January 31, 2023

Volume XIII, Number 31


January 30, 2023

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California Bill Proposes Three Year Statute of Limitations for Employment Claims

California Assembly Bill 9 (AB 9), sponsored by Assembly Members Eloise Reyes, Laura Friedman, and Marie Waldron, would expand employee protections related to harassment and discrimination in the workplace.

The California Fair Employment and Housing Act makes specified employment and housing practices unlawful, including discrimination against or harassment of employees based on race, sex, age, physical or mental disability, medical condition, sexual orientation, veteran status, and other protected characteristics.

Under existing law, a person making a claim of discrimination or harassment must “file a complaint with the Department of Fair Employment and Housing within one year from the date upon which the last unlawful practice occurred.” In many cases, this is the date upon which an employee is discharged or resigns from employment.

Proposed AB 9 would extend the statute of limitations period to three years for employment complaints, as specified. The bill “would make conforming changes in provisions that grant a person allegedly aggrieved by an unlawful practice who first obtains knowledge of the facts of the alleged unlawful practice after the expiration of the limitations period, as specified.” The bill would not allow this statute of limitations extension to revive previously lapsed claims.

Tripling the California statute of limitations for these claims could cause administrative problems for employers. Many companies have records retention policies that do not contemplate such a lengthy amount of time for a claim to be brought. For those companies with seasonal workers or a transitory workforce, this statute of limitations extension, if passed, would mean a reevaluation of electronic communications retention time frames and require more rigorous recordkeeping. Under existing law, many employment-related claims stretch back two or more years at the time of filing a civil lawsuit, at which point many witnesses have a vague memory of events. Extending the statute of limitations would make it even more challenging to find reliable witnesses. The proposed law, if passed, would require employers to be more thorough when documenting efforts to resolve employee complaints.

© 2023, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.National Law Review, Volume IX, Number 46

About this Author

Karen Tynan, employment lawyer, Ogletree Deakins
Of Counsel

Karen Tynan is an of counsel attorney in the Sacramento office of Ogletree Deakins. Karen is originally from the state of Georgia, and after graduating with honors from the United States Merchant Marine Academy, she worked for Chevron Shipping Company for ten years – sailing as a ship's officer on oil tankers rising to the rank of Chief Officer with her Unlimited Master’s License as well as San Francisco Bay pilotage endorsement.  Karen was the highest ranking woman in the Chevron fleet when she left her seafaring life.  This maritime and petroleum experience is unique among employment...

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Paul Smith Employment Lawyer California Ogletree Deakins

Paul Smith is an associate in the Sacramento Office of Ogletree Deakins. He crafts a practical, client-based approach to the defense of his clients in employment disputes spanning state and federal court, administrative proceedings, and arbitration.

Paul has experience working with small and large employers in matters of single and multi-plaintiff wage and hour disputes. He has also represented employers against allegations of discrimination, harassment, retaliation, and unfair labor practices.

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