In 2021, LKQ Corporation (LKQ) filed suit against Robert Rutledge, its former plant manager, in the U.S. District Court for the Northern District of Illinois. LKQ alleged that Rutledge’s working for a competitor within nine months of his leaving LKQ breached his restricted stock unit (RSU) agreements and his separate
Articles Discussing Labor And Employment Law In All Fifty Us States And Puerto Rico.
Saint Paul, Minnesota enacts “wage theft” ordinance
Beginning January 1, 2025, the City of St. Paul, Minnesota’s Wage Theft Ordinance went into effect. The Ordinance largely incorporates the State of Minnesota’s existing wage theft legislation. However, similar to the Minneapolis Wage Theft Prevention Ordinance, effective in 2020, the City of St. Paul’s new Ordinance contains additional employer
Maryland’s FAMLI Program, Part III: Claims and Dispute Resolution Proposed Regulations
Starting July 1, 2026, Maryland’s Family and Medical Leave Insurance (FAMLI) law will provide up to twelve weeks of paid family and medical leave, with the possibility of an additional twelve weeks of paid parental leave, through a state-run program. Contributions from employers and employees to fund the program will
Virginia Legislature Poised to Significantly Increase Employer Exposure for Wage and Discrimination Claims
Virginia Legislature Poised to Significantly Increase Employer Exposure for Wage and Discrimination Claims
What Employers Need to Know About the California Transparency in Supply Chains Act
In an era where consumers are increasingly concerned about ethical sourcing and labor practices, the California Transparency in Supply Chains Act (CTSCA) stands as a significant piece of legislation.
Enacted in 2010, the CTSCA aims to combat human trafficking and slavery in global supply chains, promoting greater transparency and accountability
Federal Appeals Court Holds New Jersey’s Cannabis Law Provides No Private Right of Action
The Third Circuit Court of Appeals has held that the New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act (“CREAMMA”) does not permit a private citizen to bring a civil action for enforcement of the provisions prohibiting discrimination against cannabis users. Erick Zanetich v. Wal-Mart Stores East, Inc. et
The Domestic Worker Bill of Rights: A Guide for Employers
The Domestic Worker Bill of Rights (California Assembly Bill 241 and Senate Bill 1015), enacted in 2013, is a California law that grants overtime pay rights to personal attendants who were not previously entitled to overtime pay under California law. Personal attendants covered by this law are entitled to overtime
Court Approves Attorney’s Fees for Employees Who Successfully Appealed Labor Commissioner’s Denial of Unpaid Wages Claim
In Villalva v. Bombardier Mass Transit Corp., employees Mark Villalva and Bobby Jason Yelverton initially filed a claim for unpaid wages relating to on-call pay with the Labor Commissioner’s office, who denied their claim and ruled in the employer’s favor. On appeal in superior court, the employees were awarded unpaid wages and attorney’s fees. The California Court of Appeal affirmed the superior court’s order, holding that Labor Code section 98.2 does not preclude the prevailing party to an appeal following a Berman hearing from recovering attorney’s fees under generally applicable attorneys’ fee provisions of the Labor Code.
Background
In actions for unpaid wages, an employee may either: (1) file suit directly in court or (2) seek administrative relief from the Labor Commissioner through a “Berman hearing” which provides an informal, streamlined process of resolving wage disputes. Once the labor commissioner issues an order at the conclusion of a Berman hearing, either party may appeal the decision to the superior court for de novo review (a review that does not afford any weight to the results of the Berman hearing). If the appealing party is unsuccessful in superior court, the prevailing party is entitled to attorney’s fees and costs against the unsuccessful appellant. Labor Code § 98.2. Section 98.2 is silent as to whether successful appellants are likewise entitled to attorney’s fees.
