No Compromise on UCL

Via "The UCL Practitioner": SB 185, the legislative compromise on the UCL, failed to make it through the last minute rush at the State House.

CLEL did not favor the chances of SB 185, as it was last amended, passing. If for no other reason than the exemptions in it.

SB 185 Fails?

I didn't see anything in the papers, and likewise, the status page says it was never enrolled, and they've had a day to update--probably lots of updates today though.

So, as far as I can tell, SB 185 didn't make it. (Please comment below if you have further info.)

Let the brinksmanship begin.

More Movement on SB 185

Yesterday, the Assembly further modified SB 185. The notification provision of the earlier amendments weren't that exciting. This adds

• Court review of settlements for suits brought on behalf of the general public. The procedure for the review is set out.
• Unions and nonprofit legal services are exempt from court review of the settlements.
• A notice provision. (You have to send the defendants a poster! Oh, the irony--it has to be 14 point or else you get reported to the Labor Commissioner The State Bar).
• Party must plead injury in fact for restitution, unless plaintiff is a nonprofit, union, or nonprofit legal service.

So, it's basically Prop. 64, minus some standing requirements, with exemptions for certain kinds of groups.

Sav-On Class Action

The big news, apparently, is that the California Supreme Court approved the certification of a class in Sav-on Drug Stores, Inc. v. Sup. Ct. (Rocher). The Times also has an article. So does the Chronicle.

Both sides respond with talking-points answers. The labor side says that, because the enforcement agencies are underfunded, this is an important decision—CLEL doesn't know how agency funding relates legally to the presence or non-presence of a procedural device. Industry responds, predictably, that this will send more jobs away from California. This talking point is losing credibility over time, when San Bernardino county's net job growth in July was almost equal to that of the entire United States.

SB 185 Amendments

SB 185 has been amended. It adds B&P section 17203.7 requiring submission of private complaints to the Attorney General within 10 days of filing.

And that's it. . .

I'm not sure this is really what they're proposing as an alternative to Prop. 64, but this is how it stands right now, on its way to the judiciary committee.

Min Wage Hike "News"

The Orange County Register runs a story claiming that the Governor is expected to veto the minimum wage hike, but doesn't say who is expecting it. And only ads the Governor's campaign promises and his support from business as reasons why. While CLEL agrees that a veto is likely, CLEL doesn't appreciate this kind of reporting.

Legislative Marathon Continues

Lots of news today...

The minimum wage bill (AB 2832) is headed for the Governor's desk. The LA Times reports.

Another bill, one that slipped through CLEL's wide legislative scans (guffaw) is also headed for the Governor's desk. This one (SB 1841) requires employers to notify employees before monitoring employee email or tracking employee web site use. The Chronicle reports.

Continuing the legislative marathon, an outsourcing bill (AB 1821) passes an heads for the Gov. This bill apparently goes against both industry and a PPI report on its beneficial effects for California workers. The Times reports.

[CLEL would bet on all three of these being vetoed, especially SB 1841.]

The Times has another article on UCL reform, but there is no actual change to the bill, SB 185.

The Bee has an editorial on the prison guards' CBA.

Happy Tuesday.

Last Minute UCL Movement?

The SF Chronicle reports this morning on the behind-the-scenes machinations between the Governor and legislators to amend the UCL without resorting to Prop. 64. The article mentions that the Sierra Club is involved in the talks, and that the Governor is trying to protect his "green" reputation but does not explain if this means the reforms will have special provisions for environmental protection only. There is still no movement on SB 185 (the gut and amend vehicle for the reforms) as of this writing.

The LA Times notes the new federal overtime regulations are now in effect.

AB 2832 Takes Next Step; UCL Reform Compromise?

AS MENTIONED Wednesday, the Legislature is considering enacting its own minimum wage hike. The Senate has voted on, and passed the measure, AB 2832. The 22-14 vote is not enough to get it passed a veto. The Governor has not taken a position yet. [CLEL notices in at least one place in the Labor Code, in Section 1194.2, the relief is granted as to any "payment of a wage less than the minimum wage fixed by an order of the commission." (Emphasis added.)—more work for the courts!] The Bee reports.

United Airlines is trying to cancel its pension plans. The LA Times reports.

