On June 18, Governor Newsom, Senate Leader McGuire, Assembly Speaker Rivas, as well as business, agriculture, and labor leaders announced a deal to implement major reforms to the Private Attorneys General Act (PAGA).

Ag Council is supportive of the improvements given that PAGA often leads to frivolous litigation and attorneys – not workers – are the ones who benefit. The reforms ensure workers’ labor claims are addressed while incentivizing businesses to comply outside of litigation, which will lower costs.

 

The agreement includes the following:

  • Requires the employee to personally experience the alleged violations.
  • Caps penalties for employers who work to comply with the Labor Code prior to receiving a notice.
  • Boosts the share of penalties that employees receive from 25 percent to 35 percent.
  • Small employers have a stronger right to cure process through the state labor department to lower costs and reduce litigation.
  • Larger employers are given the opportunity for an early resolution in court.
  • Allows for injunctive relief.

The Legislature will move the policy changes forward via legislative vehicles, and the text of those bills has not yet been introduced, as of the date and time of this newsletter.

 

Please click HERE to read more in the FixPAGA announcement.