California Labor Law ‘Sea Change’ to Test Cash-Strapped Courts

The effectiveness of key reforms to California’s unique law allowing workers to sue for job violations in place of the state—such as damage caps and routes to resolve cases early—will partly depend on state courts’ ability to develop new procedures amid significant budget cuts.

A larger employer facing a Private Attorneys General Act lawsuit now can request an early evaluation conference, which halts ongoing litigation while a neutral party assesses the claims the company faces, its efforts to comply with the Labor Code, and any plans to cure alleged violations.

“The neutral has to be a court-appointed individual, but the ...