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News & Press: Legislative Issues

Update on the CABIA Lawsuit!

Wednesday, August 28, 2019   (0 Comments)
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The next hearing will be September 5, 2019, at 2pm in Orange County Superior Court.
Judge Wilson has already ruled that the issue of equal protection under the law will continue. AB 1654 of 2018 allowed exemption from PAGA for only one group of employers, union construction employers. Equal Protection will continue in the lawsuit.


The two remaining issues will be heard and decided on September 5. 
 

The first is the issue of separation of powers. CABIA is arguing that the legislature cannot delegate powers given to the executive branch of government, to enforce the laws of the state; to another party, private citizens. PAGA is exactly that, allowing private attorneys to enforce state labor laws.
 

Interestingly, the state attorney is using an argument that the state constitution only talks about enforcement of criminal laws. CABIA's attorneys found that another state attorney is arguing the exact opposite in another appellate case.

The second is the issue of lack of substantive due process. PAGA creates such onerous penalties regardless of whether the employee even suffered any harm due to the labor code violation, an employer cannot practically use their legal rights. When faced with minimum penalties of $10,000 per employee, plus attorney fees of themselves and the plaintiff; employers are forced to settle. CABIA's attorneys are using a California Supreme Court case that said there is a point where due process is too expensive to be available. 


 

The lawsuit will continue after September 5, with at least the equal protection issue. If Judge Wilson rules against CABIA for the additional two issues; CABIA will decide whether to continue only on the one issue, or file a writ at the appellate court level.


We will update you after the September 5 hearing.
 

Below are copies of CABIA's first amended complaint, the state's demurrer to it, and CABIA's reply.

CABIA continues serious fundraising efforts.


CABIA'S First Amended Complaint


The State's Demurrer To It


CABIA'S Reply


The California Coalition For Fair Business Practices just contributed $50,000 to the effort! CALPASC and CABIA are very grateful for the support.


Carl DeMaio of Reform California, who is now running for Congress; had three fundraising meetings for CABIA, drawing over 140 employers across Southern California.


State Senator Shannon Grove held a meeting in Bakersfield last week, to support CABIA's lawsuit. 

Senator Grove is a strong proponent of reforming PAGA.


Anyone can subscribe to the CABIA website to get weekly general updates. The site is cabia.org.



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