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The Threat from Within: California Employees Become Labor Code Enforcers

By Arthur L. Pressman and Jeffrey M. Tanenbaum
February 01, 2004

On Oct. 12, 2003, then-California Gov. Gray Davis signed Senate Bill 796 into law and created a new private right of action for California employees to enforce most provisions of the Labor Code (with the exception of certain workers' compensation provisions). S.B. 796 will likely have significant implications for all California employers, both for franchisors with either company-owned or franchised units in California, and franchisees operating in the state.

The bill, which became effective on Jan. 1, 2004, allows employees to act as private attorneys general in suing their employers for employment law violations that are not cited by a governmental agency. By providing for civil penalties and lawyers' fees for the successful plaintiff, S.B. 796 might represent full employment for some California lawyers.

Under S.B. 796, private rights of action will now be for wage and hour obligations (including overtime and minimum wage laws), employee classification issues, drug and alcohol rehabilitation requirements, state laws governing layoffs, public works, occupational safety and health, workers' compensation, and a myriad of conditions of employment from A (absences) to Z (zoning and labor camps). (Mercifully, most antidiscrimination and anti-harassment statutes are contained in the Government Code, and thus are not encompassed by this new law.)

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