(California Wage/Hour Update, No. 2, April 2011)
The Labor Code gives aggrieved employees the right to file a
claim for unpaid wages and other similar violations with the
Division of Labor Standards Enforcement. These claims are decided
by a deputy labor commissioner in an administrative hearing,
sometimes called a "Berman" hearing. The process is more
streamlined than a proceeding in court, and is "designed to
provide a speedy, informal, and affordable method of resolving wage
claims." If either party does not agree with the deputy labor
commissioner's decision, they can appeal to the superior court
in a process called a "trial de novo."
The California Supreme Court recently ruled on whether a binding
arbitration agreement can require employees to waive their rights
to this administrative hearing. The Supreme Court answered this
question in the negative, holding that an "Employee's
statutory right to seek a Berman hearing, with all the possible
protections that