor. The appeal from a determination for cases arising under Sections 6310 and 6311 shall set forth specifically and in full detail the grounds upon which the complainant considers the Labor Commissioners determination to be unjust or unlawful, and every issue to be considered by the director. The director may consider any issue relating to the initial determination and may modify, affirm, or reverse the Labor Commissioners determination. The directors determination shall be the determination of the Labor Commissioner for cases arising under Sections 6310 and 6311 that are appealed to the director. The director shall notify the complainant and respondent of his or her determination within 10 days of receipt of the appeal.
(f)The rights and remedies provided by this section do not preclude an employee from pursuing any other rights and remedies under any other law.
(g)In the enforcement of this section, there is no requirement that an individual exhaust administrative remedies or procedures.
SEC. 2.Section 1102.5 of the Labor Code is amended to read:1102.5.(a)An employer, or any person acting on behalf of the employer, shall not make, adopt, or enforce any rule, regulation, or policy preventing an employee from disclosing information to a government or law enforcement agency, to a person with authority over the employee, or to another employee who has authority to investigate, discover, or correct the violation or noncompliance, or from providing information to, or testifying before, any public body conducting an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that the information discloses a violation of state or federal statute, or a violation of or noncompliance with a local, state, or federal rule or regulation, regardless of whether disclosing the information is part of the employees job duties.
(b)An employer, or any person acting on behalf of the employer, shall not retaliate against an employee for disclosing information, or because the employer believes that the employee disclosed or may disclose information, to a government or law enforcement agency, to a person with authority over the employee or another employee who has the authority to investigate, discover, or correct the violation or noncompliance, or for providing information to, or testifying before, any public body conducting an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that the information discloses a violation of state or federal statute, or a violation of or noncompliance with a local, state, or federal rule or regulation, regardless of whether disclosing the information is part of the employees job duties.
(c)An employer, or any person acting on behalf of the employer, shall not retaliate against an employee for refusing to participate in an activity that would result in a violation of state or federal statute, or a violation of or noncompliance with a local, state, or federal rule or regulation.
(d)An employer, or any person acting on behalf of the employer, shall not retaliate against an employee for having exercised his or her rights under subdivision (a), (b), or (c) in any former employment.
(e)A report made by an employee of a government agency to his or her employer is a disclosure of information to a government or law enforcement agency pursuant to subdivisions (a) and (b).
(f)In addition to other penalties, an employer that is a corporation or limited liability company is liable for a civil penalty not exceeding ten thousand dollars ($10,000) for each violation of this section.
(g)This section does not apply to rules, regulations, or policies that implement, or to actions by employers against employees who violate, the confidentiality of the lawyer-client privilege of Article 3 (commencing with Section 950) of, or the physician-patient privilege of Article 6 (commencing with Section 990) of, Chapter 4 of Division 8 of the Evidence Code, or trade secret information.
(h)An employer, or a person acting on behalf of the employer, shall not retaliate against an employee because the employee is a family member of a person who has, or is perceived to have, engaged in any acts protected by this section.
(i)For purposes of this section, employer or a person acting on behalf of the employer includes, but is not limited to, a client employer as defined in paragraph (1) of subdivision (a) of Section 2810.3 and an employer listed in subdivision (b) of Section 6400.
(j)The court is authorized to award reasonable attorneys fees to a plaintiff who brings a successful action for a violation of these provisions.
