New California Labor Law Limits On Private Lawsuits

Discussing Arbitration And Labor Law Lawsuits In California

When your California labor law rights are violated, you have the right to report your boss and agree to a settlement equivalent to the losses you suffer. For example, if you experienced discrimination at work, you can report your boss and have a California Employment Lawyer send them a demand letter that would initiate a negotiation for settlements.


However, if your employer still refuses to go into or agree to an appropriate settlement, you can take them to court and pursue a private suit against them. In some cases, where the labor rights violations affected many other employees, an employer could face a class-action lawsuit.


That said, business owners and employers have been citing arbitration clauses in contracts that have gone ignored for years. They argue that if there is an arbitration clause in the employee's contract, they shouldn't directly go for private lawsuits.


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What's Changed In California Employment Law?

The Supreme Court severely curtailed a state labor legislation that allowed individuals to sue on behalf of groups of employees, even if they had already consented to individual arbitration of their issues.


California is the only state that permits such private lawsuits to enforce its labor laws. However, the court found that by doing this, the state gave workers a way out of signing binding arbitration agreements when they were hired.


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