Labor bills on tap: shift to private enforcement may make it easier to sue.

• Author: Allen, Bruce C.
• Position: Government relations

California entered the new fiscal year with an almost on-time budget. The governor signed the most quickly passed budget in five years into law July 11, clearing the way for a legislative summer break scheduled to begin July 15.

"The bipartisan $117.3 billion spending plan does not raise taxes, contains no new borrowing, pays down our debt and invests in education, transportation, health and safety," according to Gov. Schwarzenegger.

The Legislature will reconvene Aug. 15.

An Expanding Right to Sue?

In spite of California's improving economic outlook, state resources remain stretched. Organized labor and others are using the lack of sufficient state resources to justify shifting enforcement to private parties by expanding California citizen's right to sue to enforce compliance with state environmental and labor laws.

A tort reform group, the Civil Justice Association of California (CJAC) has alerted CalCPA to three bills that seek to erase some of the reforms contained in Proposition 64 that California voters adopted last year.

Proposition 64 limited the ability to file class-action lawsuits against businesses for unfair competition unless actual damage has occurred. It was adopted by an overwhelming majority of votes cast in November.

"Beneficial Interest"

AB 528 (Frommer et al) allows any person with a "beneficial interest" in the outcome to bring civil action to enforce laws regarding the protection or enhancement of public health or the environment.

CJAC points out that because "beneficial interest" is undefined, the bill would allow anyone to claim a beneficial interest, which would open the statute to use by trial attorneys interested in collecting the excessive fees. The bill is sponsored by several environmental groups and the author who argues, "The state's fiscal problems place the protection of our air, water, coastlines, wildlife, and natural resources in jeopardy as budgets are cut year after year to provide basic services. These limited enforcement funds seriously weaken government's ability to enforce laws passed to protect public health and natural resources. And unfortunately, in some cases government lacks the political will to enforce the law."

AB 528 is a two-year bill on the Assembly floor. It will be voted on in January 2006.

"Sue Your Boss" Proposals

CJAC is referring to two new proposals--SB 174 and AB 581--as "Sue Your Boss" bills.

SB 174 (Dunn), would authorize employees paid less than twice the minimum wage to...