Think Beating a Settlement Offer Protects You? California's Surprising Ruling Says Otherwise In Wage And Hour Context

The California Court of Appeal ruled that in cases of wage claims, employers cannot recover litigation costs from employees who prevail, despite beating their section 998 offers.

This case emphasizes the supremacy of Labor Code regulations over Code of Civil Procedure section 998 in the context of wage and hour disputes.

The ruling indicates a stronger protective stance for employees, ensuring that even if they achieve less than an employer's offer, they are still shielded from cost awards.

The decision reversed the earlier trial court’s award of costs to California Collision, highlighting that Labor Code sections preclude awarding costs to employers when employees prevail.

Read at Callaborlaw