Major Wins for Employers, Employees in PAGA Reform Bills

The negotiated legislative agreement that reforms the Private Attorneys General Act (PAGA) includes major wins for employers and employees while saving the business community an expensive campaign and ballot fight.

The agreed upon reforms include the following:

New penalty structure

• Caps penalties on employers acting in good faith who quickly address potential violations brought to their attention.
• Increases penalties on employers who act maliciously, fraudulently, or oppressively in violating labor laws.
• Increasing amount payable to employees from 25% to 35%.

Reduced and streamlined litigation

• Increases opportunities for employers to cure violations, reducing litigation.
• Protects small employers by providing a more robust right-to-cure process through the Labor and Workforce Development Agency (LWDA) to reduce litigation and costs.
• Codifies that a court may limit the scope of claims presented at trial to ensure cases can be managed effectively.

Standing reforms

• Requires the employee to personally experience the alleged violations brought in a claim.

Strengthened state enforcement

• Gives Department of Industrial Relations the ability to expedite hiring and fill vacancies to ensure effective and timely enforcement of employee labor claims.