California lawmakers approve changes to law allowing workers to sue employers over labor violations

FILE – Assemblyman Ash Kalra, D-San Jose, discusses his bill that would pay for the universal health care bill, during a news conference at the Capitol in Sacramento, Calif., Thursday, Jan. 6, 2022. Kalra announced legislation this week to reform a 20-year-old law allowing workers to sue their bosses over labor violations and requires employers found liable to pay employees and the state.

The bills would lower the financial penalty for some employers and compel them to correct violations. They came out of a deal between Gov. Gavin Newsom, lawmakers, business groups and labor leaders to remove a ballot measure asking voters to repeal and replace the law.“We accomplished something that was seemingly impossible,” he said. “It’s easier to address simple problems, but that’s not the California way.

Debate over the 2004 law has raised questions about what the state does with the money it receives from businesses for fines and settlements involving violations. In 2022-2023, the state left $197 million of that money unspent, “What’s in this bill and its companion represent historic reform to address these concerns,” Hoffman said, adding “California workers can feel confident that there is robust labor law enforcement.”

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