HR Management & Compliance

Lawsuits: Proposition 64 Retroactive, Supreme Court Rules

The California Supreme Court has ruled that Proposition 64—approved by voters in November 2004—applies retroactively to cases pending at the time the measure took effect.

Proposition 64 contains strict limits to curtail frivolous lawsuits under California’s unfair business competition law. Key provisions include permitting suits only by an individual who has actually suffered a loss from an unfair act and requiring that anyone filing on behalf of a group comply with class action certification rules (which previously weren’t required for an unfair business competition suit). The measure’s approval was a welcome change for employers, as employees have increasingly used the unfair business competition law—which prohibits fraudulent or illegal business practices—as a way to eke more damages out of an employment violation, particularly in wage and hour class action suits.

 


Join us this fall in San Francisco for the California Employment Law Update conference, a 3-day event that will teach you everything you need to know about new laws and regulations, and your compliance obligations, for the year ahead—it’s one-stop shopping at its best.


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