If an employer fails to pay wages as required by contract or law, the employee has the option of filing a wage claim with the state Labor Commissioner. And the commissioner’s decision can be appealed to a trial court. In the event of such an appeal, the law says that the party (either the employee or the employer) who sought review of the decision and was “unsuccessful in the appeal” must pay the other side’s reasonable attorney’s fees and costs. The purpose of this provision is to discourage frivolous appeals. Previous court rulings held that an appealing party had to completely prevail in the appeal (that is, the trial court had to completely reverse the commissioner’s award) in order to avoid being assessed with fees and costs.
The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.
But now the state Supreme Court has announced a new standard that will make it more difficult to shift fees and costs to the party that filed the appeal. In particular, the court said that the party that appeals is considered successful so long as the trial court’s judgment is more favorable to that party than the original commissioner’s award.