Via The UCL Practitioner: "SB 185. . .is now slated to be reworked to include changes to 17200, the state's unfair competition law, according to sources familiar with the legislation." As of this writing, this change hasn't yet occurred. CLEL will keep tabs. [CLEL wonders what the chances of this going through are since money and efforts have already been spent on a stronger Proposition 64. That said, Prop. 64 is struggling mightily in early polls. Maybe that's all the leverage required.]

Legislative Marathon, Costco Sued

Costco was sued for sex-based discrimination. The plaintiff alleges that the company denies women promotions into the companies upper echelons. The LA Times reports.

With this year's legislative session winding down, legislators are churning out bills for the governor's review.

Remember when CLEL noted the shutdown of the IWC? Well, here's a bill to do one of its jobs for it. AB 2832 raises the minimum wage to $7.25 as of July 1, 2005, and $7.75 as of July 1, 2006. The last increase was in January 2002. There is not much chance, based on national CPI numbers, that this increase would exceed inflation.

Carter v. Department of Veterans Affairs, 4th App. Dist., Case No. E030908

This case should teach all who read it the value of a good legislative intent research firm.

The Court of Appeal held that the legislative amendment rejecting the Salazar interpretation of sexual harassment liability under FEHA was not retroactive. The Court held also that this amendment was not a mere clarification, but, rather was a change in the law because it changed the possible liable parties to only employers and the possible bases of harassment from any FEHA-prohibited kind to only sexual harassment.

We find that applying the amendment retroactively is constitutionally objectionable. Constitutional considerations of due process require that citizens be fairly apprised of laws affecting their conduct. Here, the import of the amendment is to impose substantial new obligations on employers, and to impose such liability, without clear notice, for conduct which was already completed in the past.

Judgment of of the trial court is REVERSED.

Reeves v. Hanlon Cal. S. Ct. No. S114811

The California Supreme Court holds that interference with an at-will employment contract is properly analyzed as a tort of interference with a prospective economic advantage (i.e. does not require the existence of a contract) because the interference has to do with the future relationship.

Judgment AFFIRMED. (Unanimous)

The SF Chronicle has this report on this case.

California July Job Numbers

While the United States as a whole added an anemic 32,000 jobs in July, California actually lost 17,300. The LA Times reports.

California's employers went into a hiring funk in July, cutting a net 17,300 jobs and raising concerns that the state's economic recovery has lost steamalong with the nation's.

On the other hand, some areas of the state showed improving prospects, including surprisingly, the East Bay (The Contra Costa Times reports), and, not surprisingly, the Inland Empire (the Riverside Press reports) and the Central Valley (the Fresno Bee reports).

The Inland Empire added 25,900 jobs in July, almost equal to the entire net growth in the US.

Haney v. Aramark Uniform Services, Inc., 5th App. Dist., Case No. F042980

The Court of Appeal held that just because plaintiff alleged that he engaged in what might be termed "concerted activity" (and therefore subject to the NLRA) when he tried to discourage fellow employees from going along with a fraudulent business practice, because interpretation of the CBA was unnecessary, that a cause of action for termination in violation of public policy could stand.

Judgment in favor of Defendant is REVERSED and the case is REMANDED.

Guv signs Sue Your Boss Reform

Another piece on the "Sue Your Boss" reform from the Bee [which I'm becoming a bigger and bigger fan of—CLEL] on the occasion of its being signed into law.

Comment: With respect to both the "Sue Your Boss" law and the Unfair Competition Law (up for reform as Prop. 64), none of these reports have asked the question as to why it wasn't just simpler to fund the responsible agencies. CLEL can guess why, but would like to hear it from the legislators themselves.

Bay Area grocery unions are calling for boycotts if the supermarkets call for benefit reduction. The Contra Costa Times reports.

Labor relations news; Fed hike.

Yesterday, the Fed hiked the federal funds rate 0.25% to 1.5%. CLEL was stunned. The Fed states that its decision is based its observation that oil prices, and not a fundamental problem with the economy's growth caused the recent employment number. The WSJ reports (sub req'd.)

In other news:

The LA Times reports that LA Hotel workers are requesting a federal mediator.
The LA Times reports that a Wal-Mart is alleging a UC study was Union funded.

Happy Tuesday News.

Daniel Weintraub has this opinion piece in the Sacramento Bee about the history of the "sue your boss" law, SB 796.

