Governor Brown has signed Senate Bill 462 amending Labor Code Section 218.5 to state that, in an action brought for the non-payment of wages, fringe benefits or health and welfare or pension fund contributions, a prevailing employer may only be awarded attorney’s fees and costs if a court finds that the employee brought the action in bad faith. Prior to the amendment, Labor Code Section 218.5 required a court to award reasonable attorney’s fees and costs in such an action to the prevailing party if any party requested attorney’s fees and costs upon the initiation of the action. The law will become effective on January 1, 2014.
