Limits current law that permits employees to file lawsuits on behalf of themselves and other aggrieved employees to recover monetary penalties for violations of state labor laws, including laws governing unpaid wages. Changes State’s share of assessed penalties from 75 to 50 percent and exempts employers from penalties in certain circumstances. Limits contingency-fee arrangements for attorneys representing employees. Limits information employers must disclose. Summary of estimate by Legislative Analyst and Director of Finance of fiscal impact on state and local government: Net reduction in state trial court costs that would likely be in the millions of dollars annually, but could reach the low tens of millions of dollars annually. Reduction in state revenue used for labor law enforcement potentially up to the low tens of millions of dollars annually. Likely minor net impact on state administrative costs to enforce labor laws.
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