"Unfair Competition Law Does Not Apply to Employees"
Today's Daily Journal has this practice article on the UCL and employment law. The authors argue that "[a]fter Proposition 64, ... Unfair Competition Law plaintiffs must have suffered a competitive injury, such as is suffered by a business or consumer, not simply a monetary loss." (Emphasis added.) I don't see anything in Prop. 64 that supports that conclusion. Before and after Prop. 64, if an employee suffers loss of money or property as a result of an employer's "unfair," "fraudulent," or "unlawful" conduct, there is no reason why the employee cannot seek relief under the UCL. The argument about "competitive" harm existed before Prop. 64 and has been roundly rejected in employment cases (including Cortez, for example). If Prop. 64 changes the definition of "unfair" or "fraudulent" conduct by limiting it to "competitive" harm, as the authors of this article suggest, then it is a substantive amendment that cannot be applied retroactively to pending cases. Comments, anyone?
- posted by Kim Kralowec @ 6:17 AM