Business Coalition Applauds Key Provisions of New PAGA Regulations

The FixPAGA Coalition, first formed in 2021 to support needed reforms to California’s Private Attorneys General Act (PAGA), issued a statement this week after the release of draft regulations to modify the filings of claims with the state’s Labor and Workforce Development Agency.

The coalition said it is encouraged by much of what it has seen in the Agency’s proposed regulations, noting that the reforms signed into law in 2024 will be successful only if they are carried out with effective regulations.

In particular, the coalition said it supports “the designation of law firms filing more than 200 PAGA notices in a 12-month period as ‘high frequency filers’ that are subject to additional administrative steps.”

According to Agency officials, in the most recent fiscal year, just five law firms submitted nearly one-quarter of all PAGA notice filings. Almost one-fifth of all filings came from just five attorneys.

The coalition voiced support for the Agency’s proposed regulations to label certain filers as “vexatious” when they repeatedly don’t comply with legal notice requirements — a designation that would subject those filers to a screening before they file a PAGA case.

In addition, the coalition commended the Agency for crafting regulations to create a new system for submitting documents that discourages filers from copying and pasting boilerplate notices.

“While we are still reviewing the proposed regulations as a whole, these are positive, important steps into ensuring PAGA works as it was intended,” the coalition statement concluded. “The benefits to businesses, employees and ultimately, consumers will be far-reaching.”

Coalition members include the California Chamber of Commerce, the California New Car Dealers Association, the California Restaurant Association, the California Retailers Association, and the Western Growers Association.