Employers Fear Calif. Wage Theft Law May Spur Suits

Law360, New York (February 16, 2012, 4:08 PM EST) -- California's Labor Commissioner has released guidance intended to clarify employers' obligations under the state's new Wage Theft Prevention Act, but attorneys say the agency's efforts have created ambiguities that could spawn a new wave of class actions.

Management side attorneys say the agency's guidance calls for disclosures from employers that go beyond what the statute mandates. The additional requirements are unclear, too, and will likely lead to a spike in litigation, they say.

“They make it impossible to understand things that should be fundamental and straightforward,”...
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