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Date
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Status
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| May 31, 2018 | Read third time. Refused passage. |
| May 25, 2018 | From committee: Do pass. (Ayes 12. Noes 4.) (May 25). |
| May 16, 2018 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 24, 2018 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (April 24). Re-referred to Com. on APPR. |
| Apr 16, 2018 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Apr 12, 2018 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (April 11). Re-referred to Com. on JUD. |
| Mar 22, 2018 | Referred to Coms. on L. & E. and JUD. |
| Feb 17, 2018 | From printer. May be heard in committee March 19. |
| Feb 16, 2018 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| May 31, 2018 | AB 2946 KALRA Assembly Third Reading | Assembly Floor |
Failed |
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| May 25, 2018 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
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| Apr 24, 2018 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Judiciary |
Passed |
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| Apr 11, 2018 | Do pass and be re-referred to the Committee on [Judiciary] | Assembly Standing Committee on Labor and Employment |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| Associated General Contractors | ** Against | Apr 21, 2018 |
| Bend The Arc: Jewish Action | ** Support | Apr 21, 2018 |
| Bet Tzedek | ** Support | Apr 21, 2018 |
| California Ambulance Association | * Against | Apr 24, 2018 |
| California Association Of Joint Powers Authorities | ** Against | Apr 21, 2018 |
| California Association Of Winegrape Growers | ** Against | Apr 21, 2018 |
| California Beer and Beverage Distributors | ** Against | Apr 21, 2018 |
| California Building Industry Association | ** Against | Apr 21, 2018 |
| California Business Properties Association | ** Against | Apr 21, 2018 |
| California Chamber Of Commerce | * Against | Apr 24, 2018 |
| California Employment Lawyers Association | * Support | Apr 24, 2018 |
| California Farm Bureau Federation | ** Against | Apr 21, 2018 |
| California Federation Of Teachers | * Indeterminate | Apr 11, 2018 |
| California Immigrant Policy Center | ** Support | Apr 21, 2018 |
| California Labor Federation | * Support | Apr 24, 2018 |
| California League of Food Producers | ** Against | Apr 21, 2018 |
| California Manufacturers And Technology Association | ** Against | Apr 21, 2018 |
| California New Car Dealers Association | ** Against | Apr 21, 2018 |
| California Professional Association Of Specialty Contractors | ** Against | Apr 21, 2018 |
| California Restaurant Association | ** Against | Apr 21, 2018 |
| California State Association Of Counties | * Against | Apr 24, 2018 |
| California Trucking Association | ** Against | Apr 21, 2018 |
| Camarillo Chamber of Commerce | ** Against | Apr 21, 2018 |
| Centro Legal De La Raza, Oakland | ** Support | Apr 21, 2018 |
| Civil Justice Association Of California | ** Against | Apr 21, 2018 |
| Construction Employers' Association | ** Against | Apr 21, 2018 |
| Consumer Attorneys of CA | * Support | Apr 24, 2018 |
| Day Worker Center of Mountain View | ** Support | Apr 21, 2018 |
| Employee Rights Center | ** Support | Apr 21, 2018 |
| Family Business Association of California | ** Against | Apr 21, 2018 |
| Greater Coachella Valley Chamber of Commerce | ** Against | Apr 21, 2018 |
| Greater Conejo Valley Chamber of Commerce | ** Against | Apr 21, 2018 |
| Justice At Work Law Group, Llp | ** Support | Apr 21, 2018 |
| Koreatown Immigrant Workers Alliance | ** Support | Apr 21, 2018 |
| La Raza Centro Legal | ** Support | Apr 21, 2018 |
| Law Office Of Richard Hobbs | ** Support | Apr 21, 2018 |
| League Of California Cities | ** Against | Apr 21, 2018 |
| Legal Aid At Work | ** Support | Apr 21, 2018 |
| Maintenance Cooperation Trust Fund | * Support | Apr 11, 2018 |
| National Employment Law Project | ** Support | Apr 21, 2018 |
| National Immigration Law Center | ** Support | Apr 21, 2018 |
| North Orange County Chamber of Commerce | ** Against | Apr 21, 2018 |
| Oceanside Chamber of Commerce | ** Against | Apr 21, 2018 |
| Official Police Garages of Los Angeles | ** Against | Apr 21, 2018 |
| Oxnard Chamber of Commerce | ** Against | Apr 21, 2018 |
| Rancho Cordova Chamber of Commerce | ** Against | Apr 21, 2018 |
| San Gabriel Valley Economic Partnership | ** Against | Apr 21, 2018 |
| Santa Clara County Wage Theft Coalition | * Support | Apr 24, 2018 |
| Santa Clara Valley Contractors' Association | ** Support | Apr 21, 2018 |
| Santa Maria Valley Chamber of Commerce | ** Against | Apr 21, 2018 |
| SEIU California | * Support | Apr 24, 2018 |
| Service, Immigrant Rights And Education Network | ** Support | Apr 21, 2018 |
| Simi Valley Chamber of Commerce | ** Against | Apr 21, 2018 |
| Somos Mayfair | ** Support | Apr 21, 2018 |
| Southwest California Legislative Council | ** Against | Apr 21, 2018 |
| United Chamber Advocacy Network | * Against | Apr 24, 2018 |
| Victor Valley Chamber of Commerce | ** Against | Apr 21, 2018 |
| Western Growers Association | ** Against | Apr 21, 2018 |
| Worksafe | ** Support | Apr 21, 2018 |
ASSEMBLY THIRD READING
ATR Bill Id:AB 2946
Author:(Kalra)
As Introduced Ver:February 16, 2018
Majority vote
Committee | Votes | Ayes | Noes |
Labor | 5-2 | Thurmond, Gonzalez Fletcher, Jones-Sawyer, Kalra, McCarty | Flora, Melendez |
Judiciary | 7-3 | Mark Stone, Chau, Chiu, Weber, Holden, Kalra, Reyes | Cunningham, Kiley, Maienschein |
Appropriations | 12-4 | Gonzalez Fletcher, Bloom, Bonta, Calderon, Carrillo, Chau, Eggman, Friedman, Eduardo Garcia, Nazarian, Quirk, Reyes | Bigelow, Fong, Gallagher, Obernolte |
SUMMARY: Extends the statute of limitations for complaints alleging workplace retaliation from six months to three years and authorizes the payment of attorney's fees to employees who successfully sue for retaliation based on whistleblowing. Specifically, this bill:
- Extends the filing period with the Division of Labor Standards Enforcement (DLSE) to three years for complaints based on a person's belief that he or she has been discharged or discriminated against by an employer in violation of any law under the jurisdiction of the Labor Commissioner (LC).
