BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 796
                                                                  Page  1

          Date of Hearing:   August 20, 2003

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                              Darrell Steinberg, Chair

                     SB 796 (Dunn) - As Amended:  July 16, 2003 

          Policy Committee:                              JudiciaryVote:9-4
                        Labor                                 5-2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes civil penalties for Labor Code violations  
          and authorizes aggrieved employees to bring private actions and  
          collect civil penalties for such violations.  Specifically, this  
          bill: 

          1)Provides that any Labor Code violation for which specific  
            civil penalties have not otherwise been established shall be  
            subject to a civil penalty of $100 for each aggrieved employee  
            per pay period for an initial violation, and $200 for each  
            aggrieved employee per pay period for continuing violations.  
            The penalty would be $500 per violation for a violator who is  
            not an employer.

          2)Provides that an aggrieved employee may sue to recover civil  
            penalties under the Labor Code, as well as attorneys' fees and  
            costs, in an action brought on behalf of himself or herself  
            and other current or former employees. However, no private  
            action may be maintained where the state labor agency (LWDA)  
            issues a citation against the alleged violator on the same  
            facts and under the same section or sections of the Labor  
            Code. 

          3)Provides that any penalties recovered in an action by an  
            aggrieved employee shall be distributed as follows: 50 percent  
            to the General Fund, 25 percent to the LWDA for employer  
            education, and 25 percent to the aggrieved employee(s). In the  
            case of penalties recovered against a violator who is not an  
            employer, the revenues would be divided evenly between the  
            General Fund and the LWDA. 









                                                                  SB 796
                                                                  Page  2

           FISCAL EFFECT  

          Potential increased penalty revenue to the General Fund and to  
          the LWDA.

           COMMENTS  

           1)Purpose  .  This bill is sponsored by the California Labor  
            Federation and the California Rural Assistance Legal  
            Foundation. The sponsors state that many Labor Code provisions  
            are unenforced because they are punishable only as criminal  
            misdemeanors, with no civil penalty or other sanction  
            attached.  Since district attorneys tend to direct their  
            resources to violent crimes and other public priorities,  
            supporters argue, Labor Code violations rarely result in  
            criminal investigations and prosecutions. As a result,  
            supporters state, employers may violate the law with impunity.  
            The sponsors also state that private actions to enforce the  
            Labor Code are needed because LWDA simply does not have the  
            resources to pursue all of the labor violations occurring in  
            the garment industry, agriculture, and other industries.  The  
            bill would authorizes civil penalties for any Labor Code  
            violation currently lacking a specific penalty provision and  
            authorizes aggrieved employees to bring private civil actions  
            against employers.  

           2)Opposition  .  Opponents include several employer groups, the  
            California Employment Law Council, and the Civil Justice  
            Association of California.  Opponents are concerned that, in  
            particular, the provision for recovery of attorneys' fees will  
            encourage private attorneys to "act as vigilantes" to file  
            frivolous Labor Code-related lawsuits.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081