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California’s
Budgetary Woes Have Changed the Labor Commissioner's Claims Process
With
the current budgetary problems in Sacramento, the two-step process of a
Labor Commissioner hearing may be eliminated. Previously, the first step was a
mediation or informal conference where opposing parties would articulate
their positions to the Labor Commissioner. The Labor Commissioner would also
provide the employer with an itemized worksheet prepared by the employee,
setting forth the details of the claim. Approximately 75% of these claims
were either dismissed or settled at this stage.
When
a case didn’t settle, a formal Berman hearing under Labor Code
Section 98(a) would be scheduled.
This hearing, over which a Labor Commissioner would preside,
requires sworn witness testimony and documents.
This
two-step process may now become extinct. The Labor Commissioner in San
Francisco recently informed employers that it does not have the resources
to determine if a dismissal is warranted or to attempt settlement. The official position now appears
to be that all claims, regardless of merit, will be set for a formal
hearing.
Employers
will need to be prepared with formal documentation and records to defend
what could be a barrage of overtime, break, vacation and termination pay claims. The defense process for Labor
Commissioner hearings will be much more expensive and complicated as the
burden is on the employer to show the employee’s claim lacks merit.
This document is intended to provide you with
general information about employment related decisions. The contents of
this document are not intended to provide specific legal advice. If you
have questions about the contents of this update, please contact Ann
Liroff at 415-546-7500 or aliroff@hbblaw.com
or contact your preferred Haight Brown & Bonesteel, LLP attorney.
This communication may be considered advertising in some jurisdictions.
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