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Tuesday, November 5, 2024

Proponent withdraws initiative impacting employee lawsuits over state labor-law violations

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California Secretary of State, Shirley Weber | Official website

California Secretary of State, Shirley Weber | Official website

Sacramento, Calif. – Secretary of State Shirley N. Weber, Ph.D., announced today that an initiative eligible for the November 5, 2024, General Election ballot has been withdrawn by the proponent.

The Attorney General's official title and summary of the initiative is as follows:

"ELIMINATES EMPLOYEES’ ABILITY TO FILE LAWSUITS FOR MONETARY PENALTIES FOR STATE LABOR-LAW VIOLATIONS. INITIATIVE STATUTE. Repeals 2004 law allowing employees to file lawsuits on behalf of themselves and other employees against employers to recover monetary penalties for certain state labor-law violations. Labor Commissioner retains authority to enforce labor laws and impose penalties. Eliminates Labor Commissioner’s authority to contract with private organizations or attorneys to assist with enforcement. Requires Legislature to provide funding of unspecified amount for Labor Commissioner enforcement. Requires Labor Commissioner to provide pre-enforcement advice; allows employers to correct identified labor-law violations without penalties. Authorizes increased penalties for willful violations."

The summary of the estimate by the Legislative Analyst and Director of Finance on the fiscal impact on state and local governments states: "Likely increase in state costs to enforce labor laws that could exceed $100 million per year. Reduction in state penalty revenue used for labor law enforcement in the tens of millions of dollars annually." (21-0027.)

Pursuant to Elections Code section 9604(b), proponents may withdraw an initiative at any time before the Secretary of State certifies it as qualified.

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