Hinshaw's 12 Days of California Labor & Employment Series – Day 2: Longer Time to File With the DLSE Is Another Unwanted Gift for Employers

In the spirit of the season—and keeping some semblance of normal—we are using our annual "12 days of the holidays" blog series to address new California laws and their impact on California employers. On this second day of the holidays, my labor and employment attorney gave to me: two turtle doves and AB 1947.

This bill was likely created and signed in part due to COVID-19, as it extends some deadlines. With all the craziness 2020 has brought—including work from home, court closures, court delays, and the like—it comes as no a surprise to see deadlines being extended, too.

Prior to AB 1947, Labor Code §98.7 allowed any person who believed he or she had been unlawfully discharged from employment or discriminated against under the California Division of Labor Standards Enforcement (DLSE) to file a complaint with the DLSE within six months after the occurrence of the alleged violation. Under AB 1947, the period of time in which to file complaints with the DLSE has been increased. As of January 1, 2021, any person who believes they have been discharged from employment or discriminated against in violation of any law will have one year to file a complaint with the DLSE.

In addition, AB 1947 amended Labor Code §1102.5 to include a provision authorizing the court to award reasonable attorney fees to a plaintiff who brings a successful action for violation of these provisions.

Due to the increased statute of limitations period, employers should be aware that they are not only at risk for a longer period of time, but that wage and hour, or discharge or discrimination complaints may increase. The enactment of AB 1947 also gives employees more time to seek counsel, evaluate their rights, and investigate their potential claim. Plus, with the availability of the attorney fee provision, plaintiff's attorneys may start filing more of these actions because of the financial incentive. The attorney fee provision also will likely pose a hurdle for early settlement, as well as increase the cost of settlement.