- Authorizes a court to award reasonable attorney's fees to a plaintiff who brings a successful action for a violation of his or her right to disclose information that plaintiff has reasonable cause to believe concerns a violation by the employer of, among other things, a state or federal statute.
EXISTING LAW:
- Authorizes a person who believes he or she has been discharged or discriminated against in violation of any law under the jurisdiction of the LC to file a complaint with the DLSE within six months after the occurrence of the violation.
- Prohibits an employer, or person acting on behalf of the employer, to make, adopt, or enforce any rule, regulation or policy preventing an employee from disclosing information to a government or law enforcement agency or other specified persons, or participating in an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that the information discloses, among other things, a violation of state or federal statute.
- Prohibits an employer, or person acting on behalf of the employer, from retaliating against an employee who discloses, or the employer thinks will disclose, information to a government or law enforcement agency or other specified persons, or participating in an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that the information discloses, among other things, a violation of state or federal statute.
FISCAL EFFECT: According to the Assembly Appropriations Committee, one-time special fund costs in the range of $928,000 to $2.7 million and ongoing costs in the range of $882,000 to $2.6 million each year. Retaliation claims have increased roughly 10% each year from previous expansions of retaliation protections, and these cost estimates assume an increase in claims between 10% and 30% compared to current law.
COMMENTS: Labor Code Section 98.7 protects an employee from workplace retaliation for filing a complaint under certain provisions of the Labor Code. Protected complaints include those alleging health and safety, equal pay, or sick leave violations. In addition, under Labor Code Section 1102.5, retaliation is prohibited when an employee "whistleblows" on an employer because he or she believes the employer has violated the law.
According to the author, complaints of workplace retaliation are on the rise. A 2016 Retaliation Complaint Report from the LC cites a 70% increase from 2012 to 2016 in the number of cases of retaliation due to workers asserting their rights under the labor code. This means that over 1,000 more cases were filed in 2016 than in 2012.
Arguments in Support
In support of this bill, the National Employment Law Project argues that extending the filing period for workers who allege retaliation for asserting their rights under the labor code is critical for "ensuring vulnerable workers know their rights, can take action to prevent the chilling effect retaliation has across the worksite, and to level the playing field for law-abiding employers who are forced to compete with illegal retaliation practices."
Worksafe also supports extending the six month filing period, asserting that "workers are often misled because the deadline to file a wage theft claim through the LC is three years; workers often assume that it is the same for a retaliation claim."
Also in support of this bill, Services, Immigrant Rights, and Education Network (SIREN) states that the existing monetary remedies for an employee whistleblower are inadequate as the payment of attorney's fees "can be a burden to plaintiffs who are wronged or even a deterrent to filing altogether."
Arguments in Opposition
In opposition, a coalition of employer organizations including the California Chamber of Commerce, argues that this bill "undermines the essence of the Division of Labor Standards Enforcement (DLSE) complaint process by requiring a one-sided attorney's fee provision that will incentivize further litigation." In addition, the opposition notes that "the DLSE does not have exclusive jurisdiction over retaliation complaints. An employee has the option of filing a claim with the Labor Commissioner or in civil court. Thus, the DLSE provides an alternative to civil litigation."
Analysis Prepared by: Megan Lane / L. & E. / (916) 319-2091 FN: 0003125
Date of Hearing: May 16, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 2946
Author:(Kalra) – As Introduced Ver:February 16, 2018
Policy Committee: | Labor and Employment | Vote: | 5 - 2 |
Judiciary | 7 - 3 | ||
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill increases the time, from six months to three years, for an employee to file a retaliation claim with the Division of Labor Standards Enforcement (DLSE) and provides that a prevailing plaintiff in a whistleblower action is entitled to reasonable attorney's fees.
FISCAL EFFECT:
One-time special fund costs in the range of $928,000 to $2.7 million and ongoing costs in the range of $882,000 to $2.6 million each year. Retaliation claims have increased roughly 10% each year from previous expansions of retaliation protections, and these cost estimates assume an increase in claims between 10% and 30% compared to current law.
