By: Lizbeth V. West, Esq.
Governor Brown signed Senate Bill (SB) 462 which places restrictions on an employer’s ability to recoup attorney’s fees when it prevails in an unpaid wage or benefit claim.
Labor Code section 218.5 previously provided that except in certain circumstances, in an action brought for the nonpayment of wages, fringe benefits, or health and welfare or pension fund contributions, a court was to award reasonable attorney’s fees and costs to the prevailing party if any party to the action requests attorney’s fees and costs upon the initiation of the action. SB 462 amends section 218.5 to provide that where the prevailing party is the employer, attorney’s fees and costs can only be awarded if the court finds the employee brought the wage and hour action in bad faith.