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Gordie Webster

published on March 14, 2023 - 11:57 AM
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When it comes to the lawmaking in Sacramento, it’s easy to get stuck on the Job Killer bills that threaten California’s small businesses.

But what about Job Creators? They do exist, according to the California Chamber of Commerce, which recently announced the first such bill for the current session.

SB 592, introduced by Sen. Josh Newman (D-Fullerton), makes two changes to existing law that will provide some relief to employers.

First, it would require the Department of Industrial Relations to translate its website content into the most commonly spoken languages in California. Currently, the content is primarily in English. The bill would add Spanish, Chinese, Tagalog and Vietnamese.

Secondly — and most importantly — SB 592 would shield employers who rely in good faith on the written advice of the Department of Labor Stands Enforcement (DSLE) from punishment in the form of civil and criminal penalties, fines and interest.

“California has complex, uniquely burdensome labor and employment laws,” said CalChamber Policy Advocate Ashley Hoffman. “Employers who are non-English speakers should have the benefit of access to resources that can help them be compliant with those laws. Further, small business who rely on DLSE’s written advice and guidance should not be punished if a court ultimately determines that advice is wrong.”

There have been many instances where courts interpret statutes differently from the DLSE guidelines, according to the CalChamber. The result can be employers not only owing back wages but also facing penalties under the dubious Private Attorneys General Act and other Labor Code provisions.

Troester V. Starbucks is one example where the court invalidated part of DLSE’s enforcement manual regarding wage and hour law that employers had relied on.

CalChamber is quick to point out that SB 592 wouldn’t protect bad actors. Employers must present a defense that demonstrates they are entitled to a good-faith determination.

Our social compact asks of us to follow the rules to get along. So why should businesses suffer for following the rules as set forth? SB 592 would right that wrong.


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