COMMENTS:
- Background. Under current law, employees who believe that they were fired or suffered some adverse action in violation of any provision of the Labor Code may file a complaint within six months after the occurrence of the violation. Once the complaint is filed, DLSE investigates and if a violation is found, DLSE orders the employer to remedy the violation. Remedies include reinstatement, payment of back wages or lost benefits, or any other remedy appropriate to the violation. If an employer fails to comply with the order, DLSE may bring an action in court to enforce its order or seek injunctive relief.
- Purpose. According to supporters, AB 2946 will help ensure workers can take action against employers who engage in illegal retaliation practices. The author notes that the statute of limitations means that many cases of workplace retaliation go unreported, and vulnerable worker who have limited access to resources and legal representation would benefit from having more time.
- Recent legislation. SB 306 (Hertzberg), Chapter 460, Statutes of 2017, authorized DLSE to seek an immediate and temporary injunction when workers face retaliation for asserting their rights under the law and gave DLSE authority to issue citations and penalties directly to enforce retaliation claims, rather than exclusively through the courts. It also authorized an employee who is bringing a civil action for a retaliation claim to seek injunctive relief from the court.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
Date of Hearing: April 24, 2018
ASSEMBLY COMMITTEE ON JUDICIARY
Mark Stone, Chair
ABPCA Bill Id:AB 2946
Author:(Kalra) – As Introduced Ver:February 16, 2018
SUBJECT: Division of Labor Standards Enforcement: complaint
KEY ISSUES:
- Should the time for an employee to file a retaliation claim with the Division of Labor Standards Enforcement be increased from six months to three years?
- Should a plaintiff who prevails in a "whistleblower" retaliation action be awarded attorney's fees by the court?
SYNOPSIS
Existing law prohibits an employer from retaliating against an employee for exercising certain rights, including the right to report employer violations of the Labor Code or other laws. Retaliation can take the form of discharge, demotion, reassignment, or any other adverse, job-related action. Existing law authorizes an employee who has suffered retaliation to file a complaint with the Labor Commission's Division of Labor Standards Enforcement within six months of the occurrence of the violation. Existing law additionally, under a "whistleblower" statute, prohibits an employer from firing or otherwise retaliating against an employee for disclosing information about a violation of the law to a government or law enforcement agency, or to a supervisor or any other person with the authority to investigate the violation. This bill makes two simple, yet significant, changes to these laws. First, this bill would extend the time for filing a retaliation complaint to three years from the date that violation occurred. It would also specify that a plaintiff who prevails in a whistleblower claim in court is entitled to attorney's fees. The author believes that this measure will give vulnerable workers more time to gather necessary evidence and materials and provide greater access to legal representation. The bill is supported by several labor organizations, legal aid, and immigrant rights groups who contend that workplace retaliation is increasing, especially for immigrant workers in the current political climate. This measure is opposed by the California Chamber of Commerce, on behalf of itself and several other business and employer associations, who believe, among other things, that the provision granting attorney fees to a prevailing plaintiff will invite more litigation. The bill passed out of the Assembly Labor and Employment Committee on a 5-2 vote.
SUMMARY: Increases the time for an employee to file a retaliation claim with the Division of Labor Standards Enforcement (DLSE) and provides that a prevailing plaintiff in a whistleblower action shall be entitled to reasonable attorney's fees. Specifically, this bill:
- Authorizes a person who believes that he or she had been discharged or otherwise discriminated against in violation of any law under the jurisdiction of the Labor Commissioner to file a complaint with the DLSE within three years (as opposed to six months under existing law) after the occurrence of the violation. Provides that the three-year period may be extended for good cause.
- Authorizes the court to award reasonable attorney's fees to a plaintiff who brings a successful action for a violation of the whistleblower provisions in Labor Code Section 1102.5.
EXISTING LAW:
- Prohibits an employer, or any person acting on behalf of the employer, from discharging or otherwise discriminating, retaliating against, or taking any adverse action against any employee because the employee engaged in certain protected conduct. Allows an employee who believes that he or she has been discharged or otherwise discriminated against in violation of any law under the jurisdiction of the Labor Commission to file a complaint with the DLSE within six months of the occurrence of the violation. (Labor Code Section 98.7.)
- Prohibits an employer, or any person acting on behalf of the employer, from discharging, retaliating against, and taking any other adverse action against an employee who discloses information about a violation of law to law enforcement, a government agency, or any supervisor or any other person, including another employee, with authority to investigate the violation. (Labor Code Section 1102.5.)
FISCAL EFFECT: As currently in print this bill is keyed fiscal.