Appellate Court Clarifies Attorney’s Fees for Successful Appellants
In Villalva v. Bombardier Mass Transit Corp., plaintiffs worked as train dispatchers who were required to be “on-call” one weekend a month. The employees initially filed a wage claim with the Labor Commissioner’s office, seeking overtime wages (Labor Code § 1194) and wage statement penalties (Labor Code § 226) for unpaid on-call time. The labor commissioner denied the claims in their entirety, and the employees appealed to the San Diego Superior Court. Following a bench trial, the superior court awarded the employees $140,000 in back wages and penalties, and $200,000 in attorney’s fees and costs. The employer disputed only the award for attorney’s fees, contending that Labor Code section 98.2 is the exclusive method for obtaining attorney’s fees in Berman appeals. Section 98.2 provides that a party seeking appeal of a Labor Commissioner award is required to pay the other parties’ fees and costs if the appellant is unsuccessful on appeal, but defines “success” for employees as anything greater than zero. This statute therefore largely operates to discourage appeals by the employer.
The California Court of Appeal concluded that an employee who successfully appeals a Berman hearing order, and prevails in superior court, is entitled to attorney’s fees and costs. In state court actions for unpaid wages, prevailing plaintiffs are entitled to attorney’s fees and costs under Labor Code sections 218.5, 226, and 1194. The court held that the legislature did not intend for section 98.2 to displace these generally applicable fee provisions for prevailing plaintiffs. The purpose of the “unsuccessful” appealing party fee provision in section 98.2 is to discourage meritless and unwarranted appeals (mostly as to employers). The court observed that adopting the employer’s interpretation—limiting section 98.2 to only operate against unsuccessful appellants—would discourage meritorious appeals and may discourage employees from pursuing the Berman procedure, at all, for fear that it will create a potential disadvantage in the event of an adverse administrative ruling.
Takeaways for Employers
The court’s ruling favors employees by assuring that attorney’s fees are recoverable in the event that the employee elects to appeal the Labor Commissioner’s adverse order. The ruling also places Berman appellants on the same footing as plaintiffs who initially filed in state court by clarifying that generally applicable fee provisions to prevailing plaintiffs under the Labor Code are applicable whether the employee initially commenced the wage dispute administratively or in state court. This decision, coupled with Labor Code section 98.2, provides added incentives for employees to pursue appeals of adverse administrative rulings following a Berman hearing.
PEO Reporting Requirements Update
Bill (S2357) went into effect July 31, 2023, and changes PEO reporting requirements in New Jersey regarding separation of employment.
New York Court Issues Temporary Restraining Order in Connection with the Single Statewide Fiscal Intermediary Program
Earlier this week, New York State and Public Partnerships LLC (PPL), the entity selected to become the Statewide Fiscal Intermediary (SFI) as of April 1, 2025, suffered another roadblock in their efforts to transition New York’s Consumer Directed Personal Assistant Program (CDPA Program) to a single SFI that would assume
Illinois One Day Rest in Seven Act and Meal Break Law: How Employers can Protect Themselves
A recent increase in complaints under the Illinois One Day Rest in Seven Act (ODRISA) highlights the necessity for Illinois employers to be familiar with the requirements of this law.
Cal/OSHA Provides Guidance for Managing Post-Fire Cleanup Efforts
In light of the ongoing and devastating fires in Los Angeles County, Cal/OSHA released new guidance to ensure the safety and health of workers involved in
Updates for Employers Using Private Plans to Comply with Minnesota’s Paid Leave Law
Minnesota is one of a dozen states that have enacted a statewide program providing compensation to employees during family and medical leaves. Minnesota’s
AI in the Garden State: New Guidance on Algorithmic Discrimination and the New Jersey Law Against Discrimination
NJ Division of Civil Right has issued guidance clarifying that state discrimination law prohibits algorithmic discrimination. The Guidance discusses how the design, training, and deployment phases involved with AI decision-making tools can lead to discrimination under the NJ Law Against Discrimination.
California Pay Data Report Filing Platform Opens on February 3, 2025: A Preview of What Is to Come
Now that the holiday season is over, what better way to start the new year than talking about the filing of 2024 California pay data reports? The California Civil Rights Department (CRD) recently updated its pay data filing website to show that the 2024 filing platform will open on February