For Immediate Release
Contact: John Myers
john.myers@calchamber.com | press@calchamber.com
Business Coalition Urges Legislature To Reject Senate Bill 310
(Jan. 23, 2026) SACRAMENTO, CA – A historic reform between business groups and labor to reduce abusive lawsuits and expedite recovery for employees is once again under attack, this time by newly amended legislation in the California Legislature.
Senate Bill 310, which failed to move forward in 2025, is back in play and threatens to unleash a torrent of frivolous wage and hour litigation lawsuits against employers of all sizes – the very lawsuits curbed by the deal struck in 2024 to overhaul the state’s Private Attorneys General Act (PAGA).
Last fall, a report by leading employment law firms found that the reform was already leading to faster settlements, more narrowly focused lawsuits, and greater collaboration between employers and employees.
A broad coalition worked hard to craft the PAGA agreement and believes those efforts will be washed away should the newly amended bill move forward.
“SB 310 undermines the PAGA deal in 2024. The recent amendments do not change this,” said CalChamber President & CEO Jennifer Barrera. “Just as businesses are beginning to see benefits from the effort two years ago to curb lawsuit abuse, legislators are offering unscrupulous lawyers a new way to game the system.”
SB 310 would allow attorneys to sidestep state oversight and use the threat of automatic statutory penalties as a tool to leverage higher settlements. It also exposes small businesses to costly litigation instead of utilizing the early resolution process agreed upon in the 2024 PAGA reform.
The organizations that fought to craft the 2024 agreement – the California Chamber of Commerce, the California New Car Dealers Association, the California Restaurant Association, and the Western Growers Association – are asking legislators to reject SB 310 and stand behind the landmark law enacted less than two years ago. In all, more than 120 companies have signaled their opposition to the bill.
“We accomplished so much less than two years ago in the landmark reform proposal endorsed by the Governor and both houses of the Legislature,” said California New Car Dealers Association President Brian Maas. “We urge the Senate to stand by that agreement.”
“The costs to businesses, and ultimately customers, from frivolous lawsuits are staggering,” said Western Growers Association President & CEO Dave Puglia. “SB 310 would easily re-open those floodgates.”
“Simply put, SB 310 is bad for business,” said California Restaurant Association President & CEO Jot Condie. “There were good reasons it didn’t move forward last year, and it shouldn’t move forward in 2026.”
“The reemergence of this bill is a bad case of legislative déjà vu,” said California Retailers Association President Rachel Michelin. “Lawsuit abuse was rampant before the PAGA reform we achieved and now is not the time to go backwards.”
