California Labor Code 218.5 LC allows employees to recover reasonable attorney’s fees and costs if they win a legal action against their employer for nonpayment of wages, fringe benefits, or health/welfare/pension fund contributions.
The language of the statute reads as follows:
218.5. (a) In any action brought for the nonpayment of wages, fringe benefits, or health and welfare or pension fund contributions, the court shall award reasonable attorney’s fees and costs to the prevailing party if any party to the action requests attorney’s fees and costs upon the initiation of the action. However, if the prevailing party in the court action is not an employee, attorney’s fees and costs shall be awarded pursuant to this section only if the court finds that the employee brought the court action in bad faith. This section shall not apply to an action brought by the Labor Commissioner. This section shall not apply to a surety issuing a bond pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code or to an action to enforce a mechanics lien brought under Chapter 4 (commencing with Section 8400) of Title 2 of Part 6 of Division 4 of the Civil Code.
(b) This section does not apply to any cause of action for which attorney’s fees are recoverable under Section 1194.
Legal Analysis
California Labor Code 218.5 LC mandates courts to award reasonable attorney’s fees and costs to employees (or former employees) who win any legal action against their employer (or former employer) for the nonpayment of
- wages,
- fringe benefits, or
- health or welfare or pension fund contributions
if the employee requested attorney’s fees and costs at the beginning of the action.
Example: Jack sues his employer for failing to pay him overtime wages and requests that the court award him reasonable attorney’s fees and costs in addition to back wages. If Jack wins the lawsuit, the court will grant him reasonable attorney’s fees and costs since he requested it upfront.
Meanwhile, if the employee loses the legal action, the court will award the employer attorney’s fees and costs only if the employee brought the legal action in bad faith.
Note that Labor Code 218.5 LC does not apply to:
- actions brought by the Labor Commissioner,
- actions brought under Section 1194,
- a surety issuing a bond pursuant to Division 3 of the Business and Professions Code, Chapter 9 (commencing with section 7000), and
- actions to enforce a mechanics lien brought under Division 4 of the Civil Code, Part 6, Title 2, Chapter 4 (commencing with section 8400).1
Legal References
- California Labor Code 218.5 LC – Attorney’s fees and costs. See Cruz v. Fusion Buffet, Inc. (Cal. App. 4th Dist. 2020), 271 Cal. Rptr. 3d 269, 57 Cal. App. 5th 221; Dane Elec Corp., USA v. Bodokh (Cal. App. 4th Dist. 2019), 248 Cal. Rptr. 3d 163, 35 Cal. App. 5th 761.