Posted on June 25th, 2018
Important Facts About a California Labor Commissioner Complaint
Did you receive a complaint through the California labor commissioner? Know your rights before an employee sues. Here are important facts you should know.
Many business owners don’t even think about labor laws or potential risk to their business until a lawsuit shows up on their doorstep.
Employees that might have seemed happy and satisfied sometimes aren’t and want what they think they deserve. So they might sue the company to see what they can get because lets face it. The way the system is setup they have nothing to lose by dong so.
You on the other hand do! That’s why you should have a solid grasp on your rights and obligations when you get a complaint from the California Labor Commissioner.
The process can be intimidating, but with prep work on your side, it can be a walk in the park.
So here are the five facts you need to know when dealing with most of the Labor Board Commissioner proceedings.
Step 1: Claim Notice
You will typically first become aware of a complaint from the Labor Commission of California after getting a notice from the labor board commissioner.
The first step in the process is typically a notice of claim and conference.
The conference is NOT a hearing on the matter. The meeting is a non-binding settlement conference. The labor commissioner goes over the allegations and tries to come up with a way for both parties to settle the matter right there. Unfortunately they usually are not on your side a their suggestions are typically so one-sided for the employee that it likely wont feel fair to you what they are suggesting.
The labor board commissioner can only hear specific situations like settling on money owed and or such issues. The labor commission can’t decide certain forms of employment claims like discrimination or harassment.
Also, you as a business owner can have a counterclaim against an employee but the labor board commission would not be able to hear that case. It would have to go to court.
At a conference neither the business owner or the employee has to have a lawyer present during any of the proceedings. (but we highly recommend you do!)
Having a lawyer present with you during this initial process really depends on how comfortable you feel explaining these problems and how big the potential liability is for your business.
Step 2: Settlement Conference Preparation
As the Business owner you should look over their paperwork to make sure the labor commissioner’s office has it all.
The CA labor commissioner often needs this background information from the business owner.
- Completion of the DLSE’s Report of Workers’ Compensation Insurance
- City business license
- Articles of information filed with the Secretary of State
- Any documentation that may apply to the employee’s claims: payroll records, time sheets, handbook and applicable policies, conversations with an employee, etc.
You should also check the employee’s allegations carefully in the notice as well. This way you can prep and gather information for a defense and facts that support your side of the issue.
Step 3: Conference Settlement
It’s not required, but many labor board commissioners offices will usually set the dispute for a settlement conference.
Business owners typically misunderstand the goal behind the initial settlement conference. The settlement conference is not the hearing. The difference is with the hearing the labor commissioner has sworn testimony and can come to a final decision.
That said, this step of the settlement conference is still important and you should still be ready to present documents and evidence that will hopefully sway the settlement conference. It’s also a plus to hear out the employees side of the story and what evidence they have, what they’re claiming and their list of witnesses. Its valuable to acquire this information because you may need it in the event the case doesn’t settle and heads to court.
You should also be ready to negotiate during a settlement conference and be prepared with a range of how much you would be willing to pay to settle the case. An experienced employment lawyer can aid in understanding the strengths and weaknesses of a case and will be invaluable in deciding the overall settlement offer, if any, needs to be made.
Step 4: The Hearing
If the settlement conference does not settle the case, or if the settlement conference never took place, the labor commission California will set a time and date for the hearing under Labor Code section 98(a).
The discussions are often called the Berman Hearings after the famous lawyer who sponsored the bill that created the procedure. The purpose behind the Berman Hearings is to allow for a fast way to settle disputes.
But due to cost and state bureaucracy, the hearings are often set for almost a year in advance from the settlement conference!
The hearing occurs in the CA labor commissioner’s office and is usually in a conference room. The labor board commissioner will tape the proceedings, and any testimonies from the witnesses will be expressed under oath only.
The Labor Commissioner also has the authority to write subpoenas forcing the two parties to attend the hearing and bring all the necessary documents they have on the case.
For the most part, business owners tend to be ready for how the hearing will go. The Labor Commissioner going over the conference does have a lot of flexibility on how the parties are dealing with witnesses and cross-examinations. The rules behind the evidence are not overwhelming in the proceedings, but the Labor Commissioner usually has the right to control the evidence presented in the hearings.
He/she may also ask any questions they might have to obtain a better understanding of the case. Once the hearing is complete, the Labor Commissioner will send out a written order to all parties. Unless appealed, this is a binding rule against both parties that gets sent to the courts along with the judgment entered.
Step 5: Appeal
Both the business owner and the employee have a right to appeal the order within ten days of the case’s completion. The request must be written and will usually be sent to the business owner by mail. If the business owner appeals the order, the case goes to a superior court and the process begins anew.
I can tell you from experience that appeals do not usually go the business owners way. The whole process is skewed against the business owner but your chance of winning an appeal are especially daunting.
Need Help Working With the California Labor Commissioner?
Dealing with the California labor commissioner or any labor commission board is hard.
So many possibilities and variables can make it difficult to come up with a good strategy for your case.
Hopefully, with the tips in this article you at least have a good understanding of what to expect.
We can help you out! We have represented California employers in hundreds of hearings and believe our experience gives you the best shot at a favorable outcome.
If you have received a notice from the California Labor Commissioner contact us and we will give you a FREE CONSULTATION. Even if you don’t end up hiring us you will have a good idea on what you need to do next.
