(June 20, 2005) California Chamber of Commerce-opposed legislation creating two new types of class action “sue your boss” lawsuits will be heard by the Assembly Labor and Employment Committee on June 22.

”SB 174 is a ‘job killer’ that provides new incentives for plaintiffs and their attorneys to file meritless lawsuits on minimum wage and overtime,” said Julianne Broyles, Chamber director of employee relations and small business.  “This bill undermines some of the work that went into fixing the original ‘sue-your-boss’ legislation, by creating yet another way to file frivolous lawsuits against employers.”

SB 174 (Dunn; D-Garden Grove) is designated a “job killer” because it increases employer liability by providing new incentives for plaintiffs and their attorneys to file lawsuits by establishing of new types of 'sue your boss' lawsuits.

SB 174 provides new incentives to file lawsuits because the bill proposes to grant what is essentially class action status to one worker’s wage and hour claim without having to meet any of the current standards or scrutiny associated with a recognized, court-supervised class action lawsuit.

SB 174 sends the wrong message to businesses looking to establish or expand here.  Instead, policymakers should be looking at ways to improve California’s image as a place to start or grow a business as a way to create jobs in California.

Action Needed
The Chamber is urging all employers to write letters in opposition to SB 174 to members of the Assembly Labor and Employment Committee.  Use our easy-to-edit sample letter.

For more information on SB 174 or to view the 2005 ‘job killer’ list, please visit the Chamber’s website at www.calchamber.com/jobkillers.