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Perspective

Jan. 22, 2014

SB 462: Recouping legal fees gets harder

Before, when an employee maked a claim for unpaid wages and loses, the employer could recover attorney fees reasonably incurred in defending against the meritless claim. That's changed. By Colleen M. Regan and Kristina M. Launey


By Colleen M. Regan and Kristina M. Launey


Before, when an employee maked a claim for unpaid wages - other than for minimum wage or overtime - and loses, the employer, as prevailing party, could recover attorney fees reasonably incurred in defending against the meritless claim. That's changed.


Effective Jan. 1, Labor Code Section 218.5, amended by Senate Bill 462, provided that a prevailing employer can recover its defense costs only if it proves t...

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