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Bill would double rewards for minimum wage lawsuits

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in Compensation and Benefits,Human Resources

California employees who sue their employers for minimum wage violations and win will be able to collect twice as much if a recently passed bill becomes law.

A.B. 1881 would amend the California Labor Code to allow employees to sue for twice the amount they were underpaid, plus interest. Current law permits damages only for the exact amount of the underpayment, plus interest.

The California Senate passed the bill in August, following passage in the State Assembly in May. It won wide majorities in both Houses. Gov. Arnold Schwarzenegger has until Sept. 30 to sign or veto the legislation. If he doesn’t act, the bill will automatically become law.

The bill’s sponsor, Assemblyman Bill Monning, said the legislation was designed to address widespread violations of minimum-wage laws in the construction and hospitality industries.

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