COMMENTS: Existing law prohibits an employer from retaliating against an employee for exercising certain rights, including the right to report employer violations of the Labor Code or other laws. Retaliation can take the form of discharge, demotion, reassignment, or any other adverse, job-related action. Existing law authorizes an employee who has suffered retaliation to file a complaint with the Labor Commissioner's Division of Labor Standards Enforcement (DLSE) within six months of the occurrence of the violation. Existing law additionally provides so-called "whistleblower" protection that prohibits an employer from firing or otherwise retaliating against an employee who discloses information about a violation of the law to a government or law enforcement agency, to a supervisor, or any other person with the authority to investigate the violation. This bill makes two simple, yet significant, changes to these laws. First, this bill would extend the time for filing a retaliation complaint to three years (instead of six months) from the date that violation occurred. This measure would also specify that a plaintiff who prevails in a whistleblower action is entitled to attorney's fees.
Extension of Time to File: Under Labor Code Section 98.7, employees who believe that they were fired or suffered some adverse action in violation of any provision of the Labor Code may file a complaint with DLSE within six months after the occurrence of the violation. Once the complaint is filed with DLSE, the Labor Commissioner investigates a complaint and, if it determines that a violation occurred, orders the employer to remedy the violation. Remedies include reinstatement, payment of back wages or lost benefits, or any other remedy appropriate to the violation. If an employer fails to comply with the order, the Labor Commissioner may bring an action in court to enforce its order or, under recently enacted legislation, seek injunctive relief. AB 2946 will extend the time to file with the DLSE from six months to three years. Citing a Labor Commissioner's report of 2016, the author contends that many cases of workplace retaliation go unreported due to "lack of awareness of the statute of limitations, difficulty in finding legal representation, or gathering evidence." The author also points out that the time for filing a DLSE complaint is shorter than those provided in similar statutes; for example, the Fair Employment and Housing Act (FEHA) provides a one-year time for filing, while the federal Fair Labor Standards Act provides filing periods of two or three years, depending upon the nature of the violation. Finally, the author notes that in the "current political climate," immigrant workers in particular are hesitant to come forward with retaliation claims.
Time to File and Relationship to AB 3081: This bill provides a more general extension of the time for filing than does AB 3081, which this Committee will also hear today. AB 3081, among other things, amends a provision of existing law that prevents an employer from discharging or otherwise discriminating against an employee because of that employee's status as a victim of domestic violence, sexual assault, or stalking, in order to also prohibit an employer from discharging or otherwise discriminating against an employee because of the employee's status as a victim of sexual harassment. For violations of this provision, AB 3081 extends the time for victims of domestic violence, sexual assault, and stalking to file a claim to one year, and extends the time for a victim of sexual harassment to file a claim to three years. If AB 2946, the bill under consideration, becomes law and extends the time for filing all retaliation claims to three years, the provisions provided in AB 3081 would, effectively, be superseded. Although the bills do not amend the same section – and therefore will not require chaptering amendments – the authors may wish to reconcile their respective bills in order to eliminate any potential confusion as to which time frame would apply. (Possible remedying amendments to AB 3081 will be discussed in the analysis of that bill.)
Attorney's Fees Provision Consistent with Law and Public Policy: In addition to extending the time to file a retaliation complaint with DSLE, this bill also authorizes a court to award attorney's fees to an employee who successfully brings a civil action for retaliation under Labor Code Section 1102.5, the so-called "whistleblower" statute. As noted above, Section 1102.5 prohibits an employer from discharging or taking any other adverse action against an employee who reports unlawful conduct to law enforcement, a government agency, or to any supervisor or other employee with the authority to investigate the matter. While classic "whistleblower" statutes protect someone who discloses wrongdoing to some outside authority, such as law enforcement or a legislative committee, Section 1102.5 also protects an internal disclosure of a violation of the law to a supervisor or some other person up the workplace chain of command. For example, if an employee reported to Human Resources that she had been sexually assaulted by her employer, she would be protected from retaliation for making that report pursuant to Section 1102.5. This bill would provide that if the employee prevails in a civil action under this section, the employee would be entitled to attorney's fees. As the opponents point out, this is indeed a "one-sided" fee-shifting provision insofar as a prevailing employer would not similarly recover attorney fees. However, there is a good reason for this: statutes that serve the general public's interest by ferreting out wrong-doing often provide one-sided fee-shifting provisions, for the simple reason that, as a matter of public policy, governments want to encourage people to come forward and report wrongdoing by those who generally possess greater power and resources than the victim of wrongdoing. (See e.g. Green v. Ralee Engineering Co. (1998) 19 Cal. 4th 66; see also Code of Civil Procedure Section 1021, which permits a court to award attorney's fees to the prevailing plaintiff in any type of case if the litigation serves a larger public purpose beyond providing a remedy to the victim.)
As noted below, the opposition correctly observes that the DLSE administrative process "provides an alternative to civil litigation," but then the opposition goes on to claim that this bill would "change this process and make it more litigious by adding the recovery of attorney's fees for the plaintiffs." However, it is not clear how the attorney's fees provision, which would only apply to a civil action in a court, will affect the DLSE administrative process. As the opponents themselves observe, under Section 1102.5 employees have the choice filing a claim with DLSE or filing a civil action in court. The attorney's fees provision in this bill would not award a plaintiff attorney's fees in the administrative proceeding. Rather, this bill would add express authorization that "the court" may award attorney's fees in a civil action. Although some opponents have indicated to the Committee that they believe that this bill will somehow permit attorney's fees in administrative proceedings, the more plausible opposition argument is that if employees can recover attorney's fees in a civil action they might abandon the DLSE administrative process. However, the proponents of this measure respond that employees are entitled to recover attorney's fees in a civil action for wage claims, but there is no evidence that workers who are cheated out of their wages have abandoned the Labor Commissioner's administrative process in favor of civil actions. (The Committee has seen no empirical data on this one way or the other.)
Without this express authorization, under existing law a prevailing plaintiff cannot recover attorney's fees under Section 1102.5 because California follows the so-called "American Rule," which holds that each party is responsible for its own attorney's fees unless a contract or statute expressly provides otherwise. (The so-called "English Rule" is the opposite: the prevailing party is entitled to recover attorney fees as a matter of right unless a contract or statute provides otherwise.) This bill will provide the express statutory authorization that is required for recovery under the American Rule.
ARGUMENTS IN SUPPORT: According to the author, "workplace retaliation occurs when employers discharge, threaten with discharge, demote, suspend or subject employees to an adverse action including threats of deportation for exercising their rights under the Labor Code. Retaliation is not only pervasive," the author contends, "but also a growing problem due to the current political climate surrounding immigration." The author cites a Labor Commissioner report noting that retaliation claims increased by 22% between 2015 and 2016, but the author contends that this number does "not include the cases that were not filed for various reasons — lack of awareness of the length of the statute of limitations, difficulty finding legal representation, filing paperwork, or gathering evidence." The author concludes that "vulnerable worker populations with limited access to resources and legal representation would benefit from having more time to gather necessary evidence and materials to remedy disputes with employers." AB 2946 would address this problem, the author believes, by providing "employees with a three-year period of time to file a retaliation claim, aligning with the time to file a wage claim."
The California Employment Lawyers Association (CELA) writes that whistleblower protections "have always been regarded as one of the most important laws for exposing waste, fraud, and abuse by private and public entities, by ensuring that workers are protected when they blow the whistle or participate in investigations involving violations of law." Because workers are often the ones most likely to discover these violations, they should be provided with "robust protections" when they come forward. CELA also contends that "immigrant workers" are "particularly at risk for retaliation for reporting violations of law." Although legislation in 2013 strengthened "protections for immigrant workers under Section 1102.5," CELA contends that after three years "retaliation remains a significant problem for workers, especially immigrant workers, who are attempting to exercise their rights under the Labor Code or blow the whistle when there are violations of law. In today's political climate surrounding immigration, there is an even greater threat of workers being targeted because of their immigration status." CELA cites a recent Public Records Act request which revealed 95 immigration-related retaliation claims were filed in 2017, compared to only 20 in 2016 and seven in 2015.
Based on its experience, CELA believes that the two biggest barriers that immigrant workers face when threatened with retaliation "is the relatively short timeline for filing a retaliation claim and the difficulty in securing an attorney who can help them navigate the legal process and help protect them from threats of deportation." CELA concludes that "AB 2946 will help address some of these significant barriers . . . by extending the statute of limitations . . . and by providing attorney's fees for claims under Labor Section 1102.5." Several other labor and legal aid organizations support this bill for the same reasons articulated by CELA.
ARGUMENTS IN OPPOSITION: The California Chamber of Commerce (Chamber), writing on behalf of itself and several other business and employer associations, opposes AB 2946 because it believes that the measure's "one-sided attorney's fee provision" will "incentivize further litigation." The Chamber stresses that the DLSE administrative process provides an important alternative to civil litigation for both employers and employees. The Chamber contends that "AB 2946 would change this [administrative] process and make it more litigious by adding the recovery of attorney's fees for the plaintiff." The Chamber also notes that employees have "the option of filing a claim with the Labor Commissioner or in civil court . . . AB 2946 will change the dynamics of this process by allowing the recovery of attorney's fees." The Chamber also adds that if there must be a provision adding attorney's fees, "it should not be one-sided. A two-way attorney's fee shifting provision provides a level playing field for litigation that will help deter any frivolous cases being filed due to concern that the litigant could ultimately pay for the costs of litigation, including attorney's fees. Both parties should have some financial risk in pursuing litigation in order to minimize frivolous lawsuits that overburden the courts' dockets and preclude valid claims from being resolved on a timely basis through the DLSE process."
The United Chamber Advocacy Network (UCAN) opposes this bill for many of the same reasons as the other opponents, but they add that surveys they have conducted show that their members believe that the "top issue" affecting their "bottom line" is the threat or actuality of litigation costs. UCAN contends that the provisions of this bill exacerbate those concerns in two ways: (1) extending the time to bring claims to three years will "cause employers increased uncertainty in addition to increased liability;" and (2) awarding attorney's fees to a prevailing plaintiff "undermines the essence of . . . the DLSE complaint process by requiring a one-sided attorney's fees provision that will incentivize further litigation."
REGISTERED SUPPORT / OPPOSITION:
Support
Bend the Arc: Jewish Action
Bet Tzedek
California Immigrant Policy Center
Centro Legal de la Raza, Oakland
Day Worker Center of Mountain View
Employee Rights Center
Justice at Work Law Group, LLP
Koreatown Immigrant Workers Alliance
La Raza Centro Legal
Law Office of Richard Hobbs
Legal Aid at Work
National Employment Law Project
National Immigration Law Center
Plumbers, Steamfitters, Pipefitters & HVAC Service Technicians, UA Local 383
Santa Clara Valley Contractors' Association
Service Employees International Union, California
Service, Immigrant Rights and Education Network
SOMOS Mayfair
Worksafe
Opposition
Associated Builders and Contractors, Inc. – Northern California Chapter
Associated General Contractors
California Ambulance Association
California Apartment Association
California Association for Health Services at Home
California Association of Joint Powers Authorities
California Association of Winegrape Growers
California Beer and Beverage Distributors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Farm Bureau Federation
California League of Food Producers
California Manufacturers and Technology Association
California New Car Dealers Association
California Professional Association of Specialty Contractors
California Restaurant Association
California State Association of Counties
California Trucking Association
Camarillo Chamber of Commerce
Civil Justice Association of California
Construction Employers’ Association
Family Business Association of California
Greater Coachella Valley Chamber of Commerce
Greater Conejo Valley Chamber of Commerce
League of California Cities
North Orange County Chamber of Commerce
Oceanside Chamber of Commerce
Official Police Garages of Los Angeles
Oxnard Chamber of Commerce
Rancho Cordova Chamber of Commerce
San Gabriel Valley Economic Partnership
Santa Maria Valley Chamber of Commerce
Simi Valley Chamber of Commerce
Southwest California Legislative Council
Victor Valley Chamber of Commerce
Western Growers Association
Analysis Prepared by: Thomas Clark / JUD. / (916) 319-2334
Date of Hearing: April 11, 2018
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Tony Thurmond, Chair
ABPCA Bill Id:AB 2946 (
Author:Kalra) – As Introduced Ver:February 16, 2018
SUBJECT: Division of Labor Standards Enforcement: complaint
SUMMARY: Extends the statute of limitations for complaints alleging workplace retaliation from six months to three years and authorizes the payment of attorney’s fees to employees who successfully sue for retaliation based on whistleblowing. Specifically, this bill:
- Extends the filing period with the Division of Labor Standards Enforcement (DLSE) to three years for complaints based on a person’s belief that he or she has been discharged or discriminated against by an employer in violation of any law under the jurisdiction of the Labor Commissioner (LC).
- Authorizes a court to award reasonable attorney’s fees to a plaintiff who brings a successful action for a violation of his or her right to disclose information that plaintiff has reasonable cause to believe concerns a violation by the employer of, among other things, a state or federal statute.
EXISTING LAW:
- Authorizes a person who believes he or she has been discharged or discriminated against in violation of any law under the jurisdiction of the LC to file a complaint with the DLSE within six months after the occurrence of the violation.
- Prohibits an employer, or person acting on behalf of the employer, to make, adopt, or enforce any rule, regulation or policy preventing an employee from disclosing information to a government or law enforcement agency or other specified persons, or participating in an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that the information discloses, among other things, a violation of state or federal statute.
- Prohibits an employer, or person acting on behalf of the employer, from retaliating against an employee who discloses, or the employer thinks will disclose, information to a government or law enforcement agency or other specified persons, or participating in an investigation, hearing, or inquiry, if the employee has reasonable cause to believe that the information discloses, among other things, a violation of state or federal statute.
FISCAL EFFECT: Unknown
COMMENTS: Note: This bill is double referred to the Assembly Judiciary Committee upon passage out of this Committee.
Labor Code Section 98.7 protects an employee from workplace retaliation for filing a complaint under certain provisions of the Labor Code. Protected complaints include those alleging health and safety, equal pay, or sick leave violations. In addition, under Labor Code Section 1102.5, retaliation is prohibited when an employee “whistleblows” on an employer because he or she believes the employer has violated the law.
According to the author, complaints of workplace retaliation are on the rise. A 2016 Retaliation Complaint Report from the LC cites a 70 percent increase from 2012 to 2016 in the number of cases of retaliation due to workers asserting their rights under the labor code. This means that over 1,000 more cases were filed in 2016 than in 2012.
Arguments in Support
In support of the bill, the National Employment Law Project argues that extending the filing period for workers who allege retaliation for asserting their rights under the labor code is critical for “ensuring vulnerable workers know their rights, can take action to prevent the chilling effect retaliation has across the worksite, and to level the playing field for law-abiding employers who are forced to compete with illegal retaliation practices.”
Worksafe also supports extending the six month filing period, asserting that “workers are often misled because the deadline to file a wage theft claim through the LC is three years; workers often assume that it is the same for a retaliation claim.”
Also in support of the bill, Services, Immigrant Rights, and Education Network (SIREN) states that the existing monetary remedies for an employee whistleblower are inadequate as the payment of attorney’s fees “can be a burden to plaintiffs who are wronged or even a deterrent to filing altogether.”
Arguments in Opposition
In opposition, a coalition of employer organizations including the California Chamber of Commerce, argues that the bill “undermines the essence of the Division of Labor Standards Enforcement (DLSE) complaint process by requiring a one-sided attorney’s fee provision that will incentivize further litigation.” In addition, the opposition notes that “the DLSE does not have exclusive jurisdiction over retaliation complaints. An employee has the option of filing a claim with the Labor Commissioner or in civil court. Thus, the DLSE provides an alternative to civil litigation.”
Related and Prior Legislation
SB 306 (Hertzberg), Chapter 460, Statutes of 2017, authorized the LC to seek an immediate and temporary injunction when workers face retaliation for asserting their rights under the law and gave the LC authority to issue citations and penalties directly to enforce retaliation claims, rather than exclusively through the courts. It also authorized an employee who is bringing a civil action for a retaliation claim to seek injunctive relief from the court.
REGISTERED SUPPORT / OPPOSITION:
Support
Bend the Arc: Jewish Action
Bet Tzedek
California Immigrant Policy Center
Centro Legal de la Raza, Oakland
Day Worker Center of Mountain View
Employee Rights Center
Justice at Work Law Group, LLP
Koreatown Immigrant Workers Alliance
La Raza Centro Legal
Law Office of Richard Hobbs
Legal Aid at Work
National Employment Law Project
National Immigration Law Center
Plumbers, Steamfitters, Pipefitters & HVAC Service Technicians, UA Local 383
Santa Clara Valley Contractors' Association
Service Employees International Union, California
Service, Immigrant Rights and Education Network
SOMOS Mayfair
Worksafe
Opposition
Associated Builders and Contractors, Inc. – Northern California Chapter
Associated General Contractors
California Ambulance Association
California Apartment Association
California Association for Health Services at Home
California Association of Joint Powers Authorities
California Association of Winegrape Growers
California Beer and Beverage Distributors
California Building Industry Association
California Business Properties Association
California Chamber of Commerce
California Farm Bureau Federation
California League of Food Producers
California Manufacturers and Technology Association
California New Car Dealers Association
California Professional Association of Specialty Contractors
California Restaurant Association
California State Association of Counties
California Trucking Association
Camarillo Chamber of Commerce
Civil Justice Association of California
Construction Employers’ Association
Family Business Association of California
Greater Coachella Valley Chamber of Commerce
Greater Conejo Valley Chamber of Commerce
League of California Cities
North Orange County Chamber of Commerce
Oceanside Chamber of Commerce
Official Police Garages of Los Angeles
Oxnard Chamber of Commerce
Rancho Cordova Chamber of Commerce
San Gabriel Valley Economic Partnership
Santa Maria Valley Chamber of Commerce
Simi Valley Chamber of Commerce
Southwest California Legislative Council
Victor Valley Chamber of Commerce
Western Growers Association
Analysis Prepared by: Megan Lane / L. & E. /
Discussed in Hearing
Assembly Floor
Assembly Standing Committee on Judiciary
Assembly Standing Committee on Labor and Employment
Bill Author
Bill Co-Author(s):