Dan Walters has this report in the Bee about what's on tap for the rest of the legislative session.

[The Bee is out ahead of all of the state's papers on legislative coverage in my opinion.]

And, completing the hat trick, the Bee has this article on the Northern California grocery labor talks.

Slow News Day

Slow news day. Nothing catching CLEL's eye today. The legislature's Labor & Employment Committee is meeting today. We'll see what they come up with.

July Numbers Disappoint

The Sacramento Bee reports that "Workers' comp savings not yet felt."

The big news of the day is the latest jobs report showing anemic job growth in July, and revising June and May numbers down as well, the NY Times reports. Only 32,000 jobs were added in July according to the benchmark household survey. 150,000 jobs are required monthly to keep up with population growth. This result reflects about 15% of the results economists were expecting. Read the economists reactions in the WSJ (sub. req'd) [N.B. the more sanguine analysts argue that the actual number of jobs gained was higher, more like half-way in between the Establishment and Household data, but the Household survey continues to be the benchmark.—Ed]

NHL Labor Woes

On a slightly different note ...

The NHL is having its own labor woes. After a lockout shortened the 1994-5 season to just half a season, they parties are back at it this year. The players refuse the league's demand of a salary cap. NHL players earn 76% of revenues in salary, higher than any other major sporting league in the US. The latest talks today went nowhere, the AP reports.

(There are three NHL teams in California. The San Jose Sharks, Western Conference Finalists in 2003-4, the Anaheim Mighty Ducks, Western Conference Champions in 2002-3, and the Los Angeles Kings.)

California Performance Review Highlights

The CPR states that:

The variety of programs responsible for unemployment insurance, workers’ compensation and occupational health and safety frustrates businesses attempting to comply with the law and workers that deserve benefits. In addition, the duplication of administrative functions results in additional and unnecessary costs to the state.

It proposes the following fix:

...the Department should have an office that integrates all of the various appellate programs—Unemployment Insurance, Workers’ Compensation and Occupational Safety and Health [and Fair Employment & Housing (see chart)]—to ensure that decisions are fair and consistent and provide flexibility in assignments to prevent backlogs. The Department should centralize administrative support functions to ensure that all the operating divisions concentrate on achieving program success.

It this happens, we could see some major changes in procedures, because these different agencies work quite differently. The mostly ministerial changes proposed to the Labor Code are here.

NLRB Criticizes Nurses' Bedside Manner

The Los Angeles Times reports that the NLRB has thrown out a vote to unionize by nurses at Cedars-Sinai Medical Center because of intimidation tactics.

Norcal Grocery Strike?

The Sacramento Bee reports :

Four Northern California supermarket chains and Local 588 of the United Food and
Commercial Workers are scheduled to resume labor talks Monday, while the union's
members continue to work under terms of a day-to-day contract extension that so
far has averted a strike.

SB 1809, as enrolled: first look.

SB 1809 provides for the follwing

• A redistribution of civil-penalty civil actions to 75% to the agency for eduction, and 25% to the employee.
• Procedural and administrative requirements for proceeding with the suit. For most violations, written notice to the Labor and Workforce Development Agency is required. If they investigate and give a citation, no lawsuit can commence. Other violations (there is a long list in new LC 2699.5) can be "cured" after written notice, but only three times per year.
• Gives judges discretion to lower award amount.

  "a court may award a lesser amount than the maximum civil penalty amount
  specified by this part if, based on the facts and circumstances of the
  particular case, to do otherwise would result in an award that is unjust,
  arbitrary and oppresive, or confiscatory." [new LC 2699(e)(2)]

• Repeals requirement for filing any signed application with the DLSE (LC 431).
• It amends LC 98.6 to include an anti-discrimination clause for employees who enforce these laws.

There are two retro-activity clauses, one for the posters and one requiring the court to supervise any settlements.

Read this blog on My Yahoo.

Just in case you haven't noticed, I thought I'd point out a new feature of My Yahoo that is quite excellent. If you click on 'choose content' and add RSS Headlines (BETA), you can then get all of the headlines from this blog (and most others) listed as a news item in your Yahoo page. You can also use this "syndication" feature with any RSS aggregator, including http://www.bloglines.com
The URL is http://calemploymentlaw.blogspot.com/atom.xml