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On August 26, Governor Jerry Brown signed into law an amendment to Section 218.5 of the California Labor Code, which requires courts in lawsuits for the nonpayment of wages, fringe benefits, health and welfare contributions or pension fund contributions to award reasonable attorneys’ fees and costs to the prevailing party.
On August 26, Governor Jerry Brown signed into law an amendment
to Section 218.5 of the California Labor Code, which requires
courts in lawsuits for the nonpayment of wages, fringe benefits,
health and welfare contributions or pension fund contributions to
award reasonable attorneys' fees and costs to the prevailing
party. Under the new law, if the prevailing party is not an
employee, recovery of attorneys' fees and costs will only be
permitted if the court determines that the employee brought the
lawsuit in "bad faith." However, if the prevailing party
in the lawsuit is an employee, an award of reasonable
attorneys' fees and costs is mandatory.
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