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California Supreme Court Hears Case on Undocumented Workers’ Back Wages The California Supreme Court has decided to hear a case that could impact the ability of undocumented workers to collect back wages or sue employers for discrimination in California, and may prove instructive in other courts that periodically have to tackle these issues. The case is Salas v. Sierra Chemical Co. (Case No. S196568), and the California Supreme Court will consider whether an employee’s use of false documentation (in this case, a Social Security number) to obtain employment precludes future actions by that employee for discrimination (disability discrimination here). The court has previously sought briefing on three issues:
● Did the trial court err in dismissing plaintiff's claims under the Fair Employment and Housing Act (Gov. Code§12900 et seq.) on grounds of after-acquired evidence and unclean hands, based on plaintiff's use of false documentation to obtain employment in the first instance? ● Did Senate Bill No. 1818 (2001-2002 Reg. Session) preclude application of those doctrines in this case? (See Civ. Code§ 3339; Gov. Code§ 7285; Health & Saf. Code§24000; Lab. Code ?§ 1171.5.) Does federal immigration law preempt state law and thereby preclude an See Back Wages, Page 19
Proposed Amendment to CA Labor Code Section 226 Could Permit Employers To Recover Attorneys’ Fees
sion, which would amend section 226(h) to provide a two-way fee shifting provision. Under the proposed amendment, employers who successfully defend against a frivolous wage statement claim could recover their attorneys’ fees in doing so. Supporters of AB 2095 contend the amendment is necessary to help deter bad faith claims for alleged technical violations of Labor Code section 226 that do not cause any injury to the employee. The bill’s supporters cite, for example, to a 2010 case in which the alleged violation was the employer’s use of a trunSee Proposed Amendment, Page 19
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California Labor Code section 226 requires employers to provide accurate wage statements, and enumerates specific requirements for such wage statements. The statute also provides for penalties should an employer violate section 226, and allows a prevailing employee to recover attorneys’ fees in connection with prosecuting claims for alleged wage statement violations. On May 6, 2014, California’s Assembly on Judiciary heard arguments concerning Assembly Bill 2095, a proposed amendment to Labor Code section 226(h)’s attorneys’ fees provi-
VOL. 32 ISSUE 6 JUNE 2014
Auto Repair Industry Goes to Sacramento for its Annual ASCCA/CAA Joint Legislative Day by Ed Attanasio
Jack Molodanof, the lobbyist for both organizations coached the ASCCA/CAA members about the proper protocol to be used while encountering politicians or their representatives at the ASCCA/CAA Legislative Day in the Capitol
Every year, automotive repairers from all over California converge on the Capitol in Sacramento. It’s not anything close to the Million Man March, but it surely is important to the thousands of people who work for body shops or mechanical repair facilities throughout the Golden State. At ASCCA/ CAA’s Joint Legislative Day on April 30,
100 automotive repair professionals from all over the state came together to take on the powers-that-be and provide feedback about proState Senator Bob posed legislation Huff spoke to the potentially impactASCCA/CAA members in ing their busiattendance during nesses. their Legislative Day Legislative Day in Sacramento, CA speakers included on April 30 Tim Corcoran and Bill Thomas from the Bureau of Automotive Repair, to discuss enforcement efforts and licensing issues and Betty Jo Toccoli, the president of California’s Small Business AssociSee Joint Legislative Day, Page 46
Arizona Attorney Takes on “Short Pays”
Attorney David Hume of Scottsdale Arizona has quickly become an authority at helping collision repair shops recover insurance company underpayments. “Last year, through the Automotive Service Association of Arizona, I became aware of the problems collision repair shops are having obtaining fair reimbursement from insurance companies,” stated Hume. “I was amazed at the blatant disregard many insurers have for paying a shops posted labor rates as well as for all of the procedures repairers must follow to properly repair vehicles”. Luz Rubio, Executive Director for the Automobile Service Association of Arizona (ASA AZ) said, “More and more, I am hearing from shop owners that are frustrated by insurer interference in the repair process. Insurance companies are simply refusing to compensate shops for what must be done to ensure that vehicle owners receive a safe and proper repair”. Hume has successfully settled several cases out of court with Metlife, Ameriprise and State Auto on behalf of Jan Vesely, owner of Jan’s Spec-
trum Collision Center in Tempe, AZ. As a result, interest in filing short pay suits is on the rise and several other Arizona collision shop owners have agreed to have Mr. Hume represent them using an Assignment of Proceeds signed by the vehicle owner. All settlements made to date have included reimbursement for Hume’s fees as well as court costs. When asked why he decided to pursue legal action, Vesely said,“Because that seems to be the only way to get it done and the only thing that some insurance companies understand. There has always been a legal aspect to our business but it was little understood by the shops until some attorneys showed us the way, like Erica Eversman, Patrick McGuire, other shops across the country and namely Ray Gunder in Florida. It’s time to work together, level the playing field and take back control of our industry. If we stand on the sidelines and wait for the other guy to do it, it won’t happen.” David Hume can be reached by phone at 602-279-1915 or by email at david.hume@azbar.org.
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