Biz Group Sues Calif., Calling Workplace Law 'Extortion' Tool

Law360 (November 28, 2018, 10:35 PM EST) -- A recently created business group sued California in state court on Wednesday, alleging a lack of governmental oversight has turned the Golden State's Private Attorney General Act — conceived to fix workplace wrongs — into an unconstitutional "tool of extortion" used by employees and their attorneys.

The California Business & Industrial Alliance, formed last year, claims employers, particularly small business owners and nonprofit organizations, are disadvantaged by the law, which aims to bolster enforcement of state workplace laws by authorizing aggrieved workers to sue their employer for labor code violations on behalf of themselves and others.

"Trial attorneys quickly discovered that...

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