(March 31, 2004) The California Chamber of Commerce is pressing for employer relief from the 'sue your boss' law that went into effect this year.

Enacted by last year's SB 796 (Dunn; D-Garden Grove), the 'sue your boss' law allows bounty-hunting private attorneys to sue employers for wage-and-hour Labor Code violations.

“SB 796 expands the grounds by which private attorneys can sue employers, which increases not only the risks of hiring employees, but also insurance costs, attorney fees and costs of settlements,” said Julianne Broyles, Chamber legislative advocate.  ”The Chamber is sponsoring bills to provide some relief from this 'job killer' for California’s businesses. The Legislature must take action to prevent employers from getting overrun by bounty hunting attorneys and frivolous lawsuits. Meritless litigation hurts employers' ability to provide jobs and benefits to workers.'

The Chamber-sponsored bills are:
AB 2181 (Campbell; R-Irvine) repealing SB 796

AB 2650 (Bates; R-Oceanside) provides for an exemption from SB 796 for businesses with fewer than 100 employees, providing that only state labor enforcement officials may investigate, cite or prosecute to enforce California Labor Code violations for smaller employers

Until SB 796 went into effect, labor law enforcement was the sole responsibility of the Labor and Workforce Development Agency. SB 796’s proponents showed no evidence that the agency or any of its divisions, such as the Labor Commissioner or Cal/OSHA, were not properly enforcing the law. SB 796 leaves employers vulnerable to a wide array of new civil lawsuits, including new incentives for unfair competition lawsuits.

The Chamber is urging businesses to contact their legislators to support for AB 2181 and AB 2650, which will be heard in the Assembly Labor and Employment Committee today. Find your legislator.

To learn more about these or other Chamber-sponsored bills please visit our website at www.calchamber.com

Staff Contact: Julianne Broyles