(August 11, 2005) The California Chamber of Commerce-opposed legislation that exposes employers up to new types of “sue-your-boss” lawsuits awaits action by the Senate Appropriations Committee once legislators return from summer recess next week.

”The Chamber had been working to secure amendments that would remove employer objections to the bill,” said Julianne Broyles, Chamber director of employee relations and small business. “Unfortunately this bill has only gotten worse and must now be labeled a job killer by the Chamber.”

AB 581 (Klehs; D-Castro Valley) was recently added to the 2005 “job killer” list because it makes California less desirable as a place to establish or expand a business by opening new avenues to sue employers by establishing a broad new private right of action that permits joint labor-management committees to sue any employer for certain Labor Code violations that may have occurred up to four years previously, among other provisions.

Many organizations participate in joint labor-management committees that are set up for reviewing workplace health and safety issues.  Some companies also include production issues that do not concern worker suspension or discharge.  These management committees are not involved in Labor Code enforcement because many employers believe such involvement is inappropriate for these committees.

Not only is such involvement in Labor Code enforcement inappropriate, but it also likely violates the National Labor Relations Act (NLRA). AB 581 violates the NLRA by creating the right of the committees to sue any employer in civil court for certain state Labor Code violations.  The bill also mandates that court award the joint labor-management committee its attorney fees, costs and expenses if any violation is found.  

AB 581 also poses a significant privacy violation against individual workers by granting joint labor-management committees free access to employees' names, work addresses and home addresses.   

Action Needed
The Chamber is urging all employers to write members of the Senate Appropriations Committee letters opposing AB 581.  A sample letter is available on the Chamber’s website.

For more information on AB 581 or other “job killer” bills, please visit the Chamber’s website at www.calchamber.com/jobkillers.