On August 26, Governor Jerry Brown signed into law an amendment to Section 218.5 of the California Labor Code, which requires courts in lawsuits for the nonpayment of wages, fringe benefits, health and welfare contributions or pension fund contributions to award reasonable attorneys’ fees and costs to the prevailing party. Under the new law, if the prevailing party is not an employee, recovery of attorneys’ fees and costs will only be permitted if the court determines that the employee brought the lawsuit in “bad faith.” However, if the prevailing party in the lawsuit is an employee, an award of reasonable attorneys’ fees and costs